Hayward Holdings (HAYW)
NYSE:HAYW
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Hayward Holdings
(NYSE:HAYW)
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Rating:70Outperform
Price Target:
$14.50
▲(0.83% 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
Balance-sheet deleveraging
Material deleveraging in 2025 meaningfully improves financial flexibility and reduces interest and rollover risk. A low reported debt stock versus a large equity base supports capacity for capex, M&A or buybacks and makes the company less vulnerable to shocks over the next 2–6 months.
Negative Factors
Earnings & cash-flow volatility
Historic swings in revenue, net income and FCF show the business is sensitive to demand cycles and working-capital dynamics. That volatility can complicate planning, raise the cost of capital, and make multi-quarter performance less predictable despite recent improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet deleveraging
Material deleveraging in 2025 meaningfully improves financial flexibility and reduces interest and rollover risk. A low reported debt stock versus a large equity base supports capacity for capex, M&A or buybacks and makes the company less vulnerable to shocks over the next 2–6 months.
Read all positive factors
Hayward Holdings (HAYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.13B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)22.1
Beta (1Y)0.92
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/Revenue2.50
Enterprise Value/Gross Profit5.21
Enterprise Value/Ebitda9.36
Forecast
1Y Price Target
$18.13Price Target Upside26.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.84
Revenue Forecast (FY)$1.17B
Hayward Holdings Business Overview & Revenue Model
Company Description
Hayward 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,...
How the Company Makes Money
Hayward makes money primarily by selling swimming pool equipment and related replacement parts/accessories to the pool industry. Its revenue model is largely product-driven, with sales generated through (1) new pool construction demand (equipment ...
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
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
14.38
Price Trends
15.04
Negative
15.55
Negative
15.47
Negative
Market Momentum
-0.27
Negative
53.38
Neutral
84.10
Negative
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 14.38 is above the 20-day moving average (MA) of 13.79, below the 50-day MA of 15.04, and below the 200-day MA of 15.47, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 is Negative, 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 50 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 | $8.41B | 23.32 | 30.64% | 0.32% | 9.08% | 19.86% | |
78 Outperform | $7.04B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
75 Outperform | $1.53B | 28.81 | 7.68% | 0.35% | 15.93% | 12.72% | |
70 Outperform | $3.13B | 22.08 | 9.52% | ― | 9.66% | 44.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $2.29B | 36.07 | -3.28% | 2.02% | -10.98% | -103.99% | |
46 Neutral | $1.91B | -3.08 | 73.98% | ― | 324.10% | -214.91% |
* Industrials Sector Average
HAYW
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19.44%
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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.