Latham Group (NASDAQ:SWIM) Posts Earnings Results, Misses Estimates By $0.05 EPS

Latham Group (NASDAQ:SWIM) posted its quarterly earnings results on Tuesday. The company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.05), FiscalAI reports. The firm had revenue of $197.47 million during the quarter, compared to analyst estimates of $188.39 million. Latham Group had a net margin of 0.92% and a return on equity of 1.32%.

Here are the key takeaways from Latham Group’s conference call:

• Raised full-year 2026 guidance: Management increased the midpoint of sales growth guidance to 11.7% from 9% and adjusted EBITDA growth to 15.2% from 12.7%, citing stronger demand, share gains, and expected operating leverage.
• Second-quarter sales rose 14% year over year to $197 million, including 10% organic growth, with particularly strong in-ground pool sales and fiberglass pool demand. Consumer leads increased 60%, website traffic rose 30%, and July sales trends were tracking toward guidance.
• The Sand States strategy continued to gain traction, with double-digit sales growth in Florida and across the region. Latham plans to expand its targeted market-development approach into Texas, followed by Arizona and California, while funding much of the expansion through internal cost optimization.
• Gross margin fell 160 basis points to 35.5% because the rapid demand surge caused under-absorption, inventory drawdowns, and accelerated hiring, training, and overtime costs. Management expects to recover most of the approximately $2.8 million headwind over the next two quarters, but higher transportation and commodity costs may require further pricing actions.
• Adjusted EBITDA increased 12% to $45 million, while management expects year-end net leverage below 2.0 times versus 2.2 times at quarter-end. This is intended to preserve flexibility for reinvestment, selective acquisitions, and potentially returning capital to shareholders.

Latham Group Trading Down 1.8%

Shares of NASDAQ SWIM traded down $0.14 during midday trading on Thursday, reaching $7.17. 518,606 shares of the stock were exchanged, compared to its average volume of 859,734. The business has a 50-day simple moving average of $5.81 and a two-hundred day simple moving average of $5.94. The company has a market capitalization of $841.26 million, a price-to-earnings ratio of 143.30, a P/E/G ratio of 0.97 and a beta of 1.65. Latham Group has a 12 month low of $4.64 and a 12 month high of $8.97. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.88 and a quick ratio of 1.16.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Latham Group in a research report on Tuesday. The Goldman Sachs Group reaffirmed a “sell” rating on shares of Latham Group in a report on Wednesday, May 6th. Wall Street Zen downgraded shares of Latham Group from a “buy” rating to a “hold” rating in a research report on Sunday, April 12th. Bank of America decreased their price objective on shares of Latham Group from $7.00 to $6.00 and set an “underperform” rating on the stock in a report on Monday, April 20th. Finally, Barclays dropped their target price on shares of Latham Group from $8.00 to $7.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 8th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Latham Group has an average rating of “Hold” and an average price target of $7.50.

Insiders Place Their Bets

In other news, Director James E. Cline acquired 50,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average price of $4.84 per share, for a total transaction of $242,000.00. Following the transaction, the director directly owned 100,000 shares in the company, valued at approximately $484,000. This represents a 100.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Oliver C. Gloe acquired 15,050 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The shares were acquired at an average cost of $4.90 per share, for a total transaction of $73,745.00. Following the purchase, the chief financial officer directly owned 540,758 shares in the company, valued at $2,649,714.20. This trade represents a 2.86% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 3.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Latham Group

Institutional investors have recently modified their holdings of the business. Rhumbline Advisers increased its position in shares of Latham Group by 2.7% in the second quarter. Rhumbline Advisers now owns 63,639 shares of the company’s stock valued at $406,000 after acquiring an additional 1,672 shares during the last quarter. Deutsche Bank AG boosted its position in Latham Group by 5.1% during the fourth quarter. Deutsche Bank AG now owns 35,682 shares of the company’s stock valued at $227,000 after purchasing an additional 1,721 shares during the last quarter. Squarepoint Ops LLC boosted its position in Latham Group by 5.5% during the third quarter. Squarepoint Ops LLC now owns 35,978 shares of the company’s stock valued at $274,000 after purchasing an additional 1,873 shares during the last quarter. BNP Paribas Financial Markets grew its stake in Latham Group by 83.9% in the second quarter. BNP Paribas Financial Markets now owns 4,211 shares of the company’s stock valued at $27,000 after purchasing an additional 1,921 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its position in shares of Latham Group by 9.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 21,950 shares of the company’s stock worth $140,000 after purchasing an additional 1,978 shares during the last quarter. Institutional investors own 83.95% of the company’s stock.

About Latham Group

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.