olivLaw · US equity research
Latham Group, Inc. SWIM
Plastics Products, NEC · SIC 3089 · Vertical: Plastics Products, NEC (SIC 3089)
Latham Group is the largest designer, manufacturer and marketer of in-ground residential swimming pools in North America, Australia and New Zealand, with a strategy centred on converting buyers from concrete to fiberglass. Its second-quarter 2026 sales growth of 14.4% and raised full-year guidance show how the company is trying to gain share in a market it expects to stay flat, especially in the warm-climate Sand States.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Latham Group, Inc. (SWIM) stock was 8.18 USD (+11.75% on the day), with market capitalisation 963.2 m USD, P/E 100.2 on diluted EPS of 0.08 USD over the last 12 months, dividend yield 12.22%, beta 1.72, 52-week range 4.76–8.18 USD. Latest reported quarter (Q3 2026): revenue of 182.2 m USD (+12.5% YoY), net income of 12.1 m USD (+48.5% YoY), diluted EPS 0.10 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 80.9
- overbought (≥ 70)
- Bollinger (20, 2)
- 5.43 – 7.83
- above the upper band · %B 1.14 · band width 36.2%
- SMA 50 / 200
- 6.58 / 6.18
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.33 / 0.17
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +28.0% | −1.1% | +29.1 pp | — |
| 3 months | +12.1% | −0.5% | +12.5 pp | — |
| 6 months | +40.8% | +4.4% | +36.4 pp | — |
| Year to date | +28.8% | +12.3% | +16.5 pp | — |
| 1 year | +13.6% | +13.5% | +0.1 pp | +38.0% |
| 3 years | +227.2% | +76.4% | +150.8 pp | +27.2% |
| 5 years | −49.0% | +63.7% | −112.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 26 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 87.3 m | 111.4 m | 172.6 m | 161.9 m | 100.0 m | 117.3 m | 197.5 m | 182.2 m |
| Cost of revenue | 65.8 m | 78.5 m | 108.7 m | 104.6 m | 72.0 m | 80.2 m | 127.4 m | 115.3 m |
| Gross profit | 21.4 m | 32.9 m | 64.0 m | 57.3 m | 27.9 m | 37.2 m | 70.1 m | 66.8 m |
| SG&A | 27.2 m | 30.6 m | 31.9 m | 28.6 m | 31.4 m | 36.6 m | 37.6 m | 35.9 m |
| Operating income | -13.0 m | -4.9 m | 24.7 m | 21.5 m | -10.7 m | -6.6 m | 25.1 m | 23.6 m |
| Depreciation & amortisation | 12.2 m | 12.4 m | 12.7 m ≈ | 12.9 m ≈ | 13.4 m | 13.1 m | 13.7 m ≈ | 13.5 m ≈ |
| Interest expense | 4.7 m | 6.4 m | 7.1 m | 6.1 m | 6.2 m | 4.8 m | 5.9 m | 5.4 m |
| Pre-tax income | -21.0 m | -10.0 m | 21.1 m | 15.6 m | -13.2 m | -11.3 m | 18.9 m | 15.0 m |
| Income tax | 8.2 m | -4.1 m | 5.1 m | 7.5 m | -6.2 m | -2.8 m | 6.1 m | 3.0 m |
| Net income | -29.2 m | -6.0 m | 16.0 m | 8.1 m | -7.0 m | -8.5 m | 12.8 m | 12.1 m |
| Diluted EPS | -0.26 ≈ | -0.05 | 0.13 | 0.07 | -0.06 ≈ | -0.07 | 0.11 | 0.10 |
| Operating cash flow | 6.2 m | -46.9 m | 36.0 m ≈ | 51.0 m ≈ | 23.3 m | -47.7 m | 53.5 m ≈ | 48.8 m ≈ |
| Capex | 6.3 m | 3.5 m | 6.9 m ≈ | 5.8 m ≈ | 9.2 m | 10.5 m | 5.6 m ≈ | 6.1 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 75 percentile of its own 8-quarter history (min 33.3, median 74.0, max 127.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 318.0 m | 403.4 m | 630.5 m | 695.7 m | 566.5 m | 508.5 m | 545.9 m |
| Revenue YoY | unavailable | +26.9% | +56.3% | +10.4% | −18.6% | −10.2% | +7.4% |
| Net income | 7.5 m | 16.0 m | -62.3 m | -5.7 m | -2.4 m | -17.9 m | 11.1 m |
| Net income YoY | unavailable | +114.3% | −490.1% | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | 0.08 | 0.16 | -0.56 | -0.05 | -0.02 | -0.15 | 0.09 |
| Diluted EPS YoY | unavailable | +100.0% | −450.0% | unavailable | unavailable | unavailable | unavailable |
| net % | 2.3% | 4.0% | -9.9% | -0.8% | -0.4% | -3.5% | 2.0% |
| Free cash flow | 27.5 m | 46.9 m | 8.7 m | -7.4 m | 83.2 m | 41.2 m | 38.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 71.0 m USD
- Financial debt
- 279.8 m USD
- Net debt
- 208.8 m USD
- Equity
- 405.9 m USD
- Total assets
- 823.2 m USD
- Debt / equity
- 0.69x
- Current ratio
- 2.77x
- ROE
- 2.8%
- ROA
- 1.4%
- FCF margin
