Latham Group, Inc. (SWIM) SEC Filings & Earnings Calls

New debt increases financial leverage and interest obligations.

“Credit agreement entered into; terms not disclosed in excerpt.”

Foreign exchange volatility

“The $4.4 million increase in other expense, net was primarily driven by an unfavorable change in net foreign currency transaction gains and losses associated with our international subsidiaries.” · word for word

Ramp-up cost overruns

“Demand for fiberglass pools accelerated faster than our typical seasonal ramp-up, resulting in approximately $2.8 million of incremental costs in the quarter” · word for word

Gross margin pressure from ramp-up costs; $2.8M incremental costs in Q2.

“Gross margin 35.5%, down 160 bps; $2.8M ramp-up costs.”

Net income declined due to unfavorable FX and higher SG&A.

“Net income $12.8M vs $16.0M; unfavorable FX of $5.0M.”

SG&A growing faster than sales (17.8% vs 14.4%), partly due to investments.

“SG&A increased by 17.8% to $37.6 million.” · word for word

Seasonal working capital swing

“Net cash used in operating activities was $47.7 million, primarily driven by a $49.5 million increase in trade receivables and a $9.6 million increase in inventories.”

Integration risk from acquisitions

“Acquisition and integration related costs were $3.1 million in the quarter, up from $0.3 million in the prior year.”

Adverse weather conditions in North America impacted organic in-ground pool sales, keeping them steady YoY

“adverse weather conditions in North America kept organic in-ground pool sales steady year-over-year” · word for word

SG&A increased 19.5% due to acquisition/integration costs and growth investments, outpacing sales growth

“Selling, general, and administrative expenses ("SG&A") increased by 19.5% to $36.6 million.” · word for word

Industry demand softness

“Despite continued soft industry demand conditions leading to a market for U.S. pool starts that was down low- to mid-single-digit” · word for word

Macroeconomic and weather conditions

“macroeconomic and weather conditions, catastrophic events, and supply chain challenges” · word for word

Consumer Demand Sensitivity

“In economic downturns such as we experienced in 2024 and 2025, and which is expected to continue into 2026, the demand for swimming pools and related products has declined.” · word for word

Tariff Risk

“The imposition of or increase in tariffs on raw materials such as steel and aluminum... could substantially increase the cost of and limit the availability of raw materials or our finished products.” · word for word

Inflation Risk

“Higher costs of labor, goods and services, and could continue to cause costs to increase as well as scarcity of certain products.” · word for word

Customer Concentration Risk

“Our largest distributor... accounted for 22.6% of our net sales in 2025.”

Dependence on U.S. in-ground pool market; any downturn could impact sales.

“Achieved within a U.S. in-ground pool market that Latham estimates declined by a low- to mid-single-digit rate.” · word for word

Increased SG&A spending may pressure margins if growth slows.

“Selling, general, and administrative expenses increased to $122.6 million, up $14.2 million or 13.1%.” · word for word

New pool starts flat to down

“Based on sales for three fiscal quarters and current business trends and market conditions, we currently project 2025 new pool starts to be flat to slightly down from 2024 levels.” · word for word

Tariff impact on costs

“Additionally, we recently implemented targeted price increases on certain products to help further mitigate the potential impact of tariffs.” · word for word

Reduced consumer confidence

“We are closely monitoring the potential impact of current macroeconomic and geopolitical conditions, as well as general reduced consumer confidence and increased economic uncertainty.” · word for word

Tariff-related price increases may not be sustainable if input costs normalize.

“tariff-related price increase” · word for word

Dependence on housing market and consumer discretionary spending for pool demand.

“In-ground pool market conditions; challenging industry conditions noted.”