Pool Corporation confirms 2026 earnings guidance after Q3 sales rise

Pool Corporation (Nasdaq: POOL) confirmed its full-year 2026 earnings guidance range of $10.66 to $10.96 per diluted share following the release of third-quarter results. The company reported that net sales increased 4% to $1.5 billion in the quarter, a rate of growth that accelerated from the 2% increase recorded in the second quarter.

The top-line expansion was driven by a 3% increase in pricing, alongside stronger maintenance activity and continued growth in building materials. Despite the sales gain, operating income fell 3% to $172.2 million, down from $178.0 million in the same period of 2025. This decline was attributed to higher inbound freight costs and customer mix, as well as the comparison against prior-year benefits from mid-season price increases. Gross margin decreased by 60 basis points to 29.0%, while selling and administrative expenses rose 5% to $264.1 million due to higher performance-based compensation and outside fees.

For the nine months ended September 30, 2026, net sales grew 4% to $4.5 billion. Adjusted diluted earnings per share increased 4% to $10.21, compared to $9.86 in the same period of the previous year. The company recorded $8.3 million in CEO transition costs during this period, which included $6.3 million in non-cash share-based compensation expense and $2.0 million in cash transition costs.

Operational efficiency remained a focus during the peak selling season. Inventory levels decreased by 3% at the end of the third quarter compared to the prior year, even as sales volume grew. This reduction in stock levels contributed to a 47% increase in net cash provided by operations, which reached $419.8 million for the first nine months of 2026.

Shareholder returns were funded primarily by these operating cash flows. Pool Corporation returned a total of $338.1 million to shareholders year-to-date through $140.1 million in dividends and $198.0 million in share repurchases. In the third quarter alone, the company returned $158.7 million via buybacks and dividends. Additionally, the quarterly dividend was increased by 4% to $1.30 per share, up from $1.25 per share in the third quarter of 2025.

Total debt outstanding increased by $104.9 million to reach $1.2 billion as of September 30, 2026. The company also reported a tax benefit of $0.7 million, or $0.02 per diluted share, from ASU 2016-09 for the nine-month period.

President and CEO John B. Watwood stated that the team delivered solid results while moving through the end of the peak selling season, emphasizing disciplined capital allocation and support for partners in the outdoor living industry.