Pool’s third quarter results reflected stable performance in a challenging environment, with management attributing sales growth to consistent maintenance demand and early signs of stabilization in new pool construction and remodel activity. CEO Peter Arvan highlighted that growth in building materials and increased adoption of digital tools like POOL360 supported gross margin expansion. Management pointed out that chemical sales were impacted by deflation in certain products, but overall volume remained steady. The company also noted regional variability, with Florida showing growth, Texas flat, and California and Arizona experiencing declines due to weather and wildfires.
Is now the time to buy POOL? Find out in our full research report (it’s free for active Edge members).
Pool (POOL) Q3 CY2025 Highlights:
- Revenue: $1.45 billion vs analyst estimates of $1.45 billion (1.3% year-on-year growth, in line)
- EPS (GAAP): $3.40 vs analyst expectations of $3.39 (in line)
- Adjusted EBITDA: $194.7 million vs analyst estimates of $196.6 million (13.4% margin, 1% miss)
- EPS (GAAP) guidance for the full year is $11.06 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 12.3%, in line with the same quarter last year
- Organic Revenue rose 1.2% year on year vs analyst estimates of 1.6% growth (39.1 basis point miss)
- Market Capitalization: $10.58 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Pool’s Q3 Earnings Call
- Susan Maklari (Goldman Sachs) asked about stabilization trends in construction and remodel. CEO Peter Arvan said activity “seems to have firmed up,” but significant improvement depends on further interest rate cuts.
- David S. MacGregor (Longbow Research) questioned margin implications from customer consolidation. Arvan responded that Pool’s technology suite offers integration advantages, making large contractors easier to serve and helping drive stickier relationships.
- Ryan Merkel (William Blair) pressed on continued chemical price deflation, particularly trichlor. CFO Melanie Hart emphasized that while trichlor pricing is down, it remains above pre-COVID levels and is not a major concern due to its small share.
- Scott Schneeberger (Oppenheimer) asked about the sustainability of gross margin gains. Hart and Arvan pointed to fully realized price increases and permanent supply chain improvements, with AI tools helping optimize purchasing.
- Jeffrey Hammond (KeyBanc Capital Markets) probed for POOL360 adoption targets and customer feedback. Arvan set a target of 25–30% adoption, noting broad customer interest but the need for further education and outreach.
Catalysts in Upcoming Quarters
Going forward, our analysts will closely watch (1) any shifts in consumer discretionary demand as interest rates fluctuate, (2) the adoption trajectory of POOL360 and other digital initiatives, and (3) the ongoing mix shift toward private label products and their impact on margins. We will also monitor regional trends and the effect of supply chain and pricing strategies on profitability.
Pool currently trades at $283.78, down from $298.19 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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