Pool Corp (POOL) Third Quarter (Q3) 2025 Financial Results Analysis
$POOL (Pool Corp) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company beat expectations with net sales of $1.451 billion (+1% YoY, +0.14% vs. estimated $1.45 billion) and adjusted EPS of $3.39 (+4% YoY, +0.3% vs. estimated $3.38). GAAP EPS was $3.40. Gross margin expanded 50 bps to 29.6%, driven by pricing and supply chain efficiencies. However, YTD operating cash flow fell to $286 million due to inventory investments and tax payments. $POOL (Pool Corp) shares fell ~0.8% in premarket trading to $295.3, despite the beats, due to a cautious outlook for new pool construction and weakness in markets like California.
Below is a detailed structured analysis. Data comes from the official press release, earnings call transcript, and post-earnings analysis.
1. Key Consolidated Results
$POOL (Pool Corp) demonstrated resilience in a seasonal pool market with stable maintenance demand, but pressure on new construction due to high rates. The focus on mid-season and private-label pricing boosted margins, with sales exceeding expectations thanks to building materials growth.
Growth: Sales +1%, with flat YTD. CEO Peter Arvan emphasized: “Our long-term growth trajectory is secure, and the pools remain highly desirable.”
2. Segment Analysis
$POOL (Pool Corp) generated mixed growth by geography and products, with maintenance and building materials offsetting weakness in chemicals and new construction. Expansion with 9 new sales centers YTD, including acquisitions.
Observations: US core flat; international upside. YTD: 6 new centers; POOL360 platform sales up 17%. CFO Melanie Hart noted: “We see sustained gains in the supply chain.”
3. Cash Flow, Balance Sheet and Other Indicators
$POOL (Pool Corp) maintains a solid balance sheet with 1.58x leverage for repurchases and capex, with an emphasis on inventory management and tech investments. Free cash flow supports $184M in buybacks YTD.
Free Cash Flow YTD: Expect 90-100% net income conversion FY.
Capex YTD: No especificado; focus en new centers/tech.
Repurchases YTD: $184 millones (incl. post-Q3).
Balance General: Cash $128.5M (+41%); inventory $1.2B (+4%); debt $1.1B; current ratio 2.52. Cobertura intereses sólida. Dividend yield ~1.7%.
CEO Arvan commented: “We are making an intentional push for innovation in the market.”
4. Full Year 2025 Guide and Outlook
$POOL (Pool Corp) confirmed FY guidance due to strength in maintenance and pricing, despite headwinds in new construction due to rates. For Q4, sales are flat with margin up due to mix.
Outlook 2026: Incertidumbre en tariffs/rates; permits down mid-single digits YTD; upside en innovation/POOL360; long-term growth en installed base. Riesgos: Consumer sentiment, borrowing costs, chemical deflation.
5. Conclusion and Implications
$POOL (Pool Corp)'s Q3 2025 results highlight its maintenance and private-label positioning, with sales and EPS beats, margin expansion, and share repurchases, offsetting weakness in new construction with solid fundamentals. The confirmed guidance and balance sheet (strong liquidity) position POOL for stability in 2025 and long-term growth via innovation. Long-term, TAM expansion and technology support the upside. Recommendation: Hold for growth investors (P/E ~27x, yield ~1.7%); catalysts in Q4 pricing and 2026 rate cuts.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.
$POOL (Pool Corp) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company beat expectations with net sales of $1.451 billion (+1% YoY, +0.14% vs. estimated $1.45 billion) and adjusted EPS of $3.39 (+4% YoY, +0.3% vs. estimated $3.38). GAAP EPS was $3.40. Gross margin expanded 50 bps to 29.6%, driven by pricing and supply chain efficiencies. However, YTD operating cash flow fell to $286 million due to inventory investments and tax payments. $POOL (Pool Corp) shares fell ~0.8% in premarket trading to $295.3, despite the beats, due to a cautious outlook for new pool construction and weakness in markets like California.
Below is a detailed structured analysis. Data comes from the official press release, earnings call transcript, and post-earnings analysis.
