Pool Corporation (NASDAQ/GSM:POOL) has reported its year-end and fourth-quarter 2025 results, along with providing earnings guidance for 2026. The key highlights include annual net sales of $5.3 billion, consistent with 2024. Gross margin for 2025 was reported at 29.7%, showing improvement of 20 basis points over the prior year, excluding the impact of the 2024 tariff reversal.
Operating expenses increased 4% to $992.3 million in 2025 compared to $958.1 million in 2024, primarily due to incremental investments in technology initiatives and sales center network expansion, as well as inflationary impacts.
Operating income for the year was $580.2 million, a 6% decrease from $617.2 million in 2024. Without the impact of the 2024 import tax reversal, 2025 operating income was 4% lower than in 2024.
Net income decreased to $406.4 million in 2025 compared to $434.3 million in 2024. Earnings per diluted share declined 4% to $10.85 in 2025 compared to $11.30 in 2024, which included a $0.25 benefit from the import tax reversal. Adjusting for the impact from ASU 2016-09, earnings per diluted share decreased 3% to $10.73 in 2025 compared to $11.07 in 2024.
The company's inventory balance increased 13% to $1.5 billion at December 31, 2025, compared to the same period in 2024, primarily driven by increased purchasing ahead of price increases and inflation, as well as the addition of new and acquired sales centers.
Total debt outstanding increased $249.1 million to $1.2 billion at December 31, 2025, primarily to fund open market share repurchases of $341.1 million in 2025 and working capital needs.
In the fourth quarter of 2025, net sales decreased 1% to $982.2 million, while gross profit increased $5.5 million, and gross margin improved 70 basis points to 30.1% compared to the same period in 2024. Operating income decreased 14% to $52.0 million, and net income decreased to $31.6 million, with earnings per diluted share decreasing 13% to $0.85 compared to $0.98 in the same period of 2024.
Looking forward, Pool Corporation expects earnings for 2026 to be in the range of $10.85 to $11.15 per diluted share. This guidance does not include any estimated unrealized tax benefits related to stock option exercises, stock option expirations, or restricted stock award vestings occurring in 2026.
Pool Corporation is the world’s largest wholesale distributor of swimming pool and related backyard products, operating 456 sales centers in North America, Europe, and Australia, distributing more than 200,000 products to roughly 125,000 wholesale customers. As a result of these announcements, the company's shares have moved 0.14% on the market, and are now trading at a price of $267.99. If you want to know more, read the company's complete 8-K report here.
