Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money

How does Latham Group, Inc. (SWIM), the defintely market leader in residential pools, manage to project a net sales range of $540 million to $550 million for fiscal year 2025 despite a challenging pool market? The answer lies in their strategic pivot to high-margin fiberglass pools, which are set to account for about 75% of their in-ground pool sales this year, plus a relentless focus on operational efficiency.

In fact, the company's nine-month 2025 net income already hit $18.1 million, a 60.3% jump from the prior year, showing their strategy is paying off.

If you're looking for the playbook on how a legacy business-backed by major institutional ownership at 83.95%-dominates a cyclical industry, you need to understand the history, ownership structure, and financial engine driving this pool empire.

Latham Group, Inc. (SWIM) History

You're looking for the foundation of a market leader, and Latham Group, Inc. (SWIM) is defintely that in the residential pool space. The company's history is a classic American story of a family-owned business evolving through strategic private equity ownership and finally a public listing, all while pivoting to a superior product: fiberglass pools. This evolution is key to understanding its current market dominance.

Latham Group, Inc.'s Founding Timeline

The company's roots trace back over six decades, starting as a small, family-run operation focused on the in-ground residential swimming pool industry.

Year established

The company was established in 1956.

Original location

Latham, New York, which is where the company gets its name and current headquarters.

Founding team members

Latham Group began as a family-owned business. While the specific original founders are not widely publicized, the company has a strong connection to the Laven family, who headed the business for a time and repurchased it in 2001 before its later private equity acquisitions.

Initial capital/funding

Details regarding the initial capital or funding from the 1956 founding are not readily available in the public domain. The company's major capital infusion came decades later through private equity and its public offering.

Latham Group, Inc.'s Evolution Milestones

The company's trajectory shows a clear pattern of shifting ownership to fuel growth and expansion, culminating in a major public listing.

Latham Group, Inc.'s Transformative Moments

The company's current market position is a direct result of three transformative decisions: a product pivot, a funding strategy, and a marketing overhaul. You can see this focus in its latest results; for the first nine months of 2025, Net Sales hit $446.0 million, up 5.9% year-over-year.

• Product Shift to Fiberglass: The strategic focus on fiberglass pools was a game-changer. Fiberglass offers durability and a quicker, easier installation compared to traditional concrete (gunite) pools, driving higher consumer adoption.
• Private Equity-Fueled Scale: The acquisitions by Wynnchurch Capital and Pamplona Capital Management injected significant capital, which allowed Latham Group to grow its manufacturing footprint and acquire key brands like Coverstar, expanding its product portfolio beyond just pools to covers and liners.
• Direct-to-Homeowner Marketing: Latham pioneered a direct-to-homeowner digital marketing strategy in an industry that traditionally relied on a business-to-business model. This generates high-quality, purchase-ready consumer leads for its dealer network, effectively creating its own demand.

This history of innovation and strategic financial moves is why we continue Exploring Latham Group, Inc. (SWIM) Investor Profile: Who's Buying and Why?, as the company is built to outperform the broader pool market. The Q3 2025 Adjusted EBITDA of $38.3 million, a 28.5% increase year-over-year, shows the margin expansion from these strategic efforts is paying off.

Latham Group, Inc. (SWIM) Ownership Structure

Latham Group, Inc. (SWIM) operates with a highly concentrated ownership structure, where institutional investors, particularly private equity sponsors, hold a dominant majority, effectively steering the company's strategic direction despite its public status.

Given Company's Current Status

Latham Group, Inc. is a publicly traded company, listed on the NASDAQ Global Select Market under the ticker symbol SWIM. It completed its Initial Public Offering (IPO) in April 2021, pricing 20 million shares at $19.00 per share. As of late 2025, the company's market capitalization stands at approximately $839.09 million. This public status subjects it to Securities and Exchange Commission (SEC) reporting and transparency requirements, but the day-to-day governance is heavily influenced by its largest shareholders.

