Pool Corporation reported first-quarter 2026 net sales of $1.1 billion, up 6% from the same period last year, as maintenance products, equipment sales and a modest recovery in discretionary categories lifted revenue.
Gross profit increased $17.5 million, but gross margin slipped to 29.0% from 29.2%, a decline of 20 basis points. The company said the margin change reflected a higher mix of equipment sales and a larger share of customer early-buy purchases, which typically carry lower margins.
Operating expenses rose 5% to $247.3 million from $234.8 million a year earlier, driven by higher facility costs and wages at greenfield locations, technology spending and inflation. Even with that increase, operating income climbed 7% to $82.6 million from $77.5 million, and operating margin improved to 7.3% from 7.2%.
Net income was $53.2 million, down slightly from $53.5 million in the prior-year quarter. Diluted earnings per share increased 2% to $1.45 from $1.42.
The company said it recorded a $0.8 million tax benefit, or $0.02 per diluted share, in the quarter, compared with a $3.8 million benefit, or $0.10 per share, in the year-earlier period. Excluding that item, diluted EPS rose 8% to $1.43 from $1.32.
Inventory climbed 14% to $1.7 billion at March 31, 2026 from $1.5 billion a year earlier, reflecting higher purchases, inflation and additions from new and acquired sales centers. Total debt increased $222.6 million to $1.2 billion, as the company used borrowings in part to fund $349.0 million of open-market share repurchases over the past 12 months.
Cash from operations was $25.7 million in the first quarter, down from $27.2 million a year earlier.
Pool confirmed full-year 2026 diluted EPS guidance of $10.87 to $11.17, including the $0.02 per share tax benefit recognized year to date. As a result of these announcements, the company's shares have moved -0.56% on the market, and are now trading at a price of $201.04. Check out the company's full 8-K submission here.
