Hayward’s first quarter saw double-digit sales and earnings growth, but the market reacted negatively, reflecting concerns despite headline outperformance. Management attributed gains to robust aftermarket demand, successful price realization, and a rebound in discretionary product categories like automation and heaters. CEO Kevin Holleran emphasized strong execution across North America and Europe, with Canada and commercial segments particularly notable. CFO Eifion Jones pointed to disciplined cost management and operational leverage as key factors behind margin expansion. Persistent inflation and incremental tariffs tempered the margin gains, but management stressed that strategic investments in innovation and efficiency are supporting overall performance.
Is now the time to buy HAYW? Find out in our full research report (it’s free for active Edge members).
Hayward (HAYW) Q1 CY2026 Highlights:
- Revenue: $255.2 million vs analyst estimates of $239.7 million (11.5% year-on-year growth, 6.5% beat)
- Adjusted EPS: $0.13 vs analyst estimates of $0.11 (17.3% beat)
- Adjusted EBITDA: $56.38 million vs analyst estimates of $51.06 million (22.1% margin, 10.4% beat)
- Management raised its full-year Adjusted EPS guidance to $0.86 at the midpoint, a 1.8% increase
- Operating Margin: 16.6%, up from 14.6% in the same quarter last year
- Market Capitalization: $3.15 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hayward’s Q1 Earnings Call
- Jeffrey Hammond (KeyBanc Capital Markets) asked about inventory levels and channel health. CEO Kevin Holleran said Hayward managed Early Buy shipments to ensure balanced inventories and is comfortable with current days-on-hand relative to seasonal demand.
- Jeffrey Hammond (KeyBanc Capital Markets) inquired about inflation and tariff impacts. CFO Eifion Jones explained that inflation in specialty metals and energy costs led to targeted price increases and surcharges, expecting these actions to help preserve full-year margins.
- Nigel Coe (Wolfe Research) questioned price elasticity and potential shifts to lower-cost competitors. Holleran stated there’s no clear evidence of customers trading down, citing positive volumes and strong discretionary product sales.
- W. Andrew Carter (Stifel) asked about regional demand and weather impacts. Holleran noted that while some Northeast and Midwest regions faced poor weather, targeted dealer conversion strategies and stronger performance in the West and Canada helped offset these effects.
- Rafe Jadrosich (Bank of America) queried about market share gains and drivers. Holleran pointed to new product launches, expanded sales support, and focused efforts in underpenetrated regions as contributors to modest share gains.
Catalysts in Upcoming Quarters
Our analysts will focus on (1) the pace of adoption for new products such as OmniX and their impact on aftermarket growth; (2) Hayward’s ability to sustain pricing power and margin resilience in the face of continued input cost inflation; and (3) execution of targeted regional expansion and channel management strategies. Developments in geopolitical risk and tariff changes will also be important signposts to monitor.
Hayward currently trades at $14.54, down from $15.80 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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