Pool Corporation (NASDAQ:POOL) reported first-quarter results on Thursday that came in ahead of analyst expectations, supported by steady demand across key product categories.
The company posted adjusted earnings per share of $1.43, exceeding the consensus estimate of $1.35 by $0.08. Revenue reached $1.14 billion, topping forecasts of $1.1 billion and marking a 6% increase from the same period last year.
Shares rose 0.72% in premarket trading following the release.
Maintenance demand supports growth
Revenue gains were driven by consistent demand for maintenance-related products, along with a gradual recovery in discretionary categories such as construction materials.
Gross margin declined slightly by 20 basis points year-on-year to 29.0%, reflecting higher early-season purchasing activity and product mix effects. Operating income increased 7% to $82.6 million, while operating margin edged up 10 basis points to 7.3%.
“We are off to a solid start in 2026, with net sales up 6% and operating income growing 7% year-over-year,” said Peter D. Arvan, president and CEO. “Maintenance demand remained resilient, and we saw continued, though still gradual, recovery in discretionary categories.”
Earnings boosted by tax benefit
The company reported diluted EPS of $1.45, including a $0.02 per share tax benefit tied to ASU 2016-09. Excluding this impact, adjusted diluted EPS rose 8% to $1.43 compared with $1.32 in the first quarter of 2025.
Outlook maintained with slight upside to consensus
Pool Corp. reaffirmed its full-year 2026 earnings guidance of $10.87 to $11.17 per diluted share, which includes the first-quarter tax benefit. The midpoint of $11.02 is slightly above the analyst consensus of $11.00.
Inventory build and capital allocation
Inventory increased 14% year-on-year to $1.7 billion at the end of the quarter, reflecting higher purchases ahead of the peak pool season.
Total debt rose to $1.2 billion, largely due to $349.0 million in share buybacks executed over the past twelve months.