POOL CORP
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
POOL$211.70-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000945841-25-000130
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001193125-25-255740
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 149 current paragraphs.
92 unchanged; 45 reworded; 12 added; 11 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Net sales increased 1% in the third quarter of 2025. We continued to support sustained customer demand for maintenance products and were pleased to see continuous improvement in sales for our building materials products.
Current report
Gross profit grew by $12.8 million and gross margin increased 50 basis points to 29.6% compared to 29.1% in the same period of 2024. Gross margin benefited from mid-season price increases, continued progress on our pricing optimization initiatives and our continued focus on supply chain management.
Current report
Selling and administrative expenses (operating expenses) increased 5% compared to the third quarter of 2024, reflecting higher employee-related and facility costs due to sales center network expansion and inflationary pressures, as well as ongoing investments in our customer-facing technology initiatives.
Current report
Net income increased to $127.0 million compared to $125.7 million in the third quarter of 2024.
Current report
Our inventory balance was $1.2 billion at September 30, 2025, an increase of $43.3 million, or 4%, from September 30, 2024, reflecting increases from inflation (including mid-season vendor price increases), new and acquired sales centers and strategic inventory purchases. Our inventory reserve was $29.0 million at September 30, 2025 and $28.6 million at September 30, 2024. Our inventory turns, as calculated on a trailing four quarters basis, were 2.8 times at both September 30, 2025 and September 30, 2024.
Current report
Net sales of $1.5 billion in the third quarter of 2025 increased 1% compared to $1.4 billion in the third quarter of 2024. Recurring maintenance product sales were stable, and we saw growth in sales of building materials products.
Current report
steady maintenance product sales;
Current report
Gross margin improved by 50 basis points to 29.6% in the third quarter of 2025 compared to 29.1% in the third quarter of 2024, while gross profit increased 3% over the same period. The expansion of our gross margin was driven by mid-season price increases, ongoing pricing optimization efforts and disciplined supply chain management, amid continued headwinds from customer mix.
Current report
Selling and administrative expenses in the third quarter of 2025 increased 5% compared to the third quarter of 2024, primarily driven by higher employee-related and facility costs due to sales center network expansion and inflationary pressures, as well as ongoing investments in our customer-facing technology initiatives. These increases were partially offset by reductions in variable costs.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
stable maintenance product sales;
Current report
Temperatures in the third quarter of 2025 were above average in several regions, including the Northwest, Midwest, South and Western regions. Localized flooding occurred early in the quarter, followed by drought conditions across the Central and Western regions. In the third quarter of 2024, temperatures were slightly warmer than the third quarter of 2025, and there were more variable weather conditions in the third quarter of 2024 with several notable weather events. Overall, weather conditions did not significantly impact our sales results for the third quarter of 2025.
Removed paragraphs (11)
Previous report
Net sales increased 1% in the second quarter of 2025. Our second quarter sales benefited from continued strength in maintenance products, including sales of our private-label chemical products. We also saw some improvement in trends across our discretionary categories.
Previous report
Gross profit increased $5.0 million while gross margin was sustained at 30.0% compared to the same period of 2024. Our strong value proposition and supply chain efforts supported our current year gross margin during the quarter, which also reflects impacts from unfavorable customer and product mix.
Previous report
Selling and administrative expenses (operating expenses) were held to a 1% increase compared to the second quarter of 2024, reflecting our disciplined approach to cost management. While inflationary pressures on wages and ongoing investments in our sales center network contributed to the increase, they were largely offset by our proactive control of variable expenses. As a percentage of net sales, expenses remained well-managed and demonstrated our continued focus on operational efficiency.
Previous report
Our inventory levels increased from June 30, 2024 by $34.6 million, or 3%, to $1.3 billion as our team has focused on expanding our product offerings and ensuring that our customers have access to the products they need during their busiest time of the year. Our inventory reserve was $27.7 million at June 30, 2025 and $25.0 million at June 30, 2024. Our inventory turns, as calculated on a trailing four quarters basis, were 2.8 times at June 30, 2025 and 2.7 times at June 30, 2024.