- 7.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 403.4 m | 630.5 m | 695.7 m | 566.5 m | 508.5 m | 545.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Cost of revenue | 260.6 m | 426.3 m | 479.3 m | 413.5 m | 354.8 m | 363.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Gross profit | 142.8 m | 204.2 m | 216.5 m | 152.9 m | 153.7 m | 182.1 m | SEC (XBRL)· 04 Mar 2026verified |
| SG&A | 85.5 m | 217.8 m | 146.8 m | 110.3 m | 108.4 m | 122.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Operating income | 39.9 m | -36.2 m | 30.0 m | 16.1 m | 18.3 m | 30.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Depreciation & amortisation | 25.4 m | 32.2 m | 38.2 m | 40.8 m | 44.4 m | 51.4 m | SEC (XBRL)· 04 Mar 2026verified |
| EBITDA | 65.3 m ≈ | -3.9 m ≈ | 68.2 m ≈ | 56.9 m ≈ | 62.7 m ≈ | 81.9 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Interest expense | 18.3 m | 24.4 m | 15.8 m | 30.9 m | 24.8 m | 25.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Pre-tax income | 22.8 m | -53.5 m | 13.7 m | -10.1 m | -8.7 m | 13.5 m | SEC (XBRL)· 04 Mar 2026verified |
| Income tax | 6.8 m | 8.8 m | 19.4 m | -7.7 m | 9.1 m | 2.4 m | SEC (XBRL)· 04 Mar 2026verified |
| Net income | 16.0 m | -62.3 m | -5.7 m | -2.4 m | -17.9 m | 11.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Diluted EPS | 0.16 | -0.56 | -0.05 | -0.02 | -0.15 | 0.09 | SEC (XBRL)· 04 Mar 2026verified |
| Weighted average diluted shares | 102.6 m | 110.6 m | 113.2 m | 112.9 m | 115.4 m | 119.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Dividend per share | — | 1.00 | — | — | — | — | SEC (XBRL)· 10 Mar 2022verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 59.3 m | 44.0 m | 32.6 m | 102.8 m | 56.4 m | 71.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Receivables | 32.8 m | 60.8 m | 48.8 m | 30.4 m | 32.3 m | 39.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Inventories | 64.8 m | 109.6 m | 165.2 m | 97.1 m | 77.1 m | 74.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Current assets | 167.3 m | 229.1 m | 255.0 m | 238.6 m | 178.3 m | 219.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Property, plant & equipment, net | 47.4 m | 63.5 m | 98.2 m | 113.0 m | 112.8 m | 118.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Goodwill | 115.8 m | 128.9 m | 131.4 m | 131.4 m | 152.6 m | 155.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Intangibles (excl. goodwill) | 289.5 m | 338.3 m | 309.2 m | 282.8 m | 292.9 m | 268.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Total assets | 646.7 m | 794.5 m | 869.7 m | 835.0 m | 794.2 m | 823.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Accounts payable | 26.9 m | 38.0 m | 25.4 m | — | 13.1 m | 19.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Short-term debt | 13.0 m | 17.2 m | 3.3 m | 21.3 m | 3.3 m | 3.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Long-term debt | 208.5 m | 263.2 m | 309.6 m | 280.0 m | 278.3 m | 276.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Current liabilities | 93.9 m | 115.2 m | 86.9 m | 86.2 m | 71.0 m | 79.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Total liabilities | 365.1 m | 440.8 m | 486.9 m | 435.8 m | 407.0 m | 417.4 m | SEC (XBRL)· 04 Mar 2026verified |
| Equity | 281.6 m † | 353.6 m † | 382.8 m † | 399.2 m † | 387.2 m † | 405.9 m † | SEC (XBRL)· 04 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 63.2 m | 33.7 m | 32.3 m | 116.4 m | 61.3 m | 63.4 m | SEC (XBRL)· 04 Mar 2026verified |
| Capex | 16.3 m | 25.0 m | 39.7 m | 33.2 m | 20.1 m | 25.4 m | SEC (XBRL)· 04 Mar 2026verified |
| Free cash flow | 46.9 m ≈ | 8.7 m ≈ | -7.4 m ≈ | 83.2 m ≈ | 41.2 m ≈ | 38.0 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Investing cash flow | -115.8 m | -108.2 m | -45.0 m | -31.7 m | -84.6 m | -42.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Financing cash flow | 54.3 m | 60.0 m | 3.8 m | -13.9 m | -22.0 m | -7.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Dividends paid | 6.6 m | 110.0 m | — | — | — | — | SEC (XBRL)· 10 Mar 2022verified |
