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1. Company Snapshot

1.a. 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, 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.

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1.b. Last Insights on HAYW

Hayward Holdings, Inc.'s recent performance was driven by its Q3 earnings beat, with EPS of $0.14 surpassing the Zacks Consensus Estimate of $0.12. The company's pricing power is driving margins higher, fueled by favorable trends that support long-term growth. Institutional investors, such as KLP Kapitalforvaltning AS and Yousif Capital Management LLC, have increased their positions, owning 43,700 and 53,670 shares, respectively. These factors have contributed to a positive outlook for the company. (Source: Zacks Consensus Estimate)

1.c. Company Highlights

2. Hayward Holdings Delivers Strong Q3 2025 Earnings

Hayward Holdings reported a robust third quarter 2025, with net sales increasing 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume. Adjusted EBITDA increased 16% to $59 million, and adjusted EBITDA margin expanded 170 basis points to 24.2%. The company's adjusted diluted EPS came in at $0.14, beating estimates of $0.1209. Gross profit margin also improved, rising 150 basis points to 51.2%. The strong financial performance was attributed to increased operational efficiencies, tariff mitigation actions, and disciplined cost management.

Publication Date: Nov -03

📋 Highlights
  • Strong Sales and Margin Growth: Net sales rose 7% to $244M; adjusted EBITDA surged 16% to $59M with a 24.2% margin (up 170 bps).
  • Guidance Raised: Full-year net sales now expected to grow 4–5.5% to $1.095B–$1.110B; adjusted EBITDA to reach $292M–$297M (+5–7%).
  • EPS Growth and Tax Efficiency: Adjusted diluted EPS climbed 27% to $0.14; effective tax rate stabilized at 23% for Q3.
  • Global Segment Performance: North America sales up 7% to $208M; Europe/Rest of World grew 11% to $36M, driven by volume and FX.
  • Deleveraging and Cash Flow: Net leverage reduced to 1.8x; cash flow generation enabled $20M guidance increase for free cash flow.

Segment Performance

The North America segment saw net sales increase 7% to $208 million, driven by a 7% increase in net price realization, while volume remained stable. Europe and Rest of World net sales rose 11% to $36 million, with an 8% increase in volume and a 3% favorable foreign currency translation. The company's international markets showed significant improvement, with margins expanding 750 basis points year-over-year, driven by non-repeating inventory items and stabilization of facilities in Spain.

Guidance and Outlook

Hayward Holdings raised its full-year guidance, expecting net sales to increase approximately 4% to 5.5% and adjusted EBITDA to increase 5% to 7%. The company is optimistic about its growth prospects, driven by solid execution across the organization, positive price realization, and continued product technology adoption. Analysts estimate next year's revenue growth at 6.0%, indicating a positive outlook for the company's future performance.

Valuation

With a P/E Ratio of 26.68 and an EV/EBITDA of 12.8, the company's valuation appears reasonable, considering its strong earnings growth and margin expansion. The company's ROE of 9.37% and ROIC of 6.37% also indicate a healthy return on equity and invested capital. As the company continues to deleverage its balance sheet and invest in growth initiatives, its valuation metrics are likely to be influenced by its future performance.

Cash Flow and Capital Allocation

The company raised its cash flow guidance by $20 million, driven by increased EBITDA, improved project timing, and working capital reductions. Hayward Holdings is prioritizing organic CapEx, M&A, and share repurchases, with a focus on investing in automation and supply chain capabilities. The company's capital allocation priorities are expected to drive future growth and returns for shareholders.

3. NewsRoom

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Contrasting Hayward (NYSE:HAYW) and Star Group (NYSE:SGU)

Nov -30

Source: defenseworld.net

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American Century Companies Inc. Boosts Holdings in Hayward Holdings, Inc. $HAYW

Nov -26

Source: defenseworld.net

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Hayward Holdings, Inc. $HAYW Shares Purchased by Bank of New York Mellon Corp

Nov -19

Source: defenseworld.net

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Michael Dell's Strategic Shift: Significant Reduction in Hayward Holdings Inc.

