Q3 2026 Highlights:
- Net sales increased 4% to
$1.5 billion , accelerating from 2% growth in the second quarter, supported by price, solid maintenance growth and continued improvement in building materials - Operating income decreased 3% to
$172.2 million from$178.0 million in Q3 2025 - Diluted EPS consistent with Q3 2025 at
$3.40 ; adjusted diluted EPS increased$0.01 - Confirms annual earnings guidance range of
$10.66 to$10.96 per diluted share, and adjusted diluted earnings guidance range of$10.87 to$11.17 per share including$0.02 of year-to-date ASU 2016-09 tax benefits
“Building on our performance through the first half of the year, we delivered solid results in the third quarter of 2026 as we moved through the end of the peak selling season. Our dedicated teams produced top-line growth by delivering to our customers when they needed it the most. At the same time, we remained committed to disciplined capital allocation, reducing inventory by 3% while growing sales. Through the first nine months of the year, we generated
Third quarter ended
Net sales increased 4% to
Gross profit increased 2% to
Selling and administrative expenses (operating expenses) increased 5% to
Operating income decreased 3% to
Net income decreased 3% to
Earnings per diluted share was
Nine months ended
Net sales increased 4% to
Operating expenses increased 5% to
Operating income was
Net income decreased 3% to
Earnings per diluted share increased 1% to
Balance Sheet and Liquidity
Inventory decreased 3% at
Net cash provided by operations increased 47% to
Outlook
“Based on our performance to date and outlook for the remainder of the year, we are confirming our full-year adjusted diluted EPS guidance range of
The table below further illustrates our current guidance:
| (Unaudited) | 2026 | ||||||
| Floor | Ceiling | ||||||
| Diluted EPS(1) | $ | 10.66 | $ | 10.96 | |||
| After-tax CEO transition costs | 0.21 | 0.21 | |||||
| Adjusted diluted EPS(1) | $ | 10.87 | $ | 11.17 | |||
(1) Includes
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures. See the addendum to this release for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
About
Forward-Looking Statements
This news release includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “should,” “will,” “may,” “outlook,” and other words and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2025 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP’s subsequent filings with the
Director, Investor Relations and Finance
985.801.5153
kristin.byars@poolcorp.com
Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | $ | 1,504,957 | $ | 1,451,131 | $ | 4,465,909 | $ | 4,307,187 | ||||||||
| Cost of sales | 1,068,640 | 1,021,948 | 3,158,959 | 3,030,474 | ||||||||||||
| Gross profit | 436,317 | 429,183 | 1,306,950 | 1,276,713 | ||||||||||||
| Percent | 29.0 | % | 29.6 | % | 29.3 | % | 29.6 | % | ||||||||
| Selling and administrative expenses | 264,122 | 251,196 | 784,464 | 748,518 | ||||||||||||
| Operating income | 172,195 | 177,987 | 522,486 | 528,195 | ||||||||||||
| Percent | 11.4 | % | 12.3 | % | 11.7 | % | 12.3 | % | ||||||||
| Interest and other non-operating expenses, net | 11,762 | 12,004 | 38,402 | 35,387 | ||||||||||||
| Income before income taxes and equity in earnings | 160,433 | 165,983 | 484,084 | 492,808 | ||||||||||||
| Provision for income taxes | 37,449 | 38,985 | 119,774 | 118,048 | ||||||||||||
| Equity in earnings of unconsolidated investments, net | 58 | 15 | 51 | 56 | ||||||||||||
| Net income | $ | 123,042 | $ | 127,013 | $ | 364,361 | $ | 374,816 | ||||||||
| Earnings per share attributable to common stockholders (1) | ||||||||||||||||
| Basic | $ | 3.41 | $ | 3.41 | $ | 10.03 | $ | 10.01 | ||||||||
| Diluted | $ | 3.40 | $ | 3.40 | $ | 10.02 | $ | 9.97 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 35,881 | 37,090 | 36,108 | 37,272 | ||||||||||||
