Pool (POOL) Q3 2026 Earnings Report

The call was broadly constructive: third-quarter sales accelerated to 4%, several product categories and geographies grew, operating cash flow increased 47%, balance-sheet leverage remained within target, and full-year guidance was reaffirmed. Management also highlighted progress in sales excellence, pricing, technology, network optimization, and M&A. However, gross margin and operating income declined, freight and customer mix remained pressures, housing and discretionary demand were cautious, and fourth-quarter comparisons and the 2027 macro outlook remain challenging. Highlights significantly outweighed the explicitly stated challenges.

For 2026, POOLCORP reaffirmed adjusted diluted EPS guidance of $10.87 to $11.17, with the midpoint implying growth of almost 3% over prior year, while the GAAP diluted EPS range remains $10.66 to $10.96, including the $0.21 of 1-time CEO transition expenses; full-year top line growth is expected between 3% and 4%, with a 3% contribution from pricing, October sales to date were up around 2%, full-year new pool builds are expected to be slightly lower below prior year, adjusted operating expenses are expected to grow less than sales growth with fourth quarter expense growth below the third, fourth quarter gross margin is expected to be slightly better than the third quarter but lower than what was reported last year, full-year interest expense is expected to be about $50 million, the full-year adjusted tax rate near 25%, weighted average shares outstanding should be about 36 million for the fourth quarter and 36.2 million for the full year, full-year cash flow from operations is expected to exceed net income, interest rate swaps are on track to reduce interest expense by approximately $9 million in 2026, and POOLCORP expects 1 less selling day for the full year in 2027; in a normalized environment, John Watwood referenced roughly 80 thousand new pools.