Latham Group, Inc. (SWIM) · Nov 3, 2026 · Earnings
Miss — Diluted EPS $0.10 vs ~$0.15 consensus
Latham Group earnings beat revenue and expanded margins, but EPS missed due to a one-time refinancing charge as guidance narrowed.
Latham entered this quarter executing a fiberglass-conversion and Sand States growth strategy, with the market already expecting improving sales but watching whether investment in Florida and Texas would translate into profitable operating leverage. The prior quarter had lifted full-year guidance, so this report is mainly a test of execution against an increasingly constructive setup.
The operating result was better than expected. Revenue reached $182.2 million, modestly above the published consensus of about $181.1 million, while in-ground pool sales accelerated sharply. The core story is intact: higher fiberglass volume and stronger Sand States demand are producing growth even before a broad pool-market recovery.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guidance |
|---|---|---|---|
| Net sales (Financial Highlights) | $182.2M (+12.5%) | $161.9M | ~$181.1M |
| Diluted EPS (Income Statement) | $0.10 | $0.07 | ~$0.15 |
| Adjusted EBITDA (Adjusted EBITDA reconciliation) | $45.3M (+18.1%) | $38.3M | |
| Adjusted EBITDA margin (Adjusted EBITDA reconciliation) | 24.8% (+110 bps) | 23.7% | |
| FY net sales guidance (Guidance table) | $605M–$615M | $600M–$620M | |
| FY adjusted EBITDA guidance (Guidance table) | $112M–$118M | $110M–$120M |
Margins and underlying earnings improved, but reported EPS still missed. Adjusted EBITDA rose 18.1% and margin expanded to 24.8%, showing that volume leverage more than offset heavier sales and marketing spending. But diluted EPS of $0.10 fell short of the roughly $0.15 consensus, largely because the quarter included a $5.0 million debt-extinguishment charge tied to the refinancing.
The outlook was narrowed, not raised. Full-year revenue guidance moved to $605 million–$615 million from $600 million–$620 million, and adjusted EBITDA guidance to $112 million–$118 million from $110 million–$120 million. Both midpoints remain unchanged, so this is a confidence signal and a reduction in uncertainty—not incremental upside versus the prior plan. 〔0〕
The refinancing improves flexibility but adds balance-sheet complexity. Latham extended maturities to 2033 through a new $300 million term loan and $75 million revolver, which supports continued investment in growth and acquisitions, but the associated charge explains why GAAP EPS lagged the quarter’s stronger operating performance.
Bottom line: The business is executing ahead of expectations on revenue, volume, and margins, but the headline earnings result was a miss because of a one-time refinancing cost. The growth story advances modestly; the outlook is confirmed rather than upgraded.
Q4 and full-year 2026 results
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