Latham Group (NASDAQ:SWIM) Releases Quarterly Earnings Results

Latham Group (NASDAQ:SWIM) announced its earnings results on Tuesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.05), FiscalAI reports. Latham Group had a net margin of 1.55% and a return on equity of 2.13%. The business had revenue of $197.47 million for the quarter, compared to analysts’ expectations of $188.39 million.

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 Stock Up 1.1%

Shares of Latham Group stock traded up $0.06 during trading on Tuesday, hitting $5.70. 1,012,193 shares of the stock traded hands, compared to its average volume of 842,975. The company has a current ratio of 1.88, a quick ratio of 1.16 and a debt-to-equity ratio of 0.70. The stock’s fifty day simple moving average is $5.76 and its 200 day simple moving average is $5.94. The firm has a market cap of $669.24 million, a P/E ratio of 81.43, a price-to-earnings-growth ratio of 0.92 and a beta of 1.65. Latham Group has a 52-week low of $4.64 and a 52-week high of $8.97.

Insider Activity

In other Latham Group news, CFO Oliver C. Gloe bought 15,050 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were acquired at an average price of $4.90 per share, with a total value of $73,745.00. Following the transaction, the chief financial officer owned 540,758 shares of the company’s stock, valued at approximately $2,649,714.20. This trade represents a 2.86% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director James E. Cline purchased 50,000 shares of Latham Group stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $4.84 per share, with a total value of $242,000.00. Following the acquisition, the director owned 100,000 shares in the company, valued at approximately $484,000. This represents a 100.00% 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

A number of large investors have recently bought and sold shares of SWIM. Wellington Management Group LLP boosted its position in Latham Group by 216.4% during the fourth quarter. Wellington Management Group LLP now owns 6,749,349 shares of the company’s stock valued at $42,858,000 after purchasing an additional 4,616,367 shares in the last quarter. Citadel Advisors LLC raised its holdings in Latham Group by 206.5% in the third quarter. Citadel Advisors LLC now owns 4,620,114 shares of the company’s stock worth $35,159,000 after purchasing an additional 3,112,708 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Latham Group by 36.7% during the third quarter. Vanguard Group Inc. now owns 3,257,228 shares of the company’s stock valued at $24,788,000 after buying an additional 873,903 shares during the last quarter. Wasatch Advisors LP lifted its position in shares of Latham Group by 29.5% during the second quarter. Wasatch Advisors LP now owns 3,116,247 shares of the company’s stock valued at $19,882,000 after buying an additional 709,368 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Latham Group by 279.9% in the 3rd quarter. Invesco Ltd. now owns 465,046 shares of the company’s stock valued at $3,539,000 after buying an additional 342,636 shares in the last quarter. Institutional investors own 83.95% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have commented on SWIM. Weiss Ratings raised Latham Group from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, May 7th. The Goldman Sachs Group reissued a “sell” rating on shares of Latham Group in a research note on Wednesday, May 6th. Bank of America cut their price target 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. Wall Street Zen downgraded shares of Latham Group from a “buy” rating to a “hold” rating in a research note on Sunday, April 12th. Finally, Barclays decreased their price objective on shares of Latham Group from $8.00 to $7.00 and set an “equal weight” rating for the company in a report on Wednesday, April 8th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $7.50.

Latham Group Company Profile

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.