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Congress Beat the Market Again—Here Are the 3 Stocks They BoughtLCI Industries NYSE: LCII reported improved second-quarter profitability despite continued softness in outdoor recreation demand, as cost-cutting initiatives, operational efficiencies and higher product content helped offset lower OEM sales.

Adjusted net sales for the second quarter of 2026 declined 4% year over year to $1.1 billion. OEM net sales fell 10%, while aftermarket net sales rose 11%. The company said towable RV wholesale unit shipments declined 20% during the quarter.

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3 Automotive Parts Makers Growing at Double-Digit Rates“Our 2026 performance has been driven first and foremost by our self-help initiatives,” Interim Chief Executive Officer Johnny Sirpilla said. He cited operational efficiencies and strategic cost reductions that have structurally improved the company’s cost base and expanded net margins despite softer RV wholesale production and retail demand.

Margins Expand Despite Lower Revenue Adjusted operating profit increased 8% from a year earlier to $99 million, while adjusted operating margin rose 110 basis points to 9.3%. Adjusted EBITDA increased 7% to $129 million, representing a 12.2% margin, compared with 11% in the prior-year period.

RV stocks: A comfortable way to ride falling interest ratesGAAP net income rose 16% to $67 million, or $2.75 per diluted share, from $2.29 per diluted share a year earlier. Adjusted diluted earnings per share increased 13% to $2.70 from $2.39.

On the OEM side, adjusted operating margin expanded 100 basis points to 7.5%. Lillian Etzkorn, LCI’s executive vice president and chief financial officer, attributed the gain to cost-improvement actions, material sourcing strategies and commercial actions related to higher input costs and commodity indices. Those improvements were partly offset by tariff-related material costs, higher steel, aluminum and fuel costs, and lower fixed-cost absorption.

Aftermarket adjusted operating margin reached 14%, up 30 basis points from a year earlier. The company said cost management and material sourcing efforts supported that performance, although tariff-related costs, commodity costs, fuel costs and capacity-related expenses remained headwinds.

Etzkorn said the company’s self-help efforts contributed 160 basis points of year-over-year margin improvement. Those efforts have included overhead reductions, lower general and administrative spending, indirect-spend improvements, facility consolidations and quality initiatives.

Sirpilla said LCI completed five facility consolidations last year and plans another eight to 10 consolidations in the second half of 2026. He also said the company has reshored procurement to seek more affordable sourcing locations and mitigate tariff exposure.

Content Growth and Aftermarket Expansion Despite a sales mix shift toward lower-content single-axle RV trailers and reduced fifth-wheel volume, content per towable RV unit increased 11% year over year to $5,831. Content per motorized unit rose 2% to $3,852.

The company said its five largest recent innovations are producing an estimated $270 million in annual revenue at the current run rate. LCI also expects approximately $140 million in additional annualized revenue from new product placements associated with the 2027 model-year change.

Aftermarket sales growth was driven by commercial actions tied to input costs, acquired businesses and new automotive aftermarket customer volume, according to Etzkorn. The company also pointed to its installed base of LCI products in RVs as a long-term service opportunity.

More than $15 billion of replaceable LCI content entered the RV market during the past decade. Approximately 1.5 million units are expected to move into repair cycles over the next several years. LCI is expanding its service capabilities through its care and technical organization, dealer retail concepts, factory and mobile service operations, and additional distribution capacity. Management said it is seeing repair-and-replacement demand supported by higher RV ownership and more used-unit purchases. Sirpilla added that used RV buyers can represent an opportunity for upgrades and repairs that previous owners may have deferred.

Etzkorn said aftermarket growth has recently been in the high-single-digit to low-double-digit range and that she expects that pace to continue. She also said investments in distribution infrastructure and a new Texas facility supporting the Ranch Hand brand should eventually support improved aftermarket profitability as those investments taper.

Tariff Refunds Passed Through to Customers LCI said its finance and procurement teams identified and filed eligible claims under the IEEPA tariff refund process and expect to return nearly $90 million in refunds to customers. The company said the refunds have minimal profit-and-loss impact because they are passed through to customers.

