Hayward Holdings, Inc.HAYW
Hayward Holdings, Inc. Segments Disclosure
Note 12. Segments and Related Information
The Company’s operational and management structure is aligned to its key geographies and go-to market strategy resulting in two reportable segments: North America (“NAM”) and Europe & Rest of World (“E&RW”). Operating segments have not been aggregated to form the reportable segments. The Company's CODM is the President and Chief Executive Officer. The Company determined its reportable segments based on how the Company’s CODM reviews the Company’s operating results in assessing performance and allocating resources. The CODM uses segment income in assessing performance of and allocating resources to the reportable segments. Segment income is defined as net sales less cost of sales, less segment selling, general and administrative expense (“SG&A”) and research development and engineering expense (“RD&E”), excluding acquisition and restructuring related expense, as well as amortization of intangible assets recorded within SG&A expense.
The CODM does not evaluate reportable segments using asset information as these are managed on an enterprise-wide basis. The accounting policies of the segments are the same as those of Holdings.
NAM manufactures and sells residential and commercial swimming pool equipment and supplies as well as equipment that controls the flow of fluids.
E&RW manufactures and sells residential and commercial swimming pool equipment and supplies.The Company sells its products primarily through distributors and retailers. Financial information by reportable segment is included in the following summary (in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||
| North America | Europe & Rest of World | Total | |||||||||||||||
| External net sales | $ | 959,158 | $ | 162,997 | $ | 1,122,155 | |||||||||||
| Significant Segment Expenses | |||||||||||||||||
| Cost of sales | 480,252 | 103,213 | 583,465 | ||||||||||||||
| Segment selling, general and administrative expense | 168,270 | 31,921 | 200,191 | ||||||||||||||
| Research, development and engineering expense | 25,878 | 1,323 | 27,201 | ||||||||||||||
| Segment income | 284,758 | 26,540 | 311,298 | ||||||||||||||
Capital expenditures (1) | 27,986 | 1,907 | 29,893 | ||||||||||||||
Depreciation and amortization (1)(2) | 26,530 | 1,761 | 28,291 | ||||||||||||||
| Intersegment sales | 20,464 | 776 | 21,240 | ||||||||||||||
(1) Capital expenditures and depreciation associated with Corporate are not included in these totals. (2) Amortization expense excluded from segment income is not included in these totals. | |||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||
| North America | Europe & Rest of World | Total | ||||||||||||||||||
| External net sales | $ | 895,498 | $ | 156,108 | $ | 1,051,606 | ||||||||||||||
| Significant Segment Expenses | ||||||||||||||||||||
| Cost of sales | 462,224 | 102,406 | 564,630 | |||||||||||||||||
| Segment selling, general and administrative expense | 147,020 | 30,811 | 177,831 | |||||||||||||||||
| Research, development and engineering expense | 24,519 | 1,259 | 25,778 | |||||||||||||||||
| Segment income | 261,735 | 21,632 | 283,367 | |||||||||||||||||
Capital expenditures (1) | 24,699 | 2,144 | 26,843 | |||||||||||||||||
Depreciation and amortization (1)(2) | 24,974 | 1,215 | 26,189 | |||||||||||||||||
| Intersegment sales | 19,171 | 157 | 19,328 | |||||||||||||||||
(1) Capital expenditures and depreciation associated with Corporate are not included in these totals. (2) Amortization expense excluded from segment income is not included in these totals. | ||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||
| North America | Europe & Rest of World | Total | ||||||||||||||||||
| External net sales | $ | 823,276 | $ | 169,176 | $ | 992,452 | ||||||||||||||
| Significant Segment Expenses | ||||||||||||||||||||
| Cost of sales | 457,382 | 105,626 | 563,008 | |||||||||||||||||
| Segment selling, general and administrative expense | 127,057 | 28,897 | 155,954 | |||||||||||||||||
| Research, development and engineering expense | 23,412 | 1,135 | 24,547 | |||||||||||||||||
| Segment income | 215,425 | 33,518 | 248,943 | |||||||||||||||||
Capital expenditures (1) | 25,879 | 1,633 | 27,512 | |||||||||||||||||
Depreciation and amortization (1)(2) | 21,328 | 940 | 22,268 | |||||||||||||||||
| Intersegment sales | 13,964 | 215 | 14,179 | |||||||||||||||||
(1) Capital expenditures and depreciation associated with Corporate are not included in these totals. (2) Amortization expense excluded from segment income is not included in these totals. | ||||||||||||||||||||
The following table presents a reconciliation of segment income to income from operations before income taxes (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total segment income | $ | 311,298 | $ | 283,367 | $ | 248,943 | |||||||||||
| Corporate expense, net | 46,701 | 39,316 | 30,147 | ||||||||||||||
| Acquisition and restructuring related expense | 3,886 | 6,464 | 13,213 | ||||||||||||||
| Amortization of intangible assets | 27,461 | 28,800 | 30,361 | ||||||||||||||
| Operating income | 233,250 | 208,787 | 175,222 | ||||||||||||||
| Interest expense, net | 50,282 | 62,163 | 73,584 | ||||||||||||||
| Loss on debt extinguishment | — | 4,926 | — | ||||||||||||||
| Other (income) expense, net | (1,669) | (2,484) | 551 | ||||||||||||||
| Total other expense | 48,613 | 64,605 | 74,135 | ||||||||||||||
| Income from operations before income taxes | $ | 184,637 | $ | 144,182 | $ | 101,087 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 9, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.