Pool Company (POOL -1.34%) reported second quarter 2025 outcomes on July 24, 2025, delivering $1.8 billion in web gross sales (up 1% year-over-year), secure 30% gross margin, and $5.17 diluted EPS (GAAP), up 4% year-over-year, whereas reducing full-year diluted EPS (GAAP) steering to $10.80–$11.30.
Administration known as out sustained upkeep demand, non-public label chemical progress, and digital adoption, however cited persistent headwinds in new development and continued macro uncertainty, underscoring evolving dynamics for long-term buyers.
Pool’s digital platform and personal label drive sturdy beneficial properties
Transactions on the Pool 360 platform rose to 17% of web gross sales, up from 14.5% a yr in the past, signaling accelerating buyer adoption of this digital channel. Non-public label chemical gross sales posted year-over-year progress. Their integration with proprietary testing platforms has strengthened aggressive differentiation.
“Our continued funding in digital innovation is paying off with Pool 360 platform transactions now representing 17% of web gross sales, up from 14.5% final yr, reflecting enthusiastic buyer adoption and creating sturdy aggressive benefits which might be laborious to duplicate.”
— Peter Arvan, President and CEO
Excessive buyer uptake of Pool 360 and enlargement of personal label choices drive aggressive benefits and margin advantages.
Pool outperforms allow developments amid development headwinds
Regardless of high-single-digit declines in new pool development permits industrywide year-over-year, construction-related gross sales modestly improved sequentially and outpaced allow information, with Texas and California remaining weak however Florida and Arizona every attaining 2% gross sales progress year-over-year.
Constructing materials gross sales declined 1%, in comparison with a 5% decline within the earlier quarter, signaling stabilization relative to ongoing softness in discretionary shopper spending.
“As you all know, allow information signifies that new pool development is down excessive single digit however it’s nonetheless too early to name the yr. It’s value noting that the second-quarter developments improved from the primary quarter however nonetheless symbolize a headwind on a year-over-year foundation.”
— Peter Arvan, President and CEO
Administration’s skill to persistently outperform underlying market developments throughout cyclical downturns reinforces the effectiveness of localized methods and underpins the long-term thesis regardless of short-term volatility.
Expense self-discipline and capital returns bolster shareholder worth
Promoting, common, and administrative (SG&A) bills had been held at 14.7% of income, whereas share repurchases totaled $104 million — $36 million larger than the prior yr — leaving $516 million of authorization excellent. The corporate’s leverage ratio stays at 1.47, and stock days available improved by 1.5 days year-over-year.
“By way of our earnings launch date, we’ve now opened eight new areas for the reason that identical time final yr, contributing round 11% to the expense enhance with our disciplined operations offsetting different price enhance drivers. […] Through the quarter, we had been capable of keep bills as a share of income of 14.7%. […] 12 months-to-date, we’ve exceeded prior yr repurchases by $76 million and have $516 million remaining underneath our share repurchase authorization.”
— Melanie Hart, SVP and CFO
Sturdy price management, prudent enlargement, and stepped-up capital returns reveal monetary self-discipline and administration’s dedication to shareholder worth even in muted topline environments.
Trying Forward
Administration tasks full-year 2025 diluted EPS (GAAP) of $10.80–$11.30, together with a $0.10 ASU tax profit, reflecting expectations for flat full-year gross sales and gross margin charge akin to final yr, with SG&A set to extend 2%–3% year-over-year.
No significant inflection in discretionary demand or development is anticipated absent rate of interest cuts or an exterior catalyst. Strategic actions stay centered on digital platform adoption, non-public label enlargement, and regional progress initiatives, establishing a basis for accelerated progress when macro situations enhance.
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