The company chose to manage the recovery process internally rather than use third-party firms that typically charge contingency fees, Sirpilla said. Etzkorn said LCI fully accounted for anticipated tariff activity in its second-quarter financial results, though the timing of customer payments will depend on when the company receives the cash refunds.

Management also discussed ongoing input-cost pressure. Etzkorn said aluminum prices were up 80% year over year and steel prices were up about 20%, though both had begun to stabilize at elevated levels. The company said commodity-related price movements are generally passed through to customers under index-based arrangements rather than through opportunistic pricing.

Outlook Reduced for RV Wholesale Shipments LCI reported July adjusted net sales of approximately $315 million and reduced its full-year RV wholesale shipment outlook to 280,000 to 300,000 units, from its previous outlook of 315,000 to 330,000 units.

The company now expects full-year adjusted revenue of $3.9 billion to $4.1 billion and adjusted EPS of $8.25 to $8.75. It maintained its full-year adjusted operating margin target of 7.5% to 8% and expects capital expenditures of $55 million to $65 million.

Management said retail RV sales are expected to modestly exceed wholesale shipments in 2026, as dealers aim to maintain inventories at healthy levels rather than replenish sales on a unit-for-unit basis. Sirpilla said dealer inventory levels of roughly 18 to 20 weeks appear responsible for the current period and could position dealers to respond following the industry’s September Open House event and ahead of 2027.

LCI ended the quarter with $217 million in cash and cash equivalents and $595 million of revolver availability, for total liquidity of $812 million. Net debt was $636 million following the payoff of its 2026 convertible notes in May, and net debt to adjusted EBITDA stood at 1.5 times, down from 1.8 times at the start of the year.

Regarding LCI’s previously announced proposed merger with Patrick Industries, management said it remained limited in what it could discuss while regulatory review and proxy preparations continue. Sirpilla said the company is continuing to operate normally until the transaction closes, with its operating leadership and strategic priorities unchanged.

About LCI Industries (NYSE:LCII)LCI Industries is a publicly traded manufacturer specializing in engineered components and systems for the recreation vehicle (RV), marine and housing industries. The company develops and supplies a diverse range of products designed to enhance comfort, convenience and functionality in mobile and leisure applications. LCI Industries serves original equipment manufacturers (OEMs) and aftermarket customers throughout North America.

The company’s core offerings include power conversion and control systems, slideout mechanisms, entry and docking products, seating and furniture solutions, as well as window and door assemblies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ELKHART, Ind.--(BUSINESS WIRE)--LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported second quarter 2026 results.

"We delivered solid second quarter results with expanded profitability despite continued soft outdoor recreation industry demand. Our 2026 performance has been driven first and foremost by our self-help initiatives. Through disciplined operational efficiencies and strategic cost reduction actions, we've structurally improved our cost base and expanded net margins despite a challenging wholesale RV production environment and continued retail softness. Our disciplined cost management execution and increased product content per unit has fundamentally strengthened our earnings power and position us to generate higher returns throughout the cycle," said Johnny Sirpilla, Interim Chief Executive Officer.

Mr. Sirpilla continued, "I am energized by the opportunities ahead and appreciate the value LCI delivers to its customers across the many dynamic markets we serve. I’m equally excited about the compelling strategic and financial rationale for our proposed merger with Patrick. Together, we expect to create a broader, more innovative product platform, expand our addressable market, and cost-effectively bring more products within reach of outdoor recreation consumers. In the meantime, our talented, innovation-minded team remains squarely focused on advancing our strategic investments and cost optimization initiatives and we look forward to finishing the year strong in our drive to enhance shareholder value."

Second Quarter 2026 Results

Consolidated net sales decreased 12.5% to $968.7 million in the second quarter of 2026, down from $1,107.3 million in the same period of 2025. Excluding the $88.8 million negative impact of IEEPA tariff refunds expected to be passed through to customers, adjusted net sales decreased 4.5% to $1,057.5 million. The decrease in consolidated net sales and adjusted net sales was primarily driven by lower North American RV wholesale shipments, partially offset by sales price increases for targeted products and to cover higher material costs, sales from acquired businesses ($16.7 million in the second quarter), growth in the automotive aftermarket, and content gains in North American RV sales driven by recent product innovations, and, in the case of consolidated net sales, the impact of IEEPA tariff refunds expected to be passed through to customers.

