Latham Group (NASDAQ:SWIM) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

05 Mar 2026, 13:50 by Danessa Lincoln · The Markets Daily

Latham Group (NASDAQ:SWIM – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.03, FiscalAI reports. The business had revenue of $99.95 million for the quarter, compared to analyst estimates of $95.86 million. Latham Group had a net margin of 2.04% and a return on equity of 2.81%.

Here are the key takeaways from Latham Group’s conference call:

Strong financial results: Q4 net sales were $100M (+15%) and full-year sales were $546M (+7%), with Adjusted EBITDA of $100M (Adj. EBITDA margin 18.3%) and gross‑margin expansion of ~320–340 bps year‑over‑year.
Fiberglass momentum and Sand‑State strategy: Fiberglass accounted for 76.5% of in‑ground pool sales, Latham estimates Fiberglass penetration rose to ~24% of U.S. starts, and management plans increased marketing/dealer development to accelerate conversion in high‑opportunity Sand States (Florida showed double‑digit growth).
Covers and digital tools driving share gains: Auto cover sales grew ~22% in 2025 (covers FY sales $161M), and the Measure/Measure Pro/Measure Go tools helped convert installers (≈20% of tool buyers were new to Latham), supporting liner and safety‑cover share gains.
Acquisitions, capital moves and 2026 guidance: Latham closed the Freedom Pools deal (expected +$20M sales, +$4M Adj. EBITDA annually), purchased four production sites, ended 2025 with $71M cash and $280M debt (net leverage 2.1), and guided 2026 sales of $580–610M and Adj. EBITDA $105–120M with higher CapEx of $42–48M.
Market risks and demand uncertainty: Management expects U.S. in‑ground pool starts roughly flat vs. 2025 and noted headwinds (interest rates, consumer confidence, weather); Texas permits declined double‑digits, so execution and macro stability are needed to sustain outperformance.

Latham Group Price Performance

Shares of NASDAQ SWIM opened at $7.20 on Thursday. The stock has a market capitalization of $839.95 million, a PE ratio of 80.00 and a beta of 1.70. The company has a debt-to-equity ratio of 0.68, a current ratio of 2.43 and a quick ratio of 1.72. The business has a fifty day moving average price of $6.56 and a two-hundred day moving average price of $7.06. Latham Group has a fifty-two week low of $4.56 and a fifty-two week high of $8.97.

Trending Headlines about Latham Group

Here are the key news stories impacting Latham Group this week:

Positive Sentiment: Management set FY2026 net-sales guidance of $580M–$610M (above consensus ~$569.8M) and targets mid‑single-digit sales growth with double‑digit adjusted‑EBITDA growth at the midpoint — a clear growth/earnings improvement signal. Guidance Article
Positive Sentiment: Latham closed the acquisition of Freedom Pools (Australia/New Zealand); company says the deal is immediately accretive and materially expands its ANZ footprint, supporting international growth and the 2026 sales target. Freedom Pools Acquisition
Positive Sentiment: Q4 results: net sales ~$100.0M (+14.5% YoY) and revenue beat; GAAP loss narrowed and adjusted EBITDA expanded sharply to 10.5% of sales — the operational margin recovery likely reassured investors. Earnings Release
Positive Sentiment: Analyst support increased: Stifel raised its PT to $9.50 and keeps a buy rating; Barclays bumped its PT to $8.00 (equal weight). Upgrades/raises amplify buying interest following the prints and guidance. Stifel PT Raise Barclays Note
Neutral Sentiment: Full Q4 earnings call transcript and slide presentation are available for investors digging into segment/margin commentary and M&A details. Useful for modeling 2026 assumptions. Earnings Call Transcript Slide Deck
Neutral Sentiment: Third‑party coverage summarized the quarter as a narrower loss and a revenue beat — confirms the market’s interpretation but adds no new material facts. Zacks Summary
Negative Sentiment: GAAP net loss of $7.0M in Q4 (though improved vs. prior year) remains a reminder that profitability is still normalizing and investors will watch whether adjusted EBITDA cadence translates to consistent GAAP profits. GAAP Results

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Empowered Funds LLC lifted its position in Latham Group by 7.4% during the first quarter. Empowered Funds LLC now owns 405,207 shares of the company’s stock worth $2,605,000 after purchasing an additional 27,916 shares during the period. Jane Street Group LLC raised its position in shares of Latham Group by 27.1% in the 1st quarter. Jane Street Group LLC now owns 24,894 shares of the company’s stock valued at $160,000 after buying an additional 5,315 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Latham Group by 9.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 21,950 shares of the company’s stock worth $140,000 after acquiring an additional 1,978 shares during the period. Rhumbline Advisers boosted its position in shares of Latham Group by 2.7% during the 2nd quarter. Rhumbline Advisers now owns 63,639 shares of the company’s stock worth $406,000 after acquiring an additional 1,672 shares in the last quarter. Finally, The Manufacturers Life Insurance Company increased its stake in Latham Group by 12.7% in the second quarter. The Manufacturers Life Insurance Company now owns 18,096 shares of the company’s stock valued at $115,000 after acquiring an additional 2,038 shares during the last quarter. Institutional investors and hedge funds own 83.95% of the company’s stock.

Analysts Set New Price Targets

Several research firms have recently commented on SWIM. Stifel Nicolaus upped their target price on Latham Group from $8.75 to $9.50 and gave the company a “buy” rating in a research report on Wednesday. Barclays boosted their price target on Latham Group from $7.00 to $8.00 and gave the company an “equal weight” rating in a research note on Wednesday. William Blair reiterated an “outperform” rating on shares of Latham Group in a research report on Wednesday. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Latham Group in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Latham Group currently has a consensus rating of “Hold” and a consensus target price of $7.33.

Check Out Our Latest Stock Analysis on Latham Group

Latham Group Company Profile

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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.