Pool equipment and automation systems manufacturer Hayward Holdings (NYSE: HAYW) reported Q2 CY2026 results topping the market’s revenue expectations, with sales up 6.3% year on year to $318.4 million. Its non-GAAP profit of $0.26 per share was 9.2% above analysts’ consensus estimates.
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Hayward (HAYW) Q2 CY2026 Highlights:
- Revenue: $318.4 million vs analyst estimates of $309.7 million (6.3% year-on-year growth, 2.8% beat)
- Adjusted EPS: $0.26 vs analyst estimates of $0.24 (9.2% beat)
- Adjusted EBITDA: $92.72 million vs analyst estimates of $89.21 million (29.1% margin, 3.9% beat)
- Management reiterated its full-year Adjusted EPS guidance of $0.86 at the midpoint
- Operating Margin: 23.9%, in line with the same quarter last year
- Free Cash Flow Margin: 97.8%, up from 62.5% in the same quarter last year
- Market Capitalization: $3.28 billion
Company Overview
Credited with introducing the first variable-speed pool pump, Hayward (NYSE: HAYW) makes residential and commercial pool equipment and accessories.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Hayward struggled to consistently increase demand as its $1.17 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Hayward’s annualized revenue growth of 8.3% over the last two years is above its five-year trend, suggesting some bright spots. 
This quarter, Hayward reported year-on-year revenue growth of 6.3%, and its $318.4 million of revenue exceeded Wall Street’s estimates by 2.8%.
Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and indicates its products and services will face some demand challenges.
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Operating Margin
Hayward has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 20.5%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Hayward’s operating margin decreased by 3.1 percentage points over the last five years. Even though its historical margin was healthy, shareholders will want to see Hayward become more profitable in the future.
In Q2, Hayward generated an operating margin profit margin of 23.9%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Sadly for Hayward, its EPS declined by 22.8% annually over the last five years while its revenue was flat. We can see the difference stemmed from higher interest expenses or taxes as the company actually improved its operating margin and repurchased its shares during this time.
We can take a deeper look into Hayward’s earnings to better understand the drivers of its performance. As we mentioned earlier, Hayward’s operating margin was flat this quarter but declined by 3.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Hayward, its two-year annual EPS growth of 18.9% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.
In Q2, Hayward reported adjusted EPS of $0.26, up from $0.24 in the same quarter last year. This print beat analysts’ estimates by 9.2%. Over the next 12 months, Wall Street expects Hayward’s full-year EPS to grow 8.8% from $0.82 to $0.89.
Key Takeaways from Hayward’s Q2 Results
We enjoyed seeing Hayward beat analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 5.9% to $16.00 immediately after reporting.
Hayward put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