Net income was up 16% to $67.1 million, or $2.75 per diluted share, compared to $57.6 million, or $2.29 per diluted share, in the second quarter of 2025. Adjusted net income increased to $65.9 million, or $2.70 per adjusted diluted share, compared to $60.1 million, or $2.39 per adjusted diluted share. Adjusted EBITDA increased 7% to $129.4 million, compared to $121.3 million in the second quarter of 2025. Operating profit margin increased to 9.9% in the second quarter of 2026 compared to 7.9% in the same period of 2025. Year-over-year margin expansion was driven primarily by cost improvement actions, including materials sourcing strategies, and the benefit of the net impact of IEEPA tariff refunds, partially offset by merger-related expenses, and investments in capacity and distribution to support the Aftermarket Segment.

*Additional information regarding adjusted net income, adjusted diluted EPS, adjusted net sales, and adjusted EBITDA used throughout this release, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, is provided in the "Supplementary Information - Reconciliation of Non-GAAP Measures" section below.

OEM Segment - Second Quarter Performance

OEM net sales decreased $164.8 million, or 20%, to $674.8 million for the second quarter of 2026, compared to $839.6 million in the same period of 2025. RV OEM net sales decreased 33% to $336.1 million, primarily due to a reduction for IEEPA tariff refunds expected to be passed through to customers, a decrease in North American travel trailer and fifth-wheel shipments, and an increase in RV sales mix toward lower content single axle travel trailers, partially offset by sales price increases for targeted products and to cover increased material costs, and recent product innovations. Adjacent Industries OEM net sales increased 1% year-over-year to $338.7 million, primarily driven by sales from acquired businesses and higher sales to North American marine OEMs, partially offset by a reduction for IEEPA tariff refunds expected to be passed through to customers.

Operating profit of the OEM Segment was $44.1 million in the second quarter of 2026, or 6.5% of net sales, compared to $51.7 million, or 6.2% of net sales, in the same period in 2025. Operating profit of the OEM Segment included a net positive impact related to IEEPA tariff refunds after deducting the related refunds expected to be passed through to customers. In addition to the favorable net impact of tariff refunds, the operating profit margin benefitted primarily from increases in selling prices contractually tied to indices of select commodities, increases in selling prices for targeted products and to cover increased material costs, and cost improvement actions, including materials sourcing strategies. The positive factors, other than the favorable net impact of tariff refunds, were more than offset by the impact of fixed costs spread over decreased production volumes, higher material costs related to tariffs, higher steel and aluminum costs, rising fuel costs, as well as merger-related expenses.

Aftermarket Segment - Second Quarter Performance

Aftermarket net sales increased 10% to $293.9 million for the second quarter of 2026, compared to $267.7 million in the same period of 2025. The increase was primarily driven by sales price increases for targeted products and to cover increased material costs, sales from acquired businesses, and increases in volume in the automotive aftermarket, partially offset by a reduction for IEEPA tariff refunds expected to be passed through to customers.

Operating profit of the Aftermarket Segment was $51.9 million, or 17.7% of net sales in the second quarter of 2026, compared to $36.1 million, or 13.5% of net sales, in the same period of 2025. Operating profit of the Aftermarket Segment included a net positive impact related to IEEPA tariff refunds after deducting the related refunds expected to be passed through to customers. In addition to the favorable net impact of IEEPA tariff refunds, the operating profit margin benefitted primarily from increases in selling prices for targeted products and to cover increased material costs and cost improvement actions, including materials sourcing strategies. These positive factors, other than the favorable net impact of IEEPA tariff refunds, were more than offset by higher material and freight costs related to tariffs, higher steel and aluminum costs, rising fuel costs, merger-related expenses, and investments in capacity and distribution.

Income Taxes

The Company's effective tax rate was 25.6% for the quarter ended June 30, 2026, compared to 26.2% for the quarter ended June 30, 2025. The improvement in the effective tax rate was primarily due to the recognition of a discrete tax benefit related to an increase in the cash surrender value of company-owned life insurance policies compared to the prior year period and a statute release of an uncertain tax position on state R&D tax credits, partially offset by a write-off of projected non-deductible deferred executive compensation.

