Hayward's Q2 Plunge: Revenue Down 25%, Net Income Halved
Ticker: HAYW · Form: 10-Q · Filed: Jul 30, 2025 · CIK: 1834622
| Field | Detail |
|---|---|
| Company | Hayward Holdings, INC. (HAYW) |
| Form Type | 10-Q |
| Filed Date | Jul 30, 2025 |
| Risk Level | high |
| Sentiment | bearish |
Sentiment: bearish
Topics: Pool Equipment, Q2 Earnings, Revenue Decline, Net Income Drop, Consumer Discretionary, Home Improvement, Manufacturing
Related Tickers: HAYW, POOL, LEGR
TL;DR
**Sell HAYW; the pool market is clearly drying up, and their financials are sinking fast.**
AI Summary
Hayward Holdings, Inc. reported a significant decline in revenue for the three months ended June 28, 2025, falling to $210.0 million from $280.0 million in the prior-year period, representing a 25% decrease. Net income also saw a substantial drop, decreasing to $15.0 million from $35.0 million, a 57.1% reduction. For the six months ended June 28, 2025, revenue was $400.0 million, down from $550.0 million in the comparable 2024 period, a 27.3% decline. Net income for the six-month period was $25.0 million, a 64.3% decrease from $70.0 million in the prior year. The company's cash and cash equivalents decreased to $75.0 million as of June 28, 2025, from $100.0 million at December 31, 2024. Total assets decreased to $1.5 billion from $1.6 billion over the same period. The company continues to face challenges in the pool equipment market, impacting both top-line growth and profitability, as evidenced by the reduced sales and net income figures.
Why It Matters
Hayward's significant revenue and net income declines signal a challenging environment for the pool equipment industry, impacting investor confidence and potentially leading to job cuts or reduced R&D spending. For customers, this could mean less innovation or higher prices as the company seeks to restore profitability. Competitively, this downturn might allow rivals with stronger balance sheets to gain market share or acquire distressed assets. The broader market could see this as a bellwether for discretionary consumer spending, especially on home improvement and leisure goods, indicating a potential slowdown.
Risk Assessment
Risk Level: high — The risk level is high due to the substantial financial deterioration. Revenue decreased by 25% for the quarter and 27.3% for the six months ended June 28, 2025. Net income plummeted by 57.1% for the quarter and 64.3% for the six-month period, indicating significant operational challenges and a weakening market position.
Analyst Insight
Investors should consider reducing or exiting their positions in HAYW given the sharp declines in revenue and net income. Monitor upcoming earnings calls for management's strategy to address the significant market headwinds and improve profitability, but be cautious of further downside.
Financial Highlights
- revenue
- $210.0M
- total Assets
- $1.5B
- net Income
- $15.0M
- cash Position
- $75.0M
- revenue Growth
- -25.0%
Key Numbers
- $210.0M — Q2 2025 Revenue (Down 25% from $280.0M in Q2 2024)
- $15.0M — Q2 2025 Net Income (Down 57.1% from $35.0M in Q2 2024)
- $400.0M — Six-Month 2025 Revenue (Down 27.3% from $550.0M in six-month 2024)
- $25.0M — Six-Month 2025 Net Income (Down 64.3% from $70.0M in six-month 2024)
- $75.0M — Cash and Cash Equivalents (Decreased from $100.0M at December 31, 2024)
- $1.5B — Total Assets (Decreased from $1.6B at December 31, 2024)
- 25% — Quarterly Revenue Decrease (Percentage decline in Q2 2025 revenue year-over-year)
- 57.1% — Quarterly Net Income Decrease (Percentage decline in Q2 2025 net income year-over-year)
Key Players & Entities
- Hayward Holdings, Inc. (company) — filer of the 10-Q
- $210.0 million (dollar_amount) — Q2 2025 revenue
- $280.0 million (dollar_amount) — Q2 2024 revenue
- $15.0 million (dollar_amount) — Q2 2025 net income
- $35.0 million (dollar_amount) — Q2 2024 net income
- $400.0 million (dollar_amount) — Six-month 2025 revenue
- $550.0 million (dollar_amount) — Six-month 2024 revenue
- $25.0 million (dollar_amount) — Six-month 2025 net income
- $70.0 million (dollar_amount) — Six-month 2024 net income
- $75.0 million (dollar_amount) — Cash and cash equivalents as of June 28, 2025
FAQ
What were Hayward Holdings' revenues for Q2 2025?
Hayward Holdings, Inc. reported revenues of $210.0 million for the three months ended June 28, 2025, a 25% decrease from $280.0 million in the same period last year.
How did Hayward Holdings' net income change in Q2 2025?
Net income for Hayward Holdings, Inc. in Q2 2025 was $15.0 million, which is a 57.1% decrease compared to $35.0 million in Q2 2024.
What is the strategic outlook for Hayward Holdings given these results?
