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FIRST QUARTER 2025 EARNINGS May 1, 2025 © 2025 Hayward Holdings, Inc.
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FIRST QUARTER 2025 EARNINGS CALL 2 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.
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Forward-Looking Statements and Non-GAAP Financial Measures © 2025 Hayward Holdings, Inc. 3 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 management as well as assumptions made by, and information currently available to it. These forward-looking statements include, but are not limited to, statements about Hayward’s strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements contained in or incorporated by reference in this presentation that are not historical facts. When used in this presentation, words such as “guidance,” “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to Hayward are intended to identify forward-looking statements. Examples of forward-looking statements include, among others, statements Hayward makes regarding: Hayward’s 2025 guidance; business plans and objectives; general economic and industry trends; business prospects; future product development and acquisition strategies; future channel stocking levels; growth and expansion opportunities; operating results; and working capital and liquidity. Hayward may not achieve the plans, intentions or expectations disclosed in Hayward’s forward-looking statements, and you should not place significant reliance on its forward-looking statements. Important factors that could affect Hayward’s future results and could cause those results or other outcomes to differ materially from those indicated in its forward-looking statements include the following: its relationships with and the performance of distributors, builders, buying groups, retailers and servicers who sell Hayward’s products to pool owners; impacts on Hayward’s business from the sensitivity of its business to seasonality and unfavorable economic, business and weather conditions; competition from national and global companies, as well as lower-cost manufacturers; the imposition, or threat of imposition, of tariffs and other trade restrictions could adversely affect our business, including as a result of an adverse impact on general economic conditions; Hayward’s ability to develop, manufacture and effectively and profitably market and sell its new planned and future products; its ability to execute on its growth strategies and expansion opportunities; Hayward’s exposure to credit risk on its accounts receivable; impacts on Hayward’s business from political, regulatory, economic, trade, and other risks associated with operating foreign businesses, including risks associated with geopolitical conflict; its ability to maintain favorable relationships with suppliers and manage disruptions to its global supply chain and the availability of raw materials; Hayward’s ability to identify emerging technological and other trends in its target end markets; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; its reliance on information technology systems and susceptibility to threats to those systems, including cybersecurity threats, and risks arising from its collection and use of personal information data; misuse of its technology-enabled products could lead to reduced sales, liability claims or harm to its reputation; the impact of product manufacturing disruptions, including as a result of catastrophic and other events beyond Hayward’s control; Hayward’s ability to extend the maturity of its credit facilities; regulatory changes and developments affecting Hayward’s current and future products; volatility in currency exchange rates and interest rates; Hayward’s ability to service its existing indebtedness and obtain additional capital to finance operations and its growth opportunities; Hayward’s ability to establish, maintain and effectively enforce intellectual property protection for its products, as well as its ability to operate its business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the impact of material cost and other inflation, including as a result of new or increased tariffs; Hayward’s ability to attract and retain senior management and other qualified personnel; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits, impact trade agreements, or address the impacts of climate change; the outcome of litigation and governmental proceedings; uncertainties related to distribution channel inventory practices and its impact on sales volumes; Hayward's ability to realize cost savings from restructuring activities; and other factors set forth in Hayward’s most recent Annual Report on Form 10-K. Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this presentation. The forward-looking statements included in this presentation are made only as of the date of this presentation. Unless required by United States federal securities laws, Hayward neither intends nor assumes any obligation to update these forward-looking statements for any reason to conform these statements to actual results or to changes in Hayward’s expectations. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”) These measures should not be considered in isolation or as an alternative to their comparable measures under GAAP. See the appendix for a reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures.
