Daniel Hultberg

Daniel Hultberg requested a bridge from the 2025 EBITDA to the 2026 guidance, asking for quantification of components beyond the storage headwind. He also asked if the M&A spend from Q2 2025 would trickle through to 2026 EBITDA growth and if 2024/2025 M&A levels are a good indicator for future spend.

Answer

CFO Matt Jacobsen stated that the primary component in the EBITDA bridge is the $50 million traditional storage headwind, with the remaining conservatism bringing the guide to $900 million. He reiterated that sustained commercial activity would lead to better performance. President and CEO Tim Boswell clarified that the impact of Q2 2025 acquisitions is fully integrated into the run rate exiting 2025, with no incremental impact expected for 2026. He suggested that the M&A levels from 2024/2025 are a reasonable assumption for tuck-in acquisitions (roughly 25% of available capital) over time, but specific guidance is not provided due to unpredictability.

Daniel Hultberg requested a detailed bridge from the 2025 Adjusted EBITDA to the 2026 guidance, asking for quantification of components beyond the previously mentioned storage headwind.

Answer

President and CEO Tim Boswell stated that the $50 million storage headwind is the largest component, and the remaining conservatism brings the guide to $900 million, implying that other factors are relatively minor or offset each other. For his follow-up, Daniel Hultberg asked if the M&A spend from 2025 would contribute incrementally to 2026 EBITDA growth and if the M&A levels from 2024 and 2025 are indicative of future spend. President and CEO Tim Boswell clarified that the impact of 2025 acquisitions is fully integrated into the 2025 run rate, with no incremental contribution expected for 2026. He suggested that the historical allocation of roughly 25% of available capital to tuck-in acquisitions serves as a reliable framework over time, though M&A guidance is not provided due to unpredictability.

Daniel Hultberg asked about the key factors that would lead to the low versus high end of the 2026 EPS guidance range and the confidence in new pool construction and renovation/remodel projections based on customer backlog.

Answer

CFO Melanie Hart stated that the EPS range primarily depends on overall market conditions and resulting sales growth. CEO Pete Arvan noted encouraging optimism from dealers regarding new pool construction, with many expecting to build at least as many pools as last year, and some being optimistic for growth, though actual contracts are yet to materialize.

Daniel Hultberg asked about the key factors that would lead PoolCorp to the low versus high end of its 2026 EPS guidance range. He also inquired about customer backlog and the company's confidence in its new pool (flat) and renovation/remodel (slightly up) projections.

Answer

Melanie Hart (CFO) stated that the EPS range primarily depends on overall market conditions and resulting sales growth. Pete Arvan (CEO) reported encouraging optimism from dealers following the show season, with many expecting to build at least as many pools as last year, and some even more optimistic. He noted that the general sentiment on new pool construction is more encouraging than not.