Start here if you're new
what it is
Hayward sells the pumps, filters, heaters, and controls that keep your pool running.
how it gets paid
Last year Hayward Hldgs made $1.1B in revenue.
why it's growing
Revenue grew 6.7% last year. Full-year revenue reached $1.12 billion, up 7%, while full-year EPS rose 26% to $0.68.
what just happened
Hayward closed 2025 with EPS of $0.31 in Q4, ahead of the $0.23 consensus by 34.78%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
21.7x trailing p/e — priced about right
9.0% return on capital — nothing to write home about
xvary composite: 53/100 — below average
$0.95 fy2027 eps est
What they do
Hayward sells the pumps, filters, heaters, and controls that keep your pool running.
Hayward wins because pool equipment is not a casual purchase. Once your system is installed, replacement parts and service usually stay inside the same ecosystem, and leaving is painful. That helps turn $1.12 billion of 2025 revenue into a 23.5% operating margin (operating margin → profit after running the business → so what: this is a good parts-and-service machine, not a commodity box seller).
How they make money
$1.1B
annual revenue · their business grew +6.7% last year
total revenue
$1.1B
+6.7%
The products that matter
pool and outdoor living equipment
Pool equipment
$1.12B sales
it's the full $1.12B revenue base today, and it produced a 16.1% net profit margin. if you own HAYW, this is the engine.
entire revenue base
pricing and tech-led mix
Connected product mix
3% price gain in the 2026 setup
management's 2026 plan leans on an expected 3% global price gain plus more technology-enabled equipment. In human-speak: part of next year's growth is expected to come from better price and mix, not just more units.
pricing + mix
earnings conversion
Margin profile
48% gross margin · 23.0% operating margin
this is the hidden product investors are buying. 48% gross margin on a hardware-heavy business is why 21.7x earnings is even arguable.
the key insight
Key numbers
23.5%
operating margin
Operating margin → profit after paying to run the business → so what: Hayward keeps almost 24 cents of every sales dollar before interest and taxes.
$944M
long-term debt
Debt equals 21% of capital, which is workable but leaves less room for mistakes if pool demand softens.
21.7x
trailing p/e
P/E → stock price divided by yearly profit → so what: you are paying over 21 times trailing earnings for a company guiding 4% sales growth.
$18
18-month target
That target is 22% above $14.77, so the upside case exists, but it is not some moonshot hiding in plain sight.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $944M (21% of capital)
- net profit margin 18.9% — keeps 19 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HAYW right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Hayward closed 2025 with EPS of $0.31 in Q4, ahead of the $0.23 consensus by 34.78%.
Full-year revenue reached $1.12 billion, up 7%, while full-year EPS rose 26% to $0.68. The company also guided for about 4% net sales growth in 2026, so the business is improving even as growth cools.
$275M
revenue
$0.37
eps
15.1%
gross margin
the number that mattered
The key number was the 34.78% earnings beat, because it shows Hayward is executing better than analysts expected even in a slower-growth setup.
-
hayward holdings posted solid 2025 financial results.
-
revenue reached $1.12 billion for the pool and outdoor living company, up 7% from the prior year, while gross margins hit an all-time high of 48%.
-
this translated into earnings surging 26%, to $0.68 per share, underpinned by strong operational execution in the north american segment.
-
the company projects around 4% net sales growth for 2026.
-
supported by an expected 3% global price gain, stronger execution, and the adoption of technologyenabled pool equipment.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is record 48% gross margin proving to be the peak, not the baseline.
high
margin normalization
Gross margin reached a record 48% in 2025. That is great news until it becomes the comparison the market expects you to hold.
If margin fades while revenue only grows about 4%, the earnings math that drove 2025 works in reverse.
high
growth deceleration
2025 revenue grew 7%. Management's 2026 setup points to about 4% net sales growth. That is a real slowdown, not rounding noise.
A slower top line leaves less room for any slip in price, mix, or cost control.
low
price-led growth quality
Part of the 2026 plan relies on an expected 3% global price gain and more technology-enabled equipment.
If price sticks but unit demand softens, revenue can still grow while investors start questioning how durable that growth is.
low
securities litigation
The company is dealing with an active securities lawsuit in New Jersey district court.
This is not the whole thesis, but it adds headline risk to a stock with only 35 / 100 price stability.
2025 showed that 7% revenue growth can become 26% EPS growth when gross margin reaches 48%. If 2026 lands closer to the guided about 4% growth and margins stop improving, the premium part of the story disappears fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
the next quarterly report is expected around may 7. You want management to sound as confident about the about 4% sales setup as it did after the 48% margin year.
metric
gross margin after the record 48%
2025 set the benchmark. If gross margin holds near that level, the thesis stays alive. If it falls, the multiple has less to lean on.
trend
whether pricing is covering weaker volume
management expects a 3% global price gain. Watch whether that comes with healthy demand or just offsets softer unit trends.
risk
eps estimate support
FY2026 EPS is still estimated at $0.80. If that starts getting cut while revenue stays around $1.1B, the market is saying 2025 margins were too generous to repeat.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal short-term setup, not a stock with unusual near-term strength.
risk profile
average
stability score 3 — middle of the range, though the 35 / 100 price stability mark tells you this can still swing hard.
chart momentum
top 20%
technical score 2 — the chart looks better than the growth outlook. Welcome to a market that noticed margin improvement before it decided what it means.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 117 buyers vs. 78 sellers in 4q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$12
$23
$15
current price
$18
target midpoint · +22% from current · 3-5yr high: $40 (+170% · 28% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive