Společnost Patrick Industries ve třetím čtvrtletí 2026 vykázala tržby ve výši 975 milionů USD oproti 976 milionům USD v předchozím roce, ale její čistý zisk klesl z 35 milionů USD na 21 milionů USD.
, /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the third quarter and nine months ended September 27, 2026.
Third Quarter 2026 Highlights (compared to Third Quarter 2025 unless otherwise noted)
Net sales were $975 million compared to $976 million in the prior-year period. Strong revenue performance in Powersports (+30%) and Marine (+14%), along with Housing revenue growth of 4%, nearly offset a 15% decrease in RV revenue.Operating income was $50 million and operating margin was 5.1%, compared to operating income of $66 million and operating margin of 6.8% in the prior-year period.Adjusted operating margin1, which excludes merger-related expenses, restructuring costs and other non-recurring items, was 6.8%, flat when compared to the prior-year period.Net income was $21 million and diluted earnings per share (EPS) was $0.64.Adjusted net income1 was $34 million compared to $35 million. Adjusted diluted EPS1 was $1.03 compared to $1.01.Reported and adjusted diluted EPS1 include the dilutive impact of convertible notes and related warrants of approximately $0.03 per share, compared to $0.07 per share in the prior-year period.Adjusted EBITDA1 increased 3% to $116 million and adjusted EBITDA margin1 expanded 40 basis points to 11.9%.On a year-to-date basis, cash flow provided by operating activities was $147 million compared to $199 million in the prior-year period. Free cash flow1 was $203 million, on a trailing twelve-month basis.Returned $15 million to shareholders through regular quarterly dividends.Available liquidity was $716 million at the end of the third quarter; total net leverage ratio was 2.9x.As previously announced, on June 30, 2026 the Company signed a definitive agreement with LCI Industries to combine in an all-stock merger. The Company's registration statement on Form S-4 was declared effective by the SEC on October 19, 2026 and the Company will hold a special meeting of shareholders on November 18, 2026. More information can be found at www.PatrickandLippertTogether.com."Our strategic market diversification and business model, in addition to our focus on innovation and product solutions for customers, continued to drive resilient results in the third quarter," said Andy Nemeth, Chief Executive Officer. "Our team drove revenue growth in our Marine, Powersports, and Housing businesses, delivering consolidated net sales in line with the prior year, despite lower revenue in our RV business resulting from a decline in RV industry wholesale unit shipments. We remain focused on managing what is in our control, including making strategic adjustments to preserve the capacity, capabilities, and talent needed to serve our customers today and in the future. We are continuing to drive our capital allocation strategy as a result of our strong cash flow generation to invest in strategic opportunities that we believe can deliver meaningful value for our customers, team members, and shareholders over the long-term."
Net sales were $975 million compared to $976 million in the third quarter of 2025, reflecting the positive impact of Patrick's diversified end market strategy. The Company's Marine, Powersports, and Housing end markets reported revenue growth that nearly offset lower RV end market revenue, driven by soft RV industry wholesale unit shipments. The growth in Marine revenue was driven by growth in estimated content per unit and estimated wholesale powerboat industry unit shipments, while Powersports benefited from continued solid demand for utility-focused units and stronger attachment rates for cab enclosures.
Operating income was $50 million compared to $66 million in the third quarter of 2025. Operating margin was 5.1% compared to 6.8% in the same period last year.
Excluding the impact of merger-related expenses, restructuring costs and other non-recurring items, adjusted operating margin1 of 6.8% was flat when compared to the third quarter of 2025.
Net income was $21 million, or $0.64 per diluted share, compared to $35 million, or $1.01 per diluted share in the third quarter of 2025. Adjusted net income1 in the third quarter of 2026 was $34 million, or $1.03 per diluted share1, compared to adjusted net income1 of $35 million, or $1.01 per diluted share1 in the prior-year period. Reported and adjusted diluted EPS1 in the third quarter of 2026 include approximately $0.03 of dilution from the Company's convertible notes and related warrants compared to $0.07 in the prior-year period.
