Pool Corporation Reports Third Quarter Results
Rhea-AI Summary
Pool Corporation (NASDAQ:POOL) reported Q3 2025 results: net sales $1.5B (up 1% vs Q3 2024), gross margin 29.6% (expanded 50 bps), and diluted EPS $3.40 (up 4%). The company confirmed full‑year diluted EPS guidance of $10.81–$11.31 including a year‑to‑date ASU 2016‑09 tax benefit of $0.11. Year‑to‑date net sales were flat at $4.3B; nine‑month net income was $374.8M (down 6%). Inventory was $1.2B (up 4% Y/Y); total debt rose $138.2M to $1.1B, reflecting $159.1M of open‑market share repurchases YTD. Operating cash flow for the first nine months was $285.7M, lower primarily due to higher inventory investments and a deferred federal tax payment.
Positive
- Q3 diluted EPS +4% to $3.40
- Gross margin +50 bps to 29.6% in Q3
- Confirmed full‑year EPS guidance $10.81–$11.31
- Added four new locations in Q3
Negative
- Nine‑month net income -6% to $374.8M
- Operating income YTD -5% to $528.2M
- Total debt +$138.2M to $1.1B
- Net cash from operations YTD down to $285.7M
News Market Reaction 1 Alert
On the day this news was published, POOL gained 0.91%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Q3 2025 Highlights
- Net sales increased
1% from Q3 2024 to$1.5 billion , following growth in Q2 2025 - Gross margin of
29.6% expanded 50 bps from Q3 2024 - Diluted EPS increased
4% from Q3 2024 to$3.40 - Confirms annual earnings guidance range of
$10.81 -$11.31 per diluted share, including year-to-date ASU 2016-09 tax benefit of$0.11
COVINGTON, La., Oct. 23, 2025 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq/GSM:POOL) today reported results for the third quarter of 2025 and confirmed its annual earnings guidance range.
“Building on momentum from the second quarter, we achieved sales growth in the third quarter of 2025. Our dedicated teams delivered not only top-line growth but also expanded gross margin. We continued to strengthen our industry leading position by adding four new locations this quarter and elevated our customer experience through expanded private-label offerings and strategic product partnerships. This month, we proudly mark our 30th anniversary as a public company listed on the Nasdaq Stock Market, a milestone made possible by our team’s long-term strategic focus and ongoing commitment to offer our customers the best value proposition in the industry,” commented Peter D. Arvan, president and CEO.
Third quarter ended September 30, 2025 compared to the third quarter ended September 30, 2024
Net sales increased
Gross profit grew by
Selling and administrative expenses (operating expenses) increased
Operating income increased
Net income increased to
Earnings per diluted share increased
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024
Net sales of
Operating expenses increased
Net income decreased
Earnings per diluted share decreased
Balance Sheet and Liquidity
Our inventory balance was
Net cash provided by operations was
Outlook
“Based on our performance to date and outlook for the remainder of the year, we are confirming our full-year earnings guidance range of
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures (adjusted EBITDA and adjusted diluted EPS). 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 September 30, 2025, POOLCORP operated 454 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 2024 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 | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 1,451,131 | $ | 1,432,879 | $ | 4,307,187 | $ | 4,323,474 | |||||||
| Cost of sales | 1,021,948 | 1,016,476 | 3,030,474 | 3,038,370 | |||||||||||
| Gross profit | 429,183 | 416,403 | 1,276,713 | 1,285,104 | |||||||||||
| Percent | 29.6 | % | 29.1 | % | 29.6 | % | 29.7 | % | |||||||
| . | |||||||||||||||
| Selling and administrative expenses | 251,196 | 240,050 | 748,518 | 728,550 | |||||||||||
| Operating income | 177,987 | 176,353 | 528,195 | 556,554 | |||||||||||
| Percent | 12.3 | % | 12.3 | % | 12.3 | % | 12.9 | % | |||||||
| . | |||||||||||||||
| Interest and other non-operating expenses, net | 12,004 | 12,355 | 35,387 | 39,818 | |||||||||||
| Income before income taxes and equity in earnings | 165,983 | 163,998 | 492,808 | 516,736 | |||||||||||
| Provision for income taxes | 38,985 | 38,361 | 118,048 | 119,891 | |||||||||||
| Equity in earnings of unconsolidated investments, net | 15 | 64 | 56 | 180 | |||||||||||
| Net income | $ | 127,013 | $ | 125,701 | $ | 374,816 | $ | 397,025 | |||||||
| Earnings per share attributable to common stockholders:(1) | |||||||||||||||
| Basic | $ | 3.41 | $ | 3.29 | $ | 10.01 | $ | 10.37 | |||||||