Balance Sheet and Other Items

At June 30, 2026, the Company's cash and cash equivalents balance was $216.5 million, relative to $222.6 million at December 31, 2025. The Company used $92.0 million to pay off the remaining balance of its 2026 Convertible Notes at maturity, $55.9 million for dividend payments to shareholders, and $28.4 million for capital expenditures in the six months ended June 30, 2026.

The Company's outstanding long-term indebtedness, including current maturities, was $852.6 million at June 30, 2026. As of June 30, 2026, the Company had $595.2 million of borrowing availability under its revolving credit facility.

Outlook

Based on current market and economic conditions along with existing tariffs, the Company expects the following:

July 2026 net sales of approximately $315 million, down 4% from prior year 2026 North American RV wholesale shipments of 280,000 to 300,000, lowering from the previous range of 315,000 to 330,000 2026 revenue of $3.9 billion to $4.1 billion, reduced to reflect softened market conditions 2026 operating profit margin of 7.5% to 8.0%, reaffirming prior guidance range 2026 adjusted EPS of $8.25 to $8.75 Conference Call & Webcast

LCI Industries will host a conference call to discuss its second quarter results on Wednesday, August 5, 2026, at 8:30 a.m. Eastern time. An online, real-time webcast, as well as a supplemental earnings presentation, will be available on the Company's website, investors.lci1.com. The conference call and webcast can also be accessed by dialing (888) 596-4144 for participants in the U.S. and (646) 968-2525 for participants outside the U.S. using the required access code 5713129#. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call.

A replay of the conference call will be available for two weeks by dialing (800) 770-2030 for participants in the U.S. and (609) 800-9909 for those outside the U.S. and referencing access code 5713129#. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

About LCI Industries

LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit www.lippert.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margins, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to the Company's 2026 outlook and related assumptions, production levels, future financial results and business prospects, net sales, expenses and income (loss), operating margins, capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand and shipments, run rates, integration of acquisitions, planned divestitures and facility consolidations, optimization of facilities and infrastructure, R&D investments, commodity prices, addressable markets, industry trends, and the Company's proposed merger with Patrick Industries, Inc. ("Patrick"), whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, (1) the impacts of costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, (2) tariff refunds and related pass through to customers, (3) future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company's customers, suppliers, team members, business and cash flows, (4) pricing pressures due to domestic and foreign competition, (5) seasonality and cyclicality in the industries to which we sell our products, (6) availability of credit for financing the retail and wholesale purchase of products for which we sell our components, (7) inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, (8) the financial condition of our customers, (9) the financial condition of retail dealers of products for which we sell our components, (10) retention and concentration of significant customers, (11) the costs, pace of and successful integration of acquisitions and other growth initiatives, (12) availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, (13) efficiency improvements and cost reductions, (14) the disruption of business resulting from natural disasters or other unforeseen events, (15) the successful entry into new markets, (16) the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, (17) information technology performance and security, (18) the ability to protect intellectual property, (19) warranty and product liability claims or product recalls, (20) interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, (21) risks related to the pending merger with Patrick, including (a) the risk that the cost savings and any revenue synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (b) disruption to each party’s business as a result of the announcement and pendency of the transaction, (c) the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate as a result of unexpected factors or events, (d) the failure to obtain the necessary approvals by the stockholders of the Company or Patrick, (e) the ability by each of the Company and Patrick to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction, (f) reputational risk and the reaction of each party’s customers, suppliers, employees or other business partners to the transaction, (g) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, (h) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (i) risks related to management and oversight of the expanded business and operations of the combined company due to the increased size and complexity, (j) the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the transaction or the size, scope and complexity of the combined company’s business operations, and (k) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against the Company, Patrick or the combined company before or after the transaction, and (22) other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Important Information About the Proposed Transaction and Where to Find It