Previous report
Net sales of $1.78 billion in the second quarter of 2025 increased 1% compared to $1.77 billion in the second quarter of 2024, benefiting from growth of maintenance-related products, including continued momentum in sales for our private-label chemical offerings. We also saw some improvement in trends across our discretionary categories.
Previous report
•stability from maintenance-related activities evidenced by volume growth in chemicals, which had 1% sales growth for the quarter and represented 15% of total sales;
Previous report
Gross margin remained consistent in the second quarter of 2025 compared to the second quarter of 2024, while gross profit increased 1% over the same period. Our strategic efforts to improve our supply chain, grow our private-label sales and promote value-added pricing supported our gross margin in the second quarter of 2025, which was also impacted by a less favorable customer and product mix compared to the prior year.
Previous report
Selling and administrative expenses in the second quarter of 2025 were held to a 1% increase compared to the second quarter of 2024, reflecting our disciplined approach to cost management. While inflationary pressures on wages and ongoing investments in our sales center network contributed to the increase, these were largely offset by our proactive control of variable expenses. As a percentage of net sales, operating expenses were well-managed at 14.7% in the second quarter of 2025 compared to 14.6% in the same period of 2024, demonstrating our continued focus on operational efficiency.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
•stability from maintenance-related activities evidenced by volume growth in chemicals and 1% sales growth compared to the first six months of 2024, representing 14% of our net sales;
Previous report
•one less selling day in the first half of 2025 compared to the same period in 2024 lowered net sales by 1%.
Reworded paragraphs (45)
Previous wording
Second quarter ended June 30, 2025 compared to the second quarter ended June 30, 2024
Current wording
Third quarter ended September 30, 2025 compared to the third quarter ended September 30, 2024
Previous wording
Operating income increased $1.2 million compared to the second quarter of 2024. Operating margin was 15.3% in both periods.
Current wording
Operating income increased $1.6 million compared to the third quarter of 2024. Operating margin was 12.3% in both the third quarter of 2025 and the third quarter of 2024.
Previous wording
Net income increased to $194.3 million compared to $192.4 million in the second quarter of 2024. Earnings per diluted share increased 4% to $5.17 in the second quarter of 2025 compared to $4.99 in the same period of 2024. See RESULTS OF OPERATIONS below for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
Current wording
Earnings per diluted share increased 4% to $3.40 in the third quarter of 2025 compared to $3.27 in the same period of 2024. We recorded a $0.3 million, or $0.01 per diluted share, tax benefit from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, in the third quarter of 2025 compared to a tax benefit of $0.5 million, or $0.01 per diluted share, realized in the same period of 2024. Adjusting for the impact from ASU 2016-09 in both periods, earnings per diluted share increased 4% to $3.39 compared to $3.26 in the third quarter of 2024. See RESULTS OF OPERATIONS below for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
Previous wording
Our days sales outstanding (DSO), as calculated on a trailing four quarters basis, was 25.8 days at June 30, 2025 and 26.8 days at June 30, 2024. Our allowance for doubtful accounts balance was $8.3 million at June 30, 2025 and $9.4 million at June 30, 2024.
Current wording
As of September 30, 2025, total net receivables, including pledged receivables, increased 4% compared to September 30, 2024, primarily due to higher sales in September 2025. Our days sales outstanding (DSO), as calculated on a trailing four quarters basis, was 25.9 days at September 30, 2025 and 26.7 days at September 30, 2024. Our allowance for doubtful accounts balance was $8.3 million at September 30, 2025 and $10.0 million at September 30, 2024.
Previous wording
Total debt outstanding increased $113.4 million to $1.2 billion at June 30, 2025, primarily to fund open market share repurchases of $156.4 million in the first six months of 2025.
Current wording
Total debt outstanding increased $138.2 million to $1.1 billion at September 30, 2025, primarily to fund open market share repurchases of $159.1 million in the first nine months of 2025.
Previous wording
We expect sales for the full year of 2025 to be relatively flat compared to 2024. We primarily source our products domestically and expect that tariffs announced so far in 2025 and their resulting price increases will positively impact net sales by approximately 1%, resulting in an estimated price contribution for the full year of approximately 2%.
