Education
About Us
Working with TipRanks
Follow Us
Hayward Holdings (HAYW)
NYSE:HAYW
Top Page
Hayward Holdings
(NYSE:HAYW)
Select Model
Select Model
Rating:70Outperform
Price Target:
$17.00
▲(9.11% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by improved financial strength (sharp deleveraging) and solid cash generation/profitability, reinforced by constructive 2026 guidance and positive strategic execution noted on the earnings call. Offsetting these strengths are weak near-term technical momentum and only moderate valuation support given the ~25x P/E and no dividend.
Positive Factors
Dramatic deleveraging / stronger balance sheet
Hayward's 2025 reduction of debt to roughly $13M versus about $1.59B of equity materially lowers financial risk and interest burden. This durable capital structure improvement enhances liquidity, supports opportunistic M&A/capex, and gives management flexibility through business cycles.
Consistent and growing free cash flow generation
Persistent, rising FCF (c.$227M in 2025) signals high cash conversion from operations, enabling durable funding for modernization capex, deleveraging and shareholder actions. Strong cash generation underpins strategic investments and reduces reliance on external financing over multiple years.
Product ecosystem expansion (OmniX) and aftermarket opportunity
Building the OmniX ecosystem and new SKUs creates a platform effect: higher attach rates, recurring aftermarket sales, and differentiation versus commodity suppliers. Addressing millions of un-automated pools supports steady upgrade-driven revenue and margin resilience over the medium term.
Negative Factors
Earnings and cash-flow cyclicality
Historical volatility in earnings and cash flow shows Hayward's sensitivity to demand cycles and working-capital swings. This structural cyclicality can complicate multi-year planning, pressure margins in downturns, and limit predictability for capital allocation and investor returns.
Dependence on pricing amid weak new construction
With new-build demand subdued, Hayward must rely on price increases and retrofit/upgrades for growth. Pricing dependence is structurally risky if competition, regulation, or weaker consumer spend limits pass-through, making revenue growth and margin expansion less certain over the medium term.
Rising SG&A and margin pressure from compensation & one-time costs
Higher compensation, integration costs and one-time charges compressed operating margins despite gross margin gains. If elevated SG&A or variable pay becomes structural, it can erode operating leverage and slow long-term margin recovery even as gross margins improve.
Hayward Holdings (HAYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.38B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)22.8
Beta (1Y)0.89
Revenue Growth9.66%
EPS Growth44.17%
CountryUS
Employees1,934
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.29
Shares Outstanding217,207,660
10 Day Avg. Volume1,714,293
30 Day Avg. Volume1,470,311
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)2.10
Price to Sales (P/S)2.98
P/FCF Ratio14.82
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda10.20
Forecast
1Y Price Target
$17.83Price Target Upside14.44% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.84
Revenue Forecast (FY)$1.17B
Hayward Holdings Business Overview & Revenue Model
Company DescriptionHayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers residential and commercial pool equipment, including pumps, filters, heaters, automatic pool cleaners, LED lighting, Internet of things enabled controls, alternate sanitizers, and water features. It sells its products through specialty distributors, retailers, and buying groups. Hayward Holdings, Inc. was founded in 1925 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyHayward generates revenue through the sale of its extensive range of pool and spa equipment and accessories. Its core revenue streams include the direct sale of products to pool builders, retailers, and distributors. The company also benefits from a growing demand for energy-efficient and smart pool solutions, which has led to increased sales of its advanced control systems and automation products. Additionally, Hayward has established strategic partnerships with various distributors and retailers, enhancing its market reach and driving sales growth. The company may also see revenue from after-sales services and support, further contributing to its overall earnings.
Hayward Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial achievements — double-digit margin expansion over multi-year horizons, record gross margins, consistent top-line growth, robust free cash flow and meaningful deleveraging. Management also highlighted tangible product innovation (OmniX and new product categories), active supply-chain realignment and a disciplined capital allocation framework. Near-term headwinds include Q4 adjusted EBITDA margin compression driven by higher variable compensation and one-time charges, SG&A growth, presentation effects from warranty accounting, regional volatility and dependence on pricing to meet 2026 guidance. On balance, the positive financial results, cash generation, strategic investments and clear roadmap for growth significantly outweigh the listed challenges.Q4-2025 Updates
Positive Updates
Top-Line Growth
Net sales increased 7% in Q4 to $349 million and 7% for fiscal 2025 to $1.122 billion, outperforming guidance and reflecting price gains and contribution from the ChlorKing acquisition.
