Slides
Page 1
Q3 2026 Earnings Call November 3, 2026
Page 2
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, and 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 historic 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
Page 3
Latham: A Compelling Long-term Growth Story 3 Significant expansion opportunities in the Sand States, which account for two-thirds of new U.S. pool starts annually Broadest portfolio of branded pool products known for quality, durability, and aesthetics Largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand Track record of accretive acquisitions Multiple levers to continue to drive efficiencies
Page 4
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. 4 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)
Page 5
Accelerating Growth – Four Pillars for Success 5 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
Page 6
Key Q3 and YTD Accomplishments 6 Net Sales Growth • Q3 net sales increased 12.5% (8.4% organic); YTD increased 11.4% (7.9% organic) • Q3 growth was led by a 22.6% increase in in-ground pool sales (13.9% organic); YTD increased 17.4% (9.9% organic) • In-ground pool sales growth was driven almost entirely by fiberglass pools Pool Cover Sales Growth • Q3 cover sales increased 8.7%; YTD increased 8.4% • Growth was driven by autocovers and continued revenue synergies from prior Coverstar acquisitions Sand State Sales Growth • Q3 sales increased 21.1%; YTD sales increased 16.6% • Growth was led by strong performance in Florida and Texas Gross Margin Expansion • Expanded 130 bps to 36.7% in Q3, and 40 bps to 35.0% YTD • Driven by improved plant absorption on higher volumes and continued benefits from lean manufacturing and value engineering Adjusted EBITDA Margin Expansion • Expanded 110 bps to 24.8% in Q3, and 50 bps to 20.5% YTD • Higher gross margin more than offset increased sales and marketing expenses to support Latham’s growth strategy
Page 7
7 Expanding Share in the Sand States – Progress on Key Priorities Commercial Organization Build-Out Progressing as Planned • Key Pillars for a World-Class Organization: Sales Execution, Sales Strategy, and Sales Operations • Appointed a new Chief Commercial Officer; added key leaders across Sales Strategy, Sales Operations Updated Market Development Framework • Targeting specific Sand State neighborhoods with the greatest growth opportunity • Hosted three community events in FL in Q3 – 15 pools sold – with additional events planned in FL and TX • Partnering with a national homebuilder to offer Latham fiberglass pools in FL – one pool already installed in a model home 1 2 Added Field-Level Sales Resources • Added field resources in FL, with further expansion planned in TX and AZ • Staying close to consumers throughout the buying process; helping dealers convert more leads into sales 3 4 Increased Investment in Branding & Marketing • Accelerating builder and consumer awareness with targeted marketing activities • YTD consumer leads were up 25% YoY , web traffic was up 11% YoY , and Latham remained the #1 brand searched for among fiberglass competitors
Page 8
(1) Represents guidance given by the Company as of November 3, 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) - Narrowing Net Sales & Adjusted EBITDA Guide 8 2026 Outlook $ in millions Updated Prior Metric Low High YoY Growth @ Midpoint Low High YoY Growth @ Midpoint Net Sales $605 $615 11.7% $600 $620 11.7% Adjusted EBITDA(2) $112 $118 15.2% $110 $120 15.2% Capital Expenditures $40 $45 $40 $45 Reflects • Narrowing net sales guidance by $5M at the high and low end, reflecting 11.7% growth at the midpoint. • Narrowing adj. EBITDA guidance by $2M at the high and low end, reflecting 15.2% growth at the midpoint. • Maintaining CapEx guidance which includes the purchase of four production sites and the acquisition of Freedom Pools. • Forecasting new U.S. pool starts in 2026 approximately flat with 2025 levels.
Page 9
Appendix
Page 10
(a) Represents costs that include severance and other expenses for our program to optimize certain operational and administrative functions. (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, including the earn-out related to the Coverstar Central acquisition, as well as other costs related to potential transactions. (f) Represents the loss on extinguishment and modification of debt in connection with our Refinancing. (g) 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 26, 2026 September 27, 2025 September 26, 2026 September 27, 2025 (in thousands) Net income $ 12,056 $ 8,117 $ 16,276 $ 18,135 Depreciation and amortization 13,455 12,881 40,194 37,978 Interest expense, net 5,423 6,067 16,109 19,587 Income tax expense 2,966 7,466 6,273 8,517 (Gain) loss on sale and disposal of property and equipment — (26) — 20 Restructuring charges(a) 1,489 — 1,489 160 Stock-based compensation expense(b) 998 1,980 3,711 5,332 Unrealized (gains) losses on foreign currency transactions(c) (72) 1,181 2,155 (2,878) Strategic initiative costs(d) 686 684 1,645 2,246 Acquisition and integration related costs(e) 3,231 7 9,155 289 Loss on extinguishment and modification of debt(f) 5,022 — 5,022 — Other(g) — (29) — (32) Adjusted EBITDA $ 45,254 $ 38,328 $ 102,029 $ 89,354 Net sales $ 182,175 $ 161,903 $ 496,964 $ 445,962 Net income margin 6.6 % 5.0 % 3.3 % 4.1 % Adjusted EBITDA margin 24.8 % 23.7 % 20.5 % 20.0 %
Page 11
Non-GAAP Reconciliations Net Debt and Net Debt Leverage Ratio 11 (in thousands) September 26, 2026 Total debt $ 292,462 Less: Cash (94,810) Net Debt 197,652 LTM Adjusted EBITDA(1) 112,506 Net Debt Leverage Ratio 1.8x (1) LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent 12-month period. See Slide 10 for the reconciliation of Adjusted EBITDA to net income.
Page 12
(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 12 (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