Latham Group, Inc.

Welcome to the Latham Group Incorporated fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Casey Cotery, Investor Relations Representative. Please go ahead.

Thank you. This afternoon, we issued our fourth quarter and full year 2025 earnings press release, which is available on the Investor Relations portion of our website, where you can also find the slide presentation that accompanies our prepared remarks. On today's call are Latham's President and CEO, Sean Gadd, and CFO, Oliver Globo. Following their remarks, we will open the call to questions. During this call, the company may make certain statements that constitute forward-looking statements which reflect the company's views with respect to future events and financial performance as of today or the date specified. Actual events and results may differ materially from those contemplated by such forward-looking statements due to risks and other factors that are set forth in the company's annual report on Form 10-K and subsequent reports filed or furnished with the SEC, as well as today's earnings release. The company expressly disclaims any obligation to update any forward-looking statements, except as required by applicable law. In addition, during today's call, the company will discuss certain non-GAAP financial measures. Reconciliations of the directly comparable GAAP measures to these non-GAAP measures can be found in the slide presentation that accompanies our prepared remarks, which can be found on our Investor Relations websites. I'll now turn the call over to Sean Gadd.

Thank you, Casey, and thank you all for joining the call to discuss Latham's fourth quarter and full year 2025 results. For my first conference call as CEO of Latham, I have the good fortune to be reporting on the strong results that the company achieved in both the fourth quarter and the full year of 2025. This performance demonstrates excellent execution by the Latham team. As you have seen from this afternoon's earnings release, fourth quarter revenues were up 15%, showing solid growth across all of our product lines. We were especially pleased by the fourth quarter pickup in our in-ground pool sales, which brought our full-year in-ground pool sales to 1% above 2024 levels. Impressive performance for an industry in which we estimate the U.S. in-ground pool start declined low to mid-single digits. With the benefit of good weather, and extended selling season, dealers were able to work through their backlog. The strong result reflects an increased demand for Latham fiberglass pools. Fiberglass represented 76.5% of our in-ground pool sales in 2025, the year-on-year growth of Latham's fiberglass pool sales of approximately 2.5%. As a market leader, Latham has been the key driver behind the increased adoption of fiberglass pools. which we estimate gained another percentage point of market share in 2025, to account for approximately 24% of last year's U.S. pool starts. The steady growth in fiberglass market penetration in the U.S. reflects the success of Latham's branding and marketing programs, emphasizing the benefits of a fiberglass pool against any alternative solution. Competitive strength of fiberglass pools, namely their fast and easy installation, sleek designs matching current consumer preference and lower maintenance requirements for an affordable price makes latent fiberglass pools the best alternative in the marketplace. While the estimated 24% penetration of U.S. pool start for 2025 represents significant growth from 16% in 2019, this is considerably below the 70% fiberglass penetration in my home country of Australia. and meaningfully below the approximate 40% to 50% penetration in key European markets, which really excites me as I think about the future and the size of the opportunity. When I consider the attributes of fiberglass from the vantage point of my many years of experience successfully selling against the standard in the building industry, I see substantial runway for accelerated conversions to fiberglass, particularly in the sand states, which I'll talk about in a moment. Another key accomplishment for 2025 has been the positive momentum in our covers and line of product lines, which delivered a meaningful contribution in both fourth quarter and full year sales results. The 22% growth in order cover sales in 2025 was a function of very positive consumer response to the unparalleled safety and peace of mind that order covers offer. This is further highlighted by our partnership with Olympic gold medalist and pool safety advocate, Bodie Miller, and his wife, Morgan, to promote pool safety and the safety advantages of our auto covers. As a reminder, Latham's auto covers are compatible with all in-ground pool types, with the advantage of providing the homeowner with a significantly more attractive alternative to fencing, while also delivering cost savings from reduced water evaporation reduce energy for pool heating, and reduce chemical consumption. Essentially, water covers pay for themselves within four to five years. Liner sales increased 4% in 2025 thanks to our industry-leading lead times and the successful