Current wording
We expect sales for the full year of 2025 to be relatively flat compared to 2024. We primarily source our products domestically and expect that U.S. tariffs announced so far in 2025 and their resulting price increases will positively impact net sales by approximately 1%, contributing to an estimated benefit of 2% from price for the full year of 2025.
Previous wording
We expect gross margin for the full year of 2025 to be in line with our 2024 gross margin of 29.7%, with our highest margin in the second quarter of the year. Our efforts in pricing optimization and supply chain initiatives are expected to mitigate headwinds from product and customer mix that are currently pressuring our long-term gross margin outlook of 30.0%.
Current wording
We expect gross margin for the full year of 2025 to be in line with our 2024 gross margin of 29.7%. Our efforts in pricing optimization and supply chain initiatives are expected to mitigate headwinds from less favorable product and customer mix that are currently pressuring our ability to attain our long-term gross margin target of 30.0%.
Previous wording
We expect to leverage our existing infrastructure and strategically manage discretionary spending while continuing to invest in our sales center network. We project that our operating expenses for 2025 will increase around 2% to 3% compared to 2024.
Current wording
We expect to leverage our existing infrastructure and strategically manage discretionary spending while continuing to invest in our sales center network and consumer-facing technology initiatives. We project that our operating expenses for 2025 will increase around 3% compared to 2024.
Previous wording
In 2025, we expect our effective tax rate will be around 25.0% without the impact of ASU 2016-09. Due to ASU 2016-09 requirements, we expect our effective tax rate will fluctuate from quarter to quarter, particularly in periods when employees elect to exercise their vested stock options or when restrictions on share-based awards lapse. We recorded a $3.9 million, or $0.10 per diluted share, tax benefit from ASU 2016-09 for the six months ended June 30, 2025. We may recognize additional tax benefits related to stock option exercises in 2025 from grants that expire in future years. We have not included any expected tax benefits in our full year guidance beyond what we have recognized as of June 30, 2025.
Current wording
In 2025, we expect our effective tax rate will be around 25.0% without the impact of ASU 2016-09. Due to ASU 2016-09, we expect our effective tax rate will fluctuate from quarter to quarter, particularly in periods when employees elect to exercise their vested stock options or when restrictions on share-based awards lapse. We recorded a $4.2 million, or $0.11 per diluted share, tax benefit from ASU 2016-09 for the nine months ended September 30, 2025. We may recognize additional tax benefits related to stock option exercises during the fourth quarter of 2025. We have not included any expected tax benefits in our full year guidance beyond what we have recognized as of September 30, 2025.
Previous wording
We expect 2025 diluted EPS in the range of $10.80 to $11.30, including the impact of year-to-date tax benefits of $0.10. We expect to continue to use cash for the payment of cash dividends as and when declared by our Board of Directors (Board) and to fund opportunistic share repurchases under our Board-authorized share repurchase program.
Current wording
We expect 2025 diluted EPS in the range of $10.81 to $11.31, including the impact of year-to-date tax benefits of $0.11. We expect to continue to use cash for the payment of cash dividends as and when declared by our Board of Directors (Board) and to fund opportunistic share repurchases under our Board-authorized share repurchase program.
Previous wording
The forward-looking statements in the foregoing section and elsewhere in this report are based on current market conditions, speak only as of the filing date of this report, are based on several assumptions and are subject to significant risks and uncertainties, including the risks detailed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. See “Cautionary Statement for Forward-Looking Statements.”
Current wording
The forward-looking statements in the foregoing section and elsewhere in this report are based on current market conditions and our current business plans, speak only as of the filing date of this report, are based on several assumptions and are subject to significant risks and uncertainties, including the risks detailed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. See “Cautionary Statement for Forward-Looking Statements.”
Previous wording
As of June 30, 2025, we conducted operations through 451 sales centers in North America, Europe and Australia. For the six months ended June 30, 2025, approximately 95% of our net sales were from our operations in North America.
Current wording
As of September 30, 2025, we conducted operations through 454 sales centers in North America, Europe and Australia. For the nine months ended September 30, 2025, approximately 95% of our net sales were from our operations in North America.
