Hayward Holdings, Inc.

Overview

1. "How the company got here" - Hayward Holdings, Inc. has a long history, with roots tracing back to 1925 when Irving M. Hayward established a metal foundry. The company's significant transformation occurred in 1964 when Oscar Davis acquired it and recognized the potential of using plastics for pool equipment, a move that improved performance, reliability, and affordability. Davis took the company public briefly in 1969 to fund expansion and new equipment, later buying back the shares. Hayward returned to the public market in 2021, marking a new chapter for the company. 2. "What it actually does" - Hayward Holdings designs, manufactures, and sells a wide array of equipment for swimming pools and outdoor living spaces. Their products range from essential components like pumps and filters to more advanced systems such as robotic cleaners, heaters, and automated control systems. The company aims to enhance the pool ownership experience by focusing on innovation, energy efficiency, and sustainability in its product offerings. Hayward's products are sold through a network of specialty distributors, retailers, and pool builders. 3. "Pool equipment" - This is Hayward's largest business, making up about 80% of its revenue. This segment includes everything needed to keep a swimming pool running smoothly and looking its best. Think of things like pumps that circulate the water, filters that keep it clean, heaters to warm it up, and robotic cleaners that scrub the bottom and sides. They also make sanitizers, like salt chlorine generators that reduce the need for harsh chemicals, and LED lighting to make pools look beautiful at night. This equipment is used in both homes with backyard pools and in larger, commercial pools found at hotels or gyms. 4. "Outdoor living technology" - This smaller but growing part of Hayward's business, accounting for about 5% of revenue, focuses on enhancing the overall backyard experience beyond just the pool itself. It includes smart, connected controls and automation systems that allow pool owners to manage various functions from their phones or other devices. This segment also encompasses products like landscape lighting and other energy-efficient gadgets that make outdoor spaces more enjoyable and convenient. 5. "Industrial flow control" - Making up about 15% of Hayward's revenue, this segment is distinct from its pool-focused businesses. Here, Hayward manufactures thermoplastic valves and products designed for controlling the flow of liquids in industrial settings. These products are used in various industrial applications where precise control of fluid movement is critical. 6. "What management is betting on now" - Hayward's management is focused on several key strategies to drive future growth. A major priority is to capitalize on the "aftermarket" – meaning sales of replacement parts and upgrades for the millions of pools already in existence. They are also pushing for the adoption of higher-value products, particularly those with "IoT" (Internet of Things) capabilities, which means they can be connected to the internet for smart control and automation. Additionally, Hayward is emphasizing energy-efficient products to appeal to environmentally conscious consumers and meet potential regulations, while also working to expand its presence in international markets and the commercial pool sector.