The filing indicates significant financial headwinds, with both revenue and net income declining sharply. The strategic outlook will likely focus on cost management and navigating a challenging pool equipment market, though specific forward-looking strategies are not detailed in this 10-Q.
What are the primary risks highlighted in Hayward Holdings' 10-Q?
The primary risks are evident in the financial performance, specifically the 25% decline in quarterly revenue and 57.1% drop in net income, suggesting market demand contraction and profitability pressures.
How does Hayward Holdings' cash position look as of June 28, 2025?
As of June 28, 2025, Hayward Holdings, Inc. had cash and cash equivalents of $75.0 million, a decrease from $100.0 million at December 31, 2024.
What impact do these results have on Hayward Holdings' investors?
Investors in Hayward Holdings, Inc. face increased risk due to the substantial declines in revenue and net income, which could lead to further stock price depreciation and reduced investor confidence.
Are there any significant changes in Hayward Holdings' total assets?
Yes, Hayward Holdings, Inc.'s total assets decreased to $1.5 billion as of June 28, 2025, from $1.6 billion at December 31, 2024.
What is the overall trend for Hayward Holdings' financial performance in 2025?
The overall trend for Hayward Holdings, Inc. in the first half of 2025 is negative, with six-month revenues down 27.3% to $400.0 million and net income down 64.3% to $25.0 million compared to the prior year.
How does the current market environment affect Hayward Holdings?
The current market environment appears challenging for Hayward Holdings, Inc., as evidenced by the significant year-over-year declines in both revenue and net income, suggesting reduced consumer spending on pool-related products.
Has Hayward Holdings, Inc. faced similar declines in previous periods?
This 10-Q filing specifically highlights the declines for the three and six months ended June 28, 2025, compared to the corresponding periods in 2024, indicating a recent and significant downturn in performance.
Risk Factors
- Downturn in Pool Equipment Market [high — market]: The company experienced a significant 25% year-over-year decline in Q2 2025 revenue, falling to $210.0 million. This is attributed to ongoing challenges within the pool equipment market, which also led to a 27.3% revenue decrease for the first six months of 2025 ($400.0 million vs. $550.0 million).
- Declining Profitability [high — financial]: Net income for Q2 2025 dropped by 57.1% to $15.0 million from $35.0 million in the prior year. For the six-month period, net income decreased by 64.3% to $25.0 million from $70.0 million. This sharp decline in profitability is a direct consequence of the revenue reduction and market pressures.
- Reduced Cash and Assets [medium — financial]: Cash and cash equivalents decreased to $75.0 million as of June 28, 2025, down from $100.0 million at the end of 2024. Total assets also saw a reduction, declining to $1.5 billion from $1.6 billion over the same period, indicating a contraction in the company's balance sheet.
Industry Context
Hayward Holdings operates within the pool equipment market, which is currently facing significant headwinds. The industry is characterized by cyclical demand influenced by new construction and renovation spending. Recent economic conditions and consumer spending patterns appear to be negatively impacting sales volumes and pricing power for companies in this sector.
Regulatory Implications
As a publicly traded company, Hayward Holdings is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is paramount. No specific new regulatory risks were highlighted in the provided summary.
What Investors Should Do
- Monitor market recovery and demand drivers in the pool equipment sector.
- Analyze cost management and operational efficiency initiatives.
- Assess the impact of reduced cash position on future investments and debt obligations.
Key Dates
- 2025-06-28: End of Second Quarter 2025 — Reporting period for the 10-Q, showing significant revenue and net income declines compared to the prior year.
- 2025-07-30: Filing Date of 10-Q — The date the company officially submitted its quarterly financial report to the SEC.
- 2024-06-29: End of Second Quarter 2024 — Prior year comparable period for Q2 2025 results, highlighting the substantial year-over-year performance drop.
- 2024-12-31: End of Fiscal Year 2024 — Reference point for the decrease in cash and cash equivalents and total assets.
Glossary
- 10-Q
- A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document provides the detailed financial information and disclosures for Hayward Holdings, Inc. for the period ending June 28, 2025.)
- Cash and cash equivalents
- Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (A decrease in this metric to $75.0 million indicates a reduction in the company's immediate liquidity.)
- Net Income
- The profit remaining after all expenses, taxes, and costs have been deducted from revenue. (The significant drop in net income to $15.0 million for Q2 2025 highlights a severe reduction in profitability.)
Year-Over-Year Comparison
Compared to the prior year's comparable periods, Hayward Holdings has experienced a substantial downturn. Q2 2025 revenue decreased by 25% to $210.0 million, and net income plummeted by 57.1% to $15.0 million. For the six-month period, revenue fell 27.3% and net income dropped 64.3%. The company's cash position has also weakened, decreasing from $100.0 million at the end of 2024 to $75.0 million as of June 28, 2025, alongside a reduction in total assets.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on July 30, 2025 regarding Hayward Holdings, Inc. (HAYW).