NYSE$HAYW

Hayward Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hayward Holdings reported a decrease in net sales due to lower volumes, partially offset by favorable pricing and acquisitions, and distribution channel destocking.

Hayward Holdings reported a decrease in net sales by 29% to $283.5 million. Net income decreased by 56% to $29.5 million, and diluted EPS decreased by 54% to $0.13. The company is refining its full year 2023 guidance to reflect incremental reductions in channel inventory levels and better than expected margins. For the full fiscal year 2023, Hayward expects net sales to decrease 20% to 23% and Adjusted EBITDA* of $265 million to $280 million.

  • Net sales decreased by 29% to $283.5 million.
  • Net income decreased by 56% to $29.5 million.
  • Diluted EPS decreased by 54% to $0.13.
  • Adjusted EBITDA decreased by 38% to $79.5 million.

Headline financials

Total Revenue

$284M

Previous: $399M-29.0%
EPS (adj)

$0.19

Previous: $0.29-34.5%
Adjusted EBITDA

$79.5M

Previous: $128M-37.7%
Adjusted EBITDA Margin

28.0%

Previous: 32.0%-12.5%
Capital Expenditures

-$15.7M

Previous: -$15.9M+1.0%
Free Cash Flow

$13.8M

Previous: $50.4M-72.7%
Net Income

$29.5M

Previous: $66.3M-55.5%
Operating Income

$63M

Previous: $103M-38.7%
Gross Profit

$137M

Previous: $189M-27.9%
Cash & Equivalents

$205M

Previous: $109M+88.1%
Total Assets

$2.88B

Previous: $2.98B-3.3%
Stock-Based Comp

$2.1M

Previous: $1.99M+5.4%

Revenue & EPS history

Hayward · Revenue · Quarterly

$284M

Q2 2023-29%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Hayward is refining its full year 2023 guidance to reflect incremental reductions in channel inventory levels and better than expected margins. For the full fiscal year 2023, Hayward expects net sales to decrease 20% to 23% and Adjusted EBITDA of $265 million to $280 million.

Tailwinds

  • We remain positive about the health of the pool industry, particularly the strength of the ever-increasing aftermarket, representing approximately 80% of the business.
  • The industry continues to benefit from secular demand tailwinds, including outdoor living, sunbelt migration, smart home technology adoption, and environmentally sustainable products.
  • Hayward is confident in its ability to successfully execute in an evolving environment in the near-term and its long-term outlook for robust growth
  • Hayward is confident in its ability to generate cash flow, driven by new product innovation
  • Hayward is confident in its ability to expand commercial relationships, and drive operational excellence.

Headwinds

  • Hayward expects net sales to decrease 20% to 23%
  • Distribution channel destocking
  • Moderation of end-market demand due to macroeconomic factors.
  • Operating margin decreased 350 basis points to 22.2% due to lower sales.
  • Adjusted EBITDA margin decreased 400 basis points to 28.0%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.4%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+22.4%

Q1 2021

Best reaction

-14.9%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.7%-8.9%-10.7%
Q4 2025-4.6%+2.0%-15.6%
Q3 2025+11.8%+8.0%+7.3%
Q1 2025+5.2%+3.7%+4.7%
Q4 2024+2.6%-1.3%-4.5%
Q3 2024+12.2%+9.1%+9.3%
Q2 2024+9.6%+4.5%+8.8%
Q1 2024+4.5%+7.0%+7.2%
Q4 2023+9.5%+6.0%+17.0%
Q3 2023-7.8%-3.1%+2.5%
Q2 2023+9.3%+12.5%+10.9%
Q1 2023+0.2%-4.4%-8.1%
Q4 2022-4.2%-3.5%-11.0%
Q3 2022-4.1%-2.9%+3.6%
Q2 2022-14.9%-15.6%-19.8%
Q1 2022+2.6%-3.8%+0.4%
Q4 2019+3.5%-4.5%-0.5%
Q4 2021-2.8%-7.7%-4.3%
Q3 2021-5.2%-5.1%+2.4%
Q3 2020-5.2%-5.1%+2.4%
Q2 2021-0.5%-5.4%-12.1%
Q2 2020-0.5%-5.4%-12.1%
Q1 2020-1.6%+0.0%+0.5%
Q4 2020-1.6%+0.0%+0.5%
Q1 2021+22.4%+21.8%+26.0%

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