Slides
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Q3 2025 Earnings Call November 4, 2025
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Forward-looking Statements Certain statements in this presentation constitute forward-looking statements under federal securities laws. These forward-looking statements reflect our views with respect to future events and financial performance as of the date of this presentation or otherwise specified herein. Actual events and results may differ materially from those contemplated by such forward-looking statements due to risks and other factors that are set forth in our Annual Report on Form 10-K and subsequent reports filed or furnished with the SEC, as well as our earnings release issued as of the date of this presentation. Our forward-looking statements further do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake. We expressly disclaim any obligation to update any forward-looking statements, except as required by applicable law. Non-GAAP Financial Measures This presentation includes Adjusted EBITDA (including on a last twelve months’ basis), Adjusted EBITDA Margin, Net Debt, Net Debt Leverage Ratio, and Pro Forma Net Debt Leverage Ratio, including in some instances on an historical and pro forma basis, which are non-GAAP financial measures. Our pro forma presentation gives effect to the Coverstar Central, LLC (“Coverstar Central”) acquisition as if it occurred as of January 1, 2024. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to GAAP financial measures, and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Reconciliations of directly comparable GAAP financial measures to these non-GAAP financial measures can be found in the Appendix to this presentation. For the definitions of certain non-GAAP financial measures, how such non-GAAP financial measures provide useful information to investors, how management utilizes them and the limitations on their use, see our earnings release issued as of the date of this presentation. Disclaimer 2
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Latham: A Compelling Long-term Growth Story Positioned for accelerated, profitable growth as volumes increase Unique direct-to-homeowner model driving business for our dealer partners The leading consumer brand in the residential pool market Serving a large and attractive market benefitting from fiberglass and autocover category share gains Multiple levers to continue to drive efficiencies Broadest portfolio of branded products known for quality, durability, and aesthetics 1 3
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Balanced Portfolio Serving an Attractive Market #1 Share in every subcategory in which we compete 17% Of Latham’s Fiberglass pool sales were in the Sand States ~100-120K All-season covers replaced every year in the U.S. 23% Liners 51% In-Ground Swimming Pools 26% Covers 75% Fiberglass 25% Packaged Pools 49% New 51% Replacement Net Sales by Product(1) includes fiberglass and packaged pools includes winter safety covers and automatic safety covers includes new and replacement vinyl liners ~50% Share of the fiberglass category(3) Fiberglass Continues to show relative strength due to increasing penetration Source: Management’s analysis based on information from studies by a third-party research consulting firm commissioned by the Company, management’s knowledge as market participants, and PK Data. (1) Reflects FY’24 reported figures. (2) Based on management’s internal estimates. (3) Reflects share in North America. 4 80% Sales in the U.S. versus international(1) ~180-200K Vinyl liners replaced every year in the U.S. 23% Of total pool installs are fiberglass, up 600 bps since 2019 Fiberglass as a % of In-Ground Pool Sales(1) Replacement Sales as a % of Liners & Covers(1)(2)
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Expanding Share in the Sand States – Year-to-Date Achievements 5 Expanding the Pool Dealer Base • Broadened our reach through new dealer sign-ups in priority-market Florida Marketing to Consumers & Builders • Successful advertising and marketing campaigns driving substantial leads for pool builders • Established new strategic partnerships with several custom homebuilders in Florida who will feature Latham fiberglass pools Targeting Master Planned Communities (MPC’s) • Latham now present in several MPC’s in Florida 1 2 4 Aligning Products with Demand • New pool models introduced to meet consumer preference in the Sand States, including rectangular shapes, pool/spa combos, and plunge pools 3 YTD Net Sales in Florida Have Increased at a High-Single-Digit Rate
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6 Accelerating Fiberglass Share Gains Nationally and in the Sand States 1 Increased Awareness and Adoption of Automatic Safety Covers 2 Benefits from Coverstar Central, Coverstar New York, and Coverstar Tennessee acquisitions 3 Drivers of Latham’s Outperformance vs. The Market 2025 Market Expectations Forecasting continued market trough; New U.S. pool starts flat to slightly down vs. 2024
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(1) Represents guidance given by the Company as of August 5, 2025. These are forward-looking statements. See “Forward-Looking Statements” on page 2 of this presentation. (2) A reconciliation of Latham’s projected Adjusted EBITDA to net income (loss) for 2025 is not available without unreasonable effort due to uncertainty related to our future income tax (benefit) expense. Full Year 2025 Outlook(1) - Narrowing Net Sales, Adj. EBITDA, & CapEx Guide 7 2025 Outlook $ in millions Updated Prior Metric Low High YoY Growth @ Midpoint Low High YoY Growth @ Midpoint Net Sales $540 $550 7% $535 $565 8% Adjusted EBITDA(2) $92 $98 19% $90 $100 19% Capital Expenditures $22 $24 $27 $33 Reflects • Forecasting new U.S. pool starts in 2025 flat to slightly down from 2024 levels. • Narrowing net sales guidance by $15M at the high end & $5M at the low end, reflecting 7% growth at the midpoint. • Narrowing adj. EBITDA guidance by $2M at the high & low ends, reflecting 19% growth at the midpoint. • Revising CapEx guidance, reflecting project efficiencies and timing shifts to align with consumer demand trends.
