Pool Corporation Reports Second Quarter Results; Confirms Annual Earnings Guidance Range, Excluding CEO Transition Costs
Rhea-AI Summary
Pool Corporation (Nasdaq: POOL) reported Q2 2026 net sales of $1.82 billion, up 2% year over year, driven by maintenance demand and improved building materials sales. Gross profit rose 1% to $540.8 million, while gross margin compressed 30 basis points to 29.7% due to higher inbound freight and customer mix.
Q2 operating income declined 2% to $267.7 million, but excluding $8.3 million of CEO transition costs, adjusted operating income increased 1% to $275.9 million. Diluted EPS was flat at $5.17, with adjusted diluted EPS up 4% to $5.38. For the first half, net sales grew 4% to $3.0 billion, GAAP diluted EPS rose to $6.61, and adjusted diluted EPS to $6.80.
Inventory increased 4% to $1.38 billion, and total debt rose by $110.8 million to about $1.3 billion, largely to fund $266.7 million of share repurchases over twelve months. Pool Corporation reaffirmed its 2026 adjusted diluted EPS guidance range of $10.87 to $11.17, and issued a GAAP diluted EPS range of $10.66 to $10.96, including $0.21 of CEO transition costs and $0.02 of ASU 2016‑09 tax benefits.
Positive
- Q2 2026 net sales up 2% to $1.82 billion
- Q2 adjusted diluted EPS up 4% to $5.38
- Six‑month adjusted diluted EPS up 5% to $6.80
- 2026 adjusted EPS guidance confirmed at $10.87–$11.17
- Share repurchases of $266.7 million over past twelve months
Negative
- Q2 2026 net income down 3% to $188.1 million
- Q2 gross margin down 30 bps to 29.7%
- Q2 operating margin down to 14.7% from 15.3%
- Total debt up $110.8 million to approximately $1.3 billion
- Cash balance down $54.9 million year over year to $28.8 million
News Explained
At June 30, cash was $28,762 thousand after a $76,201 thousand first-half decline, adding liquidity context to the earnings update.
Pool Corporation has reported completed second-quarter 2026 results; cash and equivalents were
The
Market reaction after 2Q26 earnings report: POOL -6.55% in the Jul 23 session
In the Jul 23 session, POOL declined 6.55%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.4% during that session. Argus tracked a trough of -11.5% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.0x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | Q1 earnings report | Positive | -2.4% | Sales and operating income increased while annual earnings guidance was confirmed. |
| Feb 19 | FY2025 earnings report | Negative | -14.5% | Flat sales and lower adjusted earnings accompanied 2026 guidance and higher debt. |
| Oct 23 | Q3 earnings report | Positive | +0.9% | Higher sales, gross margin, diluted EPS, and confirmed full-year guidance supported results. |
| Jul 24 | Q2 earnings report | Positive | +3.0% | Sales and diluted EPS increased while full-year earnings guidance was updated higher. |
| Apr 24 | Q1 earnings report | Negative | -6.7% | Lower sales, net income, EPS, margins, and operating income accompanied reduced operating cash flow. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events averaged a -3.92% 24-hour move, with three reactions aligned to the announcement sentiment and two divergent.
Key Terms
basis points financial
non-gaap financial measures financial
adjusted ebitda financial
asu 2016-09 financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q2 2026 Highlights:
- Net sales increased
2% to$1.8 billion , reflecting a resilient maintenance business and continued building materials improvement - Operating income decreased
2% to$267.7 million ; excluding CEO transition costs, operating income increased1% to$275.9 million - Diluted EPS in line with Q2 2025 at
$5.17 ; adjusted diluted EPS increased4% to$5.38 - Provides US GAAP annual earnings guidance range of
$10.66 t o$10.96 per diluted share, which includes$0.02 of year-to-date ASU 2016-09 tax benefits and$0.21 of CEO transition costs; excluding CEO transition costs, confirms prior annual earnings guidance range of$10.87 t o$11.17 per diluted share
COVINGTON, La., July 23, 2026 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq: POOL) today reported results for the second quarter of 2026.
