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Q3 sales and profitability grew: Net sales rose 12.5% to $182.2 million, while adjusted EBITDA increased 18.1% to $45 million and its margin expanded 110 basis points to 24.8%. Fiberglass pools drove in-ground sales growth, which reached 22.6%.
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Expansion in the Sand States is gaining traction: Sales in Florida and Texas helped drive 21% growth across the Sand States, alongside sharply higher leads in both states. Latham plans to add staff, launch new pool models, and enter Arizona as it targets further fiberglass market-share gains.
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Outlook and capital returns: Latham narrowed its 2026 guidance to $605–$615 million in sales and $112–$118 million in adjusted EBITDA, and is planning for a flat pool market in 2027. The board approved a three-year, $100 million share repurchase program.
Latham Group (NASDAQ:SWIM) reported third-quarter sales growth and higher profitability as the pool manufacturer expanded fiberglass-pool sales, increased activity in Florida and Texas, and continued to invest in marketing and commercial capabilities despite what management described as challenging market conditions.
Net sales rose 12.5% year over year to $182.2 million in the third quarter, including 8.4% organic growth and 4.1% growth related to the Freedom Pools acquisition. Adjusted EBITDA increased 18.1% to $45 million, while adjusted EBITDA margin expanded 110 basis points to 24.8%.
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“Latham is not waiting for the market to rebound,” President and CEO Sean Gadd said on the company’s earnings call. “We are driving growth in our established markets through high-impact marketing campaigns and sales execution” while pursuing fiberglass conversion opportunities in the so-called Sand States.
Fiberglass Pools Drive In-Ground Sales Growth
In-ground pool sales increased 22.6% to $92 million during the quarter, including 13.9% organic growth. CFO Oliver Gloe said organic growth was driven almost entirely by fiberglass pools, while the Freedom Pools acquisition accounted for the acquisition-related growth.
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Gadd said fiberglass pools are expected to represent about 80% of Latham’s total in-ground pool sales this year. Based on the company’s internal data, Latham expects fiberglass to gain at least one percentage point of U.S. in-ground pool market share in 2026, reaching approximately 25% of total U.S. in-ground pool sales.