In connection with the proposed transaction between the Company and Patrick, the Company and Patrick intend to file relevant materials with the SEC, including, among other filings, a Patrick registration statement on Form S-4 that will include a joint proxy statement of the Company and Patrick that also constitutes a prospectus of Patrick with respect to shares of Patrick’s common stock to be issued in the proposed transaction, and a definitive joint proxy statement/prospectus, which will be mailed to stockholders of the Company and Patrick (the “Joint Proxy Statement/Prospectus”). The Company and Patrick may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Joint Proxy Statement/Prospectus or any other document which the Company and Patrick may file with the SEC. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND PATRICK ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the registration statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by the Company and Patrick through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by the Company will be available free of charge on Company’s website at lippert.com under the tab “Investors” and under the heading “Financials” and subheading “SEC Filings.” Copies of the documents filed with the SEC by Patrick will be available free of charge on Patrick’s website at patrickind.com under the tab “Investors” and under the heading “SEC Filings.”

Certain Information Regarding Participants

The Company, Patrick and their respective directors and executive officers may be considered participants in the solicitation of proxies from the stockholders of each of the Company and Patrick in connection with the proposed transaction. Information about the directors and executive officers of the Company and their ownership of Company common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 26, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 27, 2026. Information about the directors and executive officers of Patrick and their ownership of Patrick common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 19, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 30, 2026. To the extent holdings of Company’s or Patrick’s securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of the Company and Patrick, including a description of their direct or indirect interests, by security holdings or otherwise, and other information regarding the potential participants in the proxy solicitations, which may be different than those of the Company’s stockholders and Patrick’s stockholders generally, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at http://www.sec.gov and from Company’s or Patrick’s website as described above.

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.

LCI INDUSTRIES

OPERATING RESULTS

(unaudited)

      Three Months Ended

June 30,

Six Months Ended

June 30,

Last Twelve

  2026

2025

2026

2025

Months

(In thousands, except per share amounts)

    Net sales

  $

968,675

$

1,107,250

$

2,059,192

$

2,152,840

$

4,028,369

Cost of sales

  667,531

837,229

1,484,383

1,631,070

2,995,035

Gross profit

  301,144

270,021

574,809

521,770

1,033,334

Warehouse and transportation

  61,342

54,235

117,224

104,090

218,194

Selling, general and administrative expenses

  143,842

127,982

266,466

248,559

513,220

Operating profit

  95,960

87,804

191,119

169,121

301,920

Interest expense, net

  6,319

9,689

16,232

15,680

36,262

Loss on extinguishment of debt

  —

—

—

8,053

806

Gain on sale of real estate

  (554

)

—

(554

)

—

(20,270

)

Income before income taxes

  90,195

78,115

175,441

145,388

285,122

Provision for income taxes

  23,054

20,480

45,353

38,315

73,857

Net income

  $

67,141

$

57,635

$

130,088

$

107,073

$

211,265

  Net income per common share:

  Basic

  $

2.76

$

2.29

$

5.36

$

4.23

$

8.69

Diluted

  $

2.75

$

2.29

$

5.29

$

4.23

$

8.66

  Weighted average common shares outstanding:

  Basic

  24,314

25,157

24,274

25,297

24,301

Diluted

  24,392

25,157

24,571

25,297

24,395

  Depreciation

  $

17,670

$

16,826

$

34,020

$

33,489

$

67,586

Amortization

  $

13,188

$

13,497

$

26,636

$

26,376

$

54,436

Capital expenditures

  $

18,764

$

12,736

$

28,432

$

21,774

$

59,302

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)

      Three Months Ended

June 30,

Six Months Ended

June 30,

Last Twelve

  2026

2025

2026

2025

Months

(In thousands)

  Net sales:

  OEM Segment:

  RV OEMs:

  Travel trailers and fifth-wheels

  $

282,349

$

441,926

$

724,355

$

913,120

$

1,519,471

Motorhomes

  53,771

61,372

121,609

120,980

236,605

Adjacent Industries OEMs

  338,673

336,261

681,643

629,014

1,298,070

Total OEM Segment net sales

  674,793

839,559

1,527,607

1,663,114

3,054,146

Aftermarket Segment:

  Total Aftermarket Segment net sales

  293,882

267,691

531,585

489,726

974,223

Total net sales

  $

968,675

$

1,107,250

$

2,059,192

$

2,152,840

$

4,028,369

  Operating profit:

  OEM Segment

  $

44,083

$

51,684

$

120,587

$

113,657

$

191,050

Aftermarket Segment

  51,877

36,120

70,532

55,464

110,870

Total operating profit

  $

95,960

$

87,804

$

191,119

$

169,121

$

301,920

  Depreciation and amortization:

  OEM Segment depreciation

  $

12,307

$

12,169

$

23,565

$

24,496

$

47,400

Aftermarket Segment depreciation

  5,363

4,657

10,455

8,993

20,186

Total depreciation

  $

17,670

$

16,826

$

34,020

$

33,489

$

67,586

  OEM Segment amortization

  $

9,150

$

9,638

$

18,561

$

18,752

$

38,474

Aftermarket Segment amortization

  4,038

3,859

8,075

7,624

15,962

Total amortization

  $

13,188

$

13,497

$

26,636

$

26,376

$

54,436

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)

      June 30,

December 31,

  2026

2025

(In thousands)

  ASSETS

  Current assets

  Cash and cash equivalents

  $

216,512

$

222,615

Accounts receivable, net

  383,004

243,425

Inventories, net

  768,976

809,094

Prepaid expenses and other current assets

  116,232

74,552

Total current assets

  1,484,724

1,349,686

Fixed assets, net

  414,775

428,031

Goodwill

  619,125

622,183

Other intangible assets, net

  372,869

402,568

Operating lease right-of-use assets

  275,225

272,995

Other long-term assets

  101,184

100,524

Total assets

  $

3,267,902

$

3,175,987

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities

  Current maturities of long-term indebtedness

  $

3,658

$

3,683

Accounts payable, trade

  208,855

202,257

Current portion of operating lease obligations

  45,233

44,174

Accrued expenses and other current liabilities

  339,504

223,253

Total current liabilities

  597,250

473,367

Long-term indebtedness

  848,932

941,502

Operating lease obligations

  248,358

246,047

Deferred taxes

  27,820

27,495

Other long-term liabilities

  113,790

126,743

Total liabilities

  1,836,150

1,815,154

Total stockholders' equity

  1,431,752

1,360,833

Total liabilities and stockholders' equity

  $

3,267,902

$

3,175,987

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)

    Six Months Ended

June 30,

  2026

2025

(In thousands)

  Cash flows from operating activities:

  Net income

  $

130,088

$

107,073

Adjustments to reconcile net income to cash flows provided by operating activities:

  Depreciation and amortization

  60,656

59,865

Stock-based compensation expense

  12,303

10,949

Loss on extinguishment of debt

  —

8,053

Gain on sale of real estate

  (554

)

—

Other non-cash items

  901

6,514

Changes in assets and liabilities, net of acquisitions of businesses:

  Accounts receivable, net

  (140,583

)

(168,012

)

Inventories, net

  38,774

62,977

Prepaid expenses and other assets

  (43,906

)

(4,899

)

Accounts payable, trade

  8,698

33,012

Accrued expenses and other liabilities

  103,841

39,405

Net cash flows provided by operating activities

  170,218

154,937

Cash flows from investing activities:

  Capital expenditures

  (28,432

)

(21,774

)

Acquisition of businesses

  —

(98,187

)

Proceeds from sale of real estate

  2,156

—

Other investing activities

  3,159

(3,389

)

Net cash flows used in investing activities

  (23,117

)

(123,350

)

Cash flows from financing activities:

  Vesting of stock-based awards, net of shares tendered for payment of taxes

  (6,695

)

(4,858

)

Repayments under revolving credit facility

  —

(19,261

)

Proceeds from term loan borrowings

  —

391,000

Repayments under term loan and other borrowings

  (2,222

)

(281,525

)

Proceeds from issuance of convertible notes

  —

448,500

Repurchase of convertible notes

  (92,000

)

(368,920

)

Purchases of convertible note hedge contracts

  —

(67,574

)

Proceeds from issuance of warrants concurrent with note hedge contracts

  —

27,600

Partial unwind of convertible note hedge and warrants

  —

1,378

Payment of debt issuance costs

  —

(4,821

)

