Earnings release
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Q3 2026 Highlights: Net sales increased 4% to $1.5 billion, accelerating from 2% growth in the second quarter, supported by price, solid maintenance growth and continued improvement in building materials Operating income decreased 3% to $172.2 million from $178.0 million in Q3 2025 Diluted EPS consistent with Q3 2025 at $3.40; adjusted diluted EPS increased $0.01 Confirms annual earnings guidance range of $10.66 to $10.96 per diluted share, and adjusted diluted earnings guidance range of $10.87 to $11.17 per share including $0.02 of year-to-date ASU 2016-09 tax benefits COVINGTON, La., Oct. 22, 2026 (GLOBE NEWSWIRE) — Pool Corporation (Nasdaq: POOL) todayreported results for the third quarter of 2026. “Building on our performance through the first half of the year, we delivered solid results in the thirdquarter of 2026 as we moved through the end of the peak selling season. Our dedicated teamsproduced top-line growth by delivering to our customers when they needed it the most. At the sametime, we remained committed to disciplined capital allocation, reducing inventory by 3% while growingsales. Through the first nine months of the year, we generated $419.8 million in operating cash flows,and in the third quarter alone we returned $158.7 million to shareholders through share repurchasesand dividends. As the industry leader, we are focused on supporting our partners to collectively growthe outdoor living industry, efficiently bringing new products to market and offering the best valueproposition to our customers,” said John B. Watwood, president and CEO. Third quarter ended September 30, 2026 compared to the third quarter ended September 30,2025 Net sales increased 4% to $1.5 billion in the third quarter of 2026. The increase primarily reflected 3%growth from price, coupled with stronger maintenance activity and building materials growth. Gross profit increased 2% to $436.3 million. Gross margin decreased 60 basis points to 29.0% from29.6% in the same period of 2025. The decrease was primarily driven by higher inbound freight costsand customer mix, as well as the comparison against the prior year benefit from mid-season priceincreases. Selling and administrative expenses (operating expenses) increased 5% to $264.1 million from $251.2million in the same period in 2025, reflecting higher performance-based compensation resulting fromincreased sales, increases in employee insurance and outside fees related to our strategic initiatives. Operating income decreased 3% to $172.2 million compared to $178.0 million in the same period lastyear. Net income decreased 3% to $123.0 million from $127.0 million in the third quarter of 2025. Earnings per diluted share was $3.40, consistent with the third quarter of 2025. Adjusting for theimpact from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-BasedPayment Accounting, earnings per diluted share was $3.40 in the third quarter of 2026 compared to$3.39 in the same period of 2025. Nine months ended September 30, 2026 compared to the nine months ended September 30,2025 Net sales increased 4% to $4.5 billion from $4.3 billion in the nine months ended September 30, 2025.Gross margin declined 30 basis points to 29.3% from 29.6% in the same period last year. Operating expenses increased 5% to $784.5 million compared to $748.5 million for the same period in2025. Operating expenses for the nine months ended September 30, 2026 included $8.3 million ofCEO transition costs, comprised of $6.3 million of non-cash share-based compensation expense forawards previously granted but not fully amortized and $2.0 million of cash transition costs. Adjustingfor the impact of CEO transition costs, operating expenses increased 4%. Operating income was $522.5 million compared to $528.2 million in the same period last year. Oct 22, 2026 Pool Corporation Reports Third Quarter Results; Confirms AnnualEarnings Guidance Range
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Adjusted operating income was $530.7 million, in line with the same period of 2025. Net income decreased 3% to $364.4 million compared to $374.8 million in the nine months endedSeptember 30, 2025. We recorded a $0.7 million, or $0.02 per diluted share, tax benefit from ASU2016-09 in 2026 compared to a $4.2 million, or $0.11 per diluted share, tax benefit in the same periodof 2025. Adjusted net income for the nine months ended September 30, 2026 was $371.2 millioncompared to $370.6 million in the nine months ended September 30, 2025. Earnings per diluted share increased 1% to $10.02 compared to $9.97 in the same period of 2025.Adjusted earnings per diluted share increased 4% to $10.21 from $9.86 in the first nine months of2025. Balance Sheet and Liquidity Inventory decreased 3% at September 30, 2026 compared to September 30, 2025, while third quarternet sales increased 4% year over year. Total debt outstanding increased $104.9 million to $1.2 billionat September 30, 2026. Net cash provided by operations increased 47% to $419.8 million in the first nine months of 2026compared to $285.7 million in the first nine months of 2025. Year to date, we have returned $338.1million to our shareholders