Hayward Holdings, Inc. (HAYW): Business Model Canvas [Dec-2025 Updated]

You're looking at the engine behind Hayward Holdings, Inc. (HAYW), a company guiding 2025 net sales between $1.095 billion and $1.110 billion, and honestly, it all boils down to one thing: the sticky, non-discretionary aftermarket, which drives about 85% of their net sales. As a former analyst, I can tell you that knowing how they lock in that revenue-with smart, connected tech like OmniX and a channel strategy built on pool professionals-is key to understanding their valuation. Dive below to see the full nine blocks of the Business Model Canvas that keep this pool giant swimming strong.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Hayward Holdings, Inc. relies on to move product and maintain its market position as of late 2025. These aren't just casual acquaintances; these are deep, often exclusive, ties that drive revenue and manage the flow of goods.

Pool & Hot Tub Alliance (PHTA) for industry advocacy and safety initiatives

Hayward Holdings, Inc. maintains a visible commitment to industry standards and safety through its relationship with the Pool & Hot Tub Alliance. This partnership was recently highlighted by a significant contribution at the 2025 Pool and Spa Show in Atlantic City, N.J..

• Reaffirmed Platinum-level partnership status with Step Into Swim.
• Presented a $100,000 donation to Step Into Swim in January 2025.
• The donation comprised $50,000 in cash and $50,000 in equipment.
• With PHTA's match on the monetary portion, the total impact reached $150,000.

Pool professionals, builders, and dealers (channel partners) for installation and service

The strength of Hayward Holdings, Inc.'s distribution relies heavily on its trade network. The company boasts the status of the '#1. Products brand amongst U.S. pool professionals.'. The installed base of pools, which provides continuous aftermarket opportunity, is a key driver, with the aftermarket representing approximately 85% of net sales.

Here's a quick look at the scale of the business supported by these channel partners as of the third quarter of fiscal year 2025:

Exclusive equipment agreements with pool fabricators like Plungie in North America

Strategic, exclusive agreements lock in equipment placement for new installations. Hayward Holdings, Inc. has an exclusive agreement with Plungie to outfit all future installations in North America exclusively with Hayward pool equipment. This deal specifically emphasizes the integration of Hayward's ultra-high efficiency pumps, the Omni automation platform, and AquaRite S3 salt chlorinators.

Suppliers and manufacturers for raw materials and components

Managing the input side of the business is critical, especially given ongoing supply chain considerations. Hayward Holdings, Inc. has been actively working to reduce dependency on China to mitigate supply chain risks. The operational scale supported by these suppliers is substantial, as evidenced by the third quarter fiscal 2025 Gross Profit of $125.1 million.

Logistics and distribution partners to manage global supply chain

Hayward Holdings, Inc. moves its portfolio through specialty distributors, retailers, and buying groups. The company's global reach, including operations in Europe & Rest of World, requires a robust logistics network to support its sales, which saw North America net sales at $187.1 million in Q1 2025 and Europe & Rest of World net sales at $41.8 million in Q1 2025.

Finance: draft 13-week cash view by Friday.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Key Activities

You're looking at the core engine room of Hayward Holdings, Inc. (HAYW) operations as of late 2025. These are the things the company absolutely has to nail every day to keep the lights on and the profits flowing.

Research, development, and engineering (R&D) of smart pool technology

Hayward Holdings, Inc. keeps its product line fresh by investing in R&D, especially around its connected pool offerings. For the second quarter of fiscal 2025, the spend on research, development, and engineering was exactly $6.1 million. That number represented a consistent 2% of net sales for that period, showing a steady commitment to innovation even while managing other costs.

Global manufacturing and operational efficiency improvements

The focus here is squeezing more margin out of every unit made, which you can see clearly in the gross profit margin trend across 2025. The company achieved a gross profit margin of 49.5% in the first quarter. That improved significantly to a record 52.7% by the second quarter, and then settled at 51.2% in the third quarter of fiscal 2025. The Q2 jump was explicitly credited to operational efficiencies within the manufacturing facilities. Furthermore, the adjusted EBITDA margin hit 29.5% in Q2 and was reported at 24.2% in Q3, showing strong overall operational leverage.

Strategic pricing to offset inflation and tariffs

Pricing actions were a major lever to counter rising costs. You saw a planned incremental pricing of 5-6% mentioned early in the year to offset tariff impacts. Specifically, a 3% price increase hit North America in April 2025, with another 4% increase slated for June 2025. For the second quarter, the North America segment saw a 6% increase in net price, and the company noted a total positive net price contribution of at least 4% for the full second quarter.