Previous wording
We have included the results of operations from acquisitions in 2024 in our consolidated results since the acquisition dates.
Current wording
We have included the results of operations from acquisitions in 2025 and 2024 in our consolidated results since the acquisition dates.
Previous wording
We have not provided separate base business income statements within this Form 10-Q as our base business results for the three and six-month periods ended June 30, 2025 closely approximated consolidated results for the same period. Acquired and new market sales centers excluded from base business contributed less than 1% to the change in our reported net sales.
Current wording
We have not provided separate base business income statements within this Form 10-Q as our base business results for the three and nine-month periods ended September 30, 2025 closely approximated consolidated results for the same period. Acquired and new market sales centers excluded from base business contributed less than 1% to the change in our reported net sales.
Previous wording
The table below summarizes the changes in our sales center count during the first six months of 2025:
Current wording
The table below summarizes the changes in our sales center count during the first nine months of 2025:
Previous wording
•improved demand for products used in pool construction and discretionary activities (see discussion below); and
Current wording
improved demand for building materials products (see discussion below); and
Previous wording
•a benefit of approximately 2% to 3% from inflationary product cost increases, net of price deflation on some items, compared to a 1% benefit in the second quarter of 2024.
Current wording
a benefit of 2% from inflationary product cost increases, net of price deflation on some items, compared to a 1% benefit in the third quarter of 2024.
Previous wording
In the second quarter of 2025, sales of equipment for maintenance, renovation and new construction activities, including swimming pool heaters, pumps, lights, filters and automation devices, increased 1% versus the same period last year, and collectively represented approximately 29% of net sales for the period. Sales of building materials, which are primarily used in new pool construction and remodeling, decreased 1% compared to the same period in 2024 and represented approximately 11% of net sales in the second quarter of 2025. Comparatively, sales of building materials decreased 10% in the second quarter of 2024 compared to the same period in 2023 and represented approximately 12% of net sales for the period.
Current wording
In the third quarter of 2025, sales of equipment for maintenance, renovation and new construction activities, including swimming pool heaters, pumps, lights, filters and automation devices, increased 4% versus the same period last year, and collectively represented approximately 29% of net sales for the period. The increase in sales of equipment reflects benefits from price and some increase from volumes sold of maintenance-related products. Sales of building materials, which are primarily used in new pool construction and remodeling, increased 4% compared to the same period in 2024 and represented approximately 11% of net sales in the third quarter of 2025.
Previous wording
Interest and other non-operating expenses, net for the second quarter of 2025 decreased $1.8 million compared to the second quarter of 2024. Our weighted average effective interest rate decreased to 4.6% in the second quarter of 2025 compared to 5.3% in the second quarter of 2024 on average outstanding debt of $1.1 billion and $1.0 billion for the respective periods.
Current wording
Interest and other non-operating expenses, net for the third quarter of 2025 decreased $0.4 million compared to the third quarter of 2024. Our weighted average effective interest rate decreased to 4.5% in the third quarter of 2025 compared to 5.2% in the third quarter of 2024 on average outstanding debt of $1.1 billion and $946.1 million for the respective periods.
Previous wording
Our effective income tax rate was 25.4% for the three months ended June 30, 2025, compared to 25.3% for the three months ended June 30, 2024. There were no tax benefits realized from ASU 2016-09 in the quarter ended June 30, 2025, and we realized a benefit of $0.4 million in the same period last year. Without the benefit from ASU 2016-09 in both periods, our effective tax rate was 25.4% for the second quarter of 2025 and the second quarter of 2024.
Current wording
Our effective income tax rate was 23.5% for the three months ended September 30, 2025 compared to 23.4% for the three months ended September 30, 2024. We recorded a $0.3 million, or $0.01 per diluted share, tax benefit from ASU 2016-09 in the quarter ended September 30, 2025 compared to a benefit of $0.5 million, or $0.01 per diluted share, in the same period last year. Without the benefit from ASU 2016-09 in both periods, our effective tax rate was 23.7% in both the third quarter of 2025 and the third quarter of 2024. Our third quarter effective income tax rate is historically lower compared to other quarters due to the annual expiration of statutes of limitations in the various jurisdictions where we have recorded uncertain tax positions.
