Pool Corporation boosts share buyback program to $600 million

COVINGTON, La. - Pool Corporation (NASDAQ:POOL), the world’s largest wholesale distributor of swimming pool and related backyard products, has announced an increase in its share repurchase program. The Board of Directors has authorized an additional $309.2 million to the existing program, bringing the total to $600 million for buying back the company’s common stock in the open market at prevailing prices. With the stock currently trading near its 52-week low of $284.27 and InvestingPro analysis indicating the company is undervalued, this buyback program could prove timely for shareholders.

In conjunction with the expanded buyback, the Board declared a quarterly cash dividend of $1.25 per share, up 4% from the previous $1.20 per share. This dividend is slated for payment on May 29, 2025, to shareholders on record as of May 15, 2025. Currently, Pool Corporation has 37,595,213 common shares outstanding. InvestingPro data reveals the company has maintained dividend payments for 22 consecutive years and raised them for 14 straight years, demonstrating strong commitment to shareholder returns.

Chair of the Board, John Stokely, remarked on the company’s commitment to shareholder returns, noting the 20th consecutive quarterly dividend increase since 2004. Stokely highlighted POOLCORP’s efforts in enhancing the outdoor living industry with innovative products and a digital ecosystem aimed at improving customer experience, which he believes will yield significant returns for shareholders.

The company’s Annual Meeting of Stockholders, which took place on April 30, 2025, resulted in the election of nine directors to serve for the following year. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year 2025 and approved the compensation of the company’s named executive officers.

POOLCORP operates approximately 445 sales centers across North America, Europe, and Australia, distributing over 200,000 products to about 125,000 wholesale customers. The company maintains a healthy financial position with a current ratio of 1.79 and generates annual revenue of $5.26 billion with a robust gross margin of 29.4%. For deeper insights into POOL’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.

The company’s forward-looking statements are subject to risks and uncertainties, and actual results may vary due to factors such as weather conditions, economic shifts, consumer spending, the housing market, and inflation or interest rates. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, with no obligation to update or revise them in the event of new circumstances or unexpected events.

This article is based on a press release statement from Pool Corporation.

In other recent news, Pool Corporation reported its first-quarter 2025 earnings, revealing a notable decline in earnings per share (EPS) to $1.32, missing the forecasted $1.48. Revenue was in line with expectations at $1.1 billion but showed a 4% year-over-year decrease. Despite the earnings miss, Pool Corp maintained its full-year EPS guidance range of $11.1 to $11.6. Analyst firms have responded to these developments, with Stephens reducing its price target for Pool Corp to $350 while maintaining an Overweight rating, and Loop Capital cutting its target to $315, keeping a Hold rating. Adverse weather conditions and a soft new pool construction market were cited as contributing factors to the company’s underperformance. Pool Corp’s management has acknowledged the challenges, noting competitive pricing pressures and a potential future guidance reduction due to weaker demand for large-ticket items. Despite these hurdles, the company remains focused on its maintenance and repair segments, which continue to show stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.