Latham Group IncSWIM
Price$6.27Intrinsic value$4.3331% below price

Qualitative Analysis

Business overview

Business Overview

Latham Group, Inc. (Nasdaq: SWIM) is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. With an operating history spanning over 65 years, the company holds the #1 market position in North America across all of its product categories, which include fiberglass pools, packaged pools, pool liners, and automatic safety covers. Latham operates a coast-to-coast platform with approximately 1,900 employees across more than 30 locations. The company has pioneered a direct-to-homeowner digital marketing strategy to drive consumer demand and accelerate the industry transition from traditional concrete pools to highly efficient, eco-friendly fiberglass alternatives.

Research as of 19 Jun 2026

Strategic Initiatives

Growth programs, investments, and their expected impact

AI-assisted
Sand States Expansion StrategyGrowth

Targeting market share expansion in the 'Sand States' (Florida, Texas, Arizona, and California) which represent two-thirds of U.S. pool starts. This includes resegmenting target neighborhoods, adding sales resources, and increasing direct-to-homeowner digital marketing.

Expected impact: Accelerate the adoption of fiberglass pools in historically concrete-dominated markets, already delivering double-digit fiberglass sales growth in Florida.

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InvestmentPart of increased sales and marketing investments and capital expenditures directed toward expanding fiberglass production capacity in key locations like Florida.
TimelineOngoing throughout 2025 and 2026
Lean Manufacturing and Value EngineeringEfficiency

Implementation of lean manufacturing, value engineering, and enhanced procurement programs to structurally optimize the company's cost base.

Expected impact: Drove a 320 basis point gross margin expansion in 2025 and continues to support margin resilience against commodity and transportation cost headwinds.

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InvestmentInternal operational resources and facility upgrades.
TimelineContinuous initiative with significant milestones achieved in 2024 and 2025
Fiberglass and Automatic Safety Cover AdoptionInnovation

Driving consumer awareness and material conversion from traditional concrete/vinyl pools to fiberglass pools and automatic safety covers (autocovers).

Expected impact: Fiberglass pools represented 76.5% of Latham's total in-ground pool sales in 2025. Autocovers provide homeowners with up to 70% reduction in pool heating costs and 50% reduction in evaporation.

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InvestmentBranding, digital transformation, and direct-to-homeowner marketing campaigns.
TimelineLong-term strategic priority
Sources: 4

Mergers, Acquisitions & Partnerships

Recent deals and strategic collaborations

AI-assisted

Recent Acquisitions

Freedom Pools$17M
Announced 3 Mar 2026

To expand Latham's fiberglass pool manufacturing and installation presence in Australia and New Zealand, establishing a strategic entry into Western Australia (Perth) and supporting a dual-brand strategy alongside Narellan Pools.

Financial impact: Expected to be immediately accretive, adding approximately $20 million in annualized net sales and $4 million in adjusted EBITDA before synergies.

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Coverstar Central, LLC$71.5MComplete
Announced 2 Aug 2024

Vertical integration of the automatic safety cover product category by acquiring Latham's exclusive dealer of automatic safety covers in 29 states.

Financial impact: Funded with cash on hand. Contributed to the 320 basis point gross margin expansion in 2025 alongside the early 2025 tuck-in acquisitions of Coverstar New York and Coverstar Tennessee.

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Strategic Partnerships

Premier Pools & SpasEquity Investment & Strategic Distribution Partnership

Latham acquired a 28% minority interest in Premier Pools & Spas (a major pool-construction franchise) to expand its sales and distribution channels, driving exclusive dealer relationships and increasing market share.

Terms: Acquired a 28% stake for $25.4 million on October 30, 2020.

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Sources: 3
AI-assisted, source-linked narrative; figures from company filings (SEC EDGAR) and market data. Dates shown per section. Not investment advice. Terms of Use.