Previous wording
Net income increased to $194.3 million in the second quarter of 2025 compared to $192.4 million in the second quarter of 2024. Earnings per diluted share increased 4% to $5.17 in the second quarter of 2025 compared to $4.99 in the same period of 2024.
Current wording
Net income increased to $127.0 million in the third quarter of 2025 compared to $125.7 million in the third quarter of 2024. Earnings per diluted share increased 4% to $3.40 in the third quarter of 2025 compared to $3.27 in the same period of 2024. Adjusting for the impact from ASU 2016-09 in both periods, earnings per diluted share increased 4% to $3.39 compared to $3.26 in the third quarter of 2024.
Previous wording
Net sales for the first six months of 2025 decreased 1% compared to the same period last year. During the first half of 2025, our sales benefited from consistent maintenance-related activities, which were supported by stable demand for essential, non-discretionary products. In the first quarter of the year, discretionary projects were pressured from market conditions and unfavorable weather at the beginning of the year. Although the market environment remained constrained in the second quarter of 2025, we saw overall sales expansion and discretionary activities were less of a drag on overall sales.
Current wording
Net sales for the first nine months of 2025 remained consistent with net sales for the same period last year. Despite ongoing macroeconomic constraints in the first nine months of 2025, non-discretionary spending remained steady, while discretionary activities improved sequentially. In the first quarter of the year, discretionary projects remained pressured from macroeconomic conditions and unfavorable weather. In the second quarter of 2025, we saw sales expansion compared to the second quarter of 2024 and discretionary activities were less of a drag on overall sales. Net sales also increased in the third quarter of 2025 from the third quarter of 2024, supported by price, sustained demand for maintenance products and growth in sales of building materials products from the same period of the prior year.
Previous wording
The following factors impacted our sales and are listed in order of estimated magnitude:
Current wording
The following factors impacted our sales in the first nine months of 2025 and are listed in order of estimated magnitude:
Previous wording
•lower sales volumes of products used in pool construction and discretionary activities (see discussion below);
Current wording
lower sales volume of products used in pool construction and discretionary activities (see discussion below); and
Previous wording
•a benefit of approximately 2% from inflationary product cost increases, net of price deflation on some items, compared to a 1% to 2% benefit in the first six months of 2024; and
Current wording
a benefit of approximately 2% from inflationary product cost increases, net of price deflation on some items, compared to a 1% benefit in the first nine months of 2024.
Previous wording
In the first six months of 2025, sales of equipment for maintenance, renovation and new construction activities, including swimming pool heaters, pumps, lights, filters and automation devices, decreased approximately 1% compared to the same period last year and collectively represented 31% of net sales in the first six months of 2025. Sales of building materials, which are primarily used in new pool construction and remodeling, decreased 3% compared to the first six months of 2024 and represented approximately 12% of net sales in the first six months of 2025.
Current wording
In the first nine months of 2025, sales of equipment for maintenance, renovation and new construction activities, including swimming pool heaters, pumps, lights, filters and automation devices, increased approximately 1% compared to the same period last year and collectively represented 30% of net sales in the first nine months of 2025. The increase in sales of equipment reflects benefits from price and some increase from volumes sold of maintenance-related products. Sales of building materials, which are primarily used in new pool construction and remodeling, decreased 1% compared to the first nine months of 2024 and represented approximately 12% of net sales in the first nine months of 2025.
Previous wording
Gross margin declined 40 basis points to 29.7% in the six months ended June 30, 2025, compared to 30.1% in the first six months of 2024. Our gross margin in the first six months of 2024 benefited 40 basis points from the non-recurring reversal of $12.6 million for estimated import taxes. Without the 40 basis points included in our prior year gross margin, gross margin was flat year-over-year. Our gross margin in the first six months of 2025 reflects benefits from our strategic pricing and supply chain initiatives, which were offset by a less advantageous customer mix and product mix.
