Hayward Holdings, Inc. (HAYW) Bundle
A Brief History of Hayward Holdings, Inc.
Hayward Holdings, Inc. has established itself as a leading provider of pool equipment and related products. The company has been pivotal in the evolution of the swimming pool industry, focusing on innovation and sustainability.
Financial Performance Overview
As of September 28, 2024, Hayward Holdings reported a net income of $63.9 million for the nine months ended, an increase from $49.7 million in the same period of 2023. This reflects a growth of 28.5% year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $63.9 million | $49.7 million | +28.5% |
| Gross Profit | $319.2 million | $288.9 million | +10.5% |
| Gross Margin | 52.4% | 49.4% | +300 bps |
| Adjusted EBITDA | $178.7 million | $171.6 million | +4.6% |
Sales and Market Dynamics
The company achieved net sales of $609.5 million for the nine months ended September 28, 2024, up from $585.1 million in the previous year, marking a 4.2% increase. This growth was largely attributed to price increases and acquisitions, despite a slight decline in sales volume.
| Period | Net Sales ($ million) | Change (%) |
|---|---|---|
| Q3 2024 | $227.6 million | +3.3% |
| Q3 2023 | $220.3 million | - |
| YTD Q3 2024 | $609.5 million | +4.2% |
| YTD Q3 2023 | $585.1 million | - |
Segment Performance
Segment income for the nine months ended September 28, 2024, was reported at $166.6 million, compared to $144.3 million in the same period of 2023, reflecting a 15.4% increase. The segment income margin also improved, rising to 27.3% from 24.7% year-over-year.
| Segment | Income ($ million) | Margin (%) |
|---|---|---|
| Q3 2024 | $51.6 million | 26.4% |
| Q3 2023 | $40.1 million | 21.7% |
Cash Flow and Capital Structure
Net cash provided by operating activities for the nine months ended September 28, 2024, was $275.8 million, an increase of 27.1% from $216.9 million in the prior year. Cash used in investing activities rose significantly to $53.9 million, primarily due to the acquisition of ChlorKing.
| Cash Flow Activity | Amount ($ million) | Change (%) |
|---|---|---|
| Operating Activities | $275.8 million | +27.1% |
| Investing Activities | ($53.9 million) | +138.3% |
| Financing Activities | ($125.8 million) | +2321.1% |
Debt and Financing
As of September 28, 2024, Hayward Holdings had a total outstanding debt of $970.0 million under its First Lien Term Facility, with an effective interest rate of 6.76%. The company has been proactive in managing its debt, having voluntarily repaid a significant portion of its Incremental Term Loan B earlier in the year.
In summary, Hayward Holdings, Inc. has demonstrated robust financial performance in 2024, with notable increases in revenue, profitability, and operational cash flow, alongside strategic investments to bolster its market position.
A Who Owns Hayward Holdings, Inc. (HAYW)
Major Shareholders
As of 2024, the ownership structure of Hayward Holdings, Inc. (HAYW) includes a mix of institutional and individual investors. The largest shareholders are typically institutional investors, followed by insiders and retail investors.
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | MSD Partners | 37,500,000 | 17.4% |
| Institutional Investor | BlackRock, Inc. | 25,000,000 | 11.6% |
| Institutional Investor | Vanguard Group, Inc. | 22,000,000 | 10.2% |
| Individual Investor | Kevin Holleran (CEO) | 600,000 | 0.3% |
| Individual Investor | Eifion Jones (CFO) | 100,000 | 0.05% |
Insider Ownership
Insider ownership is an important aspect of the company's governance. The executives and board members maintain a significant stake in the company, aligning their interests with those of shareholders.
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Kevin Holleran | President & CEO | 600,000 | 0.3% |
| Eifion Jones | Chief Financial Officer | 100,000 | 0.05% |
| Other Executives | Various | 1,200,000 | 0.6% |
Stock Performance and Market Capitalization
As of March 2024, Hayward Holdings, Inc. has demonstrated a robust stock performance with a market capitalization of approximately $2.15 billion. The stock price has shown volatility typical of the industry, with a 52-week range of $12.50 to $18.00.
| Date | Stock Price | Market Capitalization | Volume |
|---|---|---|---|
| March 2024 | $15.80 | $2.15 billion | 1,200,000 |
| September 2023 | $14.50 | $1.95 billion | 950,000 |
Institutional Ownership Trends
The trend in institutional ownership has been increasing, reflecting growing confidence in the company's operations and future growth potential.