“Our second quarter net sales grew
Second quarter ended June 30, 2026 compared to the second quarter ended June 30, 2025
Net sales increased
Gross profit increased
Selling and administrative expenses (operating expenses) increased
Operating income decreased
Net income decreased
Earnings per diluted share was
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
Net sales increased
Operating expenses increased
Operating income was
Net income decreased
Earnings per diluted share increased
Balance Sheet and Liquidity
Inventory increased
Net cash used in operations was
Outlook
“We remain confident that we will achieve 2026 diluted EPS in the range of
The table below further illustrates our current guidance:
| (Unaudited) | 2026 Guidance Range | |||||
| 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 Pool Corporation
POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyard products. As of June 30, 2026, POOLCORP operated 455 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000 wholesale customers. For more information, please visit www.poolcorp.com.
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 SEC.
Kristin S. Byars
Director, Investor Relations and Finance
985.801.5153
kristin.byars@poolcorp.com
| POOL CORPORATION Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Net sales | $ | 1,822,938 | $ | 1,784,530 | $ | 2,960,952 | $ | 2,856,056 | |||||||||
| Cost of sales | 1,282,176 | 1,249,369 | 2,090,319 | 2,008,526 | |||||||||||||
| Gross profit | 540,762 | 535,161 | 870,633 | 847,530 | |||||||||||||
| Percent | 29.7 | % | 30.0 | % | 29.4 | % | 29.7 | % | |||||||||
| Selling and administrative expenses | 273,083 | 262,491 | 520,343 | 497,323 | |||||||||||||
| Operating income | 267,679 | 272,670 | 350,290 | 350,207 | |||||||||||||
| Percent | 14.7 | % | 15.3 | % | 11.8 | % | 12.3 | % | |||||||||
| Interest and other non-operating expenses, net | 14,273 | 12,219 | 26,639 | 23,381 | |||||||||||||
| Income before income taxes and equity in earnings (loss) | 253,406 | 260,451 | 323,651 | 326,826 | |||||||||||||
| Provision for income taxes | 65,345 | 66,180 | 82,325 | 79,064 | |||||||||||||
| Equity in earnings (loss) of unconsolidated investments, net | 28 | (13 | ) | (7 | ) | 41 | |||||||||||
| Net income | $ | 188,089 | $ | 194,258 | $ | 241,319 | $ | 247,803 | |||||||||
| Earnings per share attributable to common stockholders: (1) | |||||||||||||||||
| Basic | $ | 5.18 | $ | 5.19 | $ | 6.62 | $ | 6.60 | |||||||||
| Diluted | $ | 5.17 | $ | 5.17 | $ | 6.61 | $ | 6.57 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Basic | 36,085 | 37,271 | 36,223 | 37,365 | |||||||||||||
| Diluted | 36,132 | 37,407 | 36,280 | 37,520 | |||||||||||||
| Cash dividends declared per common share | $ | 1.30 | $ | 1.25 | $ | 2.55 | $ | 2.45 | |||||||||
| (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 | ||||||||||||||||
| POOL CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||||||||
| June 30, | June 30, | Change | ||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 28,762 | $ | 83,669 | $ | (54,907 | ) | (66 | ) % | |||||
| Receivables, net (1) | 190,947 | 172,028 | 18,919 | 11 | ||||||||||
| Receivables pledged under receivables facility | 446,914 | 404,776 | 42,138 | 10 | ||||||||||
| Product inventories, net (2) | 1,378,695 | 1,330,221 | 48,474 | 4 | ||||||||||
| Prepaid expenses and other current assets | 48,801 | 42,281 | 6,520 | 15 | ||||||||||
| Total current assets | 2,094,119 | 2,032,975 | 61,144 | 3 | ||||||||||
| Property and equipment, net | 276,897 | 258,188 | 18,709 | 7 | ||||||||||
| Goodwill | 706,721 | 700,476 | 6,245 | 1 | ||||||||||
| Other intangible assets, net | 279,890 | 286,810 | (6,920 | ) | (2 | ) | ||||||||
| Equity interest investments | 1,567 | 1,494 | 73 | 5 | ||||||||||
| Operating lease assets | 345,894 | 315,434 | 30,460 | 10 | ||||||||||
| Other assets | 55,386 | 76,579 | (21,193 | ) | (28 | ) | ||||||||
| Total assets | $ | 3,760,474 | $ | 3,671,956 | $ | 88,518 | 2 | % | ||||||
| Liabilities and stockholders’ equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 474,481 | $ | 529,316 | $ | (54,835 | ) | (10 | ) | |||||
| Accrued expenses and other current liabilities | 185,505 | 160,833 | 24,672 | 15 | ||||||||||