Jeff Rodino, President, said, "Our markets remain dynamic with continued macroeconomic headwinds, including high interest rates, elevated fuel costs and inflation, resulting in a further softening in consumer confidence. In Marine, our team has been successful in gaining content through new product and solution innovation, while benefitting from relative strength at the premium end of the market. Our Powersports business continued to see sustained strength in utility vehicle demand, which aligns well with our cab enclosure offerings. RV OEMs and dealers have remained disciplined in managing field inventory levels in response to lower retail demand. Importantly, we continue to invest in advanced manufacturing and innovation to bring new products and solutions to market. This quarter, we launched Patrick Printing Solutions, a direct-to-panel printing platform that applies high-resolution graphics and physical textures directly onto composite, wood, and other substrates, giving customers greater design flexibility and the ability to differentiate across both value and premium price points."
Third Quarter 2026 Revenue by Market Sector
(compared to Third Quarter 2025 unless otherwise noted)
RV (37% of Revenue)
Revenue of $362 million decreased 15%, while RV industry wholesale unit shipments decreased 13%.Content per wholesale RV unit (on a trailing twelve-month basis) increased 4% to $5,263 when compared to the prior-year period, and decreased 1% compared to the second quarter of 2026.Marine (18% of Revenue)
Revenue of $171 million increased 14%, outperforming an estimated 8% increase in wholesale powerboat industry unit shipments. Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 20% to $4,942 when compared to the prior-year period, and increased 1% when compared to the second quarter of 2026.Powersports (13% of Revenue)
Revenue of $128 million increased 30% driven by increased attachment rates for Sportech's cab enclosure solutions and other premium vehicle features, including audio, as well as continued solid demand for utility-focused units.Housing (32% of Revenue, comprised of Manufactured Housing ("MH") and Industrial)
Revenue of $314 million increased 4%; estimated wholesale MH industry unit shipments increased 2%; total housing starts decreased 4%.Estimated content per wholesale MH unit (on a trailing twelve-month basis) decreased 2% to $6,565 compared to the prior-year period, and decreased 1% compared to the second quarter of 2026.Balance Sheet, Cash Flow and Capital Allocation
For the first nine months of 2026, cash provided by operating activities was $147 million compared to $199 million in the prior-year period. This change reflects strategic working capital deployment to support the Company's composite products growth strategy, and proactive inventory management for customers. Purchases of property, plant and equipment totaled $19 million in the third quarter of 2026, highlighting the Company's investment in technology, advanced automation, and other initiatives that are expected to enhance our long-term operating strategy. On a trailing twelve-month basis, free cash flow1 through the third quarter of 2026 was $203 million compared to $211 million in the prior-year period.
Patrick returned $15 million to shareholders in the form of regular quarterly dividends during the third quarter of 2026. Due to restrictions related to the previously announced merger agreement with LCI Industries, Patrick did not repurchase shares during the quarter. At the end of the third quarter, the Company had $62 million of unused capacity under its current share repurchase authorization.
Total debt at the end of the third quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 2.9x (as calculated in accordance with the Company's credit agreement). Available liquidity, comprised of borrowing availability under the Company's credit facility and cash on hand, was approximately $716 million.
Business Outlook and Summary
"We continue to advance Patrick's full-solutions vision by combining innovative products and components, differentiated technologies, and advanced manufacturing capabilities, even as the near-term demand environment remains uneven," continued Mr. Nemeth. "The benefits of the expanded products and solutions we bring to our customers, in alignment with our engineering and design capabilities, are intended to compound over time and we believe they will enhance our financial performance while allowing for better partnerships with customers to help address product affordability for the end consumer. In addition, we are investing in engineering and emerging technologies, including prudent AI expenditures, that we expect will deepen our connection to the markets we serve, sharpen our ability to collaborate with OEM customers, and help shape the next generation of experiences for outdoor enthusiasts. As we begin to shift our focus to 2027, we remain excited about the value-added opportunity related to our pending all-stock merger with LCI Industries, which we believe will enhance our existing strategy and vision as well as the long-term value proposition for our customers, our team members, our shareholders, and the communities we serve. We are committed to being great partners to our customers and team members and good stewards to our markets and ecosystem. Finally, I want to thank our team members for their unwavering commitment to Patrick's BETTER Together values and executing against our strategic initiatives, which we believe will drive long-term profitable growth and value for our stakeholders."