If you're looking to dig deeper into the company's performance metrics and balance sheet health, you should check out Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

The ownership structure is characterized by a significant institutional presence, which is typical for a company recently taken public by a private equity sponsor. Institutional investors control the vast majority of shares, which means large-scale investment firms and funds drive most of the trading volume and voting power.

The concentration is defintely high. For example, the top 310 institutional owners collectively hold over 123.4 million shares. This concentrated ownership means that decisions are often made with the long-term, large-scale financial goals of a few major funds in mind.

Given Company's Leadership

The company is steered by an experienced executive team, with an average management tenure of 3.5 years as of late 2025. This stability is a good sign, especially when navigating a challenging market environment like the one seen through 2025.

• Scott M. Rajeski: President and Chief Executive Officer (CEO). He has served as CEO since December 2020, with total yearly compensation of $2.31 million, including a significant portion in company stock and options.
• Oliver Carsten Gloe: Chief Financial Officer (CFO). He assumed the role in November 2023 and provides critical financial oversight, having previously been CFO of the Outdoors & Security business unit at Fortune Brands Innovations.
• Sanjeev Bahl: Chief Operating Officer (COO). He is responsible for global operations, supply chain, and procurement, bringing over 20 years of experience in these areas.
• Kaushal Bhikhesh Dhruv: Chief Information Officer (CIO) and Chief Information Security Officer (CISO). He manages the company's technology infrastructure and security.

The CEO, Scott Rajeski, directly owns 3.57% of the company's shares, valued at approximately $27.33 million, which aligns his personal wealth directly with shareholder returns. This is what you want to see: a leader with skin in the game.

Latham Group, Inc. (SWIM) Mission and Values

Latham Group, Inc.'s core purpose extends beyond being the largest pool manufacturer; it centers on driving industry innovation, fostering a culture of excellence, and embedding sustainability into its operations, all while aiming for significant financial growth, with 2025 guidance anticipating an 8% increase in sales at the midpoint.

Latham Group, Inc.'s Core Purpose

The company's cultural DNA is built on a commitment to quality, integrity, and a clear focus on outperforming the market, as evidenced by their 2025 strategy to increase fiberglass pool adoption, which is projected to represent approximately 24% of total U.S. in-ground pool sales this year.

Official Mission Statement (Derived from Stated Commitments)

While a single, formal mission statement isn't explicitly published, the company's stated commitments point to a clear operational and cultural directive:

• Foster a culture that empowers employees, supports innovation, and drives the industry forward.
• Define everything we do by quality and service, with integrity and respect as non-negotiable standards.
• Lead the way toward a more sustainable future for the industry by doing the right thing by our planet, our people, and our communities.

Vision Statement (Long-Term Aspirations)

Latham Group, Inc.'s vision is grounded in market leadership and operational excellence, which is why they were named one of 'America's Greatest Companies 2025.' Their long-term vision focuses on:

• Achieving long-term success by aligning business strategy with the expectations of shareholders and society at large.
• Continuing to outperform the in-ground pool market through strategic growth initiatives, like expanding the adoption of automatic safety covers.
• Maintaining a strong focus on environmental stewardship; for instance, the company achieved a 50% reduction in waste from fiberglass pool production in 2023 compared to 2022.

Here's the quick math: With a trailing 12-month revenue of $533 million as of September 30, 2025, the vision is clearly tied to continued profitable expansion. You can read more about the financial health here: Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors.

Latham Group, Inc. Slogan/Tagline

The company's messaging consistently emphasizes its market position and commitment to quality, often using descriptive phrases in lieu of a single, catchy slogan:

• The largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand.
• The Pool Company.
• Brand trust is among the most important factors people consider when shopping for outdoor products for their homes.

What this estimate hides is the defintely challenging pool start environment, but Latham's focus on fiberglass and covers is a clear counter-strategy.

Latham Group, Inc. (SWIM) How It Works

Latham Group, Inc. is the largest designer, manufacturer, and marketer of in-ground residential swimming pools, liners, and covers in North America, Australia, and New Zealand, primarily serving homeowners through a vast network of professional dealers and installers.