| Short-term borrowings and current portion of long-term debt | 13,443 | 17,386 | (3,943 | ) | (23 | ) | ||||||||
| Current operating lease liabilities | 110,596 | 100,439 | 10,157 | 10 | ||||||||||
| Total current liabilities | 784,025 | 807,974 | (23,949 | ) | (3 | ) | ||||||||
| Deferred income taxes | 94,644 | 79,138 | 15,506 | 20 | ||||||||||
| Long-term debt, net | 1,327,273 | 1,212,533 | 114,740 | 9 | ||||||||||
| Other long-term liabilities | 50,680 | 50,177 | 503 | 1 | ||||||||||
| Non-current operating lease liabilities | 243,854 | 223,016 | 20,838 | 9 | ||||||||||
| Total liabilities | 2,500,476 | 2,372,838 | 127,638 | 5 | ||||||||||
| Total stockholders’ equity | 1,259,998 | 1,299,118 | (39,120 | ) | (3 | ) | ||||||||
| Total liabilities and stockholders’ equity | $ | 3,760,474 | $ | 3,671,956 | $ | 88,518 | 2 | % | ||||||
| (1) The allowance for doubtful accounts was | ||||||||||||||
| (2) The inventory reserve was | ||||||||||||||
| POOL CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||
| Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | Change | ||||||||||
| Operating activities | ||||||||||||
| Net income | $ | 241,319 | $ | 247,803 | $ | (6,484 | ) | |||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||
| Depreciation | 22,654 | 19,804 | 2,850 | |||||||||
| Amortization | 4,543 | 4,312 | 231 | |||||||||
| Share-based compensation | 17,475 | 12,950 | 4,525 | |||||||||
| Equity in loss (earnings) of unconsolidated investments, net | 7 | (41 | ) | 48 | ||||||||
| Other | 732 | (942 | ) | 1,674 | ||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||
| Receivables | (292,227 | ) | (254,322 | ) | (37,905 | ) | ||||||
| Product inventories | 72,454 | (29,375 | ) | 101,829 | ||||||||
| Prepaid expenses and other assets | 25,560 | 53,440 | (27,880 | ) | ||||||||
| Accounts payable | (170,516 | ) | 315 | (170,831 | ) | |||||||
| Accrued expenses and other liabilities | 77,251 | (55,488 | ) | 132,739 | ||||||||
| Net cash used in operating activities | (748 | ) | (1,544 | ) | 796 | |||||||
| Investing activities | ||||||||||||
| Purchases of property and equipment, net of sale proceeds | (36,569 | ) | (27,390 | ) | (9,179 | ) | ||||||
| Other investments, net | 554 | (1,073 | ) | 1,627 | ||||||||
| Net cash used in investing activities | (36,015 | ) | (28,463 | ) | (7,552 | ) | ||||||
| Financing activities | ||||||||||||
| Proceeds from revolving line of credit | 1,023,500 | 1,117,100 | (93,600 | ) | ||||||||
| Payments on revolving line of credit | (1,024,200 | ) | (956,900 | ) | (67,300 | ) | ||||||
| Payments on term loan under credit facility | — | (12,500 | ) | 12,500 | ||||||||
| Proceeds from asset-backed financing | 308,900 | 323,200 | (14,300 | ) | ||||||||
| Payments on asset-backed financing | (167,900 | ) | (177,200 | ) | 9,300 | |||||||
| Payments on term facility | — | (19,937 | ) | 19,937 | ||||||||
| Proceeds from short-term borrowings and current portion of long-term debt | 6,577 | 17,112 | (10,535 | ) | ||||||||
| Payments on short-term borrowings and current portion of long-term debt | (6,163 | ) | (11,699 | ) | 5,536 | |||||||
| Payments of excise tax on repurchases of common stock | (2,974 | ) | — | (2,974 | ) | |||||||
| Proceeds from stock issued under share-based compensation plans | 3,874 | 6,780 | (2,906 | ) | ||||||||
| Payments of cash dividends | (93,004 | ) | (92,163 | ) | (841 | ) | ||||||
| Repurchases of common stock | (86,428 | ) | (160,648 | ) | 74,220 | |||||||
| Net cash (used in) provided by financing activities | (37,818 | ) | 33,145 | (70,963 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,620 | ) | 2,669 | (4,289 | ) | |||||||
| Change in cash and cash equivalents | (76,201 | ) | 5,807 | (82,008 | ) | |||||||
| Cash and cash equivalents at beginning of period | 104,963 | 77,862 | 27,101 | |||||||||
| Cash and cash equivalents at end of period | $ | 28,762 | $ | 83,669 | $ | (54,907 | ) | |||||
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 six months ended June 30, 2026 closely approximated our consolidated results. Excluded sales centers contributed less than
The table below summarizes the changes in our sales centers during the first half of 2026.
