Hayward Holdings, Inc. (HAYW)
NYSEIndustrialsElectrical Equipment & PartsSnapshot 2026-09-09
$13.29-1.12%
Close 2026-09-09 · 1-day change
NYSEIndustrialsElectrical Equipment & PartsSnapshot 2026-09-09
Broken: Primary pillar broken — Improvement in gross profit margins via operational efficiencies: 48.7% vs 52.7% prior year.
Hayward Holdings grows revenue about 5% yearly, supported by rising sales from $228.8M to $255.2M in Q1 2026. Profit margins improve with gross profit rising from $105.3M to $118.7M and operating income increasing from $33.5M to $42.5M. The company raised its EPS guidance to $0.85 for 2026, showing stable management execution. The stock trades below peers on a price-to-earnings basis, offering value.
Revenue growth could slow below 5%, hurting sales momentum. Profit margins might weaken if operational efficiencies stall. Rising debt from recent credit agreements could pressure financial health. The sector faces headwinds that may limit demand for pool equipment.
The market prices in about 6% revenue growth and values the stock roughly 8% below our fair value estimate near $18. Our view aligns with consensus on growth but sees upside from margin improvements and stable execution.
Breaks if: EPS guidance falls below $0.84 for FY26
Breaks if: gross profit margin declines below prior year levels in FY26
operating income falls below prior year levels in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable company in the industrial sector with a focus on revenue growth and operational efficiency. The current thesis is based on strong recent performance, but there are mixed signals regarding future sector momentum.
The market currently reflects a neutral valuation, indicating that expectations are modest. HAYW is considered cheap compared to its peers, but there is a gap in expectations that suggests some caution is warranted.
Management has shown a consistent commitment to increasing revenue and improving profit margins, which has resulted in steady growth. However, there is a moderate risk due to the company's history of misses in a volatile industry.
The future performance of HAYW largely depends on the guidance provided in the next earnings call and the performance of key sector peers. If these peers continue to perform well, it could support HAYW's growth; conversely, any negative guidance could lead to a decline in expectations.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings beat is a positive factor. However, a sharp drop in the stock price suggests the market may be repricing the thesis. This indicates potential concerns about future performance.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 5% in FY26
Overall, HAYW's fundamentals are strong, but the company faces risks from sector dynamics and execution quality. Not investment advice.