- 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. It also sells irrigation and landscape products through its Horizon network, and tile and stone through National Pool Trends. It supplies the independent Pinch A Penny franchise stores. The company earns money on the markup between its purchase cost and its resale price.
- Risks
- New in-ground pool construction fell to just below 60,000 units in 2025, down from aabout half of the peak near 75of about 117,000 to 100,000 units during the pandemic boomin 2021. 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 slippingstayed at 29.7% in 2024 and 2025, due tobut it fell in the first half of 2026 because of higher inbound freight costs and a less favorablecustomer mix of customers. The Q2 2026 10-Q expects the 2026 gross margin to be about 0.3 points below 2025. Continued margin pressure would offset revenue gains from the more stable maintenance business.
- Balance sheet
- Cash: $29M
Debt: $1.3B
Net debt: $1.3B
EBITDA, last 12 months: $663M
Net debt / EBITDA: 12.80× (low)
Interest cover: 13×
Undrawn credit line: $360M, to September 2029
Pool Corporation has no public bonds, and all its debt is variable-rate bank and securitization debt, mostly at the parent level. The debt is seasonal: it peaks in the second quarter, when supplier payments for winter inventory fall due, and it falls as customers pay in the summer. At June 30, 2026, the unsecured Credit Facility had $424 million drawn on an $800 million revolver, plus a $500 million term loan, both due September 30, 2029. A separate $90 million term facility has the same final date. A $316 millionThe receivables securitization facility ishad $316 million drawn, secured by $447 million of pledged customer receivables. On August 25, 2026, Pool extended this facility to August 25, 2028, and raised its limit to $400 million from March to September and $300 million in the other months. The leverage ratioThere is also a $13 million Australian credit facility. EBITDA is adjusted EBITDA for the 12 months to June 30, 2026. The covenant leverage ratio, which does not subtract cash, was 1.78. It is inside management's 1.5 to 2.0 target and far below the 3.25 maximum. Interest cover is operating income over net interest and other non-operating expense in the first half of 2026. Two interest rate swaps fix the rate on $300 million at about 0.7% until February 26, 2027. Interest cost on that part will rise when the swaps end. The company also has $355354 million of operating lease liabilities for its sales centers. The undrawn credit is the amount available under the Credit Facility. The company usesfunds buybacks from operations and borrowings, not cash, to fund buybacks, with $580 million of authority left at July 23, 2026. Cash fell to $29 million from $84 million one year earlier, and operating cash flow in the first half of 2026 was close to zero. The debt does not limit its choices today.
As of 2026-06-30.
- Checkpoints
- Oct 22, 2026: Q3 2026 results: peak-season maintenance sales and gross margin. Pending. Watch: Sales growth from maintenance products, a stable gross margin near 30in line with the 2026 guidance of about 29.4% and confirmed 2026 adjusted EPS guidance of $10.87 to $11.17 pass; lower sales or a guidance cut fails.
Feb 2027 (estimate): Full-year 2026 results and first 2027 outlook from new CEO. Pending. Watch: A 2027 outlook with EPS growth and signs that new-pool construction has stopped falling passes; flat or lower EPS guidance or a new strategy that disrupts operations fails.
Jul 2027 (estimate): Q2 2027 results: second peak season under CEO Watwood. Pending. Watch: Sales and operating income above Q2 2026 with stable margins pass; a second year of falling operating income fails.
- Recent events
- 2026-10-08: Pool Corporation confirmed that it will report Q3 2026 results on October 22, 2026, before the market opens.
2026-09-25: Pool Corporation added Jean-Marc Germain, the former CEO of Constellium, to its board as an independent director from September 30, 2026.
2026-08-25: Pool Corporation extended its receivables securitization facility to August 25, 2028. The facility can now fund up to $400 million from March to September and up to $300 million in the other months.
2026-07-29: Pool Corporation's board declared a quarterly cash dividend of $1.30 per share, paid August 27, 2026.
2026-07-23: Pool Corporation reported Q2 2026 results. Net sales rose 2%, to $1.82 billion. Gross margin fell slightly, to 29.7%, from 30.0%, because of higher inbound freight costs and customer mix. Diluted EPS stayed at $5.17. The company kept its 2026 adjusted EPS guidance of $10.87 to $11.17, without $0.21 of CEO transition costs.
2026-05-04: Pool Corporation named John B. Watwood as President and CEO, replacing. Peter Arvan, who stepped down from left the CEO role and the board on the same day, by mutual agreement. Chair John Stokely became Executive Chair, and the company postponed its May 12 Investor Day.