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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 negatively impacted by decreased stakes from institutional investors, including Granite Investment Partners LLC, which sold 597,732 shares, and New York State Common Retirement Fund, which reduced its stake by 15.3%. Additionally, Michael Dell reduced his holdings in the company. However, the company reported strong Q4 earnings, with quarterly earnings of $0.29 per share, beating estimates. Hayward also introduced its 2026 guidance, citing momentum and outperforming expectations.

1.c. Company Highlights

2. Pool Corp's Resilient Aftermarket Business Drives Strong Q4 Earnings

Pool Corp delivered a strong fourth quarter, with revenues growing at a high single-digit rate year-over-year in the U.S., Europe, and Canada. The company's adjusted EBITDA margin was impacted by higher variable compensation costs, one-time legal expenses, and additional investments in sales and advanced engineering teams. Earnings per share (EPS) came in at $0.3078, beating estimates of $0.28. Gross margins are expected to modestly expand in 2026, with greater gains in the second half due to operational improvements. The company's guidance for adjusted diluted EPS is up 6% to 12% for 2026.

Publication Date: Feb -26

📋 Highlights
  • Q4 Adjusted EBITDA Growth:: 4% increase driven by strong U.S. and Canadian performance, despite higher variable compensation and one-time legal costs.
  • 2026 Guidance:: 6-12% adjusted diluted EPS growth expected, with normal seasonality returning in Q1 and gross margin expansion in H2 2026.
  • Aftermarket Resilience:: 6-year CAGRs of 7% for net sales and 10% for adjusted EBITDA, supported by a diversified customer base and stable installed pool demand.
  • Pricing and Volume Dynamics:: 3% global net price gains assumed for 2026, with modest volume growth and higher U.S. pricing pressure offset by operational leverage.
  • Strategic Investments:: Increased CapEx for U.S. manufacturing upgrades and R&D, with a focus on the OmniX automation system and expansion into flow control markets (TAM ~$100M/year in U.S.).

Aftermarket Business Resilience

The company's aftermarket business has proven resilient, driven by a diversified customer base and a focus on serving the existing pool installed base with regular equipment replacements and upgrades. As Kevin Holleran noted, "Our business model is focused on serving a large installed base of existing pools with regular equipment replacements and upgrades, which provides a steady stream of revenue." This business model has enabled the company to deliver two consecutive years of top-line growth despite a challenging macro environment.

Growth Initiatives and Investments

The company is investing in growth initiatives, including stepping up its CapEx investment program and upgrading its facilities. It is also investing in R&D, particularly around customer experience, with positive feedback and payback on these investments. As Eifion Jones mentioned, "We're consciously investing in the business, particularly around R&D and customer experience." The company's OmniX system has received positive ratings and customer feedback, offering more affordable opportunities for automation.

Valuation and Outlook

With a P/E Ratio of 21.42 and an EV/EBITDA of 12.58, the market is pricing in a certain level of growth for Pool Corp. Analysts estimate revenue growth at 5.8% for next year. The company's ROE is 10.02%, and ROIC is 6.74%. The company's focus on upgrading facilities, pursuing M&A opportunities, and exploring the flow control space positions it well for long-term growth. With a healthy balance sheet and a Net Debt / EBITDA of -1.36, the company has flexibility to invest in growth initiatives and return capital to shareholders.

Cash Flow Priorities

The company's cash flow priorities are focused on investing in the business, pursuing M&A opportunities, and returning capital to shareholders through share repurchases. As Eifion Jones stated, "The first dollar will go back into the business in terms of CapEx, the second dollar to M&A opportunities, and the remaining cash will be used for share repurchases." This approach is expected to drive long-term growth and create value for shareholders.

3. NewsRoom

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New Strong Buy Stocks for March 6th

Mar -06

Source: zacks.com

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Hayward Holdings, Inc. (HAYW) Q4 Earnings and Revenues Surpass Estimates

Feb -25

Source: zacks.com

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Hayward Holdings, Inc. (HAYW) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Hayward Holdings Reports Fourth Quarter Fiscal Year 2025 Financial Results and Introduces 2026 Guidance

Feb -25

Source: businesswire.com

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Granite Investment Partners LLC Sells 597,732 Shares of Hayward Holdings, Inc. $HAYW

Feb -23

Source: defenseworld.net

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

Feb -18

Source: gurufocus.com

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New York State Common Retirement Fund Has $2.79 Million Stock Position in Hayward Holdings, Inc. $HAYW

Feb -08

Source: defenseworld.net

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Critical Survey: Garmin (NYSE:GRMN) vs. Hayward (NYSE:HAYW)

Jan -26

Source: defenseworld.net

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: 5.8/10

Value: 4.9

Growth: 6.3

Quality: 5.8

Yield: 2.0

Momentum: 9.0

Volatility: 7.0

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A-Score: 5.2/10

Value: 2.9

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

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Hubbell

A-Score: 5.1/10

Value: 2.3

Growth: 6.7

Quality: 7.0

Yield: 2.0

Momentum: 5.0

Volatility: 7.7

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Hayward Holdings

A-Score: 4.4/10

Value: 4.2

Growth: 3.1

Quality: 7.5

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Advanced Energy Industries

A-Score: 4.3/10

Value: 0.6

Growth: 5.0

Quality: 6.5

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

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A-Score: 3.9/10

Value: 6.9

Growth: 4.3

Quality: 3.4

Yield: 2.0

Momentum: 3.0

Volatility: 4.0

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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

14.62$

Current Price

14.62$

Potential

-0.00%

Expected Cash-Flows