Current wording
Gross margin declined 10 basis points to 29.6% in the nine months ended September 30, 2025 compared to 29.7% in the first nine months of 2024. Gross margin in the first nine months of 2024 benefited 30 basis points from the non-recurring reversal of $12.6 million for estimated import taxes. In the first nine months of 2025, our gross margin reflected positive impacts from our strategic pricing and supply chain initiatives, partially offset by a less advantageous customer and product mix and the absence of the non-recurring import tax reversal recognized in the prior year.
Previous wording
Operating expenses for the six months ended June 30, 2025 were up 2% compared to the prior year period. Expense growth was primarily driven by inflationary impacts, particularly on base wages and facility costs, and continued investments in our technology initiatives and sales center network expansion. Increases in expenses were partially offset by disciplined control of variable costs. As a percentage of net sales, operating expenses increased to 17.4% in the first six months of 2025 compared to 16.9% in the same period of 2024.
Current wording
Operating expenses for the nine months ended September 30, 2025 were up 3% compared to the prior year period. Expense growth was primarily driven by inflationary impacts, particularly on base wages and facility costs, and continued investments in our technology initiatives and sales center network expansion.
Previous wording
Interest and other non-operating expenses, net for the first six months of 2025 decreased $4.1 million compared to the same period last year. Our weighted average effective interest rate decreased to 4.5% from 5.3% for the respective periods on average outstanding debt of $1.0 billion for both periods.
Current wording
Interest and other non-operating expenses, net for the first nine months of 2025 decreased $4.4 million compared to the same period last year. Our weighted average effective interest rate decreased to 4.5% from 5.2% for the respective periods on average outstanding debt of $1.0 billion for both the nine months ended September 30, 2025 and nine months ended September 30, 2024.
Previous wording
Our effective income tax rate was 24.2% for the six months ended June 30, 2025, compared to 23.1% for the six months ended June 30, 2024. We recorded a $3.9 million, or $0.10 per diluted share, tax benefit from ASU 2016-09 in the six months ended June 30, 2025, compared to a $7.8 million, or $0.20 per diluted share, tax benefit in the same period of 2024. Without the benefits from ASU 2016-09, our effective tax rate was 25.4% for the six months ended June 30, 2025, and 25.3% for the six months ended June 30, 2024.
Current wording
Our effective income tax rate was 24.0% for the nine months ended September 30, 2025 compared to 23.2% for the nine months ended September 30, 2024. We recorded a $4.2 million, or $0.11 per diluted share, tax benefit from ASU 2016-09 in the nine months ended September 30, 2025 compared to an $8.3 million, or $0.21 per diluted share, tax benefit in the same period of 2024. Without the benefits from ASU 2016-09, our effective tax rate was 24.8% for both the nine months ended September 30, 2025 and the nine months ended September 30, 2024.
Previous wording
Net income decreased 9% to $247.8 million for the six months ended June 30, 2025, compared to $271.3 million for the six months ended June 30, 2024. Earnings per diluted share decreased 7% to $6.57 for the six months ended June 30, 2025, versus $7.03 per diluted share for the six months ended June 30, 2024. Without the impact from ASU 2016-09 in both periods, earnings per diluted share decreased 5% to $6.47 for the six months ended June 30, 2025, compared to $6.83 for the six months ended June 30, 2024. See the reconciliation of GAAP to non-GAAP measures below.
Current wording
Net income decreased 6% to $374.8 million for the nine months ended September 30, 2025 compared to $397.0 million for the nine months ended September 30, 2024. Earnings per diluted share decreased 3% to $9.97 for the nine months ended September 30, 2025 versus $10.30 per diluted share for the nine months ended September 30, 2024. Adjusting for the impact from ASU 2016-09 in both periods, earnings per diluted share decreased 2% to $9.86 for the nine months ended September 30, 2025 compared to $10.09 for the nine months ended September 30, 2024. See the reconciliation of GAAP to non-GAAP measures below.
Previous wording
The non-GAAP measures described below should be considered in the context of all of our other disclosures in this Form 10-Q.
Current wording
The non-GAAP measure described below should be considered in the context of all of our other disclosures in this Form 10-Q.
