Pool Corp. (POOL) 2Q26 Recap Near Term Margin Headwinds Offset by Revenues with Execution Suggesting Upside to Estimates

Equity Research 23 July 2026 | 7:19PM EDT

Pool Corp. (POOL) 2Q26 Recap: Near-Term Margin Headwinds Offset by Revenues with Execution Suggesting Upside to Estimates

POOL 12m Price Target: $247.00 Price: $183.33 Upside: 34.7% BUY Susan Maklari Renewed Strategic Focus to Benefit EPS Over Time: We are | Goldman Sachs & Co. LLC encouraged by the outlook for Pool as the second half guide could Charles Perron-Piche, CFA prove conservative while a focus on company-specific initiatives will | Goldman Sachs & Co. LLC help offset ongoing industry weakness over time. In the near-term, we highlight: 1) momentum in building materials, which grew 4% Rhea Bhatia | Goldman Sachs India SPL YOY despite ongoing housing headwinds, 2) proactive supply chain initiatives and pricing to offset freight inflation, and 3) SG&A discipline as it harvests returns on recent growth investments, Key Data _____________________________________ Market cap: $6.6bn including a record quarter for POOL360 at 18% of sales. As these Enterprise value: $7.7bn 3m ADTV: $199.0mn efforts gain further momentum, we believe the outlook for 3Q/4Q United States gross margin could be conservative, driving upside to our 2026 Americas Homebuilders & Building Products M&A Rank: 3 estimate. On the call, the new CEO John Watwood also introduced a GS Forecast __________________________________ strategic road map to enhance POOL’s commercial and operational 12/25 12/26E 12/27E 12/28E

capabilities. Broadly, he sees opportunities to gain share, build Revenue ($ mn) New Revenue ($ mn) Old 5,289.4 5,289.4 5,444.6 5,430.2 5,610.8 5,606.4 5,818.4 5,830.7 greater density and leverage underlying drivers including the EBITDA ($ mn) EBIT ($ mn) benefits of a growing installed base. More specifically, the EPS ($) New framework focuses on: 1) sales excellence, leveraging talent, EPS ($) Old P/E (X) training, and digital tools like POOL360 to accelerate customer Dividend yield (%) 1.6 2.8 2.9 3.0 growth and capture share, 2) pricing and supply chain discipline, Net debt/EBITDA (X) 1.7 1.6 1.5 1.4

utilizing optimized chemical and building materials playbooks 6/26 9/26E 12/26E 3/27E alongside high-margin private label expansion to deepen loyalty, 3) EPS ($)

operational execution, maximizing branch-level productivity and GS Factor Profile ______________________________ Growth driving greenfield maturation, and 4) disciplined M&A, targeting opportunistic, high-fit acquisitions to build local market density. Financial Returns

Although we acknowledge Pool needs to prove out the ability to Multiple

execute, we believe it is well positioned to do so. In addition to the Integrated above points, our view considers greater agility given the inventory position, allowing it to meet customers’ needs should we see a lift in Percentile 20th 40th 60th 80th 100th

discretionary demand. Strength in cash flows, with our estimate for POOL relative to Americas Coverage $396mn in FCF this year, also supports investments in the strategy, POOL relative to Americas Homebuilders & Building Products

inorganic growth, and shareholder returns with $580mn remaining Source: Company data, Goldman Sachs Research estimates. on the current repurchase authorization. Finally, we note the stock is See disclosures for details.

trading at the 6th forward EBITDA percentile relative to the 15-year

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Pool Corp. (POOL)

Pool Corp. (POOL) Balance Sheet ($ mn) _______________________________________ BUY Rating since May 18, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory 1,454.7 1,574.8 1,620.0 1,679.4 Ratios & Valuation __________________________________________ Other current…