Fluidra, S.A.

Fluidra reported first-half sales of EUR 1.258 billion, up 4.9% year over year, with a 230 bps negative FX impact and 50 bps of acquisition contribution. Adjusted EBITDA was EUR 321 million, up 5.7%, and adjusted EBITDA margin was 25.5%, flattish year over year; gross margin was 56.5%, flat year over year. Adjusted EPS increased 7%, adjusted net profit was EUR 175 million, up 7.1%, and net profit was EUR 126 million, down 2.9%. Free cash flow was EUR 16 million versus a use of cash of EUR 74 million last year, net debt was EUR 1.101 billion, and leverage was 2.2x net debt to adjusted EBITDA. Management maintained full-year guidance; on margins, Xavier Tintore said they are likely more toward the low-to-mid end because inflation is being offset by pricing in absolute terms, and CapEx should be around 3.5% of sales. For the second half, management noted a potential additional EUR 5 million to EUR 10 million tariff refund benefit, but also said there are many moving parts, including new tariffs and inflation.

Jaime Ramirez emphasized that the first half showed strong execution, with 5% constant-currency sales growth, 6% adjusted EBITDA growth, and clear market-share gains across key regions. He repeatedly framed the business as customer-centric and disciplined, saying Fluidra is outperforming through service, innovation, and tight sell-in/sell-through management. His tone was confident but pragmatic: new-build demand is still weak, yet he said aftermarket activity is solid, inventories in the channel look healthy, and the company is well positioned for the second half and beyond.

Xavier Tintore focused on the financial quality of the quarter: sales of EUR 1.258 billion, adjusted EBITDA of EUR 321 million, gross margin of 56.5%, and adjusted net profit of EUR 175 million. He highlighted better working capital, with free cash flow of EUR 16 million and the net working capital-to-sales ratio at 22.5%, 230 bps lower than last year, while net debt declined to EUR 1.101 billion and leverage to 2.2x. He also said OpEx should rise about 3.5% at constant FX for the full year, CapEx should be around 3.5% of sales, restructuring costs for 2026 are confirmed at EUR 50 million to EUR 55 million including stock-based compensation, and the EUR 40 million buyback is being treated as an opportunistic capital-allocation move.

Analysts focused on distributor inventory levels, tariff refunds, restructuring costs, North American market-share shifts, and whether buybacks might become a recurring part of capital allocation. Management said inventory is healthy and that sell-out is running ahead of sell-in, which they view as channel liquidation rather than a risk. On tariffs, Xavier said there was about EUR 5 million of refund benefit in Q2 and potentially another EUR 5 million to EUR 10 million later, though timing and offsetting tariff/inflation pressures remain uncertain; on buybacks, he said they are still opportunistic rather than a permanent policy. On restructuring, he confirmed 2026 costs of EUR 50 million to EUR 55 million and said some expenses have been pulled forward from 2027.