| Diluted | 35,923 | 37,223 | 36,163 | 37,420 | ||||||||||||
| Cash dividends declared per common share | $ | 1.30 | $ | 1.25 | $ | 3.85 | $ | 3.70 | ||||||||
| (1) | Earnings per share under the two-class method is calculated using net income attributable to common stockholders (net income reduced by earnings allocated to participating securities), which was |
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||||||||||
| Change | ||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Assets | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 105,657 | $ | 128,483 | $ | (22,826 | ) | (18 | ) | % | ||||||
| Receivables, net (1) | 135,492 | 138,072 | (2,580 | ) | (2 | ) | ||||||||||
| Receivables pledged under receivables facility | 342,965 | 305,537 | 37,428 | 12 | ||||||||||||
| Product inventories, net (2) | 1,185,177 | 1,223,809 | (38,632 | ) | (3 | ) | ||||||||||
| Prepaid expenses and other current assets | 52,365 | 53,138 | (773 | ) | (1 | ) | ||||||||||
| Total current assets | 1,821,656 | 1,849,039 | (27,383 | ) | (1 | ) | ||||||||||
| Property and equipment, net | 281,030 | 267,408 | 13,622 | 5 | ||||||||||||
| 706,683 | 705,266 | 1,417 | 0 | |||||||||||||
| Other intangible assets, net | 277,972 | 285,409 | (7,437 | ) | (3 | ) | ||||||||||
| Equity interest investments | 1,645 | 1,514 | 131 | 9 | ||||||||||||
| Operating lease assets | 342,895 | 319,898 | 22,997 | 7 | ||||||||||||
| Other assets | 53,588 | 72,137 | (18,549 | ) | (26 | ) | ||||||||||
| Total assets | $ | 3,485,469 | $ | 3,500,671 | $ | (15,202 | ) | (0 | ) | % | ||||||
| Liabilities and stockholders’ equity | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 423,865 | $ | 457,319 | $ | (33,454 | ) | (7 | ) | |||||||
| Accrued expenses and other current liabilities | 174,146 | 147,122 | 27,024 | 18 | ||||||||||||
| Short-term borrowings and current portion of long-term debt | 20,952 | 12,881 | 8,071 | 63 | ||||||||||||
| Current operating lease liabilities | 120,756 | 102,189 | 18,567 | 18 | ||||||||||||
| Total current liabilities | 739,719 | 719,511 | 20,208 | 3 | ||||||||||||
| Deferred income taxes | 93,984 | 79,101 | 14,883 | 19 | ||||||||||||
| Long-term debt, net | 1,145,930 | 1,049,121 | 96,809 | 9 | ||||||||||||
| Other long-term liabilities | 47,620 | 47,342 | 278 | 1 | ||||||||||||
| Non-current operating lease liabilities | 231,098 | 225,706 | 5,392 | 2 | ||||||||||||
| Total liabilities | 2,258,351 | 2,120,781 | 137,570 | 6 | ||||||||||||
| Total stockholders’ equity | 1,227,118 | 1,379,890 | (152,772 | ) | (11 | ) | ||||||||||
| Total liabilities and stockholders’ equity | $ | 3,485,469 | $ | 3,500,671 | $ | (15,202 | ) | (0 | ) | % | ||||||
| (1) | The allowance for doubtful accounts was | |
| (2) | The inventory reserve was |
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||
| Nine Months Ended | ||||||||||||
| 2026 | 2025 | Change | ||||||||||
| Operating activities | ||||||||||||
| Net income | $ | 364,361 | $ | 374,816 | $ | (10,455 | ) | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation | 34,461 | 30,438 | 4,023 | |||||||||
| Amortization | 6,750 | 6,598 | 152 | |||||||||
| Share-based compensation | 22,437 | 17,385 | 5,052 | |||||||||
| Equity in earnings of unconsolidated investments, net | (51 | ) | (56 | ) | 5 | |||||||
| Other | 3,489 | 459 | 3,030 | |||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||
| Receivables | (134,083 | ) | (123,914 | ) | (10,169 | ) | ||||||
| Product inventories | 264,883 | 77,407 | 187,476 | |||||||||
| Prepaid expenses and other assets | 19,765 | 73,226 | (53,461 | ) | ||||||||
| Accounts payable | (225,440 | ) | (69,794 | ) | (155,646 | ) | ||||||
| Accrued expenses and other liabilities | 63,252 | (100,822 | ) | 164,074 | ||||||||
