Pool Corporation Q2 sales rise 2%, net income falls on CEO costs

Pool Corporation (NASDAQ: POOL) reported second-quarter 2026 net sales of $1.8 billion, a 2% increase from the same period a year earlier, according to a company press release. Net income declined 3% to $188.1 million from $194.3 million in the second quarter of 2025.

Operating income fell 2% to $267.7 million, primarily due to $8.3 million in CEO transition costs recorded in the quarter. Excluding those costs, adjusted operating income rose 1% to $275.9 million. The transition costs consisted of $6.3 million in non-cash share-based compensation and $2.0 million in cash payments.

Diluted earnings per share was $5.17, unchanged from the second quarter of 2025. Adjusted diluted EPS, which excludes CEO transition costs, increased 4% to $5.38.

Gross margin declined 30 basis points to 29.7% from 30.0% in the year-ago period, which the company attributed to elevated inbound freight costs and changes in customer mix.

For the first six months of 2026, net sales rose 4% to $3.0 billion. Six-month net income fell 3% to $241.3 million, while adjusted net income increased 2% to $248.1 million. Six-month diluted EPS was $6.61, up from $6.57 in the prior-year period.

Total debt outstanding increased $110.8 million to $1.3 billion at June 30, 2026, which the company said was primarily to fund $266.7 million in open market share repurchases over the past twelve months. Inventory rose 4% year over year to $1.4 billion.

The company maintained its full-year 2026 diluted EPS guidance of $10.66 to $10.96, which includes $0.21 per share of CEO transition costs. Excluding those costs, the adjusted guidance range is $10.87 to $11.17 per diluted share. Both figures include $0.02 of year-to-date tax benefits under ASU 2016-09.

Pool Corporation operates 455 sales centers across North America, Europe, and Australia and distributes pool and backyard products to approximately 125,000 wholesale customers.

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