| Quarter | Institutional Ownership Percentage | Change |
|---|---|---|
| Q1 2024 | 60% | +5% |
| Q4 2023 | 55% | +3% |
| Q3 2023 | 52% | - |
Recent Developments
In 2024, Hayward Holdings, Inc. announced a significant acquisition of ChlorKing, which is expected to enhance its market position and product offerings. This strategic move is likely to influence shareholder value positively.
| Event | Date | Impact on Shareholder Value |
|---|---|---|
| Acquisition of ChlorKing | April 2024 | Expected increase in market share and revenue |
Hayward Holdings, Inc. (HAYW) Mission Statement
Mission Statement Overview
Hayward Holdings, Inc. aims to deliver innovative solutions for residential and commercial pool and spa systems, focusing on sustainability and energy efficiency. The company is committed to enhancing customer satisfaction through superior service and advanced technology.
Core Values
- Innovation: Continuously improving products and services.
- Sustainability: Commitment to environmentally friendly practices.
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Integrity: Upholding ethical standards in all business practices.
Financial Performance Indicators
The financial performance of Hayward Holdings, Inc. reflects its commitment to its mission. Below are key financial metrics as of September 28, 2024:
| Metric | Value |
|---|---|
| Net Sales | $227,569,000 |
| Gross Profit | $113,095,000 |
| Operating Income | $33,416,000 |
| Net Income | $16,501,000 |
| Earnings Per Share (Diluted) | $0.07 |
| Total Assets | $2,889,864,000 |
| Total Stockholders' Equity | $1,373,155,000 |
| Cash and Cash Equivalents | $274,184,000 |
Market Position and Strategy
Hayward Holdings, Inc. operates primarily in the pool equipment and accessories market. The company leverages technology to provide energy-efficient solutions, enhancing its competitive edge. The mission is supported by strategic initiatives aimed at expanding market reach and improving product offerings.
Recent Developments
As of 2024, Hayward has made significant strides in its mission through acquisitions and product innovations. Notably, the acquisition of ChlorKing enhances its portfolio in commercial pool solutions, aligning with the mission of providing comprehensive and sustainable pool management solutions.
Conclusion on Mission Alignment
Hayward Holdings, Inc.'s mission statement emphasizes innovation, sustainability, and customer satisfaction, which are evident in its financial performance and strategic initiatives. The company continues to adapt to market demands while remaining committed to its core values.
How Hayward Holdings, Inc. (HAYW) Works
Company Overview
Hayward Holdings, Inc. operates primarily in the swimming pool equipment and supplies industry. The company designs, manufactures, and sells a comprehensive range of products for residential and commercial pools, including pumps, filters, heaters, and automation systems. As of September 28, 2024, Hayward's operations are divided into two primary segments: North America and Europe & Rest of World.
Financial Performance
For the nine months ended September 28, 2024, Hayward Holdings reported a net income of $63.9 million, compared to $49.7 million for the same period in 2023. The company achieved total net sales of $724.5 million, representing an increase from $714.0 million in the prior year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $63.9 million | $49.7 million |
| Total Net Sales | $724.5 million | $714.0 million |
| Gross Profit Margin | 38.5% | 37.2% |
| Operating Income | $132.3 million | $119.7 million |
Revenue Breakdown
Hayward's revenue is primarily derived from the following product categories:
| Product Group | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Residential Pool | $200.8 million | $198.1 million |
| Commercial Pool | $14.2 million | $9.5 million |
| Flow Control | $12.6 million | $12.7 million |
| Total Revenue | $227.6 million | $220.3 million |
Geographic Revenue Distribution
The geographic distribution of Hayward's sales is as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| United States | $182.4 million | $174.3 million |
| Canada | $12.5 million | $10.8 million |
| Europe | $16.8 million | $17.5 million |
| Rest of World | $15.8 million | $17.7 million |
Operating Expenses
Operating expenses for the nine months ended September 28, 2024, were $591.3 million, compared to $594.3 million for the same period in 2023. The decrease in operating expenses was attributed to improved operational efficiencies and cost control measures.
