Latham Group Completes Acquisition of Freedom Pools

Why It Matters

Latham outperforms a declining U.S. pool market, positioning for accelerated growth through market‑share gains, digital tools, and an accretive acquisition.

Key Takeaways

• Q4 revenue $100M, up 15% YoY.
• Fiberglass pools 76.5% of in‑ground sales, 24% market share.
• Adjusted EBITDA margin rose to 11% in Q4.
• Freedom Pools acquisition adds $20M sales, $4M EBITDA.
• 2026 sales guidance $580‑610M, targeting ~9% growth.

Pulse Analysis

The U.S. residential pool market has been under pressure, with overall in‑ground starts slipping into single‑digit declines. Against this backdrop, Latham Group’s 15% quarterly revenue lift underscores the growing consumer preference for fiberglass pools, which offer faster installation and lower maintenance than concrete alternatives. By capturing roughly a quarter of all pool starts and commanding three‑quarters of its in‑ground sales, Latham is effectively reshaping market dynamics and setting a higher benchmark for competitors.

Strategically, Latham’s recent moves amplify its growth engine. The Freedom Pools acquisition expands the company’s footprint into Australia and New Zealand, adding $20 million of recurring sales and $4 million of adjusted EBITDA, while the purchase of four leased fiberglass facilities reduces overhead and improves capacity utilization. Parallel investments in the Sand States—particularly Florida—have delivered double‑digit sales growth, and the rollout of AI‑driven Measure tools accelerates liner and cover quoting, boosting dealer adoption and share gains. These initiatives, combined with disciplined cost control, have driven gross margins up 340 basis points and lifted adjusted EBITDA margins to 11%.

Looking ahead, Latham’s 2026 guidance of $580‑$610 million in sales and $105‑$120 million in adjusted EBITDA reflects a projected 9% top‑line expansion, bolstered by a modest 2% price increase. The company’s focus on targeted branding, expanded dealer networks, and continued digital innovation positions it to capture additional fiberglass market share as penetration remains well below levels seen in Australia and Europe. Investors should view the earnings beat and forward outlook as a strong signal of sustainable profitability in a market where many peers are struggling.

Deal Summary

Latham Group, Inc. announced the completion of its acquisition of Freedom Pools, adding roughly $20 million in net sales and $4 million in adjusted EBITDA annually. The deal, disclosed during the Q4 2025 earnings call, also included the purchase of four previously leased fiberglass production sites, expanding the company's manufacturing footprint.