1 See additional information at the end of this release regarding non-GAAP financial measures.
Conference Call Webcast
Patrick Industries will host an online webcast of its third quarter 2026 earnings conference call that can be accessed on the Company's website, www.patrickind.com, under "Investors," on Thursday, October 29, 2026 at 10:00 a.m. Eastern Time. A replay will also be available following the call. In addition, a supplemental earnings presentation can be accessed on the Company's website, www.patrickind.com, under "Investors."
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
Information set forth in this communication constitutes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Patrick Industries, Inc. as of the date hereof. The forward-looking statements are based on current expectations and our actual results may differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers, dealers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions, changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in our senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in Ukraine and evolving conflict in the Middle East, including, but not limited to conflict with Iran.
Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between the Company and LCI Industries ("LCI") (the "proposed transaction"), future financial and operating results, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: (1) the completion of the proposed transaction may not occur on the anticipated terms and timing or at all; (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transaction; (3) the risk that the necessary regulatory approvals for the proposed transaction may not be obtained or may be obtained subject to conditions that are not anticipated; (4) risks that any of the closing conditions to the proposed transaction may not be satisfied in a timely manner; (5) risks related to litigation brought in connection with the proposed transaction; (6) risks related to disruption of management time from ongoing business operations due to the proposed transaction; (7) effects of the announcement, pendency or completion of the proposed transaction on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with suppliers, distributors, advertisers, content providers, vendors and other business partners, and on its operating results and business generally; (8) negative effects of the announcement or the consummation of the proposed transaction on the market price of the Company's common stock; (9) risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; (10) inherent uncertainties involved in the estimates and assumptions used in the preparation of financial projections; (11) the ability to obtain or consummate financing or refinancing related to the proposed transaction; and (12) the response of the Company or LCI management to any of the aforementioned factors. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risks related to the proposed transaction.
Discussions of additional risks and uncertainties are contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's Quarterly Reports on Form 10-Q for subsequent quarterly periods, which are filed with the SEC and available on the SEC's website at www.sec.gov. The Company expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, as a result of new information, future events, or otherwise, except as required by applicable law. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Contact:
Steve O'Hara
Vice President of Investor Relations
[email protected]
574.294.7511
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
Nine Months Ended
($ and shares in thousands, except per share data)
September 27,
2026
September 28,
2025
September 27,
2026
September 28,
2025
Net sales
$ 975,277
$ 975,631
$ 3,014,153
$ 3,026,605
Cost of goods sold
745,383
754,667
2,309,824
2,326,418
Gross profit
229,894
220,964
704,329
700,187
Operating Expenses:
Warehouse and delivery
48,870
44,449
144,510
135,106
Selling, general and administrative
107,900
86,022
297,184
273,159
Amortization of intangible assets
23,289
24,200
71,043
73,338
Total operating expenses
180,059
154,671
512,737
481,603
Operating income
49,835
66,293
191,592
218,584
Interest expense, net
18,828
18,451
56,194
56,432
Other expenses
—
—
—
24,420
Income before income taxes
31,007
47,842
135,398
137,732
Income taxes
9,951
12,539
31,441
31,755
Net income
$ 21,056
$ 35,303
$ 103,957
$ 105,977
Basic earnings per common share
$ 0.67
$ 1.09
$ 3.25
$ 3.26
Diluted earnings per common share
$ 0.64
$ 1.01
$ 3.04
$ 3.08
Weighted average shares outstanding -
Basic
31,481
32,381
31,957
32,523
Weighted average shares outstanding -
Diluted
32,655
35,081
34,205
34,440