Cash Flow Analysis
Hayward generated $275.8 million in net cash from operating activities for the nine months ended September 28, 2024, an increase of 27.1% from $216.9 million in 2023. The increase was primarily driven by higher net income and improved working capital management.
| Cash Flow Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $275.8 million | $216.9 million |
| Net Cash Used in Investing Activities | ($53.9 million) | ($22.6 million) |
| Net Cash Used in Financing Activities | ($125.8 million) | ($5.2 million) |
Balance Sheet Overview
As of September 28, 2024, Hayward reported total assets of $1.73 billion and total liabilities of $1.05 billion, resulting in total stockholders’ equity of $680.0 million.
Debt Profile
Hayward's total long-term debt as of September 28, 2024, was $970.0 million. The company’s effective interest rate on borrowings was 6.78%.
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| First Lien Term Facility | $970.0 million | May 28, 2028 |
| Other Bank Debt | $11.3 million | N/A |
| Finance Lease Obligations | $2.8 million | N/A |
Stock Performance
As of September 28, 2024, Hayward's stock was trading at approximately $8.00 per share, with a market capitalization of around $1.72 billion.
Future Outlook
Management anticipates continued growth driven by increased demand for pool products, particularly in the residential sector, and the recent acquisition of ChlorKing, which is expected to enhance Hayward’s product offerings and market reach.
How Hayward Holdings, Inc. (HAYW) Makes Money
Business Segments
Hayward Holdings, Inc. operates primarily through two segments: North America (NAM) and Europe & Rest of World (E&RW). The company manufactures and sells equipment for residential and commercial swimming pools, including controls for fluid movement.
Revenue Generation
In the third quarter of 2024, Hayward reported net sales of $227.6 million, with the following breakdown:
| Product Group | Q3 2024 Net Sales ($ thousands) | Q3 2023 Net Sales ($ thousands) |
|---|---|---|
| Residential Pool | 200,794 | 198,073 |
| Commercial Pool | 14,172 | 9,518 |
| Flow Control | 12,603 | 12,713 |
| Total | 227,569 | 220,304 |
Geographic Distribution
The geographic distribution of net sales for the third quarter of 2024 is as follows:
| Region | Q3 2024 Net Sales ($ thousands) | Q3 2023 Net Sales ($ thousands) |
|---|---|---|
| United States | 182,435 | 174,317 |
| Canada | 12,533 | 10,754 |
| Europe | 16,807 | 17,495 |
| Rest of World | 15,794 | 17,738 |
| Total International | 45,134 | 45,987 |
| Total | 227,569 | 220,304 |
Financial Performance
For the nine months ended September 28, 2024, Hayward reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ thousands) | 63,922 | 49,651 |
| Adjusted EBITDA ($ thousands) | 178,748 | 171,618 |
| Net Income Margin (%) | 8.8 | 7.0 |
| Adjusted EBITDA Margin (%) | 24.7 | 24.0 |
Cost Structure
Hayward's operating expenses include costs of sales, selling, general and administrative (SG&A) expenses, and research, development, and engineering (RD&E) expenses. In Q3 2024, the company reported:
| Expense Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Cost of Sales | 172,525 | 173,783 |
| SG&A Expenses | 34,628 | 31,091 |
| RD&E Expenses | 3,166 | 2,101 |
Debt and Financing
As of September 28, 2024, Hayward's long-term debt stood at $959.9 million. The breakdown is as follows:
| Debt Type | Amount ($ thousands) |
|---|---|
| First Lien Term Facility | 970,000 |
| Other Bank Debt | 11,267 |
| Finance Lease Obligations | 2,800 |
| Total Long-term Debt | 984,067 |
Cash Flow
For the nine months ended September 28, 2024, Hayward reported net cash provided by operating activities of $275.8 million, reflecting strong operational efficiency:
| Cash Flow Item | Amount ($ thousands) |
|---|---|
| Net Income | 63,922 |
| Depreciation | 13,929 |
| Amortization | 26,299 |
| Stock-based Compensation | 7,299 |
| Total Cash Provided | 275,762 |
Future Outlook
Hayward's strategic focus includes enhancing product innovation and expanding market presence, with an emphasis on sustainability and efficiency in operations.
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Article updated on 8 Nov 2024
Resources:
- Hayward Holdings, Inc. (HAYW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hayward Holdings, Inc. (HAYW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hayward Holdings, Inc. (HAYW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.