Executive Summary

Q4 2024 net sales fell 2% to $987.5M, gross margin held at 29.4% (+10bps YoY), operating margin compressed to 6.1%, and diluted EPS declined 26% YoY to $0.98; maintenance demand and supply-chain/pricing actions offset a weaker discretionary mix .
Management issued 2025 diluted EPS guidance of $11.08–$11.58 including an estimated $0.08 ASU tax benefit; sales outlook “flat to up slightly,” gross margin expected within 2024’s range and ~30% long-term target .
FY 2024 cash generation remained strong ($659.2M CFO), inventory reduced 6% to $1.289B, and total debt cut by $103M to $950.4M, supporting continued dividends ($1.20 per share declared Feb 26) and ~$306M buybacks in 2024 .
Near-term narrative: steady maintenance and private-label chemicals (mid-teens growth) and POOL360 adoption vs. continued pressure in new construction (~61k units, ~15% YoY decline) and remodel; Florida’s hurricane-driven repair activity provided a Q4 tailwind (+12% growth) .

What Went Well and What Went Wrong

What Went Well
- Florida outperformed with Q4 sales +12%, aided by hurricane-related repair and replacement; equipment sales +6% and chemicals +8% YoY in Q4; private-label chemicals grew mid-teens and POOL360 B2B orders reached 12.5% of Q4 orders vs. 11% LY .
- Gross margin resilience: 29.4% in Q4 (+10bps YoY) as pricing, supply-chain actions, and private-label mix offset product/customer mix headwinds; FY GM 29.7% benefited ~20bps from import tax reversal in Q1 .
- Strong cash discipline: FY CFO $659.2M (152% of net income), inventory down $76M, debt reduced by $103M, leverage ~1.4x below target range, with $483M returned to shareholders .
What Went Wrong
- Discretionary softness: new pool construction estimated ~61k units in 2024 (-15% YoY) and remodel spend >10% lower; Building Materials revenue fell 8% in Q4 and 10% for FY .
- Cost pressure and investments: Q4 opex +7% and operating margin down 180bps; 2024 opex +5% (tech initiatives and network expansion) with incremental ~$20M tech and ~$12M greenfield costs .
- International/irrigation headwinds: Europe sales -5% in Q4; Horizon -4% in Q4 and -6% FY, with ongoing PVC deflation (down ~20–25% YoY FY) and competitive chemical pricing pressure, especially early-season .

Financial Results

Quarterly progression (sequential comparison)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($USD Millions)	$1,769.8	$1,432.9	$987.5
Gross Margin (%)	30.0%	29.1%	29.4%
Operating Margin (%)	15.3%	12.3%	6.1%
Diluted EPS ($)	$4.99	$3.27	$0.98

Q4 year-over-year comparison

Metric	Q4 2023	Q4 2024	YoY Change
Net Sales ($USD Millions)	$1,003.1	$987.5	-2%
Gross Margin (%)	29.3%	29.4%	+10 bps
Operating Margin (%)	7.9%	6.1%	-180 bps
Diluted EPS ($)	$1.32	$0.98	-26%

Category/region performance (Q4 2024)

Category/Region	Q4 2024 YoY
Chemicals	+8%
Equipment (ex-cleaners)	+6%
Building Materials	-8%
Florida	+12%
Other year-round markets	-3% to -7%
Europe	-5%
Horizon (irrigation)	-4%

Key KPIs

KPI	Value
FY 2024 Net Sales ($USD Billions)	$5.311
FY 2024 Gross Margin (%)	29.7%
FY 2024 Operating Income ($USD Millions)	$617.2
FY 2024 Diluted EPS ($)	$11.30 (Adj: $11.07)
FY 2024 Operating Cash Flow ($USD Millions)	$659.2
Inventory ($USD Millions)	$1,289.3 (Dec 31, 2024)
Inventory Days	129 (FY)
DSO (days)	26.3 (FY)
Total Debt ($USD Millions)	$950.4 (Dec 31, 2024)
Leverage Ratio	~1.4x (FY)
POOL360 B2B Orders Share	12.5% in Q4 (vs. 11% LY)
Locations	448 at YE 2024

Estimates vs. Actuals (Q4 2024)

Metric	Consensus	Actual
Revenue ($USD Millions)	N/A – S&P Global data unavailable	$987.5
Diluted EPS ($)	N/A – S&P Global data unavailable	$0.98
EBITDA ($USD Millions)	N/A – S&P Global data unavailable	N/A

Note: Wall Street consensus via S&P Global was unavailable during retrieval; therefore, beat/miss vs. estimates cannot be assessed at this time.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Diluted EPS ($)	FY 2025	N/A	$11.08–$11.58 incl. ~$0.08 ASU benefit	New
Sales Growth	FY 2025	N/A	Relatively flat to up slightly	New
Gross Margin (%)	FY 2025	N/A	Within FY 2024 range and ~30% LT target	New
Interest Expense ($)	FY 2025	N/A	$40–$45M; higher in Q1–Q2 seasonally	New
D&A ($)	FY 2025	N/A	$50–$55M	New
OpEx Adds	FY 2025	N/A	~~$10M for new sales centers; incentive comp +~~$15M at low single-digit top-line	New
Capex	FY 2025	N/A	~1%–1.5% of net sales	New
M&A	FY 2025	N/A	$25–$50M	New
Dividends	FY 2025	N/A	~$200M cash use (subject to Board approval)	New
Tax Rate (ex-ASU)	FY 2025	N/A	~25% (quarterly mix ~25.5% in Q1, Q2, Q4; lower in Q3)	New
Shares (WASO)	FY 2025	N/A	~38.0M Q1; ~38.1M remaining quarters (pre-buybacks)	New
Cash Flow	FY 2025	N/A	90%–100% of net income; includes $68.5M deferred tax paid in Q1	New
Selling Days	FY 2025	N/A	1 fewer day vs. 2024; Easter later shifts openings Q1→Q2	New
FY 2024 EPS ($)	FY 2024	$11.06–$11.46 (Q3 maintained)	Actual $11.30 (Adj: $11.07)	Completed within range

