What Happened?

Shares of pool equipment and automation systems manufacturer Hayward Holdings (NYSE: HAYW) jumped 10% in the afternoon session after the company reported strong third-quarter financial results that beat expectations and raised its full-year guidance. The pool equipment maker announced that its net sales grew by 7.4% compared to the previous year, reaching $244.3 million, topping analyst forecasts. The company's adjusted earnings per share also came in ahead of expectations at $0.14, a 27% increase from the same period a year ago. Looking ahead, Hayward showed confidence by increasing its sales forecast for the full year 2025 to a range between $1.095 billion and $1.110 billion. The company also raised its outlook for a key measure of profitability, adjusted EBITDA.

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What Is The Market Telling Us

Hayward’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Hayward and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 3.9% on the news that the company reported strong second-quarter financial results that surpassed analyst expectations for both revenue and earnings. The swimming pool equipment manufacturer announced a 5% year-over-year rise in net sales to $299.6 million. Profitability saw a significant boost, as net income increased by 19%. A key highlight was the company's record gross profit margin, which reached 52.7%, driven by successful pricing strategies and operational efficiencies. In a sign of confidence, Hayward also refined its full-year 2025 guidance, raising the lower end of its net sales forecast to a range between $1.070 billion and $1.100 billion.

Hayward is up 11.9% since the beginning of the year, and at $16.99 per share, has set a new 52-week high. Investors who bought $1,000 worth of Hayward’s shares at the IPO in March 2021 would now be looking at an investment worth $999.17.

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