Hayward Holdings (HAYW) · Q2 2026 results and valuation

At −5.1% growth a year (3-year revenue growth), the model's fair value is $5.05 a share — the stock trades 232% above it. Today's price assumes 7.1% growth a year.

1. Key theme

   Hayward also made further solid progress on the balance sheet, generating cash and reducing net leverage to 1.5x.

   Source quote

   “We also made further solid progress on the balance sheet, generating cash and reducing net leverage to 1.5x, the lowest... Eifion will provide further details on the refinancing in a moment. We achieved this while increasing share repurchases, demonstrating our confidence in the business and our commitment to disciplined capital allocation.”

2. Guidance

   The company anticipated second quarter pressure from incremental inflation in specialty metals, freight, and resin costs before mitigation actions were fully implemented.

   Source quote

   “As previously communicated, we anticipated second quarter pressure from incremental inflation in specialty metals, freight and resin costs before our mitigation actions are fully implemented.”

3. Guidance

   The company stated that second quarter gross margin increases were more moderate than the prior year due to the timing of incremental inflation and partial factors.

   Source quote

   “As communicated last quarter, we anticipated sequential second quarter gross margin increases to be more moderate than the prior year due to the timing of incremental inflation and the partial...”

4. Fading

   Net sales increased 12% against the prior year's 8% growth, which was driven by price realization and positive volume.

   Source quote

   “Net sales increased 12% against the prior year comparison of 8% growth, driven by strong price realization and positive volume. We delivered an outstanding first quarter, meaningfully ahead of expectations, highlighted by double-digit sales and earnings growth. Adjusted EBITDA grew 15% and adjusted diluted EPS increased 30%, demonstrating the earnings power of our model.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“We delivered another strong quarter of sales and earnings growth, with net sales increasing 6% to $318 million against a 5% growth comparison in the prior year period.”

“At the same time, we continued advancing the initiatives to define Hayward's next phase of value creation, deepening customer relationships through innovation and service, expanding our connected product ecosystem and...”

“Europe sales declined 4% and Rest of World declined 16% impacted primarily by the geopolitical disruption related to the ongoing conflict in the Middle East.”