| Share repurchases | 582.0 k | 281.6 m | 280.7 m | 0 | 0 | — | SEC (XBRL)· 05 Mar 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 33 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 963.2 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet34
- Growth0
- Valuation33
- Quality44
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.83 – 17.67 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)5.09 – 9.17 (Mid 6.63)WACC 8.5% · starting FCFF 68.5 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 2.2%
- Peers: EV/EBITDA6.99 – 8.37 (Mid 7.64)6 companies used · median multiple 12.9x · quartiles 12.0x – 13.9xATR, AWI, CMT, KRT, MYE, NWL
- Peers: P/E1.83 – 2.99 (Mid 2.13)7 companies used · median multiple 26.1x · quartiles 22.5x – 36.6xATR, AWI, CMT, DSWL, ENTG, KRT, MYE
- Dividend discount (DDM)13.14 – 17.67 (Mid 15.07)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 33/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 5.0% | 29 (vs peers) | 13% |
| Net margin · Quality | 1.6% | 13 (vs peers) | 8% |
| FCF conversion · Quality | 501.7% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | -7.8% | 0 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 2.3x | 29 (vs peers) | 13% |
| Interest coverage · Balance sheet | 1.4x | 0 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 2.4x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 100.2x | 0 (vs peers) | 13% |
| EV/EBITDA · Valuation | 13.7x | 43 (vs peers) | 13% |
| FCF yield · Valuation | 4.8% | 60 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet34/100 · 3/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality44/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation33/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Latham Group, Inc. (SWIM). Latest full fiscal year: 2025; data up to 2026-09-26.
Figures computed from the financial statements: revenue 545.9 m USD in 2025; YoY growth 7.4%; net margin 1.6%; ROE 2.2%; net debt/EBITDA 2.3x.
The estimated value range is 6.04–8.77 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 7.13 USD, the price of 8.18 USD leaves a potential of -12.8% (value / price − 1) and a margin of safety of -14.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 33/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 501.7%
- Current ratio: 2.4x
What contradicts it
- ROIC: 5.0%
- Net margin: 1.6%
- Revenue CAGR 3Y: -7.8%
- Net debt / EBITDA: 2.3x
- Interest coverage: 1.4x
- P/E (TTM): 100.2x
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Plastics Products, NEC (SIC 3089) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ENTGEntegris, Inc. | 21.8 bn | 55.7 | 9.6% | 11.1% | −1.4% | +85% / +37% |
| ATRAptarGroup, Inc | 9.3 bn | 35.6 | 9.9% | 6.7% | +5.4% | +18% / +16% |
| AWIArmstrong World Industries, Inc. | 7.4 bn | 23.5 | 36.0% | 18.4% | +12.1% | −7% / +107% |
| NWLNewell Brands Inc | 2.5 bn | — | -12.8% | -4.4% | −5.0% | +61% / −23% |
| MYEMyers Industries, Inc. | 1.1 bn | 37.6 | 9.7% | 3.3% | −1.3% | +58% / +62% |
| KRTKarat Packaging Inc. | 1.1 bn | 21.5 | 31.2% | 10.2% | +10.7% | +143% / +149% |
| SWIMLatham Group, Inc. | 963.2 m | 100.2 | 2.2% | 1.6% | +7.4% | +14% / +227% |
| CMTCore Molding Technologies, Inc. | 187.1 m | 26.1 | 4.4% | 2.4% | −9.5% | +12% / +18% |
| DSWLDeswell Industries, Inc. | 46.5 m | 4.4 | 10.0% | 17.3% | −9.3% | −19% / +12% |
1- and 3-year price returns: for SWIM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.22 Total return -48% · Per year -48% | 7.49 Total return -8% · Per year -8% | 11.33 Total return 39% · Per year 39% |
| 3 years | 3.35 Total return -59% · Per year -26% | 6.76 Total return -17% · Per year -6% | 11.33 Total return 39% · Per year 11% |
| 5 years | 2.66 Total return -68% · Per year -20% | 6.10 Total return -25% · Per year -6% | 11.33 Total return 39% · Per year 7% |
- Exit P/E± 1.69
- Net margin± 1.18
- Annual revenue growth± 1.07
- Annual dilution± 0.10
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