Record Gross Margin Expansion
Gross margin reached a record for the year at 48% and expanded to 48.5% in Q4 (up 160 bps year-over-year and 70 bps sequentially). Adjusted gross profit grew 10% in Q4 to $169 million and 11% for the full year to $539 million.
Profitability and EPS Improvement
Adjusted EBITDA increased 4% in Q4 to $103 million and 8% for fiscal 2025 to $299 million. Adjusted diluted EPS rose 7% in Q4 to $0.29 and 15% for the full year to $0.77.
Strong Cash Flow and Deleveraging
Free cash flow increased 20% year-over-year, represented nearly 150% of net income in 2025, increased liquidity by $164 million and reduced net leverage to 1.9x by year-end.
North America Segment Strength
North America sales up 8% in Q4 to $309 million with record North America margins (50.1% in Q4 and 49.9% for the year). Canada delivered double-digit improvement and ChlorKing contributed to commercial strength.
Product Innovation and Market Expansion (OmniX and New SKUs)
Launched and expanded OmniX automation ecosystem (now OmniX-enabled on all new variable speed pumps and gas heaters), introduced OmniX-enabled 4-horsepower pumps (addressing larger residential/small commercial segment), ColorLogic LED landscape lights, TracJet pressure cleaner and drop-in pumps for Europe — targeting a large aftermarket opportunity (estimated ~3.5 million U.S. pools lacking automation).
Supply Chain & Tariff Mitigation
Reduced U.S. cost-of-sale exposure to China from ~10% to ~3% in 2025 and offset tariff impacts through pricing and operational improvements; management characterizes tariffs as a managed variable rather than a structural headwind.
Disciplined Capital Allocation & 2026 Guidance
Announced 2026 outlook: net sales roughly +4%, adjusted diluted EPS $0.82–$0.86 (≈ +6% to +12%), free cash flow ~ $200 million, higher CapEx of ~$40 million to modernize U.S. manufacturing, continued opportunistic M&A and share repurchase framework (previously authorized $450M program; $4M repurchased in Q4).
Negative Updates
Adjusted EBITDA Margin Compression in Q4
Despite gross margin expansion, adjusted EBITDA margin declined 80 bps year-over-year to 29.4% in Q4 due primarily to increased variable compensation linked to strong performance, one-time legal expenses and continued investments in sales and engineering.
SG&A Growth and Higher Compensation Costs
Full-year SG&A increased 14% to $247 million, driven mainly by higher compensation, investments in sales/customer care and integration costs for ChlorKing, contributing to near-term margin pressure.
Accounting Presentation Change Affects Reported Gross Profit
Changed warranty cost presentation from SG&A to cost of sales in Q4; management states no impact on net sales, operating income or adjusted EBITDA but quarter gross margin under new presentation was 48.5% versus a prior-method 52.1%, which materially alters reported gross profit comparisons.
Geographic Volatility — Rest of World Weakness
Europe & Rest of World showed mixed results: Q4 Rest of World sales down 9% while Europe rose 7%; Q4 Europe/ROW gross margin improved but the region remains more volatile and FX-driven (Europe & ROW flat at $41M in Q4 with 5% FX benefit offsetting lower price/volume).
Exposure to Macro & New Construction Weakness
New pool construction remains near post-GFC lows (multi-year decline), making the company reliant on aftermarket pricing and product-led upgrade demand; 2026 guidance assumes ~3% global net price gains and only modest volume — indicating sensitivity to pricing and macro conditions.
Costs from Supply Chain Rebalancing and Tariff Residuals
Reducing China exposure carries incremental costs (~$5–$6 million estimated, roughly a 1.5% impact) and tariff policy remains a source of uncertainty (references to SCOTUS ruling and potential changes), plus Q4 included one-time legal settlement costs.