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
($ in thousands)
September 27, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 16,040
$ 26,432
Trade and other receivables, net
286,177
185,405
Inventories
668,964
595,265
Prepaid expenses and other
48,067
66,020
Total current assets
1,019,248
873,122
Property, plant and equipment, net
412,330
408,502
Operating lease right-of-use assets
226,740
199,087
Goodwill and intangible assets, net
1,530,005
1,582,662
Other non-current assets
11,631
12,801
Total assets
$ 3,199,954
$ 3,076,174
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt
$ 6,250
$ 6,250
Current operating lease liabilities
58,181
54,956
Accounts payable
214,904
192,448
Accrued liabilities
125,681
94,412
Other current liabilities
401
424
Total current liabilities
405,417
348,490
Long-term debt, less current maturities, net
1,372,564
1,282,821
Long-term operating lease liabilities
173,623
148,889
Deferred tax liabilities, net
90,689
96,875
Other long-term liabilities
14,780
14,802
Total liabilities
2,057,073
1,891,877
Total shareholders' equity
1,142,881
1,184,297
Total liabilities and shareholders' equity
$ 3,199,954
$ 3,076,174
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
($ in thousands)
September 27, 2026
September 28, 2025
Cash flows from operating activities
Net income
$ 103,957
$ 105,977
Depreciation and amortization
128,387
127,222
Stock-based compensation expense
17,856
15,167
Deferred income taxes
(6,186)
21,794
Other adjustments to reconcile net income to net cash
provided by operating activities
4,529
3,166
Change in operating assets and liabilities, net of acquisitions
of businesses
(101,992)
(74,755)
Net cash provided by operating activities
146,551
198,571
Cash flows from investing activities
Purchases of property, plant and equipment
(55,846)
(64,744)
Business acquisitions and other investing activities
(23,547)
(72,151)
Net cash used in investing activities
(79,393)
(136,895)
Net cash flows used in financing activities
(77,550)
(74,539)
Net decrease in cash and cash equivalents
(10,392)
(12,863)
Cash and cash equivalents at beginning of year
26,432
33,561
Cash and cash equivalents at end of period
$ 16,040
$ 20,698
PATRICK INDUSTRIES, INC.
Earnings Per Common Share (Unaudited)
The table below illustrates the calculation of earnings per common share:
Three Months Ended
Nine Months Ended
($ and shares in thousands, except per share data)
September 27,
2026
September 28,
2025
September 27,
2026
September 28,
2025
Numerator:
Net income attributable to common shares
$ 21,056
$ 35,303
$ 103,957
$ 105,977
Denominator:
Weighted average common shares
outstanding - basic
31,481
32,381
31,957
32,523
Weighted average impact of
potentially dilutive convertible notes
842
1,492
1,328
1,155
Weighted average impact of
potentially dilutive warrants
192
916
736
504
Weighted average impact of
potentially dilutive securities
140
292
184
258
Weighted average common shares
outstanding - diluted
32,655
35,081
34,205
34,440
Earnings per common share:
Basic earnings per common share
$ 0.67
$ 1.09
$ 3.25
$ 3.26
Diluted earnings per common share
$ 0.64
$ 1.01
$ 3.04
$ 3.08
PATRICK INDUSTRIES, INC.
Non-GAAP Reconciliation (Unaudited)
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides financial metrics, such as net leverage ratio, content per unit, free cash flow, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted diluted earnings per share ("adjusted diluted EPS"), adjusted operating margin, adjusted EBITDA margin and available liquidity, which we believe are important measures of the Company's business performance. These metrics should not be considered alternatives to U.S. GAAP. Our computations of net leverage ratio, content per unit, free cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating margin, adjusted EBITDA margin and available liquidity may differ from similarly titled measures used by others. We calculate available liquidity by taking our revolving credit facility capacity, subtracting the outstanding revolver balance and outstanding letters of credit, and adding cash and cash equivalents. Content per unit metrics are generally calculated using our market sales divided by Company estimates based on third-party measures of industry volume. We calculate EBITDA by adding back depreciation and amortization, net interest expense, and income taxes to net income. We calculate adjusted EBITDA by taking EBITDA and adding back stock-based compensation, acquisition-related transaction costs, merger-related costs, restructuring and related costs, loss on sale of business unit, legal settlement, loss on sale of property, plant and equipment and subtracting out the gain on sale of property, plant and equipment.
