Slides
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Q2 2026 Earnings Call August 4 , 2026 latham Group SWIM Nasdaq Listed
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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, mergers, 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, including in some instances on a historical basis, which are non-GAAP financial measures. 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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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 48% In-Ground Swimming Pools 29% Covers 77% Fiberglass 23% Packaged Pools 46% New 54% 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’25 reported figures. (2) Based on management’s internal estimates. (3) Reflects share in North America. 3 85% Sales in the U.S. versus international(1) ~180-200K Vinyl liners replaced every year in the U.S. 24% Of U.S. pool installs are fiberglass, up 600 bps since 2019 Fiberglass as a % of In-Ground Pool Sales(1)(2) Replacement Sales as a % of Liners & Covers(1)(2)
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Accelerating Growth – Four Pillars for Success 4 Growing the Core Business • Continue to grow our core business in established markets, including the Northeast, Midwest, Canada, Australia, and New Zealand Pursuing Accretive Acquisitions • Strategically pursuing M&A opportunities that provide revenue synergies and/or expand geographic reach and that will be accretive to earnings Accelerating Material Conversion to Fiberglass from Concrete • Increasing builder and consumer awareness and adoption of fiberglass, particularly in the Sand States markets (Florida, Texas, Arizona, and California) 1 2 4 Advancing the Autocover Business • Latham’s autocovers are compatible with all in-ground pool types, offer unparalleled safety, and provide cost benefits to pool owners 3
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5 Expanding Share in the Sand States – Key Priorities Building Out the Commercial Organization • Key Pillars: Sales Execution, Sales Strategy, and Sales Operations, with responsibilities to drive sales plans, product leadership, and sales effectiveness, respectively Updating Market Development Framework • Segmenting our Sand State markets into target neighborhoods that offer the greatest opportunity • Criteria include home value, lot sizes, and household income levels 1 2 Adding Field-Level Sales Resources • Creating additional field resources in the Sand States • Ensuring we stay close to the consumer throughout the buying process and assist dealers in converting more leads into sales 3 4 Increasing Investment in Branding & Marketing • Accelerating builder and consumer awareness with targeted marketing activities • Improving homeowner understanding of the full suite of benefits offered by fiberglass pools
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(1) Represents guidance given by the Company as of August 4, 2026. 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 2026 is not available without unreasonable effort due to uncertainty related to our future income tax expense (benefit). Full Year 2026 Outlook(1) - Raising Net Sales & Adj. EBITDA Midpoints; Revising CapEx Guide 6 2026 Outlook $ in millions Updated Prior Metric Low High YoY Growth @ Midpoint Low High YoY Growth @ Midpoint Net Sales $600 $620 11.7% $580 $610 9.0% Adjusted EBITDA(2) $110 $120 15.2% $105 $120 12.7% Capital Expenditures $40 $45 $42 $48 Reflects • Raising net sales guidance by $10M at the high end & $20M at the low end, reflecting 11.7% growth at the midpoint. • Raising adj. EBITDA guidance by $5M at the low end, reflecting 15.2% growth at the midpoint. • Revising CapEx guidance, reflecting timing shifts to align with consumer demand trends. • Forecasting new U.S. pool starts in 2026 approximately flat with 2025 levels.
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Impact of Growth Initiatives & Production Efficiencies 7 (1) Historical U.S. pool starts determined from PK Data; 2026 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 $100 $115 ~$160 $223 $318 $509 $546 $610 ~$750 2015 2019 2024 2025 2026 Guide @ Midpoint Future Adj. EBITDA 61K Pool Starts 78K Pool Starts 62K Pool Starts 58K Pool Starts ~58K 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 58 ~58 ~78 2015 2017 2019 2021 2023 2025 Future (in thousands) U.S. Pool Starts(1) (2) Initiatives 1. Drive awareness and adoption of Fiberglass Pools and Automatic Safety Covers 2. Expand our presence in the Sand States 3. Benefit from Lean Manufacturing & Value Engineering initiatives (3) Net Sales (5)(5) 16% 19% 16% 18% 19% 21% (3) Estimating 2026 pool starts flat vs. 2025
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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 9 Fiscal Quarter Ended Two Fiscal Quarters Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 (in thousands) Net income $ 12,754 15,980 $ 4,220 10,018 Depreciation and amortization 13,672 12,697 26,739 25,097 Interest expense, net 5,930 7,149 10,686 13,520 Income tax expense 6,113 5,130 3,307 1,051 Loss on sale and disposal of property and equipment — 115 — 46 Restructuring charges(a) — 145 — 160 Stock-based compensation expense(b) 1,609 1,381 2,713 3,352 Unrealized losses (gains) on foreign currency transactions(c) 1,231 (3,643) 2,227 (4,059) Strategic initiative costs(d) 509 918 959 1,562 Acquisition and integration related costs(e) 2,798 16 5,925 283 Other(f) — (1) -- (3) Adjusted EBITDA $ 44,616 39,887 $ 56,776 51,027 Net sales $ 197,474 172,639 $ 314,789 284,059 Net income margin 6.5 % 9.3 % 1.3 % 3.5 % Adjusted EBITDA margin 22.6 % 23.1 % 18.0 % 18.0 %
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Non-GAAP Reconciliations Net Debt and Net Debt Leverage Ratio 10 (in thousands) June 27, 2026 Total debt $ 279,813 Less: Cash (43,480) Net Debt 236,333 LTM Adjusted EBITDA(1) 105,548 Net Debt Leverage Ratio 2.24x (1) LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent 12-month period. See Slide 11 for the reconciliation of Adjusted EBITDA to net (loss) income.
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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 gains or 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 11 (in thousands) Net income (loss) $ 11,124 $ (17,860) $ 7,457 $ (9,992) Depreciation and amortization 51,354 44,446 21,659 14,466 Interest expense, net 25,805 24,840 22,639 8,228 Income tax expense (benefit) 2,364 9,120 (4,671) 3,384 (Gain) loss on sale and disposal of property and equipment (21) 408 680 — Restructuring charges(a) 523 512 980 — Management fees(b) — — 500 539 Stock-based compensation expense(c) 9,247 7,392 808 — Unrealized (gains) losses on foreign currency transactionsd) (4,131) 6,223 (300) 505 Strategic initiative costs (e) 2,806 3,329 964 587 Acquisition and integration related costs (f ) 785 2,348 3,612 11,696 Other(g) (25) (539) 6,722 6,703 Adjusted EBITDA $ 99,831 $ 80,219 $ 61,050 $ 36,116 Net sales $ 545,912 $ 508,520 $ 317,975 $ 223,103 Net income (loss) margin 2.0 % (3.5) % 2.3 % (4.5) % Adjusted EBITDA margin 18.3 % 15.8 % 19.2 % 16.2 % Year Ended December 31, 2015 (unaudited)201920242025