through $140.1 million in dividends and $198.0 million in sharerepurchases. These returns were primarily funded by operating cash flows, after investing $49.8 millionin the business and making $33.1 million in net debt repayments. We have also increased ourquarterly dividend by 4% to $1.30 per share from $1.25 per share in the third quarter of 2025. Outlook “Based on our performance to date and outlook for the remainder of the year, we are confirming ourfull-year adjusted diluted EPS guidance range of $10.87 to $11.17. As we look forward to closing out2026, I am proud of the POOLCORP team, whose dedication and execution are the true source of oursuccess. Our unmatched network, solid operational performance and strong supplier relationshipsposition us well to continue delivering exceptional value to our customers and the outdoor livingindustry,” said Watwood. The table below further illustrates our current guidance: (Unaudited) 2026 Guidance RangeFloor CeilingDiluted EPS $ 10.66$ 10.96After-tax CEO transition costs 0.21 0.21 Adjusted diluted EPS $ 10.87$ 11.17 Includes $0.02 of year-to-date ASU 2016-09 tax benefits. Non-GAAP Financial Measures This press release contains certain non-GAAP measures. See the addendum to this release fordefinitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAPmeasures. About Pool Corporation POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyardproducts. As of September 30, 2026, POOLCORP operated 454 sales centers in North America,Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000wholesale customers. For more information, please visit www.poolcorp.com. Forward-Looking Statements This news release includes “forward-looking” statements that involve risks and uncertainties that aregenerally 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 andinclude projections of earnings. The forward-looking statements in this release are made pursuant tothe safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements speak only as of the date of this release, and we undertake no obligation to update orrevise such statements to reflect new circumstances or unanticipated events as they occur. Actualresults may differ materially due to a variety of factors, including the sensitivity of our business toweather conditions; changes in economic conditions, consumer discretionary spending, the housingmarket, inflation or interest rates; our ability to maintain favorable relationships with suppliers andmanufacturers; competition from other leisure product alternatives or mass merchants; our ability tocontinue to execute our growth strategies; changes in the regulatory environment; new or additionaltaxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and otherrisks detailed in POOLCORP’s 2025 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q (1) (1) (1)
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and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated byPOOLCORP’s subsequent filings with the SEC. Kristin S. ByarsDirector, Investor Relations and Finance985.801.5153kristin.byars@poolcorp.com POOL CORPORATIONConsolidated Statements of Income(Unaudited)(In thousands, except per share data) Three Months EndedNine Months EndedSeptember 30, September 30,2026 2025 2026 2025Net sales $1,504,957$1,451,131$4,465,909$4,307,187Cost of sales 1,068,6401,021,9483,158,9593,030,474Gross profit 436,317 429,1831,306,9501,276,713Percent 29.0% 29.6% 29.3% 29.6% Selling and administrative expenses264,122 251,196 784,464 748,518Operating income 172,195 177,987 522,486 528,195Percent 11.4% 12.3% 11.7% 12.3% Interest and other non-operatingexpenses, net 11,762 12,004 38,402 35,387Income before income taxes andequity in earnings 160,433 165,983 484,084 492,808Provision for income taxes 37,449 38,985 119,774 118,048Equity in earnings of unconsolidatedinvestments, net 58 15 51 56 Net income $ 123,042$ 127,013$ 364,361$ 374,816 Earnings per share attributable tocommon stockholders Basic $ 3.41$ 3.41$ 10.03$ 10.01 Diluted $ 3.40$ 3.40$ 10.02$ 9.97 Weighted average common sharesoutstanding: Basic 35,881 37,090 36,108 37,272 Diluted 35,923 37,223 36,163 37,420 Cash dividends declared per commonshare $ 1.30$ 1.25$ 3.85$ 3.70 Earnings per share under the two-class method is calculated using net income attributable tocommon stockholders (net income reduced by earnings allocated to participating securities),which was $122.3 million and $126.4 million for the three months ended September 30, 2026 andSeptember 30, 2025, respectively, and $362.3 million and $373.0 million for the nine monthsended September 30, 2026 and September 30, 2025, respectively. Participating securitiesexcluded from weighted average common shares outstanding were 216,000 and 184,000 for thethree months ended September 30, 2026 and September 30, 2025, respectively, and 206,000 and184,000 for the nine months ended September 30, 2026 and September 30, 2025, respectively. POOL CORPORATIONCondensed Consolidated Balance Sheets(Unaudited)(In thousands) September30, September30, Change2026 2025 $ % AssetsCurrent assets:Cash and cash equivalents $ 105,657$ 128,483$ (22,826) (18)%Receivables, net 135,492 138,072 (2,580) (2)Receivables pledged under receivables facility342,965 305,537 37,42812Product inventories, net 1,185,1771,223,809(38,632) (3)Prepaid expenses and other current assets52,365 53,138 (773) (1)Total current assets 1,821,6561,849,039(27,383) (1) Property and equipment, net 281,030 267,408 13,622 5 (1) (1) (1) (2)