| Diluted | $ | 3.40 | $ | 3.27 | $ | 9.97 | $ | 10.30 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 37,090 | 37,983 | 37,272 | 38,104 | |||||||||||
| Diluted | 37,223 | 38,187 | 37,420 | 38,330 | |||||||||||
| Cash dividends declared per common share | $ | 1.25 | $ | 1.20 | $ | 3.70 | $ | 3.50 | |||||||
(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) | |||||||||||||||
| September 30, | September 30, | Change | |||||||||||||
| 2025 | 2024 | $ | % | ||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 128,483 | $ | 91,347 | $ | 37,136 | 41 | % | |||||||
| Receivables, net(1) | 138,072 | 119,538 | 18,534 | 16 | |||||||||||
| Receivables pledged under receivables facility | 305,537 | 306,155 | (618 | ) | (0 | ) | |||||||||
| Product inventories, net(2) | 1,223,809 | 1,180,491 | 43,318 | 4 | |||||||||||
| Prepaid expenses and other current assets | 53,138 | 43,168 | 9,970 | 23 | |||||||||||
| Total current assets | 1,849,039 | 1,740,699 | 108,340 | 6 | |||||||||||
| Property and equipment, net | 267,408 | 243,308 | 24,100 | 10 | |||||||||||
| Goodwill | 705,266 | 700,147 | 5,119 | 1 | |||||||||||
| Other intangible assets, net | 285,409 | 292,722 | (7,313 | ) | (2 | ) | |||||||||
| Equity interest investments | 1,514 | 1,434 | 80 | 6 | |||||||||||
| Operating lease assets | 319,898 | 309,648 | 10,250 | 3 | |||||||||||
| Other assets | 72,137 | 79,431 | (7,294 | ) | (9 | ) | |||||||||
| Total assets | $ | 3,500,671 | $ | 3,367,389 | $ | 133,282 | 4 | % | |||||||
| Liabilities and stockholders’ equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ | 457,319 | $ | 401,702 | $ | 55,617 | 14 | ||||||||
| Accrued expenses and other current liabilities | 147,122 | 185,118 | (37,996 | ) | (21 | ) | |||||||||
| Short-term borrowings and current portion of long-term debt | 12,881 | 44,683 | (31,802 | ) | (71 | ) | |||||||||
| Current operating lease liabilities | 102,189 | 95,412 | 6,777 | 7 | |||||||||||
| Total current liabilities | 719,511 | 726,915 | (7,404 | ) | (1 | ) | |||||||||
| Deferred income taxes | 79,101 | 65,106 | 13,995 | 21 | |||||||||||
| Long-term debt, net | 1,049,121 | 879,146 | 169,975 | 19 | |||||||||||
| Other long-term liabilities | 47,342 | 43,612 | 3,730 | 9 | |||||||||||
| Non-current operating lease liabilities | 225,706 | 220,101 | 5,605 | 3 | |||||||||||
| Total liabilities | 2,120,781 | 1,934,880 | 185,901 | 10 | |||||||||||
| Total stockholders’ equity | 1,379,890 | 1,432,509 | (52,619 | ) | (4 | ) | |||||||||
| Total liabilities and stockholders’ equity | $ | 3,500,671 | $ | 3,367,389 | $ | 133,282 | 4 | % | |||||||
(1) The allowance for doubtful accounts was
(2) The inventory reserve was
| POOL CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||||||
| Nine Months Ended | |||||||||||
| September 30, | |||||||||||
| 2025 | 2024 | Change | |||||||||
| Operating activities | |||||||||||
| Net income | $ | 374,816 | $ | 397,025 | $ | (22,209 | ) | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 30,438 | 26,848 | 3,590 | ||||||||
| Amortization | 6,598 | 6,514 | 84 | ||||||||
| Share-based compensation | 17,385 | 14,391 | 2,994 | ||||||||
| Equity in earnings of unconsolidated investments, net | (56 | ) | (180 | ) | 124 | ||||||
| Other | 459 | 3,123 | (2,664 | ) | |||||||
| Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
| Receivables | (123,914 | ) | (80,362 | ) | (43,552 | ) | |||||
| Product inventories | 77,407 | 181,326 | (103,919 | ) | |||||||
| Prepaid expenses and other assets | 73,226 | 57,151 | 16,075 | ||||||||
| Accounts payable | (69,794 | ) | (109,021 | ) | 39,227 | ||||||
| Accrued expenses and other liabilities | (100,822 | ) | (8,196 | ) | (92,626 | ) | |||||
| Net cash provided by operating activities | 285,743 | 488,619 | (202,876 | ) | |||||||
| Investing activities | |||||||||||
| Acquisition of businesses, net of cash acquired | (7,116 | ) | (4,435 | ) | (2,681 | ) | |||||
| Purchases of property and equipment, net of sale proceeds | (48,123 | ) | (45,951 | ) | (2,172 | ) | |||||
| Other investments, net | (508 | ) | 944 | (1,452 | ) | ||||||
| Net cash used in investing activities | (55,747 | ) | (49,442 | ) | (6,305 | ) | |||||
| Financing activities | |||||||||||
| Proceeds from revolving line of credit | 1,417,100 | 1,146,900 | 270,200 | ||||||||
| Payments on revolving line of credit | (1,390,400 | ) | (1,274,400 | ) | (116,000 | ) | |||||
| Proceeds from term loan under credit facility | 125,000 | — | 125,000 | ||||||||
| Payments on term loan under credit facility | (87,500 | ) | (18,750 | ) | (68,750 | ) | |||||
| Proceeds from asset-backed financing | 437,600 | 623,900 | (186,300 | ) | |||||||
