Pool Corporation (POOL) Earnings & Analysis

Latest quarter

Pool Corporation reported third-quarter revenue of $1.5 billion, exceeding the consensus by 2.11%. Adjusted earnings per share of $3.40 were 1.19% above the consensus estimate of $3.36.

Pool said sales increased 4% from a year earlier, primarily reflecting pricing, maintenance activity and building materials growth. On the earnings call, CFO Melanie Housey Hart said pricing contributed 3% of that growth and volume contributed 1%. The company’s filing said equipment sales rose 5%, while building materials sales increased 3%.

Gross margin fell to 29.0% from 29.6% a year earlier. Pool attributed the decline primarily to higher inbound freight costs, customer mix and comparison with a prior-year benefit from mid-season price increases. Operating income fell to $172.2 million from $178.0 million, while diluted earnings per share remained $3.40.

For the first nine months of 2026, Pool reported $419.8 million in operating cash flow, up from $285.7 million a year earlier. The filing attributed the change primarily to working capital, particularly improved inventory-related cash flows net of a reduction in accounts payable.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO John Watwood said maintenance and building materials volumes grew during the quarter, while new pool construction across the industry remained below the prior year. He said housing turnover and discretionary spending remained cautious and larger projects were still being delayed. Sales to retail customers rose 3% after a 1% decline in the preceding quarter, he said, and European sales grew 8% in local currency.

CFO Melanie Housey Hart said larger customers were growing faster than the rest of Pool’s customer base, adding gross profit dollars while compressing the margin percentage. Watwood said Pool raised prices on freight-intensive products, including building materials, in August. He said those increases had begun to recover higher freight costs, with further recovery expected as they move through the channel.

Watwood outlined priorities including sales execution, pricing and supply chain discipline, operations and acquisitions. He said Pool had moved business development initiatives under field leadership and hired a leader for national accounts and commercial business. Housey Hart said the quarter’s expenses included additional sales incentives and outside fees related to strategic initiatives.

Asked about freight and the quarter ahead, Housey Hart said she expected freight expense as a share of sales to remain consistent with the third quarter. She expected fourth-quarter gross margin to be higher than the third quarter’s but lower than a year earlier. She also said most remaining pricing actions were expected at the beginning of the next season.

When asked about supplier pricing for next year, Watwood said the company had received some increases but that “we do not have enough to really put a pin on the map quite yet.” On competition, he said he had seen no material change and did not expect one next year.

Guidance

Housey Hart said Pool now expects full-year 2026 sales growth of 3% to 4%, with 3% contributed by pricing; she described the outlook as slightly better top-line growth. She also said Pool had widened its full-year gross margin range after the third quarter. The company projects gross margin approximately 30 to 50 basis points below its 2025 margin of 29.7%.