The world's largest wholesale distributor of swimming pool supplies, this company sells more than 200,000 products—chemicals, pumps, filters, and patio furniture—to roughly 125,000 pool builders and retailers through networks like SCP Distributors and Superior Pool Products. It started in 1980 when Frank J. St. Romain opened a single shop called South Central Pool Supply in Metairie, Louisiana, and grew into a nationwide network renamed Pool Corporation in 2006. Its stock ticker is literally "POOL."
Revenue growth slowed to 2% in Q2 as gross margin contracted and CEO transition costs weighed on earnings.
growth decelerated from 6% in Q1 to 2% in Q2, the peak selling season. Revenue reached $1.78 billion, but contracted 20 to 29.7% and was flat at $5.17, as higher freight costs and $8.3 million in CEO transition expenses offset the benefit of inflationary pricing. The company is leaning on debt to fund buybacks, with now at $1.23 billion, while the core business shows only modest top-line growth.
Key takeaways
rose 2% to $1.78 billion, driven by an estimated 3% benefit from inflationary price increases and steady maintenance demand, while discretionary categories continued to decline.
contracted 20 to 29.7%, pressured by higher inbound freight costs and an unfavorable customer mix, partially offset by supply chain initiatives.
was flat at $5.17, as a 6.5% increase in was offset by higher ; adjusted diluted EPS, which excludes $8.3 million in CEO transition costs, rose 4% to $5.38.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 2% to $1.8B on inflation and maintenance demand, but gross margin fell 30 bps on freight and mix; adjusted EPS grew 4% to $5.38.
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increased 2% to $1.8 billion, driven by ~3% inflationary price benefits, steady maintenance volumes, and 4% growth in building materials that offset discretionary declines.
Selling and administrative expenses rose 4% to $273.1 million, including $8.3 million in CEO transition costs ($6.3 million non-cash and $2.0 million cash); excluding these, operating expenses grew 1%.
rose 27.5% to $1.23 billion, partly funding $266.7 million in share repurchases over the past twelve months, though the company's of 1.78x remains well within its 3.25x .
Full-year 2026 is guided to $10.66–$10.96 on a basis, or $10.87–$11.17 excluding CEO transition costs, implying a second half that is roughly flat with the prior year.
What changed
The 6% growth in Q1 2026, flagged as potentially pulling demand forward through early-buy activity, did not carry into Q2, where growth slowed to 2% during the peak selling season.
The recovery that began in Q3 2025 and was expected to reach 29.7% for the full year 2026 reversed in Q2, with margin contracting 20 to 29.7% as higher freight costs and customer mix pressure emerged.
The question of whether the company would moderate share repurchases to slow the debt build was answered: rose another $21.4 million from Q1 to $1.23 billion, and $266.7 million in buybacks were executed over the trailing twelve months.
The flagged by the auditor as a critical audit matter, with a slim fair-value cushion, was not impaired during the quarter, and no new risk factors were added in this filing.
What to watch
Whether the full-year can still reach the guided 29.7% given the Q2 contraction, or whether freight cost pressure and customer mix deterioration persist into the second half.
Whether the company continues to fund share repurchases with additional debt, and at what point the rising —which already flattened in Q2—prompts a shift in capital allocation.
Whether the 4% growth in building materials sales represents a genuine stabilization in new pool construction or is primarily a function of inflationary pricing, given that discretionary categories continued to decline.
Whether the CEO transition results in any strategic shift in the balance between network expansion, technology investment, and shareholder returns, or if the $8.3 million in transition costs is a one-time event as characterized.
contracted 30 to 29.7%, pressured by higher inbound freight costs and unfavorable customer mix, partially offset by supply chain initiatives.
Selling and administrative expenses rose 4% to $273.1 million, including $8.3 million of CEO transition costs ($6.3M non-cash , $2.0M cash); excluding these, operating expenses grew 1%.
Adjusted increased 4% to $5.38, while diluted EPS was flat at $5.17; full-year 2026 diluted EPS is guided to $10.66–$10.96, or $10.87–$11.17 excluding CEO transition costs.
Total debt rose $110.8 million to $1.3 billion, partly funding $266.7 million in share repurchases; the average total was 1.78x, well within the 3.25x .
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk There have been no material changes in our exposure to interest rate risk during the six months ended June 30, 2026 from what we reported in our 2025 Annual Report on Form 10-K. For additional information on our interest rate risk, refer to “Quantitative and Q…
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Interest Rate Risk
There have been no material changes in our exposure to interest rate risk during the six months ended June 30, 2026 from what we reported in our 2025 Annual Report on Form 10-K. For additional information on our interest rate risk, refer to “Quantitative and Qualitative Disclosures about Market Risk” included in Part II, Item 7A in our 2025 Annual Report on Form 10-K.
Currency Risk
There have been no material changes in our exposure to currency risk during the six months ended June 30, 2026 from what we reported in our 2025 Annual Report on Form 10-K. For additional information on our currency risk, refer to “Quantitative and Qualitative Disclosures about Market Risk” included in Part II, Item 7A in our 2025 Annual Report on Form 10-K.
From time to time, we are subject to various claims and litigation arising in the ordinary course of business, including product liability, personal injury, commercial, contract and employment matters. While the outcome of any litigation is inherently unpredictable, based on cur…
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From time to time, we are subject to various claims and litigation arising in the ordinary course of business, including product liability, personal injury, commercial, contract and employment matters. While the outcome of any litigation is inherently unpredictable, based on currently available facts and our current insurance coverages, we do not believe that the ultimate resolution of any of these matters will have a material adverse impact on our financial condition, results of operations or cash flows.
Our operations and financial results are subject to various risks and uncertainties, which could adversely affect our business, financial condition or future results. We urge you to carefully consider (i) the other information set forth in this report and (ii) the risk factors d…
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Our operations and financial results are subject to various risks and uncertainties, which could adversely affect our business, financial condition or future results. We urge you to carefully consider (i) the other information set forth in this report and (ii) the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.