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
POOL360 adoption & private-label	Ongoing rollouts; confirmed guidance; strong maintenance revenues	Tech rollouts and digital marketing; sustained GM; private-label chemical growth	B2B orders 12.5%; private-label chem mid-teens; new consumer app/test strips	Accelerating digital adoption
Supply chain actions	GM 30.0% with mix headwinds; supply-chain improvements	GM 29.1% stable; moderated opex growth	Pricing/supply-chain offsets to mix; GM 29.4% (+10bps YoY)	Stable-to-improving margin execution
Discretionary demand (new pools/remodel)	Hesitancy; Q2 net sales -5%	Discretionary softness continues; Q3 net sales -3%	New pools ~61k units (-15% YoY); remodel spend >10% lower; FY Building Materials -10%	Persistent headwind
Regional trends	Inventory and debt reduced	Balance-sheet strength; Europe soft	Florida +12% Q4; Europe -5%; other year-round -3% to -7%	Mixed (US Sunbelt strength; Europe soft)
Tariffs/commodities	Not highlighted	Not highlighted	China tariffs immaterial; possible Mexico/Canada pass-through; PVC deflation persists	Manageable tariff risk; commodity deflation ongoing
Horizon (irrigation)	Not highlighted	Not highlighted	FY -6% and Q4 -4%; focus on Sunbelt; commercial better than residential	Cyclical exposure; conservative expansion

Management Commentary

“Sales slightly better than our earlier expectations… maintenance business growth including double-digit private label chemical sales and continued development of our POOL360 ecosystem” — Peter D. Arvan, CEO .
“Gross margin of 29.4% was consistent with prior year… operating expenses increased… incremental technology investment… We maintained our significantly stepped up 2020 operating margin” — Melanie M. Hart, CFO .
“We expect earnings for 2025 to be in the range of $11.08 to $11.58 per diluted share, including an estimated $0.08 favorable impact from ASU 2016-09” — CEO .
“Florida showed resilience throughout the year and in the fourth quarter outperformed… 12% growth… repair and replacement activity following Hurricanes Helene and Milton” — CEO .

Q&A Highlights

POOL360 ecosystem momentum: Management expects continued sales benefits via proprietary product prescriptions and dealer efficiency; tools drive stickiness and private-label sales .
Pinch A Penny/DIY dynamics: Limited shift to DIY; franchisees’ growth tied to superior customer experience; Florida concentration amplified storm-repair benefits .
Construction outlook and cadence: New construction assumed “flattish,” with better second half vs. first half amid high-rate environment; dealer inquiries remain solid .
Gross margin drivers: Offsets to negative mix/accounting headwind include supply-chain initiatives, pricing action, and increased private label penetration .
Competitive/customer mix: Growth of national accounts via private equity consolidation; POOLCORP positioned to serve larger customers and gain share .
Commodities/chemicals pricing: Early-season competitive offers; chemicals pricing slightly below Q4 exit in Q1; PVC piping still under pressure .
Horizon strategy: Focus on Sunbelt, limited branch expansion until housing unlocks; commercial demand stronger than residential .
Labor availability: No significant change; prior capacity supports future growth even under policy shifts .
Long-term algorithm: Return to 6–9% top-line growth likely requires lower rates and housing market normalization; otherwise difficult with ~60k new pool units .

Estimates Context

S&P Global consensus EPS, revenue, and EBITDA for Q4 2024 were unavailable at time of retrieval due to data access limits; therefore, beat/miss vs. consensus cannot be assessed. Management commentary indicates results were “slightly better than earlier expectations,” but this does not substitute for Wall Street consensus .

Key Takeaways for Investors

Maintenance resilience and private-label chemical growth (mid-teens) plus POOL360 adoption underpin margins despite discretionary weakness; Florida repair tailwinds aided Q4 .
Gross margin stability (29.4% in Q4; +10bps YoY) reflects supply-chain and pricing execution; 2025 GM expected within FY 2024 range and ~30% LT target .
Discretionary headwinds persist: new construction ~61k units (-15% YoY) and remodel spend down >10%; expect first half weaker than second half absent rate relief .
Strong balance sheet/cash flow: FY CFO $659.2M, inventory down 6%, leverage ~1.4x—supports continued buybacks/dividends (declared $1.20 on Feb 26) .
2025 guidance indicates cautious top-line (flat to slight up) and EPS $11.08–$11.58 including ~~$0.08 ASU; watch opex adds (~~$10M) and potential incentive comp (~$15M) if growth improves .
Commodity/price environment: PVC deflation and early-season chemical pricing pressure remain headwinds; supply-chain/pricing and private label expected to offset .
Catalysts: Continued POOL360 penetration, private-label product expansion (including NPT finishes/tile), storm rebuild activity in Florida, and potential macro rate relief to unlock remodel/new construction demand .

Additional documents read:

Q4 2024 press release and 8-K (Item 2.02) – –.
Q4 2024 earnings call transcript (prepared remarks and Q&A) –.
Q3 2024 and Q2 2024 press releases for trend analysis – –.
Other Q4-related press releases (earnings release timing; dividend declaration) .

POOL CORP (POOL)·Q4 2024 Earnings Summary