| Net cash provided by operating activities | 419,824 | 285,743 | 134,081 | |||||||||
| Investing activities | ||||||||||||
| Acquisition of businesses, net of cash acquired | — | (7,116 | ) | 7,116 | ||||||||
| Purchases of property and equipment, net of sale proceeds | (49,772 | ) | (48,123 | ) | (1,649 | ) | ||||||
| Other investments, net | 2,328 | (508 | ) | 2,836 | ||||||||
| Net cash used in investing activities | (47,444 | ) | (55,747 | ) | 8,303 | |||||||
| Financing activities | ||||||||||||
| Proceeds from revolving line of credit | 1,351,300 | 1,417,100 | (65,800 | ) | ||||||||
| Payments on revolving line of credit | (1,496,400 | ) | (1,390,400 | ) | (106,000 | ) | ||||||
| Proceeds from term loan under credit facility | — | 125,000 | (125,000 | ) | ||||||||
| Payments on term loan under credit facility | — | (87,500 | ) | 87,500 | ||||||||
| Proceeds from asset-backed financing | 390,300 | 437,600 | (47,300 | ) | ||||||||
| Payments on asset-backed financing | (278,800 | ) | (370,400 | ) | 91,600 | |||||||
| Payments on term facility | — | (19,938 | ) | 19,938 | ||||||||
| Proceeds from short-term borrowings and current portion of long-term debt | 7,103 | 17,431 | (10,328 | ) | ||||||||
| Payments on short-term borrowings and current portion of long-term debt | (6,555 | ) | (16,523 | ) | 9,968 | |||||||
| Payments of deferred financing costs | (359 | ) | (1,397 | ) | 1,038 | |||||||
| Payments of excise tax on repurchases of common stock | (2,974 | ) | — | (2,974 | ) | |||||||
| Proceeds from stock issued under share-based compensation plans | 5,018 | 9,203 | (4,185 | ) | ||||||||
| Payments of cash dividends | (140,105 | ) | (138,664 | ) | (1,441 | ) | ||||||
| Repurchases of common stock | (198,046 | ) | (163,884 | ) | (34,162 | ) | ||||||
| Net cash used in financing activities | (369,518 | ) | (182,372 | ) | (187,146 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (2,168 | ) | 2,997 | (5,165 | ) | |||||||
| Change in cash and cash equivalents | 694 | 50,621 | (49,927 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 104,963 | 77,862 | 27,101 | |||||||||
| Cash and cash equivalents at end of period | $ | 105,657 | $ | 128,483 | $ | (22,826 | ) | |||||
ADDENDUM
Base Business
When calculating our base business results, we exclude for a period of 15 months sales centers that are acquired, opened in new markets or closed. We also exclude consolidated sales centers when we do not expect to maintain the majority of the existing business and existing sales centers that are consolidated with acquired sales centers.
We generally allocate corporate overhead expenses to excluded sales centers on the basis of their net sales as a percentage of total net sales. After 15 months, we include acquired, consolidated and new market sales centers in the base business calculation including the comparative prior year period.
We have not provided separate base business income statement data within this press release as our base business results for the three and nine months ended
The table below summarizes the changes in our sales centers during the first nine months of 2026.
| 456 | |
| New locations | 2 |
| Consolidated locations | (4) |
| 454 | |
Reconciliation of Non-GAAP Financial Measures
The non-GAAP measures described below should be considered in the context of all of our other disclosures in this press release.
Adjusted EBITDA
We define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses, provision for income taxes, depreciation, amortization, share-based compensation, goodwill and other impairments, equity in earnings or loss of unconsolidated investments, and other items that management believes are not indicative of ongoing operating performance. Other companies may calculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.