Adjusted net income is calculated by removing the impact of acquisition-related transaction costs, net of tax, legal settlement, net of tax, merger-related costs, net of tax, restructuring and related costs, net of tax and the loss on sale of business unit, net of tax. Adjusted diluted EPS is calculated as adjusted net income divided by our diluted weighted average shares outstanding. Adjusted operating margin is calculated by removing the impact of acquisition-related transaction costs, merger-related costs, restructuring and related costs and loss on sale of business unit. We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from net cash provided by operating activities. RV wholesale unit shipments are provided by the RV Industry Association. Marine wholesale unit shipments are Company estimates based on data provided by the National Marine Manufacturers Association. MH wholesale unit shipments are Company estimates based on data provided by the Manufactured Housing Institute. Housing starts are provided by the U.S. Census Bureau. You should not consider these metrics in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP.
The following tables reconcile net income to EBITDA, adjusted EBITDA and margins:
Three Months Ended
($ in thousands)
September 27,
2026
% of Net
Sales
September 28,
2025
% of Net
Sales
Net income
$ 21,056
2.2 %
$ 35,303
3.6 %
+
Depreciation & amortization
42,597
4.4 %
41,967
4.3 %
+
Interest expense, net
18,828
1.9 %
18,451
1.9 %
+
Income taxes
9,951
1.0 %
12,539
1.3 %
EBITDA
92,432
9.5 %
108,260
11.1 %
+
Stock-based compensation
5,870
0.6 %
3,867
0.4 %
+
Acquisition-related transaction costs
99
— %
—
— %
+
Merger-related costs
14,656
1.5 %
—
— %
+
Restructuring and related costs
2,001
0.2 %
—
— %
+
Loss (gain) on sale of property, plant and
equipment
661
0.1 %
(29)
— %
Adjusted EBITDA
$ 115,719
11.9 %
$ 112,098
11.5 %
Nine Months Ended
($ in thousands)
September 27,
2026
% of Net
Sales
September 28,
2025
% of Net
Sales
Net income
$ 103,957
3.4 %
$ 105,977
3.5 %
+
Depreciation & amortization
128,387
4.3 %
127,222
4.2 %
+
Interest expense, net
56,194
1.9 %
56,432
1.9 %
+
Income taxes
31,441
1.0 %
31,755
1.0 %
EBITDA
319,979
10.6 %
321,386
10.6 %
+
Stock-based compensation
17,856
0.6 %
15,167
0.5 %
+
Acquisition-related transaction costs
99
— %
64
— %
+
Merger-related costs
15,093
0.5 %
—
— %
+
Restructuring and related costs
2,001
0.1 %
—
— %
+
Loss on sale of business unit
226
— %
—
— %
+
Legal settlement
—
— %
24,420
0.8 %
+
Loss on sale of property, plant and equipment
77
— %
2,065
0.1 %
Adjusted EBITDA
$ 355,331
11.8 %
$ 363,102
12.0 %
The following table reconciles cash flow from operations to free cash flow on a trailing twelve-month basis:
Trailing Twelve Months Ended
($ in thousands)
September 27, 2026
September 28, 2025
Cash flows from operating activities
$ 277,394
$ 301,222
Less: purchases of property, plant and equipment
(74,023)
(90,162)
Free cash flow
$ 203,371
$ 211,060
The following table reconciles operating margin to adjusted operating margin:
Three Months Ended
Nine Months Ended
September 27,
2026
September 28,
2025
September 27,
2026
September 28,
2025
Operating margin
5.1 %
6.8 %
6.4 %
7.2 %
Merger-related costs
1.5 %
— %
0.5 %
— %
Restructuring and related costs
0.2 %
— %
— %
— %
Adjusted operating margin
6.8 %
6.8 %
6.9 %
7.2 %
The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share:
Patrick Industries potvrdila fúzi s LCI Industries formou výměny akcií, přestože LCI obdržela od Monomoy Capital Partners nezávaznou nabídku na akvizici.
