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1. Company Snapshot

1.a. Company Description

Latham Group, Inc.designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand.It offers a portfolio of pools and related products, including in-ground swimming pools, pool covers, and pool liners.


The company was formerly known as Latham Topco, Inc.and changed its name to Latham Group, Inc.in March 2021.


Latham Group, Inc.was incorporated in 2018 and is headquartered in Latham, New York.

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1.b. Last Insights on SWIM

Latham Group's recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.08 per share, falling short of the Zacks Consensus Estimate of $0.1 per share. Despite a 7.6% net sales growth, the company's earnings per diluted share of $0.07 trailed prior year's $0.07. Moreover, a comparative analysis with FBS Global raised questions about Latham's superiority as a stock. Additionally, the company faced scrutiny over its financials, with adjusted EBITDA reaching 23.7% of net sales.

1.c. Company Highlights

2. Latham Group's Q3 2025 Earnings: Strong Performance Amidst Market Challenges

Latham Group reported a robust third quarter, with net sales increasing by 7.6% year-over-year to $162 million, outpacing the expected flat to slightly down U.S. in-ground pool market. Adjusted EBITDA margin expanded by 390 basis points to 23.7%, driven by operating leverage and a tariff-related price increase. The company's earnings per share (EPS) was $0.08, slightly below analyst estimates of $0.1. Revenue growth was driven by a 4.7% organic growth and acquisition-related sales volume increases.

Publication Date: Nov -26

📋 Highlights
  • Strong Net Sales Growth:: Net sales rose by 7.6% (up $11M to $162M YoY), driven by organic growth (+4.7%) and acquisition-related volume.
  • Adjusted EBITDA Surge:: Adjusted EBITDA increased by 28.5% ($8.5M to $38.3M), with margins expanding 390 bps to 23.7%.
  • Fiberglass Pool Momentum:: Fiberglass pools accounted for ~75% of 2025 in-ground sales, reflecting strategic investments in adoption and market share gains.
  • Tariff Mitigation Success:: A $3M price increase offset $10M in tariff exposure, with supply chain adjustments reinforcing profitability.

Segment Performance

The company's in-ground pool sales increased modestly, up just under 1% from last year, while fiberglass pool sales continued to show positive momentum, tracking to account for approximately 75% of the company's full-year 2025 in-ground pool sales. Vinyl liner sales grew 17% year-over-year, driven by share gains in the replacement market and the Measured tool. According to Scott Rajeski, "I think with the Measured tool out there, we've seen some really nice share gains and pickup in the replacement side of the house for in-ground vinyl liners."

Growth Initiatives and Outlook

Latham Group remains confident in its ability to continue to outperform the in-ground pool market, driven by increased fiberglass pool and auto cover adoption. The company expects to achieve $750 million in net sales and $160 million in adjusted EBITDA when new U.S. pool starts return to their 2019 level of 78,000 per year. Analysts estimate next year's revenue growth at 5.4%, indicating a moderate pace of expansion.

Valuation

Latham Group's current valuation metrics suggest a relatively attractive profile, with a P/S Ratio of 1.55 and EV/EBITDA of 9.88. However, the company's P/E Ratio is -75.02, reflecting the current EPS loss. The stock's P/B Ratio is 2.03, indicating a premium to book value. With a Net Debt / EBITDA ratio of -0.46, the company's debt position is manageable, and it is nearing its 2.0 net debt-to-EBITDA leverage target.

3. NewsRoom

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Latham Group, Inc. to Participate at the Upcoming Baird 2025 Global Industrial Conference

Nov -05

Source: globenewswire.com

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GOLDFISH SWIM SCHOOL HONORS TOP PERFORMERS AND CELEBRATES RECORD GROWTH AT ANNUAL OWNERS' CELEBRATION

Nov -05

Source: prnewswire.com

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Latham Group, Inc. (SWIM) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Latham Group (SWIM) Q3 Earnings and Revenues Lag Estimates

Nov -05

Source: zacks.com

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Latham Group, Inc. Reports Third Quarter 2025 Financial Results

Nov -04

Source: globenewswire.com

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FBS Global (NASDAQ:FBGL) vs. Latham Group (NASDAQ:SWIM) Head-To-Head Review

Oct -20

Source: defenseworld.net

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Latham Group, Inc. Announces Third Quarter 2025 Earnings Release and Conference Call Date

Oct -07

Source: globenewswire.com

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Latham Group, Inc. Announces Third Quarter 2025 Earnings Release and Conference Call Date

Oct -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

In-ground Swimming Pools

Expected Growth: 4.5%

Growing demand for luxurious backyard oases, increasing consumer spending on home improvement, and Latham Group's durable and customizable in-ground swimming pools drive market growth.

Covers

Expected Growth: 4.5%

Growing demand for energy-efficient and safe pool solutions, increasing adoption of automation in pool maintenance, and rising disposable incomes driving investment in luxury pool accessories.

Liners

Expected Growth: 4.5%

Growing demand for durable and customizable liners in swimming pools, tanks, and industrial containers, driven by increasing focus on water conservation, infrastructure development, and industrial expansion.

7. Detailed Products

Pool Equipment

Latham Group, Inc. offers a wide range of pool equipment, including pumps, filters, heaters, and lighting systems, designed to provide efficient and safe pool operation.

Pool Accessories

The company provides a variety of pool accessories, such as ladders, handrails, and cleaning tools, designed to enhance pool safety and convenience.

Above-Ground Pools

Latham Group, Inc. manufactures and distributes above-ground pools, offering a convenient and affordable way to enjoy pool ownership.

In-Ground Pools

The company designs and manufactures in-ground pools, offering a premium pool experience with customizable shapes, sizes, and features.

Pool Covers

Latham Group, Inc. offers a range of pool covers, including automatic, manual, and solar covers, designed to reduce maintenance, conserve energy, and improve safety.

8. Latham Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Latham Group, Inc. is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's ability to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.64%
Debt Cost 12.24%
Equity Weight 56.36%
Equity Cost 12.24%
WACC 12.24%
Leverage 77.42%

11. Quality Control: Latham Group, Inc. passed 5 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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A-Score: 3.4/10

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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

7.08$

Current Price

7.08$

Potential

-0.00%

Expected Cash-Flows