Nov -14

Source: gurufocus.com

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Brighton Jones LLC Purchases New Shares in Hayward Holdings, Inc. $HAYW

Nov -02

Source: defenseworld.net

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Hayward Holdings, Inc. (HAYW) Hit a 52 Week High, Can the Run Continue?

Oct -30

Source: zacks.com

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Hayward (NYSE:HAYW) Hits New 1-Year High Following Earnings Beat

Oct -30

Source: defenseworld.net

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Why Hayward Holdings Stock Climbed Today

Oct -29

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.75%)

6. Segments

Residential Pool

Expected Growth: 4.73%

Hayward Holdings' Residential Pool segment growth of 4.73% is driven by increasing consumer spending on outdoor living, rising demand for energy-efficient and eco-friendly pool solutions, and growing adoption of smart pool technologies. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

Industrial Flow Control

Expected Growth: 4.78%

Hayward Holdings' Industrial Flow Control segment growth of 4.78% is driven by increasing demand for efficient water treatment and wastewater management solutions, expansion in the oil and gas industry, and growing adoption of automation and IoT technologies in industrial processes.

Commercial Pool

Expected Growth: 5.15%

Hayward Holdings' Commercial Pool segment growth of 5.15% is driven by increasing demand for energy-efficient and sustainable pool solutions, expansion in emerging markets, and strategic partnerships with pool builders and distributors. Additionally, the company's focus on innovative products, such as its OmniHub smart pool controller, and its commitment to customer service and support also contribute to its growth.

7. Detailed Products

Residential Pool Equipment

Hayward Holdings, Inc. offers a wide range of residential pool equipment, including pumps, filters, heaters, and lighting systems, designed to provide efficient and reliable pool operation.

Commercial Pool Equipment

Hayward's commercial pool equipment is designed for large-scale aquatic facilities, such as hotels, resorts, and community centers, providing high-performance and energy-efficient solutions.

Industrial Strainers

Hayward's industrial strainers are designed for heavy-duty applications, providing efficient and reliable filtration solutions for various industries, including oil and gas, chemical processing, and power generation.

Flow Control Valves

Hayward's flow control valves are designed to regulate fluid flow, pressure, and temperature in various industrial and commercial applications, including HVAC, plumbing, and process control systems.

Water Treatment Solutions

Hayward's water treatment solutions provide effective and efficient water purification and disinfection systems for residential, commercial, and industrial applications.

8. Hayward Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hayward Holdings, Inc. is medium due to the availability of alternative products in the market. While there are some substitutes available, they are not as effective as Hayward's products, which gives the company a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers for Hayward Holdings, Inc. is low due to the company's strong brand reputation and customer loyalty. Customers have limited bargaining power, and the company has a strong distribution network.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Hayward Holdings, Inc. is medium due to the company's dependence on a few key suppliers. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The threat of new entrants for Hayward Holdings, Inc. is low due to the high barriers to entry in the industry. The company's strong brand reputation, patents, and regulatory approvals make it difficult for new entrants to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Hayward Holdings, Inc. is high due to the competitive nature of the industry. The company faces intense competition from established players, and the market is highly fragmented.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.66%
Debt Cost 9.61%
Equity Weight 54.34%
Equity Cost 10.22%
WACC 9.94%
Leverage 84.02%

11. Quality Control: Hayward Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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EnerSys

A-Score: 5.2/10

Value: 4.4

Growth: 6.2

Quality: 5.7

Yield: 2.0

Momentum: 6.5

Volatility: 6.3

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Acuity Brands

A-Score: 5.2/10

Value: 2.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

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Hubbell

A-Score: 5.1/10

Value: 2.0

Growth: 6.8

Quality: 7.2

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

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Atkore

A-Score: 4.6/10

Value: 6.1

Growth: 8.0

Quality: 4.8

Yield: 2.0

Momentum: 2.5

Volatility: 4.0

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Hayward Holdings

A-Score: 4.3/10

Value: 3.6

Growth: 3.2

Quality: 7.4

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Advanced Energy Industries

A-Score: 4.1/10

Value: 0.6

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.09$

Current Price

16.09$

Potential

-0.00%

Expected Cash-Flows