Nicklaus Cash's questions to Hayward Holdings Inc (HAYW) leadership • Q1 2025
Question
Nicklaus Cash, on for Brian Lee, asked if bringing manufacturing back to the U.S. would increase factory utilization from its current ~60% level and whether this would help margins. He also questioned if this potential margin uplift was already included in mitigation plans or represented further upside.
Answer
CFO Eifion Jones confirmed that current U.S. facility utilization is around 60%. He projected that transferring 7% of production from China would increase utilization to the 'high 60s,' leaving significant headroom. He described the move as a '2 for 1' opportunity, as the company will add automation during the transfer, expecting to gain both leverage on the fixed cost base and a bill of material reduction. This benefit appears to be incorporated into the company's overall mitigation strategy.