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Impact of Growth Initiatives & Production Efficiencies 8 (1) Historical U.S. pool starts determined from PK Data; 2025 and beyond are based on management estimates. (2) Unaudited (3) Management model (4) 25-year average (1999-2024) (5) See Appendix for reconciliation of Adjusted EBITDA. Adjusted EBITDA Margin is Adjusted EBITDA divided by Net Sales. $36 $61 $80 $95 ~$160 $223 $318 $509 $545 ~$750 2015 2019 2024 2025 Guide @ Midpoint Future Adj. EBITDA 61K Pool Starts 78K Pool Starts 62K Pool Starts ~62K* Pool Starts ~78K Pool Starts (in millions, except for Adjusted EBITDA Margin) Growth Trajectory Adj. EBITDA % (2) (3) LT Average: 100K Pool Starts(4) 61 67 75 80 78 96 117 98 72 62 ~62* ~78 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Future (in thousands) U.S. Pool Starts(1) (2) Initiatives 1. Drive growth in Fiberglass share in the Sand States 2. Drive growth in Automatic Safety Covers, aided by the Coverstar Central, New York, & Tennessee acquisitions 3. Drive growth in pool Liners and Covers, aided by the full roll-out of “Measure by Latham” 4. Continued impacts of Lean Manufacturing & Value Engineering (3) Net Sales (5)(5) 16% 19% 16% 17% 21% (3) *Estimating 2025 pool starts flat - slightly down vs. 2024
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Appendix
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(a) Represents costs that include severance and other expenses for our executive management changes. (b) Represents non-cash stock-based compensation expense. (c) Represents unrealized foreign currency transaction (gains) losses associated with our international subsidiaries. (d) Represents fees paid to external consultants and other expenses for our strategic initiatives. (e) Represents acquisition and integration costs, as well as other costs related to potential transactions. (f) Other costs consist of other discrete items as determined by management, primarily including: (i) fees paid to external advisors for various matters and (ii) other items. Non-GAAP Reconciliations Adjusted EBITDA and Adjusted EBITDA Margin 10 Fiscal Quarter Ended Three Fiscal Quarters Ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 (in thousands) Net income $ 8,117 $ 5,896 $ 18,135 $ 11,310 Depreciation and amortization 12,881 11,323 37,978 32,291 Interest expense, net 6,067 9,155 19,587 20,150 Income tax expense 7,466 (43) 8,517 931 Loss on sale and disposal of property and equipment (26) 41 20 118 Restructuring charges(a) — 132 160 497 Stock-based compensation expense(b) 1,980 1,844 5,332 5,187 Unrealized (gains) losses on foreign currency transactions(c) 1,181 (722) (2,878) 1,668 Strategic initiative costs(d) 684 706 2,246 2,680 Acquisition and integration related costs(e) 7 1,930 289 2,305 Other(f) (29) (433) (32) (539) Adjusted EBITDA $ 38,328 $ 29,829 $ 89,354 $ 76,598 Net sales $ 161,903 $ 150,496 $ 445,962 $ 421,247 Net income margin 5.0 % 3.9 % 4.1 % 2.7 % Adjusted EBITDA margin 23.7 % 19.8 % 20.0 % 18.2 %
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Non-GAAP Reconciliations Net Debt and Net Debt Leverage Ratio 11 (in thousands) September 27, 2025 Total debt $ 281,073 Less: Cash (70,518) Net Debt 210,555 LTM Adjusted EBITDA(1) 92,976 Net Debt Leverage Ratio 2.3 (1) LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve (12) month period. See Slide 10 for the reconciliation of Adjusted EBITDA to net income (loss).
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(a) Represents costs related to a cost reduction plan that includes severance and other costs for our executive management changes and additional costs related to our cost reduction plans, which include further actions to reduce our manufacturing overhead by reducing headcount in addition to facility shutdowns. (b) Represents management fees paid to our Principal Stockholders in accordance with our arrangement. (c) Represents non-cash stock-based compensation expense. (d) Represents unrealized foreign currency transaction losses associated with our international subsidiaries. (e) Represents fees paid to external consultants and other expenses for our strategic initiatives. (f) Represents acquisition and integration costs as well as other costs related to potential transactions. (g) Other costs consist of other discrete items as determined by management, primarily including: (i) fees paid to external advisors for various matters, (ii) non-cash adjustments to record the step-up in the fair value of inventory related to the acquisition by Pamplona and the acquisition of Narellan, which are amortized through cost of sales in the annual consolidated statements of operations, and (iii) other items. Non-GAAP Reconciliations Adjusted EBITDA and Adjusted EBITDA Margin 12 (in thousands) Net (loss) income $ (17,860) $ 7,457 $ (9,992) Depreciation and amortization 44,446 21,659 14,466 Interest expense 24,840 22,639 8,228 Income tax expense (benefit) 9,120 (4,671) 3,384 Loss on sale and disposal of property and equipment 408 680 — Restructuring charges(a) 512 980 — Management fees(b) — 500 539 Stock-based compensation expense(c) 7,392 808 — Unrealized losses (gains) on foreign currency transactionsd) 6,223 (300) 505 Strategic initiative costs (e) 3,329 964 587 Acquisition and integration related costs (f ) 2,348 3,612 11,696 Other(g) (539) 6,722 6,703 Adjusted EBITDA $ 80,219 $ 61,050 $ 36,116 Net sales $ 508,520 $ 317,975 $ 223,103 Net (loss) income margin (3.5) % 2.3 % (4.5) % Adjusted EBITDA margin 15.8 % 19.2 % 16.2 % Year Ended December 31, 2015 (unaudited)20192024