In This Article:
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Net Sales (Q4 2024): Increased 17% to $327 million.
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Net Sales (Full Year 2024): Increased 6% to $1.052 billion.
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Gross Profit Margin (Q4 2024): Expanded 220 basis points to 51.4%.
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Gross Profit Margin (Full Year 2024): Increased to 50.5%.
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Adjusted EBITDA (Q4 2024): Increased 30% with a margin of 30.2%.
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Adjusted EBITDA (Full Year 2024): Increased 12% to $277 million with a margin of 26.4%.
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Adjusted Diluted EPS (Q4 2024): Increased 35% to $0.27.
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Adjusted Diluted EPS (Full Year 2024): Increased 20% to $0.67.
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Free Cash Flow (Full Year 2024): Increased 22% to $188 million.
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Net Debt to Adjusted EBITDA: Improved to 2.8 times from 3.7 times at the end of 2023.
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North America Net Sales (Q4 2024): Increased 20% to $286 million.
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Europe and Rest of World Net Sales (Q4 2024): Increased 2% to $41 million.
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2025 Guidance for Net Sales: Expected to increase 1% to 5%.
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2025 Guidance for Adjusted EBITDA: Expected to be $280 million to $290 million.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hayward Holdings Inc (NYSE:HAYW) reported strong fourth-quarter results, significantly exceeding expectations with a 17% increase in net sales.
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Gross profit margins expanded to a record 51.4% in the fourth quarter, contributing to a 30% increase in adjusted EBITDA.
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The company achieved a 22% increase in full-year free cash flow, exceeding guidance and enabling early debt repayment and strategic acquisitions.
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Hayward Holdings Inc (NYSE:HAYW) strengthened its leadership team and expanded its technology leadership position with innovative new products.
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The company successfully integrated the ChlorKing acquisition, enhancing its position in the commercial pool market and identifying cross-selling opportunities.
Negative Points
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Despite strong performance, Hayward Holdings Inc (NYSE:HAYW) anticipates only modest sales growth of 1% to 5% for 2025, reflecting a dynamic operating environment.
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The company faces potential challenges from tariffs and evolving supply chain issues, which may necessitate pricing adjustments.
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Europe and Rest of World segments experienced an 8% decline in net sales for the full year, with lower volumes impacting performance.
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The company is cautious about the discretionary elements of the market, such as new construction and remodels, which remain under pressure due to elevated interest rates.
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Hayward Holdings Inc (NYSE:HAYW) anticipates flat EBITDA margins for 2025, despite strong margin performance in 2024, due to ongoing investments and potential cost pressures.