Managing a multi-channel distribution network

Hayward Holdings, Inc. relies heavily on its established channels, particularly in North America. The North America segment accounted for approximately 85% of total net sales in Q2 2025, the same percentage it represented in Fiscal Year 2024. The aftermarket business, which is crucial for steady revenue, historically makes up about 80% of net sales. Looking at Q3 2025 figures, North America net sales were $208 million, while the Europe and Rest of World segment brought in $36 million.

Executing tariff mitigation plans to reduce China sourcing

Dealing with tariffs required a direct, quantifiable action on sourcing. The initial estimated annualized cost increase from tariffs was about $85 million, with roughly $30 million expected to hit the 2025 fiscal year. The core activity here is the supply chain shift: Hayward Holdings, Inc. is executing a plan to reduce its direct sourcing from China into the U.S. from approximately 10% of cost of goods sold down to 3% by the end of 2025. This progress was confirmed in Q3, showing the exposure was indeed reduced to 3%.

Here's a quick look at the tariff-related financial impact and mitigation targets:

The company's ability to maintain guidance despite these headwinds shows the effectiveness of these activities. For instance, the full-year 2025 net sales guidance was raised to a range of $1.095 billion to $1.110 billion by Q3, up from earlier projections.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Key Resources

You're looking at what really backs Hayward Holdings, Inc. (HAYW) in the market as of late 2025. It's not just about the products; it's about the tangible assets that let them execute their strategy, especially as they guide 2025 net sales toward $1.095 billion to $1.110 billion.

Strong, recognized brand in residential and commercial pool markets

The brand equity is a major asset, plain and simple. Hayward is recognized as the #1 products brand amongst U.S. pool professionals. This strong positioning helps drive demand across their segments, which, as of Q3 2025, saw net sales increase 7% year-over-year to $244.3 million for the quarter.

Intellectual property: over 550 current and pending patents globally

Innovation is locked up in their IP portfolio. They hold over 550 current and pending patents globally. This intellectual property underpins their technology leadership, which is a key driver for their confidence in achieving an Adjusted EBITDA margin of 29.5% in Q2 2025.

Here's a quick look at how their technology and IP stack up:

Technology platforms like OmniLogic and the SmartPad™ pool equipment line

The push toward connected living is central, and their proprietary platforms are key enablers. OmniLogic is their cloud-based automation platform, integrating with systems like URC Total Control®. The SmartPad™ line is where this technology lives on the equipment side. The adoption of these leading SmartPad™ products is significant, representing approximately 85% of net sales in Q2 2025. This focus on technology leadership is what Hayward cites as a driver for their long-term outlook.

The technology focus translates directly into their revenue mix:

• Aftermarket sales, heavily influenced by these upgrades, represented approximately 85% of net sales in Q2 2025.
• Automation & Sanitization accounted for 21% of Net Sales by Product Category (Q1 2025 data).
• ~90% of products are associated with sustainability themes, often tied to energy-efficient tech like variable speed pumps.

Global manufacturing and distribution footprint, including the new Mocksville, NC center

You need the physical network to service the installed base. The Mocksville, NC center, a 324,000 square-foot distribution facility, was part of a larger expansion program that also included a center in Phoenix, Ariz. When combined with the Clemmons facility, the Southeast footprint totals approximately 1.3 million square feet of combined manufacturing and distribution space. They also maintain manufacturing plants in Spain and China.

Here's the physical footprint breakdown:

Resilient installed base of pools driving replacement demand

The installed base is the foundation for recurring revenue. The installed base of pools increases every year, which provides continued growth opportunities. This base fuels the aftermarket, which is a huge part of their business. For instance, the aftermarket represented approximately 85% of net sales in Q2 2025. The company has long-term relationships, with over 1+ year relationships with their top 20 customers. This installed base, combined with secular tailwinds like sunbelt migration, supports their raised 2025 Adjusted EBITDA guidance of $292 million to $297 million.

The replacement market strength is clear:

• Aftermarket sales historically represented about 80% of net sales.
• Aftermarket sales represented 85% of net sales in Q2 2025.
• The installed base grows every year.

Finance: draft 13-week cash view by Friday.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Value Propositions

Smart, connected pool automation, exemplified by the adoption of their technology-enabled products, underpins a key value stream for Hayward Holdings, Inc. The company explicitly drives increasing adoption of its leading SmartPad™ pool equipment products in both new construction and the aftermarket. This focus on innovation is backed by investment; for example, Research, Development, and Engineering expenses in the first quarter of fiscal 2025 were $6.0 million, representing 3% of that quarter's net sales. Furthermore, approximately 20% of gross sales in Fiscal Year 2024 came from new or next-generation products launched in the preceding three years, showing a commitment to evolving the connected experience.