Latham Group is the largest designer, manufacturer and marketer of in-ground residential swimming pools in North America, Australia and New Zealand, with a strategy centred on converting buyers from concrete to fiberglass. Its second-quarter 2026 sales growth of 14.4% and raised full-year guidance show how the company is trying to gain share in a market it expects to stay flat, especially in the warm-climate Sand States.
SWOT
Strengths
- Latham claims a leading position in every category it competes in across North America and has long-tenured dealer relationships 1.
- The direct-to-homeowner marketing model generates purchase-ready leads for dealers and supports demand 1.
- The product range spans pools, covers and liners, giving relatively stable replacement revenue beside new-pool sales 1.
Weaknesses
- Sales depend on a few large distributors and dealers, increasing exposure to changes in those relationships 1.
- Margins are sensitive to ramp-up costs and production efficiency, as seen in the second quarter of 2026 2.
- Net income in the first half of 2026 was small while total debt remains significant 23.
Opportunities
- Growth in the Sand States and market development investment could accelerate sales if the strategy keeps its momentum 2.
- The concrete-to-fiberglass conversion could keep gaining share even in a flat market 12.
- Acquisitions such as Freedom Pools could extend geographic reach and synergies if integration goes well 13.
Risks
- Inflation and tariffshigh
Higher costs could reduce consumer demand and margins if the company cannot pass increases on to customers 1.
- Customer concentrationhigh
A small number of distributors and dealers generate a large share of sales, so losing a major partner could have significant effects 1.
- Production costs and marginsmedium
Extra ramp-up costs and swings in fiberglass demand could continue to weigh on gross margin 2.
- Debt and liquiditymedium
Total debt of 279.8 million USD and a net debt leverage ratio of 2.2 could limit financial flexibility if results weaken 3.
- Cybersecurity and IT systemslow
Cyber-attacks, system failures and the rollout of the enterprise resource planning system could delay orders and harm reputation 1.
Investment thesis
What would need to be true (bull case)
- If the shift to fiberglass and growth in the Sand States continue, the company could keep outperforming a flat in-ground pool market 12.
- The raised 2026 guidance for net sales and adjusted EBITDA growth could confirm that the market-share strategy is working 3.
- Recurring revenue from covers and liners could steady results even when new pool demand is weak 1.
What would break the thesis
- If inflation and tariffs persist, pool demand could fall and margins could be squeezed further 1.
- Net income for the first half of 2026 declined from the prior year, and selling and marketing costs could stay elevated 2.
- Reliance on a few large distributors and dealers could leave revenue exposed to changes in those relationships 1.
What to watch
- Gross margin trend once ramp-up costs are recoveredQ3 2026
- Sand States results and returns on sales-force investmentQ3 2026
- Delivery against raised guidance for net sales and adjusted EBITDA2026
- How tariffs and inflation affect demand and costs, as described in the next annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
The business
Latham Group, Inc. (Nasdaq: SWIM) designs, manufactures and markets in-ground pools, pool covers and liners, with an operating history of over 70 years 1. The company presents itself as the leader in North America in every product category in which it competes 1. Its model combines direct marketing to homeowners with long-tenured dealer relationships averaging over 15 years 1. In 2024 it acquired Coverstar Central, its exclusive automatic safety cover dealer in 29 states, and in February 2026 it bought Freedom Pools, a fiberglass pool maker in Australia and New Zealand 1.