| December 31, 2025 | 456 | ||
| Acquired locations | - | ||
| New location | 1 | ||
| Consolidated locations | (2 | ) | |
| June 30, 2026 | 455 | ||
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) (In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income | $ | 188,089 | $ | 194,258 | $ | 241,319 | $ | 247,803 | |||||||
| Adjustments to increase (decrease) net income: | |||||||||||||||
| Interest and other non-operating expenses (1) | 13,931 | 12,803 | 26,430 | 24,009 | |||||||||||
| Provision for income taxes | 65,345 | 66,180 | 82,325 | 79,064 | |||||||||||
| Share-based compensation (2) | 12,003 | 6,895 | 17,475 | 12,950 | |||||||||||
| Equity in (earnings) loss of unconsolidated investments, net | (28 | ) | 13 | 7 | (41 | ) | |||||||||
| Depreciation | 11,385 | 9,964 | 22,654 | 19,804 | |||||||||||
| Amortization (3) | 1,990 | 1,963 | 3,993 | 3,925 | |||||||||||
| CEO cash transition costs (2) | 1,962 | — | 1,962 | — | |||||||||||
| Adjusted EBITDA | $ | 294,677 | $ | 292,076 | $ | 396,165 | $ | 387,514 | |||||||
| (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) (In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2026 | 2026 | |||||||
| Operating expenses | $ | 273,083 | $ | 520,343 | ||||
| CEO transition costs | (8,262 | ) | (8,262 | ) | ||||
| Adjusted operating expenses | $ | 264,821 | $ | 512,081 | ||||
The table below presents a reconciliation of operating income to adjusted operating income.
| (Unaudited) (In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||
| 2026 | 2026 | |||||
| Operating income | $ | 267,679 | $ | 350,290 | ||
| CEO transition costs | 8,262 | 8,262 | ||||
| Adjusted operating income | $ | 275,941 | $ | 358,552 | ||
The table below presents a reconciliation of net income to adjusted net income.
| (Unaudited) (In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 188,089 | $ | 194,258 | $ | 241,319 | $ | 247,803 | ||||||||
| CEO transition costs | 8,262 | — | 8,262 | — | ||||||||||||
| Tax impact | (738 | ) | — | (738 | ) | — | ||||||||||
| ASU 2016-09 tax deficiency (benefit) | 60 | (39 | ) | (720 | ) | (3,884 | ) | |||||||||
| Adjusted net income | $ | 195,673 | $ | 194,219 | $ | 248,123 | $ | 243,919 | ||||||||
The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.
| (Unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Diluted EPS | $ | 5.17 | $ | 5.17 | $ | 6.61 | $ | 6.57 | ||||||
| After-tax CEO transition costs | 0.21 | — | 0.21 | — | ||||||||||
| ASU 2016-09 tax benefit | — | — | (0.02 | ) | (0.10 | ) | ||||||||
| Adjusted diluted EPS | $ | 5.38 | $ | 5.17 | $ | 6.80 | $ | 6.47 | ||||||
