Pool Corp (POOL) Q4 2025 Earnings Call Transcript | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 19, 2026
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Pool Corp (POOL) reported stable annual revenue of $5.3 billion, unchanged year over year, as maintenance demand helped offset weaker new pool construction activity. Fourth-quarter sales came in at $982 million, a 1% decrease compared to the prior year, which had benefited from elevated hurricane-related demand. Despite this dip, gross margin improved significantly, reaching 29.7% for the year—a 20 basis point increase—and 30.1% in the fourth quarter, up 70 basis points year over year, driven by disciplined pricing and supply chain efficiencies.
The company also highlighted mixed regional performance, with Florida and Texas experiencing declines in certain periods but showing signs of recovery in others. Notably, Europe saw a 4% local sales increase in Q4, marking the first growth in three years. Segment-wise, chemical sales declined slightly for the year, while building materials and commercial pool products showed modest gains. Digital initiatives continued to gain traction, accounting for 15% of total annual revenue, with digital sales reaching a record 17% during the pool season.
Pool Corp’s financial health remained strong, with $530 million returned to shareholders through cash distributions—a 10% increase over last year, including $341 million in share repurchases and a 4% dividend hike. The company also expanded its sales network, opening eight new locations and acquiring three more, bringing the total to 456 sales centers by year-end. Despite these positive signs, challenges remain: operating expenses rose 6% in Q4, driven by technology investments and higher medical costs, while the company awaits clearer signals of recovery in discretionary spending categories.
Looking ahead, Pool Corp expects low single-digit net sales growth for 2026 with gross margins expected to remain stable. The company plans to reinvest a portion of its earnings into capital expenditures, targeting 1%-1.5% of net sales, and has set aside $25 million to $50 million for potential acquisitions. However, risks such as elevated inventory levels—up 13% year over year—to meet anticipated cost increases for the upcoming season, along with rising operating expenses, could limit margin expansion if growth stalls. Overall, Pool Corp’s balanced performance underscores its
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Originally published on The Motley Fool on 2/19/2026