Latham Group, Inc.'s Product/Service Portfolio

Latham's business model is built on a diversified product mix that addresses both the new pool installation and the stable pool replacement/remodel market, with fiberglass pools being the key growth driver.

Latham Group, Inc.'s Operational Framework

Latham's value creation comes from its vertically integrated, decentralized manufacturing footprint combined with a dealer-centric distribution model. They don't sell directly to you, the homeowner; they equip the professional who installs your pool.

• Decentralized Manufacturing: The company operates approximately 30 locations across its core markets, which is the largest manufacturing footprint in the industry. This enables cost-efficient delivery and service to dealers, especially for oversized fiberglass shells.
• Dealer Network: Latham leverages a large, established network of highly skilled dealers and contractors who handle the final sale and installation. They support this network through training programs like 'Latham University' to improve installation quality and sales conversion.
• Lean Efficiency: Operational efficiency is a major focus. Through lean manufacturing and value engineering initiatives, Latham is driving down production costs, with cost-saving measures expected to generate $2 million to $2.5 million quarterly in 2025.
• Digital Enablement: They use proprietary technology like 'Measure by Latham,' an AI-powered measuring device, to streamline the ordering process for vinyl liners and safety covers, which defintely cuts down on dealer time and errors.

Latham Group, Inc.'s Strategic Advantages

The company's market success is grounded in its category leadership and its strategic focus on the fastest-growing segments of the pool market, even as the overall market remains flat in 2025 (estimated at 62,000 new pool installations in the US).

• Fiberglass Dominance: Latham is the market leader in the growing fiberglass pool category, holding about a 50% market share. This positions them perfectly to benefit from the ongoing consumer shift away from traditional concrete pools.
• Sand States Expansion: A key growth strategy is expanding fiberglass adoption in the high-volume 'Sand States' (like Florida and Texas), which account for roughly two-thirds of new U.S. pool starts annually. The U.S. fiberglass market share is still only around 23% of all in-ground pools, leaving massive room for growth.
• Replacement Market Stability: Their diversified portfolio, particularly the high-margin liners and covers, provides a stable revenue stream from the replacement market, which acts as a buffer against volatility in new pool construction. In Q3 2025 alone, Covers and Liners generated $86.5 million in net sales.
• Acquisition-Fueled Growth: Strategic acquisitions, such as the 2024 purchase of Coverstar Central, are immediately accretive, strengthening their position in the high-growth automatic safety cover segment and contributing to the projected 8% net sales growth for the full year 2025.

To understand the financial implications of these operational choices, you should read Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors.

Next Action: Marketing team: Develop a 3-slide internal deck by end of the month that quantifies the value proposition of the 'Measure by Latham' tool for dealers, using the 2025 Q3 sales data for liners and covers as a baseline.

Latham Group, Inc. (SWIM) How It Makes Money

Latham Group, Inc. makes money by operating as a vertically integrated manufacturer, selling a diversified portfolio of in-ground residential pools, pool covers, and pool liners primarily through a network of independent dealers and installers. The core of their revenue comes from manufacturing high-margin fiberglass pools, which are gaining market share against traditional concrete pools, plus a stable, recurring revenue stream from replacement products like liners and safety covers.

Latham Group, Inc.'s Revenue Breakdown

The company's revenue streams are split across three main product categories, with in-ground pools remaining the largest single contributor, based on the latest Q3 2025 financial data. This product mix is defintely a strength, balancing new construction sales with the more stable replacement market.

Business Economics

Latham's economic engine is built on manufacturing efficiency and a strategic shift toward higher-margin products. The key is their market leadership in fiberglass pools, which are faster to install and require less skilled labor than concrete (gunite) pools, offering a lower total cost for the homeowner and a quicker turnover for the installer. This focus on fiberglass is critical; it represents approximately 75% of their in-ground pool sales, positioning them to benefit disproportionately from the ongoing consumer shift in the US pool market.

