Pool Corp Sales Rise 4% to $1.5 Billion as Profit Falls

Key Facts

Pool Corp reported a 4% year-on-year increase in net sales for the third quarter of 2026 to $1.5 billion in results released on October 22. The pool products distributor said in its earnings statement that diluted earnings per share were unchanged at $3.40 from the same quarter a year earlier. Net income, however, fell to $123.0 million in the reporting quarter. Operating income declined to $172.2 million from $178.0 million a year earlier, according to the same statement. Sales growth was thus accompanied by lower operating and net income, while diluted earnings per share held steady.

The company attributed sales growth to pricing, stronger maintenance activity and growth in building materials sales. It said in its statement that results reflected "3% growth from pricing, coupled with stronger maintenance activity and building materials growth." Maintenance and building materials had also supported sales in the preceding second quarter, according to the earnings statement for that period. The company then reported a 2% year-on-year increase in net sales to $1.8 billion, supported by resilient maintenance business and continued improvement in building materials. Annual sales growth therefore accelerated in the third quarter compared with the second quarter, while quarterly sales were lower than in the preceding quarter. Pool Corp describes itself as the world's largest wholesale distributor of swimming pool and related backyard products, according to its earnings date announcement.

On profitability, third-quarter gross margin fell to 29.0% from 29.6% a year earlier, according to the company's statement. Pool Corp attributed the margin pressure to higher inbound freight costs and customer mix. It also cited the comparison with the prior-year period, which benefited from mid-season price increases. Meanwhile, selling and administrative expenses rose to $264.1 million during the quarter. The company attributed the increase to higher performance incentives, employee insurance costs and fees for strategic initiatives. On liquidity, net cash provided by operations totaled $419.8 million in the first nine months of the year, according to the statement. That figure covers cumulative operating cash flows since the start of the year, while the reported margin and expense figures relate to the third quarter.

In the market, Pool Corp shares rose 4.62% in premarket trading following the earnings announcement, according to a report published by Investing.com on the day of the release. The website said analysts' consensus estimate for third-quarter adjusted earnings per share was $3.36, below the company's reported result. The move followed Stifel's cut to its price target for the stock ahead of the results, according to separate coverage by the website. Stifel set its new price target at $175, compared with a previous target of $189. The firm maintained its Hold rating, with the premarket gain coming after that target cut and following the release of quarterly results.

For the rest of the year, Pool Corp maintained its annual diluted earnings-per-share guidance range at $10.66 to $10.96, according to the earnings statement. It also maintained its annual adjusted diluted earnings-per-share guidance range at $10.87 to $11.17. Both the lower and upper ends of adjusted guidance remained above their counterparts in the unadjusted annual guidance range. The company retained both ranges as it reported third-quarter results that combined higher sales with pressure on margins and expenses. It had scheduled a call to discuss the results for October 22, 2026, at 11:00 a.m. U.S. Eastern Time, according to its earnings date announcement.