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Goodwill 706,683 705,266 1,417 0Other intangible assets, net 277,972 285,409 (7,437) (3)Equity interest investments 1,645 1,514 131 9Operating lease assets 342,895 319,898 22,997 7Other assets 53,588 72,137 (18,549) (26) Total assets $3,485,469$3,500,671$ (15,202) (0)% Liabilities and stockholders’ equityCurrent liabilities:Accounts payable $ 423,865$ 457,319$ (33,454) (7)Accrued expenses and other current liabilities174,146 147,122 27,02418Short-term borrowings and current portion oflong-term debt 20,952 12,881 8,071 63Current operating lease liabilities120,756 102,189 18,56718Total current liabilities 739,719 719,511 20,208 3 Deferred income taxes 93,984 79,101 14,88319Long-term debt, net 1,145,9301,049,121 96,809 9Other long-term liabilities 47,620 47,342 278 1Non-current operating lease liabilities231,098 225,706 5,392 2Total liabilities 2,258,3512,120,781137,5706Total stockholders’ equity 1,227,118 1,379,890(152,772) (11) Total liabilities and stockholders’ equity $3,485,469$3,500,671$ (15,202) (0)% The allowance for doubtful accounts was $10.3 million at September 30, 2026 and $8.3 million atSeptember 30, 2025. The inventory reserve was $24.9 million at September 30, 2026 and $29.0 million at September30, 2025. POOL CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)(In thousands) Nine Months EndedSeptember 30,2026 2025 ChangeOperating activitiesNet income $ 364,361$ 374,816$ (10,455)Adjustments to reconcile net income to net cash providedby operating activities:Depreciation 34,461 30,438 4,023Amortization 6,750 6,598 152Share-based compensation 22,437 17,385 5,052Equity in earnings of unconsolidated investments, net(51) (56) 5Other 3,489 459 3,030Changes in operating assets and liabilities, net of effectsof acquisitions:Receivables (134,083) (123,914) (10,169)Product inventories 264,883 77,407 187,476Prepaid expenses and other assets 19,765 73,226 (53,461)Accounts payable (225,440) (69,794) (155,646)Accrued expenses and other liabilities63,252 (100,822) 164,074Net cash provided by operating activities419,824 285,743 134,081 Investing activitiesAcquisition of businesses, net of cash acquired– (7,116) 7,116Purchases of property and equipment, net of saleproceeds (49,772) (48,123) (1,649)Other investments, net 2,328 (508) 2,836Net cash used in investing activities (47,444) (55,747) 8,303 Financing activitiesProceeds from revolving line of credit1,351,3001,417,100(65,800)Payments on revolving line of credit (1,496,400) (1,390,400) (106,000)Proceeds from term loan under credit facility– 125,000(125,000)Payments on term loan under credit facility– (87,500) 87,500Proceeds from asset-backed financing390,300 437,600 (47,300)Payments on asset-backed financing (278,800) (370,400) 91,600Payments on term facility – (19,938) 19,938 (1) (2)
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Proceeds from short-term borrowings and current portionof long-term debt 7,103 17,431 (10,328)Payments on short-term borrowings and current portionof long-term debt (6,555) (16,523) 9,968Payments of deferred financing costs (359) (1,397) 1,038Payments of excise tax on repurchases of common stock(2,974) – (2,974)Proceeds from stock issued under share-basedcompensation plans 5,018 9,203 (4,185)Payments of cash dividends (140,105) (138,664) (1,441)Repurchases of common stock (198,046) (163,884) (34,162) Net cash used in financing activities (369,518) (182,372) (187,146)Effect of exchange rate changes on cash and cashequivalents (2,168) 2,997 (5,165)Change in cash and cash equivalents 694 50,621 (49,927)Cash and cash equivalents at beginning of period104,963 77,862 27,101 Cash and cash equivalents at end of period$ 105,657$ 128,483$ (22,826) ADDENDUM Base Business When calculating our base business results, we exclude for a period of 15 months sales centers thatare acquired, opened in new markets or closed. We also exclude consolidated sales centers when wedo not expect to maintain the majority of the existing business and existing sales centers that areconsolidated with acquired sales centers. We generally allocate corporate overhead expenses to excluded sales centers on the basis of their netsales as a percentage of total net sales. After 15 months, we include acquired, consolidated and newmarket sales centers in the base business calculation including the comparative prior year period. We have not provided separate base business income statement data within this press release as ourbase business results for the three and nine months ended September 30, 2026 closely approximatedour consolidated results. Excluded sales centers contributed less than 1% to the change in ourreported net sales. The table below summarizes the changes in our sales centers during the first nine months of 2026. December 31, 2025 456New locations 2Consolidated locations (4) September 30, 2026 454 Reconciliation of Non-GAAP Financial Measures The non-GAAP