Latham Group, Inc. announced its financial results for the second quarter ended June 28, 2025, on August 5, 2025. Net sales for the second quarter were $172.6 million, an increase of 7.8% from $160.1 million in the prior year's second quarter, driven by both organic and acquisition-related growth.
Gross profit for the second quarter was $64.0 million, up 20.6%, with gross margin expanding significantly by 400 basis points to 37.1% from 33.1% in the year-ago quarter. This improvement was primarily attributed to higher volumes, operating efficiencies from lean manufacturing and value engineering initiatives, and the benefits from the three Coverstar acquisitions.
Net income for Q2 2025 increased to $16.0 million, or $0.13 per diluted share, compared to $13.3 million, or $0.11 per diluted share, in the prior year. Adjusted EBITDA for the quarter rose by 15.7% to $39.9 million, with the Adjusted EBITDA margin expanding by 160 basis points to 23.1%.
For the first six months of 2025, net sales increased by 4.9% to $284.1 million, and Adjusted EBITDA grew by 9.1% to $51.0 million. The company ended the second quarter with $26.9 million in cash and total debt of $281.5 million, with a net debt leverage ratio of 3.0.
Latham reaffirmed its full year 2025 guidance, projecting net sales between $535 million and $565 million and Adjusted EBITDA between $90 million and $100 million. The company continues to project approximately 60,000 new U.S. pool starts in 2025, in line with original estimates, and expects fiberglass pool sales to represent approximately 75% of full-year in-ground pool sales.
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