Revenue Growth Driven by Volume Expansion
Net sales increased 6.2% year-over-year to $1.14B in Q1 2026 (vs. $1.07B in Q1 2025), reflecting continued demand in the pool products distribution market despite seasonal headwinds typical of the first quarter.
Gross Margin Slight Compression
Gross margin declined modestly by approximately 17 basis points to 28.99% from 29.15% in the prior year period, as cost of revenue grew 6.5%—slightly faster than revenue growth of 6.2%—indicating mild cost pressure on product procurement or mix shift.
SG&A Expense Growth Outpaced by Revenue
SG&A expenses rose 5.3% to $247.3M, slightly below the 6.2% revenue growth rate, which helped operating income grow 6.5% to $82.6M and kept operating margin essentially stable at 7.26% vs. 7.24% in Q1 2025.