measures described below should be considered in the context of all of our otherdisclosures in this press release. Adjusted EBITDA We define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses,provision for income taxes, depreciation, amortization, share-based compensation, goodwill and otherimpairments, equity in earnings or loss of unconsolidated investments, and other items thatmanagement believes are not indicative of ongoing operating performance. Other companies maycalculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparativemeasure. Adjusted EBITDA is not a measure of performance as determined by generally accepted accountingprinciples (GAAP). We believe Adjusted EBITDA should be considered in addition to, not as asubstitute for, operating income or loss, net income or loss, net cash flows provided by or used inoperating, investing and financing activities or other income statement or cash flow statement lineitems reported in accordance with GAAP. From time to time, we use Adjusted EBITDA as a supplemental disclosure because management usesit to monitor our performance, and we believe that it is widely used by our investors, industry analystsand others as a useful supplemental performance measure. We believe that Adjusted EBITDA, whenviewed with our GAAP results and the accompanying reconciliations, provides an additional measurethat enables management and investors to monitor factors and trends affecting our ability to servicedebt, pay taxes and fund capital expenditures. The table below presents a reconciliation of net income to Adjusted EBITDA. (Unaudited) Three Months EndedNine Months Ended(In thousands) September 30, September 30,
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2026 2025 2026 2025Net income $ 123,042$ 127,013$ 364,361$ 374,816Adjustments to increase (decrease) netincome:Interest and other non-operatingexpenses 11,415 11,622 37,846 35,633Provision for income taxes 37,449 38,985 119,774 118,048Share-based compensation 4,962 4,435 22,437 17,385Equity in earnings of unconsolidatedinvestments, net (58) (15) (51) (56)Depreciation 11,807 10,634 34,461 30,438Amortization 1,917 2,000 5,910 5,925CEO cash transition costs – – 1,962 – Adjusted EBITDA $ 190,534$ 194,674$ 586,700$ 582,189 Excludes loss (gain) on foreign currency transactions of $347 and $382 for the three monthsended September 30, 2026 and September 30, 2025, respectively, and $556 and ($246) for thenine months ended September 30, 2026 and September 30, 2025, respectively. CEO transition costs comprise $6.3 million included within share-based compensation for awardspreviously granted but not fully amortized and $2.0 million of cash transition costs for a total of$8.3 million included in Selling and administrative expenses on the Consolidated Statements ofIncome for the nine months ended September 30, 2026. Excludes amortization of deferred financing costs of $290 and $286 for the three months endedSeptember 30, 2026 and September 30, 2025, respectively, and $840 and $673 for the ninemonths ended September 30, 2026 and September 30, 2025, respectively. This non-cashexpense is included in Interest and other non-operating expenses, net on the ConsolidatedStatements of Income.Adjusted Income Statement Information We have included adjusted operating expenses, adjusted operating income, adjusted net income andadjusted diluted EPS, which are non-GAAP financial measures, in this press release as supplementaldisclosures because we believe these measures are useful to management, investors and others inassessing our period-over-period operating performance. We believe these measures should beconsidered in addition to, not as a substitute for, operating expenses, operating income, net incomeand diluted EPS presented in accordance with GAAP and in the context of our other disclosures in thispress release. Other companies may calculate these non-GAAP financial measures differently than wedo, which may limit their usefulness as comparative measures. The table below presents a reconciliation of operating expenses to adjusted operating expenses. (Unaudited) Nine Months Ended(In thousands) September 30,2026Operating expenses $ 784,464CEO transition costs (8,262) Adjusted operating expenses $ 776,202 The table below presents a reconciliation of operating income to adjusted operating income. (Unaudited) Nine Months Ended(In thousands) September 30,2026Operating income $ 522,486CEO transition costs 8,262 Adjusted operating income $ 530,748 The table below presents a reconciliation of net income to adjusted net income. (Unaudited) Nine Months Ended(In thousands) September 30,2026 2025Net income $ 364,361$ 374,816CEO transition costs 8,262 –Tax impact (738) –ASU 2016-09 tax benefit (714) (4,181) Adjusted net income $ 371,171$ 370,635 The table below presents a reconciliation of diluted EPS to adjusted diluted EPS. (Unaudited) Three Months EndedNine Months Ended (1) (2) (3) (2) (1) (2) (3)
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September 30, September 30,2026 2025 2026 2025Diluted EPS $ 3.40$ 3.40$ 10.02$ 9.97After-tax CEO transition costs – – 0.21 –ASU 2016-09 tax benefit – (0.01) (0.02) (0.11) Adjusted diluted EPS $ 3.40$ 3.39$ 10.21$ 9.86