Energy-efficient and sustainable pool equipment is a core component of the offering, aligning with secular demand trends in outdoor living. The company's mission includes delivering products that are energy-efficient and sustainable. The financial success resulting from this focus and other operational efficiencies is reflected in the updated full-year 2025 guidance, which projects net sales between $1.095 billion and $1.110 billion.

The comprehensive product portfolio covers the entire pool pad, which supports the resiliency of the business model. This broad offering is critical because the aftermarket, which relies on repair and replacement across all equipment categories, historically represented approximately 80% of net sales. The strength of this installed base and aftermarket focus is evident in the third quarter of fiscal 2025 results, where the company reported a net income of $24.0 million and an Adjusted EBITDA of $59.1 million.

Aftermarket resiliency is a direct financial benefit of providing reliable equipment. The company's President and CEO highlighted the resiliency of their aftermarket model following the third quarter of fiscal 2025 results. This resiliency helped drive the net sales increase of 7% year-over-year to $244.3 million in the third quarter of fiscal 2025, despite macroeconomic factors. The company also successfully reduced its net leverage to 1.8x as of September 27, 2025, demonstrating a strong balance sheet supported by this recurring business.

High-quality, reliable products are validated by expanding profitability metrics. The gross profit margin for the third quarter of fiscal 2025 improved by 150 basis points to 51.2%. This operational excellence, which flows from product quality and service, contributed to the Adjusted diluted EPS increasing by 27% year-over-year to $0.14 in the third quarter of fiscal 2025.

Here are the key financial metrics supporting the value proposition strength as of late 2025:

The value proposition of a comprehensive portfolio is also reflected in segment performance. The North America segment, which accounts for the majority of sales, saw net sales increase by 7% to $208.2 million in the third quarter of fiscal 2025.

The company's commitment to its installed base is further shown by the cash flow generated. Cash flow provided by operations for the first nine months of fiscal 2025 was $283.0 million.

You can see the direct financial translation of these value propositions in the updated guidance.

• Net Sales Growth Expectation (from prior year): 4% to 5.5%
• Adjusted EBITDA Growth Expectation (from prior year): 5% to 7%

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Customer Relationships

You're looking at how Hayward Holdings, Inc. keeps its customers-both the pool professionals and the end-users-locked in. The relationship strategy heavily leans on the installed base, which is smart given the industry's nature.

Long-term, non-discretionary relationship with pool owners via the aftermarket cycle

This is the bedrock of the Hayward Holdings, Inc. model. The company benefits from the long-term ownership cycle of pool equipment. The product replacement cycle is estimated to be between 8 to 11 years, which creates predictable, recurring opportunities for aftermarket sales. For fiscal year 2025, management noted that approximately 85% of sales are aligned with serving the aftermarket needs of this existing installed base. This focus on non-discretionary maintenance demand is expected to remain resilient throughout 2025.

Digital engagement through connected product apps and platforms

Driving adoption of connected technology deepens the relationship post-sale. Hayward continues to push its leading SmartPad™ pool equipment products, which historically represented about 80% of net sales. For the Omni App, the attach rate for installed Omni-compatible products was reported around 4% as of 2023, showing a clear runway for digital engagement growth. The company's Q3 2025 performance reflected continued traction in strategic initiatives, which includes technology adoption.

Dedicated customer and technical training centers for channel partners

While specific metrics for training center attendance aren't public, investment in the customer experience is clear through operating expenses. Selling, general, and administrative expense (SG&A) for the first quarter of fiscal 2025 was $65.1 million, an increase of 9% year-over-year, driven in part by investments in customer-care and selling teams. This spending supports the channel partner ecosystem.

Partner Summits to foster strong relationships with pool professionals

Hayward Holdings, Inc. is recognized as the #1 products brand amongst U.S. pool professionals, based on historical data. The company maintains relationships with its Top 20 Customers for over 20+ years, showing deep channel commitment.

Direct sales support via local Hayward Flow Control Sales Representatives

The North America segment, which accounted for approximately 85% of total net sales in Fiscal Year 2024, relies on this direct support structure to drive adoption and service the channel. The company's focus on customer experience is a stated driver for positive results in 2025.

Here's a quick look at the key relationship and adoption metrics we have:

The overall strategy is clearly weighted toward supporting the existing pool owner base through service and replacement parts, which is reflected in the 85% aftermarket sales figure. Finance: draft 13-week cash view by Friday.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Channels

You're looking at how Hayward Holdings, Inc. gets its technology and products into the hands of pool owners and professionals as of late 2025. The strategy relies on a broad, multi-pronged approach to cover new construction, renovation, and the aftermarket.

