Latham Group Inc ( (SWIM) ) has released its Q3 earnings. Here is a breakdown of the information Latham Group Inc presented to its investors.
Latham Group, Inc. is a leading designer, manufacturer, and marketer of in-ground residential swimming pools, operating primarily in North America, Australia, and New Zealand. The company recently released its financial results for the third quarter of 2024, highlighting a challenging industry environment but showing resilience through cost reductions and strategic acquisitions.
In the third quarter of 2024, Latham Group reported net sales of $150.5 million, with a net income of $5.9 million or $0.05 per diluted share. The company achieved an adjusted EBITDA of $29.8 million, accounting for 19.8% of net sales. Despite a decrease in sales due to a soft market, the company benefited from its leadership in fiberglass pools and a recent acquisition of Coverstar Central. The acquisition contributed to stable gross profit performance and helped expand gross margins.
For the first nine months of 2024, Latham’s net sales totaled $421.2 million, with a net income of $11.3 million. The company has focused on lean manufacturing and value engineering, which resulted in improved production efficiencies and cost reductions. These efforts, combined with the strategic acquisition of Coverstar Central, have positioned Latham to enhance its profitability and market position in the coming periods.
Looking ahead, Latham Group remains focused on its growth strategies, particularly in expanding fiberglass pool sales and automatic safety cover adoption. The company expects to continue outperforming the industry by leveraging its market leadership and strategic initiatives. Despite narrowing its full-year guidance ranges for net sales and adjusted EBITDA, Latham is optimistic about driving future growth and profitability.