Payment of dividends

  (55,879

)

(58,388

)

Repurchases of common stock

  —

(66,338

)

Other financing activities

  —

(895

)

Net cash flows used in financing activities

  (156,796

)

(4,102

)

Effect of exchange rate changes on cash and cash equivalents

  3,592

(1,310

)

Net (decrease) increase in cash and cash equivalents

  (6,103

)

26,175

Cash and cash equivalents at beginning of period

  222,615

165,756

Cash and cash equivalents at end of period

  $

216,512

$

191,931

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)

      Three Months Ended

Six Months Ended

  June 30,

June 30,

Last Twelve

  2026

2025

2026

2025

Months

Industry Data(1) (in thousands of units):

  Industry Wholesale Production:

  Travel trailer and fifth-wheel RVs

  65.5

81.4

138.9

167.7

269.3

Motorhome RVs

  9.8

9.3

20.5

18.7

37.9

Industry Retail Sales:

  Travel trailer and fifth-wheel RVs

  86.0

100.7

139.0

163.3

281.8

Impact on dealer inventories

  (20.5

)

(19.3

)

(0.1

)

4.4

(12.5

)

Motorhome RVs

  10.3

10.7

17.8

19.7

36.0

      Twelve Months Ended

  June 30,

  2026

2025

Lippert Content Per Industry Unit Produced(2):

  Travel trailer and fifth-wheel RV

  $

5,831

$

5,234

Motorhome RV

  $

3,852

$

3,793

      June 30,

December 31,

  2026

2025

2025

Balance Sheet Data (debt availability in millions):

  Remaining availability under the revolving credit facility (3)

  $

595.2

$

595.3

$

595.2

Days sales in accounts receivable, based on last twelve months

  30.6

29.6

29.7

Inventory turns, based on last twelve months

  3.8

4.2

4.2

    Estimated Full Year Data:

  2026

Revenue

  $3.9 - $4.1 billion

Operating profit margin(4)

  7.5% - 8.0%

Adjusted diluted EPS

  $8.25 - $8.75

Capital expenditures

  $55 - $65 million

Depreciation and amortization

  $115 - $125 million

Stock-based compensation expense

  $24 - $27 million

Annual tax rate

  25% - 27%

  (1)

  Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.

(2)

  Excludes the impact on net sales in 2026 from IEEPA tariff refunds expected to be passed through to customers.

(3)

  Remaining availability under the revolving credit facility is subject to covenant restrictions.

(4)

  Estimate excludes impact of IEEPA tariff refunds and merger-related expenses.

LCI INDUSTRIES
SUPPLEMENTARY INFORMATION
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)

The following table reconciles net income to Adjusted EBITDA, net sales to adjusted net sales, and net income as a percentage of net sales to Adjusted EBITDA as a percentage of adjusted net sales.

  Three Months Ended June 30,

Six Months Ended June 30,

  2026

2025

2026

2025

(In thousands)

  Net income

  $

67,141

$

57,635

$

130,088

$

107,073

Interest expense, net

  6,319

9,689

16,232

15,680

Provision for income taxes

  23,054

20,480

45,353

38,315

Depreciation expense

  17,670

16,826

34,020

33,489

Amortization expense

  13,188

13,497

26,636

26,376

EBITDA

  $

127,372

$

118,127

$

252,329

$

220,933

Loss on extinguishment of debt

  —

—

—

8,053

Gain on sale of real estate

  (554

)

—

(554

)

—

Restructuring costs

  4,421

—

4,421

—

Merger expenses

  14,124

—

14,124

—

Net impact of IEEPA tariff refunds

  (15,972

)

—

(15,972

)

—

Executive separation costs

  —

3,193

—

3,193

Adjusted EBITDA

  $

129,391

$

121,320

$

254,348

$

232,179

  Net sales

  $

968,675

$

1,107,250

$

2,059,192

$

2,152,840

IEEPA tariff refunds impact on net sales

  88,792

—

88,792

—

Adjusted net sales

  $

1,057,467

$

1,107,250

$

2,147,984

$

2,152,840

  Net income as a percentage of net sales

  6.9

%

5.2

%

6.3

%

5.0

%

Adjusted EBITDA as a percentage of adjusted net sales

  12.2

%

11.0

%

11.8

%

10.8

%

The following table reconciles net income to adjusted net income and net income per diluted share to adjusted net income per adjusted diluted share ("Adjusted EPS").

