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JULY 24, 2025 SECOND QUARTER 2025 EARNINGS PRESENTATION
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Second Quarter 2025 Earnings | 2 SAFE HARBOR STATEMENT This presentation includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “should,” “will,” “may,” “outlook,” and other words and similar expressions and include projections of earnings. The forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2024 Annual Report on Form 10-K and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP’s subsequent filings with the SEC. This presentation may also contain references to certain non-GAAP financial measures as defined by the SEC. A reconciliation of non- GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in the Appendix at the end of this presentation or, if applicable, at https://ir.poolcorp.com/non- GAAP-financial-measures, or in POOLCORP’s most recent earnings release, which was furnished in our Current Report on Form 8-K filed with the SEC.
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Second Quarter 2025 Earnings | 3 Q2 2025 Results at a glance (QTD, $ in millions) Net Sales $1,784.5 +1% vs Q2 2024 Gross Profit $535.2 +$5.0M vs Q2 2024 Gross Margin 30.0% In line with Q2 2024 Operating Income $272.7 +$1.2M vs Q2 2024 Operating Margin 15.3% In line with Q2 2024 Diluted EPS (GAAP) $5.17 +4% vs Q2 2024 Diluted EPS (ex-ASU) $5.17 +4% vs Q2 2024
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Second Quarter 2025 Earnings | 4 Strong execution drove sales growth in our maintenance products Q2 2025 POOLCORP SALES SUMMARY QTD Sales Performance Pool Corp Q2 2025 Net Sales +1 Sales by State Q2 2025 FL +2% CA -3% TX -2% AZ +2% Horizon Q2 2025 Net Sales -2% Europe Q2 2025 Net Sales +7%
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Second Quarter 2025 Earnings | 5 Strategic growth investments lifted sales in chemicals, with strong growth in private-label chemicals and increased POOL360 usage, and supported building materials in a pressured discretionary environment 1Independently-owned Pinch A Penny locations 2 Pinch A Penny franchisee end user sales Q2 2025 POOLCORP SALES SUMMARY Blue Products & End Markets – QTD Results Product Q2 2025 Chemicals +1% Building Materials -1% Equipment +1% End Market Q2 2025 Commercial +5% Retail -3% Pinch A Penny2 +1% POOL360 & Network Expansion 400 415 430 445 460 Q2 2023 Q2 2024 Q2 2025 Total Sales Centers 260 270 280 290 300 310 Q2 2023 Q2 2024 Q2 2025 Pinch A Penny Total Franchisees1 12% 14% 16% 18% Q2 2023 Q2 2024 Q2 2025 Pool360 Sales % of Total Sales
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Second Quarter 2025 Earnings | 6 ESTIMATED QUARTERLY IMPACTS $1.8B $1.8B Commodity Pricing ~ 2% Net Price Q2 2024 Sales New Pool/ Remodel Q2 2025 Sales Maintenance Maintenance volume growth and price mitigated continued discretionary pressures on new construction and remodel activity; value proposition supported customer and product mix impacts on gross margin +1% Q2 2024 Gross Margin Q2 2025 Gross Margin +2% to +3% -1% +1% -2% 30% 30% Cust. Mix Flat Supply Chain Pricing Product Mix
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Second Quarter 2025 Earnings | 7 QUARTERLY FINANCIAL TRENDS -10% -9% -8% -7% -5% -3% -2% -4% +1% $0 $400 $800 $1,200 $1,600 $2,000 $2,400 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Sales & Y/Y Change % ($ in millions) 30.6% 29.1% 29.3% 30.2% 30.0% 29.1% 29.4% 29.2% 30.0% $0 $120 $240 $360 $480 $600 $720 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Gross Profit & Gross Margin ($ in millions) 17.6% 13.2% 7.9% 9.7% 15.3% 12.3% 6.1% 7.2% 15.3% $0 $80 $160 $240 $320 $400 $480 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Operating Income & Operating Margin ($ in millions) 1 13.0% 15.9% 21.4% 20.5% 14.6% 16.8% 23.3% 21.9% 14.7% 10% 12% 14% 16% 18% 20% 22% 24% 26% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Operating Expenses % of Net Sales 1 2023 2024 2023 2024 2023 2024 2023 2024 2025 2025 2025 2025 1Includes a benefit from a $12.6M import tax reduction, which increased gross margin by 110 bps and EPS by $0.24 in Q1 2024
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Second Quarter 2025 Earnings | 8 Returning $253M to our shareholders, including a $76M YOY increase in share repurchases BALANCE SHEET, CASH FLOW & CAPITAL ALLOCATION As of and through June 30, 2025 Cash Flow from Operating Activities ($2M) Includes a $69M income tax payment deferred from 2024 and paid in 2025 Inventory $35M increase vs. Q2 2024 +3% vs Q2 2024 To support our customers’ in-season product needs Debt $113M increase with interest expense $1.8M lower in Q2 2025 vs Q2 2024 1.47x Debt/EBITDA vs 1.42x Q2 2024 Share Repurchases Dividends Capital Expenditures $160.6 $92.2 $27.4 2025 Capital Allocation ($ in millions)
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Second Quarter 2025 Earnings | 9 2025 GUIDANCE Note: Based on company estimates; references to expected trends and comparisons are versus full year 2024 1 Updated for borrowings on share repurchases completed year to date 2 Tax rate (excluding ASU) is estimated to be slightly lower than 25.0% in Q3 2025 2025 Earnings Driver Expected Range Net sales Flattish Inflation/pricing Approximately +2% including +1% from tariffs beginning in Q2 Maintenance from installed base Slight growth New construction units Flat to slightly down Renovation and remodel activity Flat to slightly down Gross margin In line with PY Interest Expense1 $45M to $47M Annual Tax Rate (excluding ASU)2 Approximately 25.0% Weighted Average Share Outstanding 37.6M GAAP diluted earnings per share $10.80 to $11.30
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Second Quarter 2025 Earnings | 10 Appendix
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Second Quarter 2025 Earnings | 11 APPENDIX Reconciliations of non-GAAP financial measures Three Months Ended June 30, Six Months Ended June 30, Reconciliation of Net Income to Adjusted EBITDA 2025 2024 2025 2024 Net income ($ in thousands) $ 194,258 $ 192,439 $ 247,803 $ 271,324 Adjustments to increase (decrease) net income: Interest expense and other non-operating expenses(1) 12,803 13,996 24,009 27,254 Provision for income taxes 66,180 65,058 79,064 81,531 Share-based compensation 6,895 5,016 12,950 10,344 Equity in earnings of unconsolidated investments, net 13 (60) (41) (117) Depreciation 9,964 8,931 19,804 17,591 Amortization (2) 1,963 1,958 3,925 3,891 Adjusted EBITDA $ 292,076 $ 287,338 $ 387,514 $ 411,818 (1) Shown net of losses (gains) on foreign currency transactions of $(584) and $48 for the three months ended and $(628) and $209 for the six months ended June 30, 2025, and June 30, 2024, respectively. (2) Excludes amortization of deferred financing costs of $202 and $155 for the three months ended and $387 and $310 for the six months ended June 30, 2025, and June 30, 2024, respectively. This non-cash expense is included in Interest and other non-operating expenses, net on the Consolidated Statements of Income. 2025 Earnings Guidance Range Floor Ceiling Diluted EPS $10.80 $11.30 Less: ASU 2016-09 tax benefit 0.10 0.10 Adjusted Diluted EPS $10.70 $11.20