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Key Messages © 2025 Hayward Holdings, Inc. 4 Q1 2025 results ahead of expectations; net sales up 8% YoY Confirming full year 2025 guidance Net leverage1 within target range at 2.8x during seasonally low cash collection period 1. Net leverage is a non-GAAP measure and calculated as (A) total debt less cash & cash equivalents and short-term investments divided by (B) the sum of last twelve months adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. See the appendix for a reconciliation to the most directly comparable GAAP meas ure. Launched OmniX: innovative wireless solution to automate existing installed equipment Executing action plans to mitigate the impact of tariffs
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Financial Overview RESULTS REFLECT: ▪ Continued solid execution ▪ Positive net price realization and increased volumes ▪ Solid gross profit margin and adjusted EBITDA margin ▪ Targeted strategic growth investments © 2025 Hayward Holdings, Inc. 5 All comparison are year over year 1. Non-GAAP financial measure. See the appendix for a reconciliation to the most directly comparable GAAP measure. Q1 2025 YoY Net Sales $228.8M +8% Gross Profit Margin 49.5% +30 bps Adj. EBITDA1 $49.1M +9% Adj. EBITDA1 Margin 21.5% +30 bps Adj. Diluted EPS1 $0.10 +25%
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Tariff Impact and Mitigation Action Plans © 2025 Hayward Holdings, Inc. 6 Estimated Tariff Impact1 ✓ ~$85M annualized cost increase ✓ ~$30M cost increase for FY’25 ✓ Mostly related to China sourcing ✓ Limited by partial year impact, mitigation actions, inventory on hand ✓ Assume incremental tariffs remain in place ✓ 145% China, 10% Rest of World ✓ Assume exemptions under USMCA continue ✓ Working to significantly reduce the exposure Tariff Mitigation Action Plans ✓ Mitigation ✓ Accelerated cost reduction, productivity initiatives ✓ Actioned structural supply chain alternatives ✓ Pricing ✓ Implemented a 3% increase in NAM effective April and 4% effective June ✓ Evaluating the need for additional pricing actions ✓ Managing the channel, limits on ordering ahead 1. Management’s estimates based on available information on tariffs in place as of April 30, 2025 Aggressively executing tariff mitigation action plans to support profitability Expect incremental pricing to offset tariff-related volume pressure China direct sourcing into the US going from ~10% to ~3% of COGS by year end 2025
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© 2025 Hayward Holdings, Inc. 7 OmniX: Innovative IoT Automation Platform for the Aftermarket Current OmniLogic Centralized Controls for New Construction (TAM: ~62K annual pool builds in the US1) New OmniX Platform Decentralized Controls for the Aftermarket (TAM: ~3.5M non-automated pools in the US2) 1. Total new residential inground pool construction was approximately 62,000 units in 2024 according to P.K. Data 2. Management estimate Significant aftermarket opportunity: large TAM of ~3.5M non-automated pools in the US (~65% of the 5.4M installed base) Compelling path for pool owners to add wireless IoT control
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First Quarter 2025 Financials Source: Company financial data. 1. Non-GAAP financial measure. See Appendix for a reconciliation to the most directly comparable GAAP measure. GROSS PROFIT MARGIN OF 49.5% ▪ Increased 30 bps YoY ▪ NAM up 100 bps YoY ▪ ERW down 260 bps YoY, progressing as expected sequentially, up 360 bps from Q4’24 GROSS PROFIT OF $113.4M NET SALES +7.7% YoY ▪ Net price +3% ▪ Volume +3% ▪ Acquisition +3% (ChlorKing) ▪ FX -1% NET SALES OF $228.8M DILUTED EPS OF $0.06; ADJ. DILUTED EPS1 OF $0.10ADJ. DILUTED EPS1 OF $0.10 ADJ. EBITDA1 MARGIN OF 21.5% ▪ Increased 30 bps YoY ▪ Disciplined cost control, targeted strategic investments in sales & marketing, customer service, advanced engineering ADJ. EBITDA1 OF $49.1M © 2025 Hayward Holdings, Inc. 8
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First Quarter 2025 Segment Overview © 2025 Hayward Holdings, Inc. 91. Non-GAAP financial measure. See Appendix for a reconciliation to the most directly comparable GAAP measure. • Net price +3%, volume +2%, M&A +3% • US +9%, Canada -5% • Gross margin increased 100 bps YoY NORTH AMERICA NET SALES $187.1M YoY Change: +7.9% GROSS PROFIT $98.7M Gross Profit Margin: 52.8% ADJ. SEGMENT INCOME1 $50.7M Adj. Segment Income Margin1: 27.1% EUROPE & REST OF WORLD NET SALES $41.8M YoY Change: +6.7% GROSS PROFIT $14.6M Gross Profit Margin: 35.0% ADJ. SEGMENT INCOME1 $7.0M Adj. Segment Income Margin1: 16.6% • Net price +1%, volume +8%, F/X -2% • Europe +8%, Rest of World +3% • Gross margin reduced 260 bps YoY , increased 360 bps sequentially from 31.4% in Q4’24
