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SWIMLatham Group Inc

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Company Info

CEO

Scott M. Rajeski

Location

New York, USA

Exchange

Nasdaq

Website

https://lathampool.com

Summary

Latham Group, Inc.

Company Info

CEO

Scott M. Rajeski

Location

New York, USA

Exchange

Nasdaq

Website

https://lathampool.com

Summary

Latham Group, Inc.

AI Insights for SWIM
2 min read

Quick Summary

Latham Group Inc, operating under the brand Latham, The Pool Company, is a leading designer, manufacturer, and marketer of in-ground residential swimming pools. The company primarily serves customers in North America, as well as Australia and New Zealand. Its clientele consists mostly of residential customers, including homeowners looking to install or upgrade private swimming pools, as well as pool builders and contractors. Latham Group specializes in delivering high-quality, innovative pool solutions tailored for the residential sector. The company is recognized for its commitment to sustainability, innovation, and providing a positive employee experience, having received notable industry recognition for its operational excellence.

The Bull Case

  • Latham Group's strengths include its position as North America's largest designer and manufacturer of in-ground residential pools, strong brand recognition, and a comprehensive portfolio of innovative pool solutions.
  • The company's focus on sustainability and employee experience has earned it industry accolades and public recognition.
  • It enjoys established relationships with a large base of pool builders and residential customers, providing stability and recurring demand.
  • Its operational improvements, such as waste reduction and recycling, distinguish it from peers.
  • Latham’s scale and geographic reach allow it to weather modest market fluctuations more effectively than smaller or more regionally focused competitors.

The Bear Case

  • Despite recent improvements, Latham Group has exhibited weak long-term revenue and EPS growth, which may concern investors seeking more rapid expansion.
  • The company missed revenue and EPS expectations in the last reported quarter.
  • Its performance is closely tied to cyclical trends in the residential and construction sectors, leaving it vulnerable to economic downturns and housing slumps.
  • High competition from regional and local pool service providers can erode market share.
  • Additionally, uncertainties around leadership transitions in the coming years could pose management continuity risks.

Key Risks

  • Potential risks include macroeconomic instability, which could lead to lower consumer spending on discretionary projects like pool installation or renovation.
  • Intense competition, both from national chains and a fragmented base of local operators, may pressure pricing and margins.
  • Leadership transitions, such as the announced CEO change in 2026, could disrupt strategic continuity.
  • Operational or supply chain disruptions could hinder the company’s ability to fulfill orders, and failure to innovate may weaken its market position.

What to Watch

UpcomingIn the most recent quarter, Latham Group reported increased revenue, showing a 7.6% year-over-year growth, although it missed analysts' expectations.
UpcomingThe company delivered a GAAP EPS of $0.07, which came in below forecasts, but its adjusted EBITDA exceeded expectations and full-year guidance was raised above analyst estimates.
UpcomingThere was margin improvement, suggesting enhanced operational efficiency.
ExpectedLooking ahead to the next quarter, analysts anticipate only modest growth for Latham Group, given the company's narrowly guided sales and stable margin expectations.

Price Drivers

  • The stock price of Latham Group is primarily influenced by its quarterly earnings reports, revenue growth, and profitability metrics.
  • Macroeconomic factors such as housing trends, consumer discretionary spending, and broader economic health also play significant roles.
  • Industry-specific factors like residential construction activity and demand for new pools or pool renovations directly impact sales.
  • Additionally, investor sentiment is affected by management changes, guidance updates, and analyst price targets or revised forecasts.

Recent News

  • Among the most recent news, Latham Group reported solid revenue growth but missed consensus on both top-line and bottom-line numbers, though it did beat adjusted EBITDA expectations and raised full-year guidance.
  • The company announced a planned CEO transition, appointing Sean Gadd as the next CEO starting in 2026, while outgoing CEO Scott Rajeski will remain as a special advisor.
  • Latham’s sustainability and workplace initiatives earned it a spot on Newsweek’s 2025 America’s Greatest Companies list.
  • The CFO recently stepped down for family reasons, with an interim CFO named during the search for a permanent replacement.

Market Trends

  • The broader residential pool market is experiencing slow but steady growth, driven by factors such as increased health awareness, urbanization, and a rise in home improvement projects.
  • pool maintenance and cleaning services market is expected to grow at a CAGR of 4.18% through 2029, reflecting ongoing demand for both new installations and aftermarket services.
  • Technological advancements and sustainability trends are fostering new product innovation across the industry.
  • However, the market remains fragmented with many regional vendors, keeping competitive pressures high.

AI-generated summary. Not investment advice. DYOR.

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