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what it is
Pool Corp. sells the chemicals, pumps, heaters, parts, and building materials that keep swimming pools running and get new ones built.
how it gets paid
Last year Pool made $5.3B in revenue. maintenance and repair products was the main engine at $2.28B, or 43% of sales.
why growth slowed
Revenue fell 0.4% last year. Fourth-quarter sales slipped 1% to $982 million as hurricane-related repair work faded in Florida and new construction stayed soft.
what just happened
Pool Corp. posted a fourth-quarter miss, with $0.85 in earnings per share versus the $1.01 consensus.
At a glance
A balance sheet — strong enough to weather a downturn
65/100 earnings predictability — reasonably predictable
20.5x trailing p/e — priced about right
2.4% dividend yield — cash in your pocket every quarter
17.0% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
Pool Corp. sells the chemicals, pumps, heaters, parts, and building materials that keep swimming pools running and get new ones built.
This is a picks-and-shovels business for backyard water. You are not betting on one pool brand. You are betting on thousands of recurring repairs, replacements, and maintenance orders moving through a national distributor with about 6,000 employees. That reach helps turn a boring category into 12.5% operating margin (operating margin → profit after running the business → the business still throws off cash).
How they make money
$5.3B
annual revenue · their business grew -0.4% last year
maintenance and repair products
$2.28B
+1.0%
replacement equipment and parts
$1.48B
1.0%
construction materials and pool kits
$0.85B
4.0%
leisure and outdoor products
$0.42B
+2.0%
other distribution sales
$0.27B
0.0%
The products that matter
wholesale distribution to pool pros
Pool Supply Distribution
$5.3B revenue · entire business
it's the whole company: a $5.3B distribution engine serving contractors, retailers, and service companies that keep pools running.
100% of revenue
chemicals, equipment, and parts
Maintenance and Repair Mix
$982M latest quarter
recent quarterly sales came in at $982M, and the mix matters because recurring maintenance demand is steadier than new discretionary installs.
demand signal
seasonal housing-linked spending
Outdoor Leisure Exposure
7.9% net margin
this is where the risk lives: a 7.9% net margin business does not need a big volume miss for profit pressure to show up.
the real swing factor
Key numbers
2.5%
sales outlook
Past sales growth was 11.0%. Now the outlook is 2.5%. Plain English: the easy growth phase is over, so your return needs to come from steadier execution.
17.0%
return on capital
Return on capital → profit earned on the money put into the business → 17.0% says this distributor still turns boring inventory into solid returns.
20.5x
trailing multiple
Trailing P/E → how many dollars investors pay for $1 of past profit → at 20.5x, you are paying for a recovery, not a liquidation.
$1.2B
long-term debt
Debt is 13% of capital, which keeps the balance sheet from becoming the story even if demand stays uneven.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $1.2B (13% of capital)
- net profit margin 8.1% — keeps 8 cents of every dollar in revenue
- return on equity 26% — $0.26 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in POOL 3 years ago → it's now worth $6,560.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Pool Corp. posted a fourth-quarter miss, with $0.85 in earnings per share versus the $1.01 consensus.
Fourth-quarter sales slipped 1% to $982 million as hurricane-related repair work faded in Florida and new construction stayed soft. The bright spot was gross margin, which rose 70 basis points to 30.1% from pricing and supply-chain benefits.
$982M
revenue
$0.85
eps
30.1%
gross margin
the number that mattered
The key number was the 1% sales decline, because this story only works if replacement demand can offset weak new pool construction.
-
pool corp. turned in somewhat soft 2025 fourth-quarter results.
-
sales slipped 1% vs. prior year, to $982 million, reflecting less hurricane-related repair work in florida and still-muted discretionary spending.
-
this offset a slight increase in pricing.
-
the gross margin rose 70 basis points, to 30.1%, which along with pricing, was helped by supply-chain benefits and a better mix.higher operating costs—especially stepped-up technology spending — pushed operating income down to $52 million from $61 million.
-
earnings per share eased to $0.85 from $0.98.
source: company earnings report, 2026
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What could go wrong
the #1 risk is discretionary pool renovation and repair spending staying weak.
high
homeowner pullback
new pool builds, remodels, and higher-ticket equipment upgrades depend on consumers feeling rich enough to care.
the latest quarter already showed it: sales fell 1% to $982M and EPS dropped to $0.85 from $0.98.
med
gross margin gives back the gain
30.1% gross margin was a bright spot. That came from pricing, supply-chain benefits, and mix — none of which are permanent rights.
if gross margin slips back while volume stays soft, a 7.9% net margin does not leave much cushion.
med
storm and seasonality normalization
the company explicitly cited less hurricane-related repair work in Florida. Weather can create demand, and then quietly remove it.
that matters because the revenue base is concentrated in one seasonal category, not spread across unrelated end markets.
med
operating costs keep rising
technology spending already pushed operating income down to $52M from $61M.
if cost growth keeps outrunning sales, even improved gross margin will not translate into better EPS.
all $5.3B of revenue comes from one broad habit — people deciding their pool is worth maintaining, fixing, or upgrading.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin at 30.1%
if margin holds near 30.1% while sales recover, the earnings story improves fast. if margin slips, the multiple gets harder to defend.
trend
sales versus last year
one soft quarter is noise. several in a row means the slowdown is structural, not seasonal.
risk
consumer discretionary demand
watch remodel and equipment commentary. this business feels better when homeowners spend on want-to-have, not just need-to-have items.
calendar
next earnings report
you want to see whether the $0.85 EPS quarter was a dip or the start of a lower earnings base.
Analyst rankings
short-term outlook
below average
momentum score 4. in human-speak, analysts think this is more likely to lag than lead in the near term.
risk profile
average
stability score 3. You are not buying a bunker stock, but this is not a rollercoaster either.
chart momentum
average
technical score 3. The chart is not confirming a strong recovery yet.
earnings predictability
65 / 100
good enough for a distributor, but soft enough that quarterly demand shifts can still surprise you.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 192 buyers vs. 352 sellers in 4q2025. total institutional holdings: 33.7M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$184
$370
$222
current price
$277
target midpoint · +25% from current · 3-5yr high: $485 (+120% · 23% ann'l return)
Want the deeper analysis?
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