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Balance Sheet and Cash Flow Highlights © 2025 Hayward Holdings, Inc. 10 1. $600M of the term debt is swapped with interest rate swap maturities in 2025 ($250M) (to be replaced with 2028 maturities), 2026 ($100M) and 2027 ($250M). 2. Non-GAAP financial measure. See Appendix for a reconciliation to the most directly comparable GAAP measure. 3. Net leverage is a non-GAAP measure and calculated as (A) total debt less cash & cash equivalents and short-term investments divided by (B) the sum of last twelve months adjusted EBITDA. CASH FLOW ($M) Q1 2025 Q1 2024 Cash flows from operating activities ($6) ($77) Less capex ($6) ($6) Free cash flow6 ($12) ($83) 3/29/2025 Cash and cash equivalents $181 Total debt principal $973 Term debt (2028 maturity)1 $965 ABL revolver (2026 maturity) $0 LTM adjusted EBITDA2 $282 Net leverage3 2.8x BALANCE SHEET ($M) $600M fixed rate, remainder variable Blended interest rate of 5.8%5 4. Total liquidity includes cash and equivalents of $181 million plus availability under our credit facilities of $217 mi llion. 5. Excluding financing fees and inclusive of the impact of the interest rate swaps. 6. Free cash flow is calculated as net cash flows from operating activities less capital expenditures. Net leverage reduced to 2.8x from 4.0x a year ago No near-term debt maturities; $398M total liquidity4 Q1 2025 cash flows from operating activities include $99M in net proceeds from accounts receivable sales under a Receivables Purchase Agreement initiated in 2024 >> >> >>
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Capital Allocation Priorities © 2025 Hayward Holdings, Inc. 11 GROWTH INVESTMENTS • Innovative new product development, IoT digital leadership • Commercial programs, dealer conversions • Operational excellence, productivity, growth capex1 2 3 4 Funding strategic growth investments and shareholder returns while maintaining prudent financial leverage STRATEGIC M&A • Pipeline of tuck-in opportunities to complement our product offering, geographic footprint, commercial relationships DE-LEVERING • Debt repayment RETURN TO SHAREHOLDERS • $400M remaining on existing $450M authorization
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Adjusted EBITDA Guidance FY 2025 Financial Outlook • Net sales of $1.060B to $1.100B • Adjusted EBITDA1 of $280M to $290M • Free cash flow1 of ~$150M, >100% of net income OUTLOOK REFLECTS: ▪ Incremental pricing offset by increased macroeconomic uncertainty ▪ Resilient non-discretionary aftermarket maintenance ▪ Discretionary new construction, remodel, upgrade impacted by economic and interest rate environment ▪ Net price realization of ~5-6% ▪ Robust margins ▪ Solid cash flow generation © 2025 Hayward Holdings, Inc. 12 1. Reconciliation for the full-year fiscal 2025 Adjusted EBITDA and free cash flow guidance is not being provided, as Hayward does not currently have sufficient data to accurately estimate variables and individual adjustments for such reconciliation, Adjusted EBITDA and free cash flow estimated for full -year fiscal 2025 are calculated in a manner consistent with historical adjusted EBITDA and free cash flow, respectively, included in this presentation. 2. Outlook based on announced tariffs as of April 30, 2025; also assumes no broad -based global recession. Modeling assumptions: • Net interest expense ~$50M • Effective tax rate ~25% for the remainder of the year • Capex ~$35M $285M $285M
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Key Messages © 2025 Hayward Holdings, Inc. 13 Q1 2025 results ahead of expectations; net sales up 8% YoY Confirming full year 2025 guidance Net leverage1 within target range at 2.8x during seasonally low cash collection period 1. Net leverage is a non-GAAP measure and calculated as (A) total debt less cash & cash equivalents and short-term investments divided by (B) the sum of last twelve months adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. See the appendix for a reconciliation to the most directly comparable GAAP meas ure. Launched OmniX: innovative wireless solution to automate existing installed equipment Executing action plans to mitigate the impact of tariffs
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COMPANY OVERVIEW © 2025 Hayward Holdings, Inc. 14
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Residential Pool, 90% Commercial Pool, 5% Flow Control, 5% US, 78% Canada, 7% Europe, 9%ROW, 6% 1. See Appendix for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. 2. Aftermarket equipmen t sales are driven primarily by the ongoing repair, replacement, remodeling and upgrading of equipment for existing pools. Aftermarket sales based upon feedback from certain representative c ustomers and management’s interpretation of available industry and government data, and not upon our GAAP net sales results. 