| Payments on asset-backed financing | (370,400 | ) | (606,300 | ) | 235,900 | ||||||
| Payments on term facility | (19,938 | ) | — | (19,938 | ) | ||||||
| Proceeds from short-term borrowings and current portion of long-term debt | 17,431 | 8,873 | 8,558 | ||||||||
| Payments on short-term borrowings and current portion of long-term debt | (16,523 | ) | (8,643 | ) | (7,880 | ) | |||||
| Payments of deferred financing costs | (1,397 | ) | (1,731 | ) | 334 | ||||||
| Proceeds from stock issued under share-based compensation plans | 9,203 | 11,955 | (2,752 | ) | |||||||
| Payments of cash dividends | (138,664 | ) | (134,181 | ) | (4,483 | ) | |||||
| Repurchases of common stock | (163,884 | ) | (159,408 | ) | (4,476 | ) | |||||
| Net cash used in financing activities | (182,372 | ) | (411,785 | ) | 229,413 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 2,997 | (2,585 | ) | 5,582 | |||||||
| Change in cash and cash equivalents | 50,621 | 24,807 | 25,814 | ||||||||
| Cash and cash equivalents at beginning of period | 77,862 | 66,540 | 11,322 | ||||||||
| Cash and cash equivalents at end of period | $ | 128,483 | $ | 91,347 | $ | 37,136 | |||||
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 statements within this press release as our base business results for the three and nine-month periods ended September 30, 2025 closely approximated our consolidated results, and acquisitions and sales centers excluded from base business contributed less than
The table below summarizes the changes in our sales center count in the first nine months of 2025.
| December 31, 2024 | 448 |
| Acquired locations | 2 |
| New locations | 6 |
| Closed/Consolidated locations | (2) |
| September 30, 2025 | 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, income taxes, depreciation, amortization, share-based compensation, goodwill and other impairments and equity in earnings or loss of unconsolidated investments. 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.
We have included 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) | September 30, | September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income | $ | 127,013 | $ | 125,701 | $ | 374,816 | $ | 397,025 | |||||||
| Adjustments to increase (decrease) net income: | |||||||||||||||
| Interest and other non-operating expenses(1) | 11,622 | 12,230 | 35,633 | 39,484 | |||||||||||
| Provision for income taxes | 38,985 | 38,361 | 118,048 | 119,891 | |||||||||||
| Share-based compensation | 4,435 | 4,047 | 17,385 | 14,391 | |||||||||||
| Equity in earnings of unconsolidated investments, net | (15 | ) | (64 | ) | (56 | ) | (180 | ) | |||||||
| Depreciation | 10,634 | 9,257 | 30,438 | 26,848 | |||||||||||
| Amortization(2) | 2,000 | 1,963 | 5,925 | 5,854 | |||||||||||
| Adjusted EBITDA | $ | 194,674 | $ | 191,495 | $ | 582,189 | $ | 603,313 | |||||||
(1) Shown net of losses (gains) on foreign currency transactions of
(2) Excludes amortization of deferred financing costs of
Adjusted Diluted EPS
We have included adjusted diluted EPS, a non-GAAP financial measure, in this press release as a supplemental disclosure, because we believe this measure is useful to management, investors and others in assessing our period-to-period operating performance.
Adjusted diluted EPS is a key measure used by management to demonstrate the impact of tax benefits from ASU 2016-09 on our diluted EPS and to provide investors and others with additional information about our potential future operating performance to supplement GAAP measures.
We believe this measure should be considered in addition to, not as a substitute for, diluted EPS presented in accordance with GAAP, and in the context of our other disclosures in this press release. Other companies may calculate this non-GAAP financial measure differently than we do, which may limit its usefulness as a comparative measure.
The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.
| (Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Diluted EPS | $ | 3.40 | $ | 3.27 | $ | 9.97 | $ | 10.30 | |||||||
| ASU 2016-09 tax benefit | (0.01 | ) | (0.01 | ) | (0.11 | ) | (0.21 | ) | |||||||
| Adjusted diluted EPS | $ | 3.39 | $ | 3.26 | $ | 9.86 | $ | 10.09 | |||||||
FAQ
What were Pool Corporation's Q3 2025 net sales and EPS (NASDAQ:POOL)?
Did POOL confirm 2025 full‑year guidance on October 23, 2025?
How did Pool's gross margin change in Q3 2025 compared to Q3 2024?
Why did Pool's net cash from operations decline in the first nine months of 2025?
How much share repurchase activity did POOL record in the first nine months of 2025?
What balance sheet changes did Pool report at September 30, 2025?