1. Key Consolidated Results$POOL (Pool Corp) demonstrated resilience in a seasonal pool market with stable maintenance demand, but pressure on new construction due to high rates. The focus on mid-season and private-label pricing boosted margins, with sales exceeding expectations thanks to building materials growth.
| Financial Metrics | Q3 2025 (GAAP/Adjusted) | YoY Growth | vs. Estimates | Notes |
| Net Sales | $1.451 billion | +1% | Overcome (+0.14%) | Maintenance fuerte; building materials +4%. |
| Gross Margin | 29.6% | +50 bps | N/A | Precio increases y supply chain efficiencies. |
| Operating Income | $178 million (12.3% margin) | +1% | N/A | Stable; SG&A +3% YTD due to inflation. |
| Adjusted EPS | $3.39 per share | +4% | $3.38 (exceeded +0.3%) | Incluye $0.01 ASU tax benefit; tax rate ~25%. |
| GAAP EPS (Diluted) | $3.40 | +4% | N/A | Net income $132 million. |
| Operating Cash Flow YTD | $286 million | -41% | N/A | Impacto inventory + taxes; expect 90-100% conversion FY. |
| Repurchases Q3 | $164 million | N/A | N/A | YTD $164M; $493M remaining. |
Growth: Sales +1%, with flat YTD. CEO Peter Arvan emphasized: “Our long-term growth trajectory is secure, and the pools remain highly desirable.”
2. Segment Analysis$POOL (Pool Corp) generated mixed growth by geography and products, with maintenance and building materials offsetting weakness in chemicals and new construction. Expansion with 9 new sales centers YTD, including acquisitions.
| Geography | % of Sales (approx.) | Q3 YoY Sales Growth | Key Notes |
| Florida | 20% | +1% | Líder en new construction; steady across categories. |
| Texas | 15% | Flat | Sequential improvement; resilient maintenance. |
| California | 12% | -3% | Wildfire impact; reduced new pools. |
| Arizona | 8% | -3% | Permit deceleration; maintenance stable. |
| Europe | 10% | -1% LC (+6% USD) | South Europe growth; France hesitation. |
| Others (incl. Australia, Horizon) | 35% | +3% | Horizon outdoor living fuerte. |
| Product | Q3 YoY Growth | Key Notes |
| Maintenance | Strong | Parts y private-label chemicals; consumer focus en essentials. |
| Building Materials | +4% | First profit since Q3 2022; remodeling activity up. |
| Chemicals | -4% | Deflation en trichlor; demand stable. |
| Equipment | +4% | Excl. cleaners; pumps/heaters replacement. |
Observations: US core flat; international upside. YTD: 6 new centers; POOL360 platform sales up 17%. CFO Melanie Hart noted: “We see sustained gains in the supply chain.”
3. Cash Flow, Balance Sheet and Other Indicators$POOL (Pool Corp) maintains a solid balance sheet with 1.58x leverage for repurchases and capex, with an emphasis on inventory management and tech investments. Free cash flow supports $184M in buybacks YTD.
Free Cash Flow YTD: Expect 90-100% net income conversion FY.
Capex YTD: No especificado; focus en new centers/tech.
Repurchases YTD: $184 millones (incl. post-Q3).
Balance General: Cash $128.5M (+41%); inventory $1.2B (+4%); debt $1.1B; current ratio 2.52. Cobertura intereses sólida. Dividend yield ~1.7%.
CEO Arvan commented: “We are making an intentional push for innovation in the market.”
4. Full Year 2025 Guide and Outlook$POOL (Pool Corp) confirmed FY guidance due to strength in maintenance and pricing, despite headwinds in new construction due to rates. For Q4, sales are flat with margin up due to mix.
| Metric | MY 2025 | Notes |
| Net Sales | Flat to slightly up | 1 menos selling day; offset por pricing. |
| Adjusted EPS | $10.81 - $11.31 | Confirmed; includes $0.11 ASU benefit. |
| Gross Margin | Similar a 2024 | Ongoing improvement by private-label/pricing. |
| SG&A Growth | +3% | Productivity offsets inflación/new centers. |
| New Sales Centers | 8-10 | YTD 6; acquisitions/greenfield. |
| Interest Expense | No change | Tax rate ~25%. |
Outlook 2026: Incertidumbre en tariffs/rates; permits down mid-single digits YTD; upside en innovation/POOL360; long-term growth en installed base. Riesgos: Consumer sentiment, borrowing costs, chemical deflation.
5. Conclusion and Implications$POOL (Pool Corp)'s Q3 2025 results highlight its maintenance and private-label positioning, with sales and EPS beats, margin expansion, and share repurchases, offsetting weakness in new construction with solid fundamentals. The confirmed guidance and balance sheet (strong liquidity) position POOL for stability in 2025 and long-term growth via innovation. Long-term, TAM expansion and technology support the upside. Recommendation: Hold for growth investors (P/E ~27x, yield ~1.7%); catalysts in Q4 pricing and 2026 rate cuts.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.