PHTA Releases Results of Q3 2025 Quarterly Pulse Survey

The pool and hot tub industry is experiencing a resilient market, driven by stability in the service sector, but there are challenges related to profitability and economic headwinds, according to the Pool & Hot Tub Alliance’s Q3 2025 Quarterly Pulse Survey.

Key Performance Highlights (Q3 2025 vs. Q3 2024)

• Total revenue growth maintained: The typical business across building/remodeling; service, maintenance and repair; and retailers reported total revenue increased somewhat (+1% to +5%).
• Service leads the way: About 55% of companies reported an increase in the volume of service calls, and the service, maintenance and repair segment was the only sector to report an increase in bottom-line profits (+1% to +5%).
• New construction softens: Activity in new project installation remains mixed. A reported 44% of companies saw an increase in revenue from new pools/spas, but a significant 37% reported a decrease, signaling a clear cooling trend in new construction compared to the postpandemic surge years.
• Remodel work is strong: About 42% of companies reported an increase in revenue from remodel jobs, with only 21% reporting a decrease, underscoring the shift in consumer spending toward improving existing assets and finding various sources of equity to tap into for that work.

Profitability and Outlook

Despite seeing revenue gains, the survey data reflect the financial reality of the current economic environment:

• Profit margins stagnate: Bottom-line profits for the building/remodeling and retailer segments were largely unchanged (+1% to -1%), indicating that high material costs and inflation are absorbing revenue gains.
• Top challenges: The industry’s primary concerns are firmly rooted in the economy: Economic factors (inflation, interest rates, consumer spending) were cited as a top challenge for 70% of companies, followed by maintaining profitability (62%) and the persistent issue of recruiting and retaining skilled employees (47%).

 “The Q3 results clearly demonstrate the industry’s ability to pivot,” says Jeff Henriksen, PHTA vice president of industry affairs and research. “While interest rates and economic uncertainty continue to pressure new construction, our members are successfully leaning into the stability and higher margins of the service and remodel markets. The challenge now is to translate top-line revenue growth into bottom-line profit growth by managing persistent input costs.”

Future Outlook

The industry remains confident in its future adaptability:

• Positive future outlook: Roughly 69% of companies anticipate revenue growth over the next 12 months (up from 68% last quarter).
• Adaptability: About 77% of companies feel they are well-positioned to adapt and thrive in the face of industry disruptions.

The survey tracks the pool and hot tub industry’s performance and outlook. Sponsored by PHTA and conducted by Industry Insights, the survey provides vital data to help businesses navigate industry trends.

For more information, visit phta.org/research or contact Jeff Henriksen at jhenriksen@phta.org or 703-838-0083, ext. 148.