Multi-channel distribution network (pool distributors, dealers, retailers)

Hayward Holdings, Inc. relies heavily on its established network of pool distributors, dealers, and retailers to move product. This channel is critical for reaching the vast majority of the market, especially for replacement parts and smaller equipment sales. While the exact count of these partners isn't public, the success of this structure is reflected in the overall financial performance. For instance, North America segment net sales, which flows through this network and direct channels, reached $208.2 million in the third quarter of fiscal year 2025, and $187.1 million in the first quarter of fiscal year 2025. The company's full-year 2025 net sales guidance, as of October 2025, is set between $1.095 billion and $1.110 billion.

The physical infrastructure supports this network. The distribution expansion program, which included the 2020 launch of a facility in Phoenix, AZ, and the opening of a new 324,000 square-foot distribution facility in Mocksville, NC by the end of 2021, is designed to service expanding North American, European, Australian, and Latin American markets. The Mocksville facility, combined with the Clemmons location, brought the Southeast-based footprint to approximately 1.3 million square feet of combined manufacturing and distribution operations.

The following table shows the latest reported segment net sales, which represent the output of these channels:

Direct sales to pool builders and service professionals

Direct engagement with pool builders is a key lever, especially for new construction equipment sales. The company has been actively growing its commercial presence. Following the acquisition and integration of ChlorKing, commercial sales in North America have approximately doubled, with management aspiring for commercial sales to eventually represent a double-digit percentage of the overall mix. This suggests a growing focus on direct or specialized professional channels for higher-value, integrated systems.

Global distribution centers, including new facilities in Mocksville, NC and Phoenix, AZ

The physical network is anchored by strategic locations. The Phoenix, AZ distribution center was established in 2020, and the Mocksville, NC facility was planned for a late 2021 opening. These centers support the global distribution network, which is crucial for getting products to channel partners efficiently. The company also targets having over 90% of North American product needs manufactured domestically by the end of 2025, which impacts the supply chain feeding these distribution points.

E-commerce platforms and digital tools for product information and ordering

While specific e-commerce revenue figures aren't broken out, digital tools are integrated into the customer experience. The company supports its channel partners through digital means, including a customer and technical training center within the Mocksville facility designed to promote and support their growth. The focus on technology adoption, with SmartPad™ pool equipment products representing approximately 85% of net sales as of the third quarter of 2025, implies a strong digital component to how these advanced products are specified and ordered.

Original Equipment Manufacturer (OEM) sales to pool fabricators

OEM sales represent another distinct channel where Hayward Holdings, Inc. supplies its components directly to other manufacturers for inclusion in their final products. This is a less visible but important part of the overall revenue base. The growth in North America net sales in Q1 2025 was bolstered by the acquisition and integration of ChlorKing, which likely includes OEM relationships within that business line.

• SmartPad™ technology adoption contributes to approximately 85% of net sales as of Q3 2025.
• North America segment net sales for Q3 2025 were $208.2 million.
• Full-year 2025 net sales guidance is set at $1.095 billion to $1.110 billion.

Finance: draft 13-week cash view by Friday.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Hayward Holdings, Inc. as of late 2025. Honestly, the business is heavily weighted toward the end-user, even though the sales flow through established partners. Here's the quick math on who is buying the equipment.

The primary revenue driver is the residential pool owner market, which the company has historically supported with an aftermarket model that accounts for approximately 80% of net sales. This aftermarket focus suggests a strong base of existing pool installations needing replacement parts and upgrades. While the prompt specifies a 90% revenue driver for residential owners, the concrete data point available points to the resilient aftermarket component.

The sales motion relies on deep relationships with the trade. Hayward Holdings emphasizes a push-pull strategy with its distribution network. For instance, the company noted having 20+ year relationships with its top 20 trade customers in prior disclosures, showing a commitment to these primary channel partners.

The Customer Segments can be broken down as follows:

• Residential pool owners (driving the core, non-discretionary aftermarket revenue).
• Pool builders, service professionals, and remodelers (serving as the primary channel partners).
• Commercial pool operators (such as hotels and municipal pools, which utilize the company's broad portfolio).
• Industrial and municipal customers (relying on Hayward Holdings for flow control products).

Geographically, the business remains overwhelmingly concentrated in North America. For the second quarter of fiscal 2025, the North America segment was responsible for net sales of $255.2 million out of total net sales of $299.6 million, representing approximately 85% of the total.