Adjusted EBITDA is not a measure of performance as determined by generally accepted accounting principles (GAAP). We believe Adjusted EBITDA should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, net cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.
From time to time, we use Adjusted EBITDA as a supplemental disclosure because management uses it to monitor our performance, and we believe that it is widely used by our investors, industry analysts and others as a useful supplemental performance measure. We believe that Adjusted EBITDA, when viewed with our GAAP results and the accompanying reconciliations, provides an additional measure that enables management and investors to monitor factors and trends affecting our ability to service debt, pay taxes and fund capital expenditures.
The table below presents a reconciliation of net income to Adjusted EBITDA.
| (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||
| (In thousands) | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 123,042 | $ | 127,013 | $ | 364,361 | $ | 374,816 | ||||||||
| Adjustments to increase (decrease) net income: | ||||||||||||||||
| Interest and other non-operating expenses (1) | 11,415 | 11,622 | 37,846 | 35,633 | ||||||||||||
| Provision for income taxes | 37,449 | 38,985 | 119,774 | 118,048 | ||||||||||||
| Share-based compensation (2) | 4,962 | 4,435 | 22,437 | 17,385 | ||||||||||||
| Equity in earnings of unconsolidated investments, net | (58 | ) | (15 | ) | (51 | ) | (56 | ) | ||||||||
| Depreciation | 11,807 | 10,634 | 34,461 | 30,438 | ||||||||||||
| Amortization (3) | 1,917 | 2,000 | 5,910 | 5,925 | ||||||||||||
| CEO cash transition costs (2) | — | — | 1,962 | — | ||||||||||||
| Adjusted EBITDA | $ | 190,534 | $ | 194,674 | $ | 586,700 | $ | 582,189 | ||||||||
| (1) | Excludes loss (gain) on foreign currency transactions of | |
| (2) | CEO transition costs comprise | |
| (3) | Excludes amortization of deferred financing costs of | |
Adjusted Income Statement Information
We have included adjusted operating expenses, adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures, in this press release as supplemental disclosures because we believe these measures are useful to management, investors and others in assessing our period-over-period operating performance. We believe these measures should be considered in addition to, not as a substitute for, operating expenses, operating income, net income and diluted EPS presented in accordance with GAAP and in the context of our other disclosures in this press release. Other companies may calculate these non-GAAP financial measures differently than we do, which may limit their usefulness as comparative measures.
The table below presents a reconciliation of operating expenses to adjusted operating expenses.
| (Unaudited) | Nine Months Ended | |||
| (In thousands) | ||||
| 2026 | ||||
| Operating expenses | $ | 784,464 | ||
| CEO transition costs | (8,262 | ) | ||
| Adjusted operating expenses | $ | 776,202 | ||
The table below presents a reconciliation of operating income to adjusted operating income.
| (Unaudited) | Nine Months Ended | |||
| (In thousands) | ||||
| 2026 | ||||
| Operating income | $ | 522,486 | ||
| CEO transition costs | 8,262 | |||
| Adjusted operating income | $ | 530,748 | ||
The table below presents a reconciliation of net income to adjusted net income.
| (Unaudited) | Nine Months Ended | ||||||
| (In thousands) | |||||||
| 2026 | 2025 | ||||||
| Net income | $ | 364,361 | $ | 374,816 | |||
| CEO transition costs | 8,262 | — | |||||
| Tax impact | (738 | ) | — | ||||
| ASU 2016-09 tax benefit | (714 | ) | (4,181 | ) | |||
| Adjusted net income | $ | 371,171 | $ | 370,635 | |||
The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.
| (Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Diluted EPS | $ | 3.40 | $ | 3.40 | $ | 10.02 | $ | 9.97 | |||||
| After-tax CEO transition costs | — | — | 0.21 | — | |||||||||
| ASU 2016-09 tax benefit | — | (0.01 | ) | (0.02 | ) | (0.11 | ) | ||||||
| Adjusted diluted EPS | $ | 3.40 | $ | 3.39 | $ | 10.21 | $ | 9.86 | |||||
