Pool Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 19 February 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Operating income fell 6%: Operating income was $580.2 million. Excluding the 2024 import tax reversal, operating income was 4% lower than in 2024. Source
• Diluted EPS down 4% to $10.85: Diluted EPS was $10.85 against $11.30 in 2024, which included a $0.25 import tax reversal benefit. Excluding ASU 2016-09 benefits, EPS was $10.73 versus $11.07. Source
• Q4 sales down 1%: Fourth-quarter net sales were $982.2 million, down 1% from a year earlier. Source
• Discretionary trends improved in second half: Management said it noticed improved sales trends for discretionary products in the back half of the year. Source
• Gross margin held at 29.7%: Gross margin was 29.7% in both years. The 2024 figure included a 20 basis point benefit from a $12.6 million import tax reversal, so the underlying 2025 gain was 20 basis points. Source
• Inventory up 13% to $1.5 billion: Inventory rose 13% to $1.5 billion, driven mainly by purchasing ahead of price increases. Inflation, mid-season vendor price increases and new and acquired sales centers also contributed. Source
• Open market buybacks of $341.1 million: Open market repurchases totaled $341.1 million in 2025. The cash flow statement shows $346.3 million of common stock repurchases for the year. Source
• Expected modest sales growth: The company said its 2026 earnings expectation reflects modest sales growth and improved earnings. Source

“Our 2025 results highlight the differentiation of our customer experience and the depth of our building products portfolio, as well as the stability of our maintenance business and the strength and adaptability of the POOLCORP team.”

Peter D. Arvan, president and CEO

Guidance

What changed from last quarter

• New guidance: The company gave its first 2026 diluted EPS range, $10.85 to $11.15 excluding ASU 2016-09 tax benefits. Source
• New: Sales center count was 456 at December 31, 2025, up from 454 at September 30, 2025 in the prior release. Source

Full-year 2025 results

• Annual sales were flat: Sales of non-discretionary products were steady throughout the year, and annual sales were close to the prior year level. Source
• Operating income fell 6%: Operating income was $580.2 million. Excluding the 2024 import tax reversal, operating income was 4% lower than in 2024. Source
• Diluted EPS down 4% to $10.85: Diluted EPS was $10.85 against $11.30 in 2024, which included a $0.25 import tax reversal benefit. Excluding ASU 2016-09 benefits, EPS was $10.73 versus $11.07. Source
• Net income declined 6%: Net income was $406.4 million compared with $434.3 million in 2024. Source

Fourth quarter results

• Q4 sales down 1%: Fourth-quarter net sales were $982.2 million, down 1% from a year earlier. Source
• Q4 gross margin up 70 bps: Gross profit rose $5.5 million and gross margin reached 30.1%, up 70 basis points from 29.4%. Source
• Q4 operating income down 14%: Operating income was $52.0 million versus $60.7 million, down 14%; operating expenses rose 6% to $243.7 million. Source
• Q4 diluted EPS $0.85: Diluted EPS was $0.85 versus $0.98, down 13%. Adjusted EPS was $0.84 compared with $0.97. Source

“We expect earnings for 2026 to be in the range of $10.85 to $11.15 per diluted share”

Peter D. Arvan, president and CEO

Demand, categories and customers

• Maintenance sales steady all year: Management described steady maintenance sales and stability across the year, with growth in building materials in the back half. Source
• Discretionary trends improved in second half: Management said it noticed improved sales trends for discretionary products in the back half of the year. Source
• Building materials grew late in year: Building materials sales grew in the back half of 2025. The release gives no dollar figure for that category. Source

Costs, gross margin and pricing

• Gross margin held at 29.7%: Gross margin was 29.7% in both years. The 2024 figure included a 20 basis point benefit from a $12.6 million import tax reversal, so the underlying 2025 gain was 20 basis points. Source
• Operating expenses up 4%: Selling and administrative expenses rose 4% to $992.3 million from $958.1 million, driven by technology investment, sales center expansion and inflation in base wages and facility costs. Source

“We were encouraged by improving trends for discretionary products in the second half of the year, even with ongoing consumer pressures.”

Peter D. Arvan, president and CEO

Inventory, cash flow and debt

• Inventory up 13% to $1.5 billion: Inventory rose 13% to $1.5 billion, driven mainly by purchasing ahead of price increases. Inflation, mid-season vendor price increases and new and acquired sales centers also contributed. Source
• Operating cash flow fell to $365.9 million: Operating cash flow was 90% of net income, which management said was in line with its expectations. Source
• IRS relief shifted tax payments: Federal tax payments of $68.5 million were deferred from 2024 into 2025 under IRS relief, reducing 2025 operating cash flow. Source
• Total debt rose to $1.2 billion: Total debt increased $249.1 million to $1.2 billion, mainly to fund share repurchases and working capital. Source

Capital returns to shareholders

• Open market buybacks of $341.1 million: Open market repurchases totaled $341.1 million in 2025. The cash flow statement shows $346.3 million of common stock repurchases for the year. Source
• Dividend declared rose to $4.95: Cash dividends declared were $4.95 per share in 2025 versus $4.70, and $1.25 per share in the fourth quarter versus $1.20. Source
• Diluted share count fell: Diluted weighted average shares were 37.3 million for 2025 versus 38.2 million, and 36.9 million in the fourth quarter versus 37.9 million. Source

2026 earnings guidance and tax items

• Expected modest sales growth: The company said its 2026 earnings expectation reflects modest sales growth and improved earnings. Source
• Unrealized tax benefits excluded: The 2026 guidance excludes estimated unrealized tax benefits from stock option exercises, option expirations and restricted stock vestings occurring in 2026. Source
• ASU 2016-09 tax benefit smaller: The company recorded a $4.6 million, or $0.12 per diluted share, ASU 2016-09 tax benefit in 2025, versus $8.8 million, or $0.23, in 2024. Source

Strategy, investment and people

• Investing in sales centers and digital: Management said it continues to invest in the sales center network and digital ecosystem to sustain its industry-leading position. Source
• POOL360 Unlocked added cost: Customer-facing technology spending, including POOL360 Unlocked, added to fourth-quarter operating expenses. Source
• Team credited for results: The chief executive credited the POOLCORP team for supporting customers while growing the outdoor living industry. Source

Coming up, as management said on 19 February 2026

• Sustainable growth focus: Management said it is focused on driving sustainable growth through innovation and disciplined execution. Source

Figures management reported

Risks management discussed

• Demand: Management cited ongoing consumer pressures, even as discretionary trends improved in the second half. Source
• Operational: Higher employee-related costs, including insurance, and greenfield facility costs raised fourth-quarter operating expenses. Source
• Financial: Operating cash flow was reduced by working capital investments, including inventory increases. Source

Earlier plans management reported on

• Met: Management said operating cash flow was in line with its expectations at 90% of net income. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.