Pool equipment and automation systems manufacturer Hayward Holdings (NYSE: HAYW) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 6.3% year on year to $318.4 million. Its non-GAAP profit of $0.26 per share was 9.2% above analysts’ consensus estimates.

Is now the time to buy HAYW? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Hayward's second quarter was shaped by strong execution in its North American aftermarket business, where demand for pool equipment and automation systems remained resilient despite broader macroeconomic headwinds. Management identified positive price realization and stable volumes as key contributors, especially in the U.S. CEO Kevin Holleran noted, "Our teams are advancing strategic initiatives to strengthen our market position and drive profitable growth even as we navigate macroeconomic, geopolitical and inflationary challenges." The company also benefited from targeted investments in product innovation and operational efficiency, which helped maintain profitability.

Looking ahead, Hayward’s outlook is anchored by continued investment in new product development, an expanding portfolio of connected automation solutions, and disciplined cost management. Management reiterated confidence in the durability of its installed base model and highlighted the ongoing roll-out of the OmniX platform as a driver of future growth. CFO Eifion Jones emphasized, “We believe based on the activities that we have in place right now that we'll be able to maintain gross margins for the full year approximately in line with last year,” suggesting that operational improvements and pricing discipline will support results even as inflationary pressures persist.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to North American aftermarket strength, product innovation, and operational improvements, while also noting challenges in international markets and ongoing cost pressures.

• North American aftermarket strength: Hayward saw 9% sales growth in North America, benefiting from both price increases and stable volume, as robust demand across the installed base fueled performance. Management pointed to resilient customer engagement and successful investments in sales and marketing as key factors.

• Product innovation momentum: The company increased its investment in research, development, and engineering, with new product vitality rising to 23%. The proprietary OmniX platform gained traction in the aftermarket, and management plans to expand OmniX-enabled offerings to further build its connected ecosystem.

• Operational efficiency initiatives: Hayward continued to drive value engineering, automation, and supply chain improvements, including nearshoring and dual sourcing strategies to offset tariff and geopolitical risks. These efforts supported profitability despite incremental inflation in specialty metals, freight, and resin costs.

• International headwinds: Sales in Europe and the Rest of World declined 8%, impacted by geopolitical disruptions and softer demand, particularly in the Middle East. However, management noted improved segment margins in these regions, reflecting better operational execution.

• Channel inventory normalization: Management described channel inventory levels as “very normal” exiting Q2, with improved transparency and coordination among North American partners. The company’s domestic manufacturing footprint and reduced lead times helped discourage excess channel stocking, supporting a balanced supply chain.

Drivers of Future Performance

Hayward’s outlook for the rest of the year centers on product innovation, aftermarket demand, and continued operational discipline amid inflation and geopolitical uncertainty.

• Aftermarket demand resilience: Management expects the installed base model to drive steady aftermarket sales, particularly in North America, where recurring replacement and upgrade cycles form the foundation for ongoing revenue.

• Expansion of connected automation: The company is investing in expanding its OmniX platform and other automation-enabled products, with management viewing these offerings as central to capturing market share and deepening customer loyalty in the pool equipment segment.

• Margin stability amid cost pressures: Hayward plans to maintain gross margins through a combination of targeted pricing actions and internal cost-out projects, aiming to offset inflation in input costs. Management highlighted that structural margin protection will rely on both operational improvements and disciplined pricing, with ongoing monitoring of inflationary trends and tariff risks.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory analyst team will be closely monitoring (1) the pace of adoption for new OmniX-enabled and automation products, (2) the company’s ability to sustain gross margin stability against inflation and tariff headwinds, and (3) whether Hayward’s North American aftermarket sales can remain resilient despite international softness. Strategic execution on supply chain improvements and dealer engagement will also be critical signposts.

Hayward currently trades at $15.20, in line with $15.11 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

Stocks That Trumped Tariffs

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.