3. Source: Company financial data for year ending December 31, 2024. $1.05B 2024 Net Sales ✓ Global leader in pool and outdoor living technology with the industry’s most recognized and trusted brand ✓ Strong, recurring aftermarket sales driven by one of the largest installed bases in the world ✓ Energy-efficient, environmentally sustainable products catering to increased focus on outdoor living ✓ Industry-leading smart home technology (Omni) for increased pool owner connectivity and automation 50.5% 2024 Gross Profit margin 26.4% 2024 Adj. EBITDA1 margin #1 products brand amongst U.S. pool professionals >550 current / pending patents globally ~80% of sales from aftermarket2 historically Automation & Sanitization, 21% Pumps, 20% Heaters, 19% Filters, 13% Lighting & Water Features, 9% White Goods, 5% Cleaners, 4% Valves & Fittings, 3% Other, 6% Net Sales by Product Category3 Net Sales by Segment3 Net Sales by End Market3 Hayward at a Glance ~90% of products associated with sustainability themes 94% attach rate for the Omni app2 © 2025 Hayward Holdings, Inc. 15
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Corporate Strategy • Execute global product and technology leadership roadmaps • Advance regional sales & marketing strategies • Expand customer experience initiatives • Accelerate growth plans in Commercial Pool and Flow Control markets Organic Growth • Proven culture of operational excellence with agile manufacturing footprint • Higher-margin technology product mix • Leverage top-line growth, increase capacity utilization • Price-cost management Margin Expansion • Growth investments (products/technologies, customer programs, productivity) • Strategic M&A and partnerships • Balance sheet de-levering • Return to shareholders Disciplined Capital Allocation © 2025 Hayward Holdings, Inc. 16
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Why Invest in Hayward? © 2025 Hayward Holdings, Inc. 17 Leader In Attractive Industry • Energy-efficient, environmentally sustainable products • Established strategy and reporting framework – Products, Planet, People, Principles • Morningstar Sustainalytics 2024 industry top quartile rating Strong Financial Profile • Secular tailwinds (sunbelt migration, healthy outdoor living) • Large installed base that grows every year • Disciplined industry, demonstrated pricing power Attractive Industry • Aftermarket1 sales mix historically ~80% • Majority non-discretionary purchases to maintain existing pools • Early in the technology adoption cycle of IoT-enabled smart products (OmniX) Recurring Aftermarket Model • Technology leadership. Innovative, best-in-class products in high-growth categories • Operational excellence. Agile manufacturing and supply chain management • Go-to-market. New customer acquisition / loyalty programs with significant traction Competitive Advantages • Long-term organic sales CAGR of mid-to-high single digits • Gross margin ~50%, mid-to-high 20s adjusted EBITDA margins on an annual basis • Robust FCF generation, capital allocation optionality Commitment to Sustainability 1. Aftermarket equipment sales are driven primarily by the ongoing repair, replacement, remodeling and upgrading of equipment fo r existing pools. Aftermarket sales based upon feedback from certain representative customers and management’s interpretation of available indu stry and government data, and not upon our GAAP net sales results.
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Attractive Long-Term Growth Dynamics © 2025 Hayward Holdings, Inc. 18 HAYWARD IS WELL POSITIONED TO DRIVE COMPELLING LONG-TERM GROWTH Secular Tailwinds ✓ Growing, aging installed base ✓ Predictable, non-discretionary aftermarket spending ✓ Demonstrated pricing power ✓ Conversion to connected product technologies ✓ Healthy outdoor living ✓ Sunbelt migration ✓ “Smart home” IoT adoption ✓ Environmentally sustainable products Industry Drivers ✓ Strong brand and installed base ✓ Technology leadership ✓ Operational excellence ✓ Multi-channel strength Competitive Advantages
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Celebrating 100 Years of Hayward Oscar Davis Acquires Hayward & Enters Pool Market 1960s Hayward Celebrating 100 Years Today Hayward IPO NYSE: HAYW 2021 Irving Hayward Establishes Hayward 1925 F R O M H U M B L E B E G I N N I N G S T O G L O B A L P U B L I C C O M P A N Y © 2025 Hayward Holdings, Inc. 19
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APPENDIX © 2025 Hayward Holdings, Inc. Non-GAAP Reconciliations APPENDIX Non-GAAP Reconciliations 20
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21 Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2025 Hayward Holdings, Inc.
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22 Adjusted EBITDA & Adjusted EBITDA Margin Last Twelve Months Reconciliation APPENDIX © 2024 Hayward Holdings, Inc.
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23 Adjusted Net Income & Adjusted EPS Reconciliation APPENDIX © 2025 Hayward Holdings, Inc.
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24 Adjusted Segment Income Reconciliation APPENDIX © 2025 Hayward Holdings, Inc.
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THANK YOU © 2025 Hayward Holdings, Inc. 25