Key Takeaways
- Hayward shares jumped 11% today after third-quarter adjusted EPS of $0.18 beat the $0.15 consensus and the company raised its 2026 guidance.
- Orders for the 2027 pool season are running ahead of last year in North America, which suggests the strength will carry into next year.
- Europe & Rest of World sales fell 6% because of conflicts in the Middle East, and operating cash flow is down $57.5 million so far this year.
- The next big test is Hayward’s 2027 outlook, which should come with its fourth-quarter results early next year.
Hayward Holdings (HAYW) jumped 11% today after the pool equipment maker beat Wall Street’s third-quarter estimates and raised its 2026 outlook.
The best news was about next summer, though. CEO Kevin Holleran said early-buy orders for the 2027 pool season are running “ahead of the prior year” in North America.
What exactly happened
Hayward reported before today’s open:
- Revenue rose 6% to $260.1 million. Analysts expected $251.7 million.
- Adjusted EPS rose 29% to $0.18. The consensus was $0.15.
- Operating margin rose 250 basis points to 19.3%, helped because last year’s one-time litigation charge didn’t repeat.
- Full-year guidance is now adjusted EPS of $0.86 to $0.88 (up from $0.84 to $0.87) and sales growth of 5% to 6% (up from about 5%).
The raise is modest: analysts already expected $0.86 for the year. The early read on 2027 is what stands out.
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Next summer is already looking up
Hayward said data from its main US channel partners shows balanced inventories, so these orders aren’t piling on top of unsold stock. North America makes up nearly 90% of sales, and it grew 9% to $226.4 million this quarter.
Analysts already expected revenue to keep rising past this year’s $1.18 billion, to $1.24 billion in 2027 and $1.32 billion in 2028…
Those estimates came before the report, and a strong early-buy season gives them more reason to rise than fall.
The weak spot is overseas. Europe & Rest of World sales fell 6% to $33.8 million, mostly because volume dropped with the conflicts in the Middle East. At about 13% of sales, that’s a small drag on the total.
Still cheaper than usual
Even after today’s jump, Hayward isn’t expensive by its own standards. At Tuesday’s close it traded at 14x forward earnings, well below its five-year average of 18x…
After today’s move it’s closer to 16x, still under that average.
The balance sheet is in good shape. Net leverage is 1.5x, the lowest since the 2021 IPO, and Hayward has bought back $115.3 million of stock this year. Cash flow is the thing to watch. Operating cash flow fell $57.5 million over the first nine months, which Hayward blamed on when cash came in and inventory was bought, plus bigger rebate and incentive payments.
My take: The 2027 order book is the best reason to own Hayward here. At a below-average multiple, the stock has room to keep climbing if those orders hold up.
Of course, early orders still have to become sales. The real test comes when Hayward guides for 2027.
So what is Hayward stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
