Fluidra narrows 2026 guidance after third quarter results

Fluidra SA (BME:FDR) on Thursday reported third quarter revenues of €521 million on Thursday, representing a 5% total increase and 1% organic growth compared to the prior year period.

The Spanish pool equipment manufacturer’s revenue came in 1% above expectations, with North America, Rest of World, and Rest of Europe regions driving the performance. North America posted 3% organic growth, while Southern Europe and Rest of Europe each grew 1%. Rest of World remained flat year-over-year.

The company’s gross margin reached 54.9%, falling short of the 56.0% consensus estimate by approximately 115 basis points. The margin declined both sequentially and year-over-year due to ongoing inflation pressures and negative product mix.

Adjusted EBITDA totaled €107 million, 4% above the €103 million consensus, with margins of 20.5% beating expectations by roughly 60 basis points. The margin improvement came from cost controls in selling, general and administrative expenses. Adjusted EBITA came in 2% below consensus with margins approximately 50 basis points lower than expected.

Cash earnings per share reached €0.24, 2% below the €0.25 consensus estimate.

Operating net working capital improved to €428 million from €438 million in the prior year, with the ratio advancing over 90 basis points year-over-year to 19.1%. Net debt stood at €1.1 billion with leverage remaining broadly stable compared to the prior year.

Fluidra narrowed its 2026 outlook, now expecting organic growth between 3.5% and 5.5%, down from the previous range of 3% to 7%. The company adjusted its EBITDA margin guidance to 23.3% to 23.5% from the prior range of 23.3% to 24.3%. Adjusted earnings per share organic growth is now expected between 5% and 9%, compared to the previous 4% to 13% range.

The company attributed the narrowed sales range to flat to lower new pool construction and remodeling activity, while still anticipating strong aftermarket performance and moderate commercial segment growth.