Here's the quick math on their core strategy: they are pushing fiberglass pools, which generally carry a better margin than vinyl-lined pools, and aggressively growing the covers segment, which is high-growth and often mandated by new safety regulations. Plus, the liners and covers provide a recurring, aftermarket revenue stream that smooths out the cyclicality of new pool construction.

• Pricing Strategy: The company maintains an annual pricing cadence, typically announced in the winter, but remains flexible to adjust for raw material cost volatility, especially those driven by tariffs.
• Margin Drivers: Gross margin expansion, which hit 35.4% in Q3 2025, is primarily driven by operational improvements like lean manufacturing and value engineering initiatives.
• Tariff Mitigation: Management has successfully implemented strategies to fully mitigate the impact of current tariffs on raw materials as of Q3 2025, protecting their gross profit.

If you want to dive deeper into who is betting on this model, you can read Exploring Latham Group, Inc. (SWIM) Investor Profile: Who's Buying and Why?

Latham Group, Inc.'s Financial Performance

The company is demonstrating strong operating leverage and margin recovery despite a challenging new pool construction market. The latest financial data from Q3 2025 shows a clear trend of margin expansion and controlled debt. This is a business that is proving it can grow market share even when the overall industry is flat.

• Net Sales: For the nine months ended September 27, 2025, Net Sales were $446.0 million, marking a 5.9% increase year-over-year. Full-year 2025 Net Sales guidance is narrowed to a range of $540 million to $550 million.
• Adjusted EBITDA: Nine-month Adjusted EBITDA reached $89.4 million, up 16.7% from the prior year. The full-year guidance is set between $92 million and $98 million, reflecting significant operating leverage.
• Profitability: Gross margin expanded by 320 basis points to 34.6% for the first nine months of 2025. Net income for the nine-month period was $18.1 million, a substantial increase of 60.3%.
• Balance Sheet Health: As of the end of Q3 2025, the company held cash of $70.5 million and total debt of $281.1 million. The net debt leverage ratio improved to 2.3, down from 3.0 in the previous quarter, indicating a healthier balance sheet.

Latham Group, Inc. (SWIM) Market Position & Future Outlook

Latham Group, Inc. is positioned as the dominant player in the high-growth fiberglass pool segment, which is driving its projected 7% net sales growth and 19% Adjusted EBITDA growth at the midpoint for the 2025 fiscal year, despite a flat to slightly down overall U.S. pool market. The company's vertically integrated model and focus on the faster-installing fiberglass product line allow it to outperform the broader, cyclical residential construction industry.

Competitive Landscape

The overall U.S. in-ground pool construction market, valued at approximately $16.5 billion in 2025, remains highly fragmented, with a significant portion dedicated to traditional concrete pools and pool equipment. Latham's strategy is to capture market share through its fiberglass segment, where it holds a clear leadership position.

Here's the quick math: fiberglass pools are expected to represent approximately 24% of total U.S. in-ground pool sales in 2025. Latham holds roughly 50% of that fiberglass market, which translates to an estimated 12% of the total in-ground pool construction market. The remaining market is highly fragmented among thousands of local concrete and vinyl liner builders, plus major equipment providers like Fluidra and Pentair.

Opportunities & Challenges

The near-term outlook for Latham is a classic case of navigating a tough macro environment by focusing on internal efficiencies and secular growth trends, but you defintely need to watch the housing market closely.

Industry Position

Latham Group is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Its strategic position is built on manufacturing and distribution scale, which few competitors can match.

• Maintain a dominant ~50% market share in the North American fiberglass pool category, which is the fastest-growing segment.
• Drive margin expansion: Gross margin expanded by 300 basis points in Q3 2025 to 35.4%, primarily due to lean manufacturing and value engineering initiatives.
• Focus on long-term targets of approximately $750 million in net sales and $160 million in Adjusted EBITDA when the pool market normalizes to around 78,000 annual starts.
• Capital expenditure is revised to a range of $22 million to $24 million for 2025, reflecting a disciplined focus on high-return projects like Sand States capacity expansion.

To understand the core values driving this strategy, you can review the Mission Statement, Vision, & Core Values of Latham Group, Inc. (SWIM).