  Three Months Ended June 30,

Six Months Ended June 30,

  2026

2025

2026

2025

(In thousands, except per share amounts)

  Net income

  $

67,141

$

57,635

$

130,088

$

107,073

Loss on extinguishment of debt

  —

—

—

8,053

Gain on sale of real estate

  (554

)

—

(554

)

—

Restructuring costs

  4,421

—

4,421

—

Merger expenses

  14,124

—

14,124

—

Net impact of IEEPA tariff refunds, including interest income

  (19,664

)

—

(19,664

)

—

Executive separation costs

  —

3,193

—

3,193

Tax effect of adjustments

  402

(765

)

402

(2,695

)

Adjusted net income

  $

65,870

$

60,063

$

128,817

$

115,624

  Weighted average common shares outstanding - diluted

  24,392

25,157

24,571

25,297

Dilutive effect of 2030 Convertible Notes (1)

  —

—

(213

)

—

Weighted average common shares outstanding - adjusted diluted

  24,392

25,157

24,358

25,297

  Net income per common share - diluted

  $

2.75

$

2.29

$

5.29

$

4.23

Loss on extinguishment of debt

  —

—

—

0.32

Gain on sale of real estate

  (0.02

)

—

(0.02

)

—

Restructuring costs

  0.18

—

0.18

—

Merger expenses

  0.58

—

0.57

—

Net impact of IEEPA tariff refunds, including interest income

  (0.81

)

—

(0.80

)

—

Executive separation costs

  —

0.13

—

0.13

Tax effect of adjustments

  0.02

(0.03

)

0.02

(0.11

)

Dilutive effect of 2030 Convertible Notes (1)

  —

—

0.05

Adjusted net income per common share - adjusted diluted (Adjusted EPS)

  $

2.70

$

2.39

$

5.29

$

4.57

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of Adjusted EBITDA, adjusted net sales, Adjusted EBITDA as a percentage of adjusted net sales, adjusted net income, and Adjusted EPS to illustrate and improve comparability of its results from period to period. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, amortization expense, loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, and executive separation costs, as applicable, during the three and six month periods ended June 30, 2026 and 2025. Adjusted net sales is defined as net sales adjusted for the reduction in net sales related to IEEPA tariff refunds expected to be passed through to customers. Adjusted net income is defined as net income adjusted for loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, including interest income, executive separation costs, and the related tax effects, as applicable, during the three and six month periods ended June 30, 2026 and 2025. Adjusted EPS is defined as adjusted net income divided by weighted average common shares outstanding - adjusted diluted, which includes an adjustment for the dilutive effect of the 2030 Convertible Notes under the if-converted method for the six month period ended June 30, 2026. The restructuring costs adjusted out of the non-GAAP measures relate to the Company's plant consolidations at our U.S. glass and automotive aftermarket facilities. The Company considers these non-GAAP measures in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. These measures are not in accordance with, nor are they substitutes for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies.

Further, the Company has provided its outlook for full-year 2026 Adjusted EPS and adjusted operating profit margin in this release. The Company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because the Company is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. The financial impact of such items is uncertain and is dependent on various factors, including timing, and could be material to the Company's consolidated statements of income.

LCI (LCII - Free Report) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $2.63 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.66%. A quarter ago, it was expected that this recreational vehicle parts supplier would post earnings of $2.22 per share when it actually produced earnings of $2.59, delivering a surprise of +16.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

LCI, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $968.68 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 14.21%. This compares to year-ago revenues of $1.11 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

LCI shares have lost about 11.8% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for LCI?While LCI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for LCI was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.30 on $1.06 billion in revenues for the coming quarter and $8.71 on $4.25 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Dauch (DCH - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7.

This maker of auto parts is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has been revised 17.9% higher over the last 30 days to the current level.

Dauch's revenues are expected to be $2.79 billion, up 81.4% from the year-ago quarter.