- Price
- $177.34
- Fair value
- $244.33
- Discount
- 27.4%
- Uncertainty
- Medium
- LSEG rating
- 2.56
- Moat
- Narrow
- Next earnings
- 2026-10-22
- Next earnings is estimate
- No
- Company name
- Pool Corporation
- Sector
- Pool products distribution
- About
- Pool Corporation is the largest wholesale distributor of swimming pool supplies and equipment. It does not build or install pools. It buys chemicals, parts, and equipment from manufacturers, and resells them to pool builders, retailers, and service companies. The company earns money on the markup between its purchase cost and its resale price.
- Thesis
- New pool construction has fallen sharply since its pandemic-era peak, and the market worries this decline will keep hurting Pool Corporation's sales. But most of the company's revenue comes from maintenance and repair, not new construction. Pool owners must buy chemicals and replace parts every year, whether or not new pools get built. The stock also faces pressure from a recent CEO change and from Berkshire Hathaway's full exit of its stake, which may have added investor caution beyond the business fundamentals. If maintenance demand keeps proving durable, and the new CEO executes well, the market may realize the new-construction slump matters less to earnings than feared.
- Risks
- New in-ground pool construction fell to below 60,000 units in 2025, down from a peak near 75,000 to 100,000 units during the pandemic boom. High interest rates keep making this discretionary purchase harder to finance. A further drop would cut sales of building materials and equipment.
The company installed a new, first-time CEO in 2026 after the previous CEO's sudden departure. A leadership transition adds execution risk at a time when the business already faces soft discretionary demand.
Gross margin has been slipping, due to higher freight costs and a less favorable mix of customers. Continued margin pressure would offset revenue gains from the more stable maintenance business.
- Recent events
- 2026-07-23: Pool Corporation reported Q2 2026 results. Net sales rose 2%, to $1.82 billion. Gross margin fell slightly, to 29.7%.
2026-05-04: Pool Corporation named John B. Watwood as President and CEO, replacing Peter Arvan, who stepped down from the role and the board.