Hayward Holdings, Inc. (NYSE: HAYW)

Hayward Holdings, Inc. is a global leader in the design and manufacture of pool equipment, outdoor living products, and industrial flow control solutions. The company operates within the pool and outdoor living industry, which is characterized by significant aftermarket demand, innovation-driven growth, and a favorable industry structure. Hayward's products enhance the outdoor living lifestyle by providing high-quality water, pleasant ambiance, and ease of use for pool owners. The company's portfolio includes energy-efficient and environmentally sustainable offerings that cater to both residential and commercial pools.

Hayward generates revenue through the sale of a broad range of pool equipment, including high-efficiency variable-speed pumps, filters, robotic and pressure cleaners, high-efficiency gas heaters and heat pumps, LED illumination solutions, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems. These products are connected through OmniLogic, a mobile application that allows end users to manage their connected pool equipment conveniently. The company's revenue is primarily driven by aftermarket sales, which represent approximately 85% of net sales. Aftermarket replacements and upgrades to higher-value Internet of Things (IoT) and energy-efficient models are key growth drivers for Hayward's business.

• North America (NAM): This segment includes the United States and Canada. Hayward's North American business operates through residential and commercial field-based teams that sell directly to specialized pool distributors, large retailers, major builders, and specialized online resellers. The segment is served by distribution centers located on the East Coast, West Coast, and Oakville, Ontario.

• Europe & Rest of World (E&RW): This segment encompasses all countries outside the United States and Canada, with a significant focus on Europe and Australia. The segment's sales structure is similar to that in the United States, with distribution centers in France and Spain serving Europe, and third-party distribution primarily serving Australia. The remaining countries in this segment are served through U.S.-based regional managers who work with established distributors in each market.

Hayward Holdings, Inc. maintains a strong position within the pool and outdoor living industry. The company competes against large and well-established national and global companies, as well as regional and local niche original equipment manufacturers (OEMs) and lower-cost manufacturers. Hayward's competitive advantages include its highly recognized brand, one of the largest installed bases of pool equipment in the world, decades-long relationships with key channel partners and trade customers, and a history of technological innovation. The company's extensive product portfolio enables it to meet both residential and commercial needs, creating a "one-stop-shop" for many customers. Additionally, Hayward's Totally Hayward loyalty program allows the company to better connect with its trade partners and drive expansion across its product lines and international markets.

Hayward's customer base is diverse and global, with the majority of sales made through distributors who, in turn, sell to thousands of pool builders and servicers. The remaining sales are made directly to large retailers, pool builders, and buying groups. The company's two largest customers represented approximately 33% and 12%, respectively, of its net sales in Fiscal Year 2025. Hayward's products cater to all types of pools, including both in-ground and above-ground pools, and can be found in entry, mid-range, and premium pools. The company's wide range of offerings appeals to a broad customer base seeking to enhance their outdoor living experience with high-quality, innovative, and environmentally sustainable pool equipment