Why Hayward Holdings Stock Jumped Today

Shares of Hayward Holdings (HAYW) experienced a significant increase today after the pool equipment manufacturer announced a substantial rise in profits for its fiscal third quarter. The company's net sales grew by 6% year-over-year, reaching $260 million, during the period that concluded on September 26. Hayward specializes in the design and manufacture of energy-efficient pool equipment, including filters, heaters, and sanitizers.

Their cutting-edge Internet of Things (IoT)-enabled SmartPad platform enables homeowners to effortlessly control this equipment.

Hayward primarily operates in the aftermarket, which shields it from the current housing market downturn resulting from new-home construction. This business model allows Hayward to capitalize on the increasing installed base of pools and the adoption of outdoor living technology by pool owners. Adjusted net income for the quarter rose by 23% to $39 million, driven by price increases that helped offset inflation and tariff-related costs.

Furthermore, adjusted earnings per share surged 29%, reaching $0.18, after accounting for stock buybacks.

Looking ahead, Hayward anticipates its full-year net sales to expand by 5%-6% in 2026. Additionally, the company projects adjusted earnings per share to grow by 12%-14%, ranging from $0.86 to $0.88. CEO Kevin Holleran highlighted the strength and quality of the financial results during a call with analysts, emphasizing the company's two key advantages: a large and expanding installed base that generates recurring aftermarket demand, and the continuous growth of the addressable market for connected, automated, and energy-efficient pool solutions.