Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q1 2025 Earnings Presentation
25 slides from Hayward's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Earnings
FIRST QUARTER 2025 EARNINGS May 1, 2025 © 2025 Hayward Holdings, Inc.
Slide 2: First Quarter 2025 Earnings Call
FIRST QUARTER 2025 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive Officer EIFION JONES Senior Vice President and Chief Financial Officer KEVIN MACZKA Vice President of Investor Relations and FP&A NYSE: HAYW © 2025 Hayward Holdings, Inc. 2
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 that are based on the beliefs of Hayward’s mana
Slide 4: Key Messages
Key Messages Q1 2025 results ahead of expectations; net sales up 8% YoY Net leverage1 within target range at 2.8x during seasonally low cash collection period Launched OmniX: innovative wireless solution to automate existing installed equipment Executing action plans to mitigate the impact of tariff
Slide 5: Financial Overview
Financial Overview Q1 2025 YoY RESULTS REFLECT: Net Sales $228.8M +8% ▪ Continued solid execution Gross Profit Margin 49.5% +30 bps ▪ Positive net price realization and increased volumes Adj. EBITDA1 $49.1M +9% ▪ Solid gross profit margin and adjusted Adj. EBITDA1 Margin 21.5% +30 bps EBITDA margin
Slide 6: Tariff Impact and Mitigation Action Plans
Tariff Impact and Mitigation Action Plans Estimated Tariff Impact1 Tariff Mitigation Action Plans ✓ ~$85M annualized cost increase ✓ Mitigation ✓ ~$30M cost increase for FY’25 ✓ Accelerated cost reduction, productivity initiatives ✓ Mostly related to China sourcing ✓ Actioned structural supply chain
Slide 7: OmniX: Innovative IoT Automation Platform for the Aftermarket
OmniX: Innovative IoT Automation Platform for the Aftermarket Current OmniLogic New OmniX Platform Centralized Controls for New Construction Decentralized Controls for the Aftermarket (TAM: ~62K annual pool builds in the US1) (TAM: ~3.5M non-automated pools in the US2) Significant aftermarket opport
Slide 8: First Quarter 2025 Financials
First Quarter 2025 Financials NET SALES +7.7% YoY ▪ Net price +3% ▪ Volume +3% NET SALES OF $228.8M ▪ Acquisition +3% (ChlorKing) ▪ FX -1% GROSS PROFIT MARGIN OF 49.5% ▪ Increased 30 bps YoY GROSS PROFIT OF $113.4M ▪ NAM up 100 bps YoY ▪ ERW down 260 bps YoY, progressing as expected sequentially, up
Slide 9: First Quarter 2025 Segment Overview
First Quarter 2025 Segment Overview NORTH AMERICA EUROPE & REST OF WORLD NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 $187.1M $98.7M $50.7M $41.8M $14.6M $7.0M YoY Change: Gross Profit Margin: Adj. Segment YoY Change: Gross Profit Margin: Adj. Segment +7.9%
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 3/29/2025 Q1 2025 Q1 2024 Cash and cash equivalents $181 $600M fixed rate, Cash flows from operating activities ($6) ($77) remainder variable Total debt principal $973 Blended interest Less capex ($6) ($6) rate of 5.8%5 Term de
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities GROWTH INVESTMENTS 1 • Innovative new product development, IoT digital leadership • Commercial programs, dealer conversions • Operational excellence, productivity, growth capex Funding strategic 2 STRATEGIC M&A • Pipeline of tuck-in opportunities to growth investments c
Slide 12: FY 2025 Financial Outlook
FY 2025 Financial Outlook Modeling assumptions: • Net sales of $1.060B to $1.100B • Net interest expense ~$50M • Adjusted EBITDA1 of $280M to $290M • Effective tax rate ~25% for the OUTLOOK REFLECTS: • Free cash flow1 of ~$150M, remainder of the year >100% of net income • Capex ~$35M ▪ Incremental p
Slide 13: Key Messages
Key Messages Q1 2025 results ahead of expectations; net sales up 8% YoY Net leverage1 within target range at 2.8x during seasonally low cash collection period Launched OmniX: innovative wireless solution to automate existing installed equipment Executing action plans to mitigate the impact of tariff
Slide 14: Company Overview
COMPANY OVERVIEW © 2025 Hayward Holdings, Inc. 14
Slide 15: Hayward at a Glance
Hayward at a Glance ✓ Global leader in pool and outdoor living technology with the industry’s most recognized and trusted brand $1.05B 50.5% ✓ Strong, recurring aftermarket sales driven by one of the largest installed bases in the world 2024 2024 Gross Profit Net Sales margin ✓ Energy-efficient, env
Slide 16: Corporate Strategy
Corporate Strategy Organic • Execute global product and technology leadership roadmaps Growth • Advance regional sales & marketing strategies • Expand customer experience initiatives • Accelerate growth plans in Commercial Pool and Flow Control markets Margin • Proven culture of operational excellen
Slide 17: Why Invest in Hayward?
Why Invest in Hayward? • Secular tailwinds (sunbelt migration, healthy outdoor living) Attractive • Large installed base that grows every year Industry • Disciplined industry, demonstrated pricing power • Aftermarket1 sales mix historically ~80% Recurring • Majority non-discretionary purchases to ma
Slide 18: Attractive Long-Term Growth Dynamics
Attractive Long-Term Growth Dynamics Secular Tailwinds Industry Drivers Competitive Advantages ✓ Healthy outdoor living ✓ Growing, aging installed base ✓ Strong brand and installed base ✓ Sunbelt migration ✓ Predictable, non-discretionary ✓ Technology leadership aftermarket spending ✓ “Smart home” I
Slide 19: Celebrating 100 Years of Hayward
Celebrating 100 Years of Hayward FR OM H U M B LE B E GI N N I N GS TO GLOB AL P U B LI C C OM PAN Y Irving Hayward Oscar Davis Hayward IPO Hayward Celebrating Establishes Hayward Acquires Hayward & NYSE: HAYW 100 Years Enters Pool Market 1925 1960s 2021 Today © 2025 Hayward Holdings, Inc. 19
Slide 20: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2025 Hayward Holdings, Inc. 20
Slide 21: Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 21
Slide 22: Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months
Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months Reconciliation APPENDIX © 2024 Hayward Holdings, Inc. 22
Slide 23: Adjusted Net Income & Adjusted EPS Reconciliation
Adjusted Net Income & Adjusted EPS Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 23
Slide 24: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 24
Slide 25: Thank You
THANK YOU © 2025 Hayward Holdings, Inc. 25