Hayward (NYSE:HAYW) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Hayward (NYSE:HAYW) posted its quarterly earnings data on Wednesday. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.03, FiscalAI reports. Hayward had a return on equity of 11.45% and a net margin of 13.98%.The firm had revenue of $318.38 million during the quarter, compared to analyst estimates of $303.35 million. 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 Up 2.8%

Hayward stock traded up $0.43 during midday trading on Wednesday, reaching $15.54. The stock had a trading volume of 1,792,750 shares, compared to its average volume of 2,376,785. The company has a fifty day moving average price of $14.98 and a two-hundred day moving average price of $15.11. Hayward has a 12 month low of $12.93 and a 12 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 $3.37 billion, a P/E ratio of 21.29, a PEG ratio of 1.53 and a beta of 1.07.

Analyst Ratings Changes

HAYW has been the subject of several recent analyst reports. Bank of America decreased their target price on Hayward from $19.00 to $18.00 and set a “buy” rating for the company in a research note on Monday, April 20th. Weiss Ratings cut Hayward from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, July 15th. Jefferies Financial Group reaffirmed a “hold” rating and set a $15.00 price objective (down from $16.00) on shares of Hayward in a research report on Tuesday, March 31st. Cantor Fitzgerald reiterated a “neutral” rating on shares of Hayward in a research note on Monday, July 6th. Finally, Zacks Research downgraded shares of Hayward from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $17.50.

Insider Activity at Hayward

In other news, SVP Susan M. Canning acquired 2,242 shares of Hayward stock in a transaction on Thursday, April 30th. The stock was purchased at an average price of $12.76 per share, with a total value of $28,607.92. Following the completion of the purchase, the senior vice president owned 103,837 shares of the company’s stock, valued at approximately $1,324,960.12. The trade was a 2.21% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Kevin Holleran sold 120,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $17.28, for a total value 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 represents a 14.61% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 222,389 shares of company stock worth $3,649,544. Corporate insiders own 4.73% of the company’s stock.

Institutional Inflows and Outflows

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

About Hayward

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.