The company runs as one operating and reportable segment, so all products are reported together 1. Sales flow through one-step channels directly to dealers and two-step channels through distributors 1. The largest distributor accounted for 22.6% of net sales in 2025, and the top ten dealer and distributor relationships for 49.0% 1, which points to meaningful reliance on a few commercial partners.
Sales are seasonal, peaking in spring and summer when pools are used and installed 1. The most recent quarterly report describes about 1,900 employees on average across about 40 locations 2.
Segments
In-ground swimming pools
Fiberglass pools are the main growth line, and Latham describes itself as the largest fiberglass pool maker in North America, Australia and New Zealand 1. In the second quarter of 2026 in-ground pool sales rose 22.5%, or 13.6% organically, and fiberglass could account for about 80% of full-year in-ground sales in 2026 2.
Pool covers
The covers line includes automatic safety covers and all-season covers, the latter replaced roughly every eight to ten years, which creates replacement revenue 1. Cover sales rose 10% in the second quarter of 2026, led by automatic covers 2.
Liners
Latham describes itself as the largest pool liner maker in the North American residential in-ground market, a category with large, non-discretionary replacement demand 1. Liner sales in the second quarter of 2026 were reported within the same product-line breakdown, supporting the view of stable recurring revenue 2.
Market context
The company expects the U.S. in-ground pool market to stay flat in 2026 and believes it will keep significantly outperforming that market 12. The shift from concrete to fiberglass is the main driver, as fiberglass is underrepresented in the U.S. compared with comparable markets 1. The Sand States (Florida, Texas, Arizona and California) accounted for about two-thirds of U.S. pool starts where fiberglass is underrepresented in 2025 1.
Demand depends on interest rates, credit availability, consumer confidence, housing affordability and tariffs 1. The company notes some consumers are reluctant to buy pool products because of higher prices, which could weigh on demand if inflation persists 1.
Trends
- Concrete-to-fiberglass conversiontailwind
Fiberglass is taking share from concrete pools thanks to lower lifecycle costs, faster installation and fewer chemicals 1. If this continues, it could support sales growth above the broader market 12.
- Growth in the Sand Statestailwind
Sand States sales grew at a double-digit rate in the second quarter of 2026, and the company added field sales resources 2. This region could drive a step-change in company-wide sales if the investments pay off 2.
- Inflation and tariffsheadwind
Costs of labour, materials and services have risen, and tariffs on imported products could hurt demand or margins if they cannot be passed on through prices 1. The company says prolonged inflation could negatively affect its business 1.
- Gross margin dynamicsmixed
Faster-than-usual fiberglass demand created extra ramp-up costs in the second quarter of 2026, lowering gross margin by about 140 basis points 2. The company expects to recover most of these costs in the second half, though margin pressure could persist if demand keeps accelerating 2.
Competitive position
The sources do not name listed competitors; they mainly refer to other concrete and fiberglass pool makers, regional cover makers and independent dealers, a fragmented installer base dominated by small family-owned businesses 1.
Latham says it is the only participant with national distribution in the fiberglass pool category 1. According to the company, its comparative edge rests on its broad product range, manufacturing capacity and direct connection with homeowners 1.
- Concrete pool builders and independent dealers
Traditional competition in the concrete segment, with fragmented installers lacking national scale, as the company describes 1.
- Regional automatic safety cover makers
Smaller rivals selling covers that Latham says it can replace for its legacy and regionally served customers 1.
- Local vinyl pool manufacturers
Competition in the vinyl pool segment, where Latham is active but the market remains locally fragmented 1.
- Regional pool liner manufacturers
Local rivals in the replacement liner market, where Latham presents itself as the North American leader 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Law Firm DLA Piper Hires Latham Team to Expand Private Credit GroupBloomberg Markets · 12 Oct 2026 · EN
- Latham’s Kelly Forecasts Private Equity-Fueled Second-Half SurgeBloomberg Markets · 10 Jun 2026 · EN
- 'There's A Ton of Dry Powder': Latham & Watkins' KellyBloomberg Markets · 10 Jun 2026 · EN
The latest news item in our archive is from 12 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report21 Aug 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report05 May 2026Results of operations · Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Proxy statement20 Mar 2026
- Annual report04 Mar 2026
- Current report (amendment)04 Mar 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Latham Group, Inc. · 04 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-27 · SEC / Latham Group, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Latham Group, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.