Company Guidance
Hayward guided to modest 2026 growth, expecting net sales to rise approximately 4% and adjusted diluted EPS of $0.82–$0.86 (roughly +6% to +12% vs. 2025’s $0.77), with free cash flow around $200 million (exceeding 100% of net income), normalized net interest expense of about $45 million, a normalized effective tax rate near 24%, and increased CapEx of roughly $40 million; the outlook assumes roughly +3% global net price increases, modest volume growth, FX largely neutral, modest gross margin expansion (with greater gains in H2), normal seasonality (Q1/Q3 lower; Q2/Q4 higher), and does not contemplate material capital-structure changes or share‑repurchase activity.Hayward Holdings Financial Statement Overview
Summary
Strong balance-sheet improvement in 2025 with debt reduced to ~$13M versus ~$1.59B equity, alongside solid profitability (gross margin ~47.7% in 2024; net margin ~11.3%) and improving operating/free cash flow (FCF ~$227M in 2025, +18.6%). Main constraint is demonstrated cyclicality and volatility in earnings and cash-flow growth across 2021–2024.Income Statement
Revenue rebounded in 2024 (+6.0%) and continued to rise in 2025 (+2.7%) after a sharp 2023 decline (-24.5%). Profitability is solid for the period shown, with 2024 gross margin ~47.7% and net margin ~11.3%, and operating margins holding in the low-20% range. The key weakness is earnings volatility: net income dropped meaningfully in 2023 before recovering in 2024–2025, suggesting sensitivity to demand cycles and/or pricing and cost pressures.72
Positive
Balance Sheet
The balance sheet shows a dramatic improvement in leverage in 2025, with total debt falling to ~$13M versus equity of ~$1.59B (down from ~$975M debt in 2024 and >$1.1B in 2022–2023). Equity has grown steadily (about $0.80B in 2020 to ~$1.59B in 2025), supporting a stronger capital base. The main watch-out is that prior years carried meaningful leverage (debt-to-equity ~0.69–0.91 in 2022–2024 and 1.62 in 2020), so the sustainability and drivers of the 2025 deleveraging matter.90
Very Positive
Cash Flow
Cash generation is healthy and improving: operating cash flow rose from ~$185M (2023) to ~$212M (2024) and ~$256M (2025), while free cash flow increased to ~$188M (2024) and ~$227M (2025), with strong 2025 growth (+18.6%). Free cash flow generally tracked earnings well in 2021–2024 (roughly 74%–89% of net income), supporting earnings quality. The weakness is volatility in cash flow growth (notably the 2022 decline in free cash flow), indicating working-capital and/or capex swings can materially impact cash conversion.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.12B | 1.05B | 992.45M | 1.31B | 1.40B |
| Gross Profit | 538.69M | 501.96M | 446.59M | 564.91M | 623.13M |
| EBITDA | 292.20M | 278.89M | 243.37M | 343.07M | 362.21M |
| Net Income | 151.57M | 118.66M | 80.69M | 179.35M | 203.72M |
Balance Sheet | |||||
| Total Assets | 3.15B | 2.99B | 2.95B | 2.88B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 399.11M | 196.59M | 203.10M | 56.18M | 265.80M |
| Total Debt | 13.26M | 975.39M | 1.16B | 1.11B | 992.83M |
| Total Liabilities | 1.56B | 1.57B | 1.63B | 1.65B | 1.61B |
| Stockholders Equity | 1.59B | 1.42B | 1.31B | 1.22B | 1.37B |
Cash Flow | |||||
| Free Cash Flow | 225.74M | 187.78M | 153.55M | 86.32M | 162.25M |
| Operating Cash Flow | 254.46M | 212.07M | 184.54M | 115.94M | 189.39M |
| Investing Cash Flow | -103.78M | -54.13M | -55.38M | -92.57M | -48.78M |
| Financing Cash Flow | -19.27M | -136.79M | -7.61M | -229.24M | 10.96M |
Hayward Holdings Technical Analysis
Negative
15.58
Price Trends
16.18
Negative
16.01
Negative
15.45
Positive
Market Momentum
-0.16
Positive
42.79
Neutral
54.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAYW, the sentiment is Negative. The current price of 15.58 is below the 20-day moving average (MA) of 16.18, below the 50-day MA of 16.18, and above the 200-day MA of 15.45, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 54.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAYW.
Hayward Holdings Risk Analysis
Hayward Holdings disclosed 48 risk factors in its most recent earnings report. Hayward Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hayward Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.21B | 33.20 | 32.16% | 0.32% | 9.08% | 19.86% | |
77 Outperform | $6.04B | 20.27 | 16.74% | 0.67% | 6.17% | 20.86% | |
70 Outperform | $3.38B | 22.84 | 9.52% | ― | 9.66% | 44.17% | |
69 Neutral | $1.23B | 33.28 | 8.33% | 0.35% | 15.93% | 12.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $2.11B | -44.87 | -3.23% | 2.02% | -10.98% | -103.99% | |
45 Neutral | $2.06B | -0.87 | ― | ― | 324.10% | -214.91% |
* Industrials Sector Average
HAYW
Hayward Holdings
15.58
0.94
6.42%
ENS
EnerSys
163.77
64.46
64.91%
POWL
Powell Industries
511.12
350.98
219.16%
PLPC
Preformed Line Products Company
251.19
128.58
104.86%
ATKR
Atkore International Group
62.42
1.38
2.26%
EOSE
Eos Energy Enterprises
6.06
1.09
21.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.