Latham Group (NASDAQ:SWIM) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Latham Group (NASDAQ:SWIM) posted its quarterly earnings data on Tuesday. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02), FiscalAI reports. Latham Group had a net margin of 2.04% and a return on equity of 2.79%. The business had revenue of $117.32 million for the quarter, compared to the consensus estimate of $118.39 million.

Here are the key takeaways from Latham Group’s conference call:

• Management reaffirmed 2026 guidance with revenue growth of ~9% and adjusted EBITDA growth of ~13% at midpoint, and Q1 showed a 220 bps gross margin expansion to 32% and a 9% increase in adjusted EBITDA.
• The company is accelerating its Sunbelt strategy after seeing double-digit fiberglass pool sales in Florida, adding a commercial organization, neighborhood segmentation, more field sales and targeted marketing to capture share even if U.S. pool starts remain flat.
• The Feb. 26 Freedom Pools acquisition is integrating as expected, is immediately accretive, expands Latham’s presence in Australia/New Zealand (including Perth) and is expected to drive long-term revenue synergies.
• SG&A rose 20% to $37M (driven by strategic investments and acquisition/integration costs), Q1 net loss widened to $9M, and the company expects roughly $9M of Coverstar Central earn-out expense in 2026; leverage and elevated CapEx ($42–48M guidance) increase near-term financial pressure.
• Latham faces input-cost and freight risks from higher oil prices and Middle East tensions but has introduced a temporary fuel surcharge (about 60 basis points headwind this year) and cites supply diversification plus lean/value-engineering programs as mitigants, leaving overall commodity impact uncertain.

Latham Group Stock Up 1.0%

SWIM traded up $0.06 on Tuesday, reaching $5.86. 618,711 shares of the company traded hands, compared to its average volume of 876,595. The stock’s 50 day moving average price is $6.00 and its 200-day moving average price is $6.50. Latham Group has a 52-week low of $5.04 and a 52-week high of $8.97. The company has a market cap of $685.39 million, a price-to-earnings ratio of 65.11, a PEG ratio of 2.54 and a beta of 1.72. The company has a debt-to-equity ratio of 0.68, a current ratio of 2.77 and a quick ratio of 1.82.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BNP Paribas Financial Markets grew its position in Latham Group by 83.9% during the second quarter. BNP Paribas Financial Markets now owns 4,211 shares of the company’s stock valued at $27,000 after purchasing an additional 1,921 shares in the last quarter. Raymond James Financial Inc. purchased a new position in Latham Group during the second quarter valued at approximately $29,000. State of Wyoming purchased a new position in Latham Group during the fourth quarter valued at approximately $55,000. Kemnay Advisory Services Inc. purchased a new position in Latham Group during the fourth quarter valued at approximately $60,000. Finally, O Shaughnessy Asset Management LLC purchased a new position in Latham Group during the fourth quarter valued at approximately $64,000. 83.95% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on SWIM. Zacks Research lowered shares of Latham Group from a “strong-buy” rating to a “hold” rating in a report on Friday, April 3rd. Wall Street Zen cut shares of Latham Group from a “buy” rating to a “hold” rating in a research report on Sunday, April 12th. Bank of America cut their target price on shares of Latham Group from $7.00 to $6.00 and set an “underperform” rating on the stock in a research note on Monday, April 20th. William Blair restated an “outperform” rating on shares of Latham Group in a report on Wednesday, March 4th. Finally, Barclays decreased their target price on Latham Group from $8.00 to $7.00 and set an “equal weight” rating for the company in a research report on Wednesday, April 8th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $6.75.

About Latham Group

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.