Here is a snapshot of the key quantitative elements defining these customer segments as of the latest reported periods in 2025:

The resilience of the business is directly tied to the non-discretionary nature of the aftermarket segment, which is a key differentiator when dealing with end-users who need to maintain their existing pool systems. If onboarding takes 14+ days, churn risk rises, especially for the service professional segment relying on quick parts availability.

Finance: draft 13-week cash view by Friday.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Cost Structure

You're looking at the core expenses Hayward Holdings, Inc. is managing to keep its business running and growing as of late 2025. Honestly, for a manufacturer, the cost structure is where you see the real-time impact of global pressures.

Manufacturing and procurement costs are a major component, naturally. We saw direct evidence of this pressure translating to customer pricing in one division; for instance, Hayward Flow Control implemented an average 8% price increase on all orders received on or after June 16, 2025, specifically citing rising material, shipping, and manufacturing costs, alongside exchange rate changes. This move was necessary to continue meeting quality standards.

Selling, General, and Administrative (SG&A) expenses reflect the cost of running the broader organization, including sales teams and overhead. For the third quarter of fiscal 2025, SG&A expenses represented 28.6% of net sales. This was an increase from the prior year's 28.3% of net sales, driven by factors like higher incentive compensation, wage inflation impacting salaries for selling and customer care teams, and a non-recurring litigation expense, though partially offset by lower warranty costs.

Here's a quick look at some key Q3 2025 cost and financial structure metrics:

Research, Development, and Engineering (R&D) spending is a necessary investment for future product cycles, totaling $7.1 million in Q3 2025. This supports the company's focus on innovation, like the OmniX Automation Platform, which saw double-digit sales growth.

Debt servicing costs are managed through balance sheet strength. Interest expense, net, for the third quarter of fiscal 2025 was $11.3 million, marking a 14% decrease from the prior-year period. This reduction stemmed from lower interest rates on the first lien term loan facility and higher interest income earned on cash deposits. The strong cash flow generation allowed Hayward Holdings, Inc. to further strengthen its balance sheet, reducing net leverage to 1.8x by the end of Q3 2025.

Costs associated with tariff mitigation and supply chain diversification are significant operational considerations. The company estimated an annualized cost increase from tariffs of approximately $30 million, with about $18 million impacting the fiscal year 2025. Hayward Holdings, Inc. took decisive action to address this risk:

• Reduced direct sourcing from China from approximately 10% to 3% of cost of goods sold by year-end 2025.
• Achieved net sales growth in North America driven by positive net price realization intended to offset inflation and tariffs.
• Reported that gross profit margin expansion was driven, in part, by tariff mitigation actions.

Hayward Holdings, Inc. (HAYW) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Hayward Holdings, Inc. (HAYW) revenue generation, which is heavily anchored in the recurring, high-margin nature of pool equipment replacement and maintenance. Honestly, the core strength here is the aftermarket.

The business model relies on the sale of pool equipment and technology, but the real stability comes from the aftermarket, which represents about 85% of net sales. That's where the long-term value is built, selling parts and upgrades to existing pool owners. For the full fiscal year 2025, Hayward Holdings, Inc. has raised its outlook, now expecting net sales to land between $1.095 billion and $1.110 billion. This updated guidance reflects management's confidence following a strong third quarter.

The revenue mix is also being intentionally shifted toward higher-margin, smart, and connected products. Think about innovations like OmniX or SmartPad™, which drive higher average selling prices and better customer lock-in. This focus on technology is a key part of the strategy to enhance profitability, which you can see reflected in the margins.

The company's revenue generation is clearly segmented geographically, showing growth momentum in both major areas during the third quarter of 2025. The drivers for the Q3 net sales increase of 7% year-over-year were positive net price realization, which contributed 5%, and a 2% increase in volume. This positive net price realization helped push the Q3 2025 Gross Profit Margin to 51.2%.

Here's a look at the segment performance for the third quarter of 2025:

The E&RW segment showed particularly strong margin improvement, with its gross profit margin increasing by 750 basis points to reach 41.9% in the quarter. This was aided by a cumulative tariff refund and operational improvements. The NAM segment also saw margin expansion, increasing 50 basis points to 52.8%.

You can break down the revenue drivers contributing to the overall financial performance:

• Sales of pool equipment and technology, with aftermarket sales being the bedrock at approximately 85% of net sales.
• Positive net price realization, which accounted for 5% of the Q3 net sales growth.
• Increased volume, contributing 2% to the Q3 net sales growth.
• Growth across both the North America segment (sales up 7%) and the Europe & Rest of World segment (sales up 11%) in Q3.

The company is definitely pushing its connected product sales as a strategic lever.

Finance: draft 13-week cash view by Friday.