NYSE$HAYW

Hayward Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hayward's Q2 2024 financial performance showed increased net sales, net income, and adjusted EBITDA, driven by operational efficiencies and strategic acquisitions.

Hayward Holdings reported a modest increase in net sales to $284.4 million and a 28% increase in net income to $37.6 million for the second quarter of fiscal year 2024. The company saw improvements in gross profit and operating income, along with a strategic acquisition of ChlorKing. However, the company is experiencing a more challenging demand environment, particularly in new construction and remodels and certain international markets.

  • Net sales increased modestly to $284.4 million.
  • Net income increased 28% year-over-year to $37.6 million.
  • Gross profit increased by 6% to $145.1 million with gross profit margin increasing 290 basis points to 51.0%.
  • Diluted EPS increased by 31% to $0.17, and adjusted diluted EPS increased by 11% to $0.21.

Headline financials

Total Revenue

$284M

Previous: $284M+0.3%
EPS

$0.17

Previous: $0.19-10.5%
Adjusted EBITDA

$82.6M

Previous: $79.5M+3.9%
Adjusted EBITDA Margin

29.0%

Previous: 28.0%+3.6%
Operating Margin

23.9%

No prior period
Net Income Margin

13.2%

No prior period
Capital Expenditures

-$10.7M

Previous: -$15.7M+31.8%
Free Cash Flow

$26.9M

Previous: $13.8M+95.5%
Net Income

$37.6M

Previous: $29.5M+27.6%
Operating Income

$68M

Previous: $63M+8.0%
Gross Profit

$145M

Previous: $137M+6.3%
Cash & Equivalents

$215M

Previous: $205M+4.9%
Total Assets

$2.86B

Previous: $2.88B-0.7%
R&D Expense

$6.12M

No prior period
Stock-Based Comp

$2.65M

Previous: $2.1M+26.2%

Revenue & EPS history

Hayward · Revenue · Quarterly

$284M

Q2 2024+0.3%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Hayward is narrowing its full-year 2024 guidance, reflecting better than expected margins offset by a more challenging demand environment. The company now expects net sales of $1.010 billion to $1.040 billion and adjusted EBITDA of $255 million to $270 million.

Tailwinds

  • Net sales are expected to increase by approximately 2% to 5% from fiscal year 2023.
  • The ChlorKing acquisition is expected to contribute approximately 1% to net sales.
  • Adjusted EBITDA is projected to increase by approximately 3% to 9% from fiscal year 2023.
  • Hayward continues to leverage competitive advantages and drive adoption of SmartPad™ pool equipment products.
  • The company anticipates long-term profitable growth and robust cash flow generation.

Headwinds

  • The company is facing a more challenging demand environment, particularly in new construction and remodels.
  • Certain international markets are experiencing weaker demand.
  • Economic and interest rate environment remains uncertain.
  • Progressively leaner channel inventory positions are being observed.
  • Full-year 2024 net sales guidance narrowed from $1.010-1.060 billion to $1.010-1.040 billion.

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 2024

Historical avgQ2 2024

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro