Overview

* Latham Group ( SWIM ) Q3 net sales grow 7.6% but miss analyst expectations

* Adjusted EBITDA for Q3 beats analyst estimates, reflecting strong operational performance

* Gross margin expanded by 300 basis points due to acquisitions and operational efficiencies

Outlook

* Latham narrows 2025 net sales guidance to $540-$550 mln

* Adjusted EBITDA guidance for 2025 revised to $92-$98 mln

* Capital expenditure estimate for 2025 reduced to $22-$24 mln

Result Drivers

* FIBERGLASS POOLS - Increased adoption of fiberglass pools contributed significantly to sales growth, particularly in Sand State markets

* AUTOCOVERS AND LINERS - Sales growth driven by increased adoption rates for autocovers and success of Measure by Latham tool for liners

* MARGIN EXPANSION - Gross margin increased due to acquisitions and operational efficiencies from lean manufacturing and value engineering

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $161.9 $165.80

mln mln (8

Analysts

)

Q3 EPS $0.07

Q3 Net $8.1 mln

Income

Q3 Beat $38.3 $35.57

Adjusted mln mln (7

EBITDA Analysts

)

Q3 Gross 35.4%

Margin

Q3 23.7%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the recreational products peer group is "buy"

* Wall Street's median 12-month price target for Latham Group Inc ( SWIM ) is $8.00, about 9.1% above its November 3 closing price of $7.27

* The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)