Hayward Holdings (HAYW) Net Margin Expansion Supports Bullish Connected Pool Narratives

Hayward Holdings (HAYW) has just wrapped up its latest quarter with Q4 2025 revenue of US$349.4 million and basic EPS of US$0.32, backed by trailing 12 month revenue of about US$1.1 billion and EPS of US$0.70 that came with earnings growth of 27.7% over the past year. Over the last few quarters, revenue has ranged from US$228.8 million in Q1 2025 to US$349.4 million in Q4 2025, while quarterly EPS moved between US$0.07 and US$0.32. This has left investors focused on how the higher 13.5% net margin shapes the story from here.

See our full analysis for Hayward Holdings.

Next, it helps to set these headline numbers against the prevailing narratives around Hayward Holdings to see which views the latest margin profile supports and which might need a rethink.

See what the community is saying about Hayward Holdings

13.5% net margin and earnings growth working together

• Over the last 12 months, Hayward generated US$1.1b of revenue and US$151.6 million of net income, which works out to a 13.5% net margin and 27.7% earnings growth compared with the prior year.
• Consensus narrative suggests higher margin products like connected and automated pool equipment could be important over time. The 13.5% margin alongside trailing revenue of US$1.1b and EPS of US$0.70 provides numbers to compare against that view.
  • Supporters of the bullish angle point to connected platforms and energy efficient upgrades as potential drivers, and the multi year earnings growth of 10.3% per year is often used to back that up.
  • At the same time, revenue is forecast to grow about 6.4% per year while earnings are forecast at about 11.1% per year, so you can watch whether margins like this 13.5% level are what keep earnings moving faster than sales.

Quarterly EPS swings around a growing base

• On a quarterly view, basic EPS moved from US$0.07 in Q1 2025 to US$0.32 in Q4 2025, while trailing 12 month EPS reached US$0.70, so the year looks smoother than any single quarter.
• Bulls argue that a mix of aftermarket demand and higher value equipment helps smooth those swings over time, and the numbers here offer a check on that optimism.
  • Connected and eco friendly upgrades in the consensus narrative line up with the trailing earnings growth of 27.7%, which is stronger than the 10.3% five year average, so some of that thesis already shows up in the EPS trend.
  • On the other hand, the reliance on a mature residential aftermarket that makes up a large share of sales could limit how far quarterly EPS can run ahead of revenue, especially with revenue growth forecasts at about 6.4% per year.

Bulls point to connected pools and margin gains as the real story behind these EPS swings, and you can test that view against the detailed bullish case for Hayward Holdings in the 🐂 Hayward Holdings Bull Case

Valuation checks against DCF and P/E

• Hayward shares trade at US$14.90 compared with a DCF fair value of about US$16.43 and an analyst price target of roughly US$17.36, while the current P/E of 21.4x sits below the peer average of 35.8x and close to the US Building industry at 22x.
• Skeptics focus on forecasts that put earnings growth at about 11.1% per year and revenue at about 6.4% per year, which are both below the broader US market growth figures cited in the data, and use that to question how much weight to put on any apparent discount.
  • The gap between the current price of US$14.90 and the DCF fair value of US$16.43, plus the analyst target of about US$17.36, gives bears a concrete range to set against those slower growth forecasts.
  • Because the P/E is below peers but close to the wider industry, critics argue that relative valuation alone does not fully offset the concern that Hayward is tied to a more mature residential aftermarket with slower expected revenue expansion.

Skeptics point to slower forecast growth and a mature aftermarket focus as reasons the valuation gap might persist, and you can see how that cautious case is built in the 🐻 Hayward Holdings Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hayward Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of optimism and caution in this story feels familiar, that is the point. You should move quickly beyond the headlines and weigh the underlying numbers, then take a closer look at the 3 key rewards.

See What Else Is Out There

Hayward’s outlook relies on modest revenue forecasts and a mature residential aftermarket, which could limit how far earnings and valuation can stretch from here.

If that slower growth profile makes you cautious about paying more, compare it against companies screened for stronger upside potential and quality using the 52 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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