rollout of our proprietary AI-powered measuring tool. The measure streamlines the liner and winter safety cover measurement and coating process for installers, ensuring a high degree of accuracy that can be completed in as little as 30 minutes. This tool is fully integrated with the Latham order entry and processing system, which allows its installers to get real-time quotes, to submit orders, and track their status, while providing Latham with a first look at all quoting opportunities and helps optimize schedules and operations. Approximately 20% of installers who purchased this tool during the year were new to Latham, enabling share gain in our liner and winter safety cover products. In 2025, the Latham team executed effectively on a strategic priority, expanding into the SAM states. In particular, the company gained considerable ground in Florida, our initial target market, achieving double-digit sales growth for the year. This good growth was achieved by expanding our dealer network, establishing a presence for Latham in several master plan communities, and nurturing our strategic partnerships with select custom home builders who will feature our fiberglass pools in their developments when they begin building. The percentage of Latham sales volumes derived from the sandstates remains steady at approximately 17%. This reflects our considerable growth in Florida and our pickup in Arizona, offset by the tough Texas markets where pool permits decline at a double-digit rate. I recently spent two weeks in Florida engaging with the commercial team and some of our dealers while visiting our priority master plan communities and touring our Zephyr Hills manufacturing facility, which demonstrated to me that Latham has the best fiberglass pools in the industry. I came away even more enthusiastic about the opportunity and upside in Florida, more than I had originally thought when I was doing my research in joining Latham. First, the opportunity for fiberglass pool penetration in Florida and other sand states is large. Second, the advantage of fiberglass pools are resonating with qualified established dealers, several of whom indicated their desire to partner with us in our master plan communities. They recognize the benefits of providing their customers with a high-quality product which boasts lasting durability, elegant appearances, and a smooth, low-maintenance finish. Not only do they get to sell a great product that meets the needs of the homeowners, are able to capture the benefit of quicker, easier installation. Shorter cycle times mean that dealers can improve their cash flow through the install process and triple or quadruple the number of pools they sell and install annually, resulting in more profit for them in the end. Thirdly, Latham clearly has increased its brand awareness amongst consumers and dealers in Florida. With several high-profile marketing campaigns paired with local activations, We still need to do more of this as the number one gap I see is ensuring the homeowners gain awareness of the true benefits of fiberglass and why it is the right solution for their backyard to enable their dreams of creating wonderful memories to come true. Together with the speed at which our pools can be installed allows homeowners to enjoy their pools in days instead of the traditional months when compared to the standard, which is concrete. In 2026, We plan to increase our investment in branding and marketing in a very targeted way to capture greater consumer awareness with a network of trusted dealers who are able to fulfill the demand we generate. I'm excited to bring a market development framework and approach to Latham that I believe will make us even more effective than we've been to date. As we continue to focus on accelerating organic growth, you can also expect Latham to continue to consider select acquisitions that provide us with revenue synergies and or expanded geographic reach that will be accretive to our earnings. Just a few days ago, we completed an acquisition that meets all three criteria. Oliver will provide more detail shortly. From my perspective, Freedom Pools represents excellent acquisition in that it, one, significantly expands our market position in Australia and New Zealand, two, countries where fiberglass pools are highly preferred by consumers and builders, Two, it gives us entry into new markets in Western Australia, which represent a large market of Perth and one of the fastest-growing cities in Australia. And thirdly, it is immediately accretive to our earnings. We welcome the Freedom team to Latham. To sum up, our fourth quarter and full year 2025 performance demonstrates Latham's fundamental strengths and ability to drive considerable growth in sales and adjusted EBITDA in a down market. This proven capability differentiates us in the marketplace and provides the foundation for future growth and enhanced profitability. Now I'll turn over the call to our CFO, Oliver Glow, who will provide further detail in our Q4 and full-year financial performance, including the drivers of our continued margin expansion in 2025 and in support of our 2026 guidance. Oliver.