Previous wording
Weather conditions in the second quarter of 2025 were marked by above-average temperatures and higher-than-normal precipitation. Warm conditions generally supported seasonal trends, though localized disruptions occurred due to severe storms, flash flooding and tornado outbreaks, particularly in April and May. Around mid-June, we observed intense heat across many regions, further supporting demand in key markets. Overall, while weather patterns were variable, we believe that the net impact on our results was broadly neutral. In the second quarter of 2024, weather across the U.S. was mixed, with wetter conditions in the central regions and Texas, drier conditions in the West, and warmer-than-average temperatures, especially in June, supporting maintenance activities and leading to varied impacts across our markets.
Current wording
Weather conditions in the second quarter of 2025 were generally marked by above-average temperatures and higher-than-normal precipitation. Warm conditions generally supported seasonal trends, though localized disruptions occurred due to severe storms, flash flooding and tornado outbreaks, particularly in April and May. Around mid-June, we observed intense heat across many regions, further supporting demand in key markets. Overall, while weather patterns were variable, we believe that the net impact on our results was broadly neutral. In the second quarter of 2024, weather across the U.S. was mixed, with wetter conditions in the central regions and Texas, drier conditions in the West, and warmer-than-average temperatures, especially in June, supporting maintenance activities and leading to varied impacts across our markets.
Previous wording
Our primary capital needs are seasonal working capital obligations, debt repayment obligations and other general corporate initiatives, including acquisitions, opening new sales centers, technology-related investments, dividend payments and share repurchases. Our primary working capital obligations are for the purchase of inventory, payroll, rent, other facility costs and selling and administrative expenses. Our working capital obligations fluctuate during the year, driven primarily by seasonality and the timing of inventory purchases. Our primary sources of working capital are cash from operations supplemented by bank borrowings, which have historically been sufficient to support our growth and finance acquisitions. We have funded our capital expenditures and share repurchases in substantially the same manner.
Current wording
Our primary capital needs are seasonal working capital obligations, debt repayment obligations and other general corporate initiatives, including acquisitions, opening new sales centers, customer-facing technology-related investments, dividend payments and discretionary share repurchases. Our primary working capital obligations are for the purchase of inventory, payroll, rent, other facility costs and selling and administrative expenses. Our working capital obligations fluctuate during the year, driven primarily by seasonality and the timing of inventory purchases. Our primary sources of working capital are cash from operations supplemented by bank borrowings, which have historically been sufficient to support our growth and finance acquisitions. We have funded our capital expenditures and share repurchases in substantially the same manner.
Previous wording
Net cash used in operations was $1.5 million in the first six months of 2025 compared to net cash provided by operations of $172.1 million in the first six months of 2024. The difference in cash flow primarily relates to a $68.5 million federal tax payment, which was deferred from 2024, a headwind from our increased investments in inventory in the first six months of 2025, and lower net income.
Current wording
Net cash provided by operations was $285.7 million in the first nine months of 2025 compared to net cash provided by operations of $488.6 million in the first nine months of 2024. The difference in cash flow primarily relates to working capital investments, including increases in inventory in the first nine months of 2025, and $68.5 million in federal tax payments from 2024 that were deferred into 2025 due to relief granted by the IRS.
Previous wording
Net cash used in investing activities for the first six months of 2025 decreased $9.9 million compared to the first six months of 2024, primarily due to a reduction of $7.5 million in net capital expenditures and a $4.4 million decline in acquisition costs.
Current wording
Net cash used in investing activities for the first nine months of 2025 increased $6.3 million compared to the first nine months of 2024, primarily due to a $2.7 million increase in acquisition costs and a $2.2 million increase in net capital expenditures.
Previous wording
Net cash provided by financing activities was $33.1 million for the first six months of 2025 compared to net cash used in financing activities of $100.0 million for the first six months of 2024, primarily reflecting our receipt of $279.2 million of net debt proceeds in the first six months of 2025 versus $62.9 million of net debt proceeds in the first six months of 2024, partially offset by a $76.2 million increase in share repurchases.
