Net sales increased 6%, driven by strong maintenance product sales and improvement in discretionary categories
Gross margin of 29.0%, down 20 bps year-over-year, driven by increased early buy activity and seasonal mix in the first quarter
Operating income increased 7% to $82.6 million; operating margin expanded 10 bps to 7.3%
Diluted EPS of $1.45, an increase of 2%, or an increase of 8% without ASU 2016-09 tax benefits
Confirms annual earnings guidance range of $10.87 - $11.17 per diluted share, including the Q1 2026 ASU 2016-09 tax benefit of $0.02
COVINGTON, La., April 23, 2026 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ:POOL) today reported results for the first quarter of 2026.
"We are off to a solid start in 2026, with net sales up 6% and operating income growing 7% year-over-year. Maintenance demand remained resilient, and we saw continued, though still gradual, recovery in discretionary categories. Gross margin reflected the typical first quarter seasonal mix, with strong equipment and customer early buy sales partially offset by our pricing and supply chain initiatives. Our greenfield investments are contributing to growth, and we are beginning to see operating expense leverage as those locations mature. We remain confident in our strategy and our ability to drive profitable growth," said Peter D. Arvan, president and CEO.
First quarter ended March 31, 2026 compared to the first quarter ended March 31, 2025
Net sales increased 6% to $1.1 billion in the first quarter of 2026. Our growth during the quarter was driven by solid demand for maintenance products, strong equipment sales and some continued improvement in discretionary categories, including building materials. Year-over-year sales growth benefited from price increases enacted last year and a combined contribution of approximately 1% from a higher concentration of customer early buys and favorable currency exchange rates.
Gross profit increased $17.5 million. Gross margin decreased 20 basis points to 29.0% from 29.2% in the same period of 2025, driven by product mix with a higher proportion of equipment sales in the first quarter of 2026. Additionally, consistent with normal seasonal patterns in the first quarter, gross margin in the first quarter of 2026 was impacted by a higher proportion of customer early buy purchases, which typically yield lower margins relative to our overall sales mix. Benefits from our ongoing pricing and supply chain optimization initiatives partially offset this activity.
Selling and administrative expenses (operating expenses) increased 5% to $247.3 million compared to $234.8 million in the same period in 2025, reflecting increased facility costs and wages for greenfield locations opened after the first quarter of last year, technology spend and inflationary cost increases. We expect that our year-over-year expense growth rate will moderate as we focus on operational efficiencies and lap prior year business investments.
Operating income increased 7% to $82.6 million compared to $77.5 million in the same period last year, and operating margin expanded 10 basis points to 7.3%.
Net income was $53.2 million, reflecting higher interest expense from borrowings to fund increased share repurchases and a smaller tax benefit from ASU 2016-09 (discussed below), compared to $53.5 million in the first quarter of 2025.
Earnings per diluted share increased 2% to $1.45 compared to $1.42 in the same period of 2025. We recorded a $0.8 million, or $0.02 per diluted share, tax benefit from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, in 2026 compared to a $3.8 million, or $0.10 per diluted share, tax benefit in 2025. Adjusting for the impact from ASU 2016-09 in both periods, earnings per diluted share increased 8% to $1.43 compared to $1.32 in 2025.
Balance Sheet and Liquidity
Our inventory balance increased 14% to $1.7 billion at March 31, 2026 compared to $1.5 billion at March 31, 2025, reflecting higher purchases to support service levels and a broader product range to better serve our customers ahead of the swimming pool season. Our inventory balance also reflects inflationary increases and an increase from new and acquired sales centers over the past twelve months. Total debt outstanding increased $222.6 million to $1.2 billion at March 31, 2026, which primarily helped to fund open market share repurchases of $349.0 million over the past twelve months.
Net cash provided by operations was $25.7 million in the first three months of 2026 compared to $27.2 million in the first three months of 2025.
Outlook
"We remain confident in our full-year 2026 earnings guidance of $10.87 to $11.17 per diluted share, which includes the impact of year-to-date tax benefits of $0.02. As we move into peak pool season, our focus remains where it has been for over 30 years: serving the outdoor living industry with the discipline that has defined this company through every cycle, continuously advanced by our ongoing investment in our people, technology and operating capabilities. Our 455 sales centers, continued POOL360 adoption and deep vendor partnerships reflect the compounding advantages of a network built over decades. We continue to compete on service, availability and partnership while allocating capital thoughtfully to best serve our customers and shareholders," said Arvan.
Non-GAAP Financial Measures
This press release refers to our adjusted diluted EPS, and from time to time, we also reference our adjusted EBITDA when communicating with investors. Both of these are non-GAAP measures. See the addendum to this release for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
About Pool Corporation
POOLCORP is the world's largest wholesale distributor of swimming pool and related backyard products. As of March 31, 2026, POOLCORP operated 455 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000 wholesale customers. For more information, please visit www.poolcorp.com.
Forward-Looking Statements
This news release includes "forward-looking" statements that involve risks and uncertainties that are generally identifiable through the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "should," "will," "may," "outlook," and other words and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP's 2025 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP's subsequent filings with the SEC.
Kristin S. ByarsDirector, Investor Relations and Finance985.801.5153[email protected]
POOL CORPORATION
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2026
2025
Net sales
$
1,138,014
$
1,071,526
Cost of sales
808,144
759,157
Gross profit
329,870
312,369
Percent
29.0
%
29.2
%
Selling and administrative expenses
247,260
234,831
Operating income
82,610
77,538
Percent
7.3
%
7.2
%
Interest and other non-operating expenses, net
12,366
11,164
Income before income taxes and equity in earnings
70,244
66,374
Provision for income taxes
16,980
12,883
Equity in (loss) earnings of unconsolidated investments, net
(35
)
54
Net income
$
53,229
$
53,545
Earnings per share attributable to common stockholders:(1)
Basic
$
1.46
$
1.42
Diluted
$
1.45
$
1.42
Weighted average common shares outstanding:
Basic
36,362
37,460
Diluted
36,438
37,630
Cash dividends declared per common share
$
1.25
$
1.20
(1)
Earnings per share under the two-class method is calculated using net income attributable to common stockholders (net income reduced by earnings allocated to participating securities), which was $52.9 million and $53.3 million for the three months ended March 31, 2026 and March 31, 2025, respectively. Participating securities excluded from weighted average common shares outstanding were 186,000 and 184,000 for the three months ended March 31, 2026 and March 31, 2025, respectively.
POOL CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 31,
March 31,
Change
2026
2025
$
%
Assets
Current assets:
Cash and cash equivalents
$
64,458
$
71,644
$
(7,186
)
(10)
%
Receivables, net(1)
159,166
146,209
12,957
