Pool — Income Statement, Cash Flows & Balance Sheet
Is Pool Corporation profitable?
Pool Corporation remains solidly profitable, though earnings have declined meaningfully from their 2023 peak.
| Metric | 2023 | 2024 | 2025 | Change (2023–2025) |
|---|---|---|---|---|
| Net sales ($000s) | $5,541,595 | $5,310,953 | $5,289,396 | -4.5% |
| Gross profit margin | 30.0% | 29.7% | 29.7% | -0.3 ppts |
| Operating income ($000s) | $746,567 | $617,204 | $580,204 | -22.3% |
| Net income ($000s) | $523,229 | $434,325 | $406,404 | -22.3% |
| Diluted EPS | $13.35 | $11.30 | $10.85 | -18.7% |
Revenue has slipped modestly over two years, but operating and net income have fallen at a faster rate — the culprit is selling and administrative expenses growing even as sales declined, compressing margins. The business is still comfortably profitable; it simply isn't generating the elevated earnings it produced during the post-pandemic pool boom.
Does Pool Corporation generate cash?
Pool Corporation is cash-generative, but operating cash flow dropped sharply in 2025 due to a large inventory build.
| Metric | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Operating cash flow ($000s) | $888,229 | $659,186 | $365,850 | -58.8% |
| Capital expenditures ($000s) | ($60,096) | ($59,476) | ($56,334) | -6.3% |
| Free cash flow (GAAP operating CF minus capex) | $828,133 | $599,710 | $309,516 | -62.6% |
| Dividends paid ($000s) | ($167,461) | ($179,633) | ($184,916) | +10.4% |
| Share repurchases ($000s) | ($306,359) | ($306,300) | ($346,286) | +13.0% |
The dramatic drop in free cash flow (operating cash minus capital spending) is almost entirely explained by a large increase in inventory, which consumed cash in 2025 rather than releasing it as in prior years. Pool Corporation continued returning substantial cash to shareholders through both dividends and buybacks, funding the excess partly by drawing down more debt.
How strong is Pool Corporation's balance sheet?
Debt rose significantly in 2025, and the company is now more leveraged than it was a year ago.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total debt ($000s) | $950,356 | $1,199,453 | +$249,097 |
| Cash ($000s) | $77,862 | $104,963 | +$27,101 |
| Total stockholders' equity ($000s) | $1,273,465 | $1,185,229 | -$88,236 |
| Current ratio (current assets ÷ current liabilities) | 2.05x | 2.24x | +0.19x |
Long-term debt jumped by roughly a quarter-billion dollars, largely to fund share repurchases while operating cash flow was weak. That said, short-term liquidity looks fine — current assets comfortably cover near-term obligations, and the company was in compliance with all debt covenants at year-end. The bigger watch item is that debt maturities cluster in 2029, so refinancing risk is not immediate but worth monitoring.