Current wording
Net cash used in financing activities was $182.4 million for the first nine months of 2025 compared to $411.8 million for the first nine months of 2024, primarily reflecting $112.4 million of net debt proceeds in the first nine months of 2025 versus $128.4 million of net debt payments in the first nine months of 2024, partially offset by a $4.5 million increase in both share repurchases and dividend payments in the first nine months of 2025 versus the same period in 2024.
Previous wording
Our Credit Facility, as recently amended on July 10, 2025, provides for$1.3 billion in borrowing capacity consisting of an $800.0 million unsecured revolving credit facility and a $500.0 million term loan facility. The Credit Facility also includes an accordion feature permitting us to request one or more incremental term loans or revolving credit facility commitment increases up to $250.0 million and sublimits for the issuance of swingline loans and standby letters of credit. We pay interest on revolving and term loan borrowings under the Credit Facility at a variable rate based on the one-month Term SOFR, plus an applicable margin. The term loan requires quarterly amortization payments commencing on September 30, 2027, with all remaining principal due on September 30, 2029. We intend to continue to use the Credit Facility for general corporate purposes, for future share repurchases and to fund future growth initiatives.
Current wording
Our Credit Facility, as recently amended, provides for $1.3 billion in borrowing capacity consisting of an $800.0 million revolving credit facility and a $500.0 million term loan facility. The Credit Facility also includes an accordion feature permitting us to request one or more incremental term loans or revolving credit facility commitment increases up to $250.0 million and sublimits for the issuance of swingline loans and standby letters of credit. We pay interest on revolving and term loan borrowings under the Credit Facility at a variable rate based on the one-month Term SOFR, plus an applicable margin. The term loan requires quarterly amortization payments commencing on September 30, 2027, with all remaining principal due on September 30, 2029. We intend to continue to use the Credit Facility for general corporate purposes, for future share repurchases and to fund future growth initiatives.
Previous wording
At June 30, 2025, there was $354.8 million of revolving borrowings outstanding, a $450.0 million term loan, $15.1 million of standby letters of credit outstanding and $430.1 million available for borrowing. The weighted average effective interest rate for the Credit Facility as of June 30, 2025, was approximately 4.1%, excluding commitment fees and including the impact of our interest rates swaps.
Current wording
At September 30, 2025, there was $221.3 million of revolving borrowings outstanding, a $500.0 million term loan outstanding, $14.4 million of standby letters of credit outstanding and $564.3 million available for borrowing. The weighted average effective interest rate for the Credit Facility as of September 30, 2025 was approximately 3.8%, excluding commitment fees and including the impact of our interest rates swaps.
Previous wording
Our Term Facility, as recently amended on July 10, 2025, provides for $90.0 million in borrowing capacity. Proceeds from the Term Facility were used to pay down the Credit Facility in December 2019, adding borrowing capacity for future share repurchases, acquisitions and growth-oriented working capital expansion. We pay interest on borrowings under the Term Facility at a variable rate based on one-month Term SOFR, plus an applicable margin. The Term Facility is repaid in quarterly installments of 1.250% of the Term Facility beginning in the third quarter of 2027, with the final principal repayment due on
Current wording
Our Term Facility, as recently amended, provides for $90.0 million in borrowing capacity. Proceeds from the Term Facility were used to pay down the Credit Facility in December 2019, adding borrowing capacity for future share repurchases, acquisitions and growth-oriented working capital expansion. We pay interest on borrowings under the Term Facility at a variable rate based on one-month Term SOFR, plus an applicable margin. The Term Facility is repaid in quarterly installments of 1.250% of the Term Facility beginning in the third quarter of 2027, with the final principal repayment due on September 30, 2029. We may prepay amounts outstanding under the Term Facility without penalty other than interest breakage costs.
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Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Following the recent amendment to the Credit Facility on July 10, 2025, there was $380.0 million of revolving borrowings outstanding, a $500.0 million term loan, $14.4 million of standby letters of credit outstanding and $405.6 million available for borrowing.
Previous report — wording carried elsewhere
September 30, 2029. We may prepay amounts outstanding under the Term Facility without penalty other than interest breakage costs.