Hayward (NYSE:HAYW) Posts Earnings Results, Beats Estimates By $0.02 EPS

Hayward (NYSE:HAYW) issued its quarterly earnings data on Wednesday. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02, FiscalAI reports. Hayward had a return on equity of 11.45% and a net margin of 13.98%.The business had revenue of $318.38 million for the quarter, compared to the consensus estimate of $303.35 million. During the same period last year, the business earned $0.24 EPS. The firm’s revenue was up 6.3% compared to the same quarter last year. Hayward updated its FY 2026 guidance to 0.840-0.870 EPS.

Here are the key takeaways from Hayward’s conference call:

• Strong first-half performance: Second-quarter sales rose 6% to $318 million, while first-half sales and adjusted EBITDA increased 9% and adjusted diluted EPS rose 18% to $0.26. North America delivered 9% quarterly growth, including 2% volume growth.
• Full-year outlook maintained: Hayward continues to expect 2026 net sales growth of approximately 5%, adjusted diluted EPS growth of 9%-13% to $0.84-$0.87, and free cash flow of about $200 million.
• Balance sheet strengthened: Debt refinancing extended the term-loan maturity to 2033 and is expected to reduce annual interest expense by approximately $6 million. Net leverage declined to 1.5 times, while the company repurchased $64 million of shares in the first half.
• International markets remained weak: Europe and Rest of World sales declined 8% in the second quarter, including a 16% decline in Rest of World, primarily due to macroeconomic and geopolitical disruptions tied to conflicts in Ukraine and the Middle East.
• Cost pressures weighed on margins: Gross margin fell 50 basis points year over year to 48.7% as specialty metals, freight, resin, and other inflationary pressures preceded the full benefit of surcharges and mitigation actions. Management expects normal seasonal margin pressure in the third quarter, though it still targets full-year margins roughly in line with 2025.

Hayward Stock Performance

HAYW stock traded down $0.01 during trading on Thursday, reaching $15.23. 454,221 shares of the stock were exchanged, compared to its average volume of 2,403,429. Hayward has a twelve month low of $12.93 and a twelve month high of $17.73. The company has a current ratio of 3.26, a quick ratio of 2.47 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $3.31 billion, a P/E ratio of 20.73, a price-to-earnings-growth ratio of 1.59 and a beta of 1.07. The stock has a 50 day simple moving average of $15.01 and a 200-day simple moving average of $15.11.

Insider Activity at Hayward

In other news, CEO Kevin Holleran sold 120,000 shares of Hayward stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $17.28, for a total transaction of $2,073,600.00. Following the sale, the chief executive officer owned 701,234 shares of the company’s stock, valued at approximately $12,117,323.52. This trade represents a 14.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 222,389 shares of company stock valued at $3,649,544. 4.73% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hayward

A number of institutional investors have recently bought and sold shares of HAYW. JPMorgan Chase & Co. raised its stake in shares of Hayward by 2.0% in the 4th quarter. JPMorgan Chase & Co. now owns 11,911,977 shares of the company’s stock valued at $184,040,000 after buying an additional 228,397 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Hayward by 9.1% in the 3rd quarter. Wellington Management Group LLP now owns 7,546,816 shares of the company’s stock valued at $114,108,000 after purchasing an additional 627,866 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Hayward by 5.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 6,692,591 shares of the company’s stock worth $103,406,000 after buying an additional 321,214 shares in the last quarter. State Street Corp lifted its position in shares of Hayward by 7.7% during the 4th quarter. State Street Corp now owns 6,045,822 shares of the company’s stock worth $93,408,000 after buying an additional 430,238 shares during the period. Finally, Morgan Stanley boosted its stake in Hayward by 0.5% in the 4th quarter. Morgan Stanley now owns 5,149,647 shares of the company’s stock valued at $79,562,000 after buying an additional 25,470 shares in the last quarter.

Analysts Set New Price Targets

A number of equities analysts have recently commented on HAYW shares. Cantor Fitzgerald reissued a “neutral” rating on shares of Hayward in a research report on Monday, July 6th. KeyCorp reiterated a “sector weight” rating on shares of Hayward in a report on Monday, July 20th. Bank of America cut their target price on shares of Hayward from $19.00 to $18.00 and set a “buy” rating for the company in a research report on Monday, April 20th. Weiss Ratings downgraded Hayward from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, July 15th. Finally, The Goldman Sachs Group reissued a “neutral” rating on shares of Hayward in a research report on Wednesday. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $17.50.

Hayward Company Profile

Hayward Holdings, Inc is a leading manufacturer and marketer of residential and commercial swimming pool equipment and related outdoor living products. The company designs, engineers and produces a comprehensive range of products that address water circulation, filtration, heating, sanitation, automation, lighting and cleaning needs for pools and spas. Hayward’s offerings include pumps, filters, heaters, salt and chemical sanitization systems, automation controls, lights, robotic cleaners and various accessories that serve both new pool construction and aftermarket renovation markets.

Hayward’s product portfolio is organized into several core categories.