Pool Corporation: 2Q26 beat on SG&A, but 2026 guide unchanged; GM miss weighs on stock

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Pool Corporation: 2Q26 beat on SG&A, but 2026 guide unchanged; GM miss weighs on stock

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Pool Corporation

2Q26 beat on SG&A, but 2026 guide

unchanged; GM miss weighs on stock

Reiterate Rating: UNDERPERFORM | PO: 191.00 USD | Price: 183.33 USD

2Q26 adj. EPS beat on SG&A; 2026 guidance unchanged 23 July 2026

Pool Corp (POOL) reported 2Q26 adj. EPS of $5.38 (GAAP $5.17 incl. CEO transition Equity

charge), above our/Street’s $5.22/$5.33 ests, on better than expected SG&A leverage.

Despite the beat, management maintained adj. EPS guidance of $10.87-$11.17 (vs.

Key Changesconsensus of $11.07). We raise our 2026E adj. EPS by <1% to reflect the 2Q beat, but

lower our 2027E by ~2% to reflect a lower gross margin. We lower our PO to $191 (from (US$) Previous Current

$206), now based on a ~11.5x EV/2027E EBITDA (vs. previous 12x) to reflect lower Price Obj. 206.00 191.00

industry multiples. We reiterate our Underperform rating on continued margin pressure. 2026E EPS 11.05 10.87

2027E EPS 12.16 11.92

2Q26 revenue growth in line with full year guide 2028E EPS 13.39 13.12

2Q revenue increased 2% YoY with equipment +3% and building materials sales +5%,

partially offset by a (2%) decline in chemicals on lower pricing. Price contributed +3% to

Shaun Calnan, CFA

revenue growth and maintenance volumes were flat, while discretionary spending had a Research Analyst

(1%) contribution. Horizon (landscaping unit) sales (-5% YoY) were a headwind to BofAS +1 646 855 1362

revenue growth, while Europe was a positive contributor (+11% YoY). Management shaun.calnan@bofa.com

noted relatively stable trends throughout the quarter and expected similar trends for the Rafe Jadrosich

remainder of the year. 2026 top line guidance for LSD growth was unchanged, with ResearchBofAS Analyst