Oct 28, 2026 earnings call — Aftermarket strength and raised 2026 outlook
Company raised full year 2026 outlook to net sales growth of approximately 5% to 6% and adjusted diluted EPS of $0.86 to $0.88.
Revenue $0.3B (est $0.3B) · EPS $0.18 (est $0.15)
Key quotes
"This performance also reflects the stability of the aftermarket as the existing installed base drives more than 85% of our sales."
"This year, we implemented targeted pricing actions to address inflation and tariffs not fully offset by productivity gains, and we continue to expect mid-single-digit positive net price realization in 2026."
"During the third quarter, we continued repurchasing shares, bringing the year-to-date deployment to approximately $115 million. At quarter end, $331 million remained available under our $450 million authorization."
Analyst Q&A 6
inventory and early buy orders
Q (Jeffrey Hammond · KeyBanc): Analyst asked about distributor inventory destocking and details on the early buy program. He also asked if permitting and pipeline activity give any early view on 2027.
A: Management said they track inventory with North American partners and partners are pleased with Hayward inventory levels and product velocity. They said inventory tightened modestly but supports strong out-the-door sales, and early buy orders are up year-on-year so far though Canada results are still pending. On permitting, they said permits are modestly down year-over-year and emphasized that 85-plus percent of revenue comes from the installed base, which is resilient.
"Our partners tell us that they're pleased with Hayward inventory levels and the velocity that they see with our product on their balance sheet, given that retail demand pull-through that they see for Hayward products." — Kevin Holleran (CEO)
cost inflation and share gains
Q (Rafe Jadrosich · BofA): Analyst asked how much cost inflation they expect for 2026 and any visibility into 2027. He also asked where Hayward is gaining market share by channel or product.
A: Management said they expect 2026 inflation to be slightly higher than mid-single digits, after supply-chain recalibration, and that late Q3 price increases will help in Q4; they are not ready to call 2027 but will rely on operations to reduce costs and reconsider pricing if needed. On share gains, they said gains are broad-based across region, product categories (notably sanitization, automation, LED lighting), and dealer types, driven by product introductions, brand investment, availability, and dealer support.
"For the full year, we expect inflation in '26 to be mid -- slightly higher than mid-single digits, and that's net of any recalibration we've done within our supply chain." — Eifion Jones (CFO)
conversions impact and Europe plan
Q (Andrew Carter · Stifel): Analyst asked if Hayward's known dealer conversions would make North America volume grow in a flat market. He also asked about Europe: China sourcing, margin program, and whether China helps meet margin goals.
A: Management said conversions take time to ramp with training and backlog, so they would not give a specific number but expect to deliver better than flat in 2027 as conversions ramp. For Europe, they described steps to improve Barcelona efficiency, consolidate SG&A into Madrid, and increasingly use the Wuxi, China facility to repurpose production for Europe and Rest of World; this gives a cost advantage and is likely incremental to prior gross margin plans but they are not yet ready to quantify the incremental benefit.
"And as you mentioned, we're progressively using more of our Wuxi, China facility and repurposing that production to support our Europe and Rest of World." — Eifion Jones (CFO)
early buy composition and capital priorities
Q (Brian Lee · Goldman Sachs): Analyst asked whether early buy for 2027 will shift more to volume vs price and how Hayward set its price relative to competitors. He also asked about capital allocation priorities given stronger leverage and buybacks.
A: Management said the early buy price increase is lower than prior year and they'd seen mid-single-digit price in early buy before discounts with low single-digit volume growth expected once the program closes; they noted early buy is historically about 30% of annual purchases and inventory positions support strong participation. On capital allocation, priorities remain unchanged: invest in the business first (they expect $40 million CapEx this year), M&A second with a disciplined pipeline, and share repurchases opportunistic with $115 million returned through Q3 and $331 million remaining under the $450 million capacity.
"As I mentioned in the call, $40 million is the expected CapEx for this year." — Eifion Jones (CFO)
Q4 price/volume and COVID-era replacements
Q (Robert Davies · Wolfe): Analyst asked how volume and pricing trends look through Q4 given prior pricing, and whether COVID-era installations will drive replacement tailwinds into 2027.
A: Management said Q4 guidance implies net sales flat to positive 3% with pricing positive low to mid-single digits, and that this year has a different mix because they expect more discounted early buy participation versus last year's in-season full-price orders. On the COVID replacement cycle, they said equipment installed late 2020 is now out of warranty and they expect replacement activity to start appearing over the next year-plus as that 7- to 10-year cycle plays out.
"When we think about Q4, what's implied within our guidance is revenue or net sales flat to positive 3%." — Eifion Jones (CFO)
drivers of early buy and Q4 margins
Q (Jae Hyun Ko · Jefferies): Analyst asked what is driving growth in the early buy now despite a flat market and whether Hayward set different caps or terms. He also asked why Q4 margins appear weaker and the outlook for gross margin, SG&A leverage, one-offs, and 2027 margins.
A: Management said there is no change in early buy caps and the program structure remains similar, but they expect a bigger early buy with some positive volume because they're gaining share and the channel prefers early buy for very favorable payment terms (payment delayed until Q2 next year). On margins, they said Q3 margin performance is good, Q4 mix shifts to more discounted early buy will pressure gross margin in the quarter, but they still expect full-year gross margin to be approximately 48% as last year while managing inflation with price and operational efficiencies.
"No real change in the parameters for early buy in terms of caps." — Eifion Jones (CFO)