, /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company") today reaffirmed its agreement to combine with LCI Industries (NYSE: LCII) ("LCI") in an all-stock merger to form a premier component solutions provider for the outdoor enthusiast, housing and transportation markets.
Patrick was notified by LCI that it had received an unsolicited nonbinding proposal from Monomoy Capital Partners to acquire LCI, and consistent with its fiduciary duties, LCI's Board of Directors has a responsibility to carefully evaluate the proposal. LCI stated today that its Board of Directors has not changed its recommendation in support of LCI's merger with Patrick.
Patrick will monitor this development as it continues to execute on its strategy and vision centered around an independent and diversified brand model in the outdoor enthusiast and housing markets.
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
Information set forth in this communication constitutes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Patrick Industries, Inc. as of the date hereof. The forward-looking statements are based on current expectations and our actual results may differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers, dealers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions, changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in our senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in Ukraine and evolving conflict in the Middle East, including, but not limited to conflict with Iran.
Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between the Company and LCI Industries ("LCI") (the "proposed transaction"), future financial and operating results, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: (1) the completion of the proposed transaction may not occur on the anticipated terms and timing or at all; (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transaction; (3) the risk that the necessary regulatory approvals for the proposed transaction may not be obtained or may be obtained subject to conditions that are not anticipated; (4) risks that any of the closing conditions to the proposed transaction may not be satisfied in a timely manner; (5) risks related to litigation brought in connection with the proposed transaction; (6) risks related to disruption of management time from ongoing business operations due to the proposed transaction; (7) effects of the announcement, pendency or completion of the proposed transaction on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with suppliers, distributors, advertisers, content providers, vendors and other business partners, and on its operating results and business generally; (8) negative effects of the announcement or the consummation of the proposed transaction on the market price of the Company's common stock; (9) risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; (10) inherent uncertainties involved in the estimates and assumptions used in the preparation of financial projections; (11) the ability to obtain or consummate financing or refinancing related to the proposed transaction; and (12) the response of the Company or LCI management to any of the aforementioned factors. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risks related to the proposed transaction.
Discussions of additional risks and uncertainties are contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, in the Company's Quarterly Reports on Form 10-Q for subsequent quarterly periods, in the joint proxy statement/prospectus of the Registration Statement on Form S-4 (File No. 333-299100) filed with the SEC on September 23, 2026 (as amended by the Form S-4/A filed with the SEC on October 15, 2026), which was declared effective by the SEC on October 19, 2026, and the definitive joint proxy statement/prospectus filed by Patrick with the SEC on October 19, 2026, which are filed with the SEC and available on the SEC's website at www.sec.gov. The Company expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, as a result of new information, future events, or otherwise, except as required by applicable law. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Important Information About the Proposed Transaction and Where to Find It
This communication relates to a proposed business combination between Patrick and LCI. In connection with this proposed business combination, on October 15, 2026, Patrick filed a registration statement on Form S-4/A with the Securities and Exchange Commission (the "SEC") that contains a joint proxy statement/prospectus and other relevant documents concerning the proposed business combination. The registration statement on Form S-4 was declared effective by the SEC on October 19, 2026. Each of Patrick and LCI mailed the joint proxy statement/prospectus to its respective stockholders beginning on or around October 19, 2026. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND LCI 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 and other documents filed with the SEC by Patrick and LCI through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by LCI will be available free of charge on LCI's website at lippert.com under the tab "Investors" and under the heading "Financials" and subheading "SEC Filings." Copies of 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."
Contact:
Steve O'Hara
Vice President of Investor Relations
[email protected]
574.294.7511
Patrick Industries očekává za čtvrtletí končící v září 2026 zisk ve výši 0,99 USD na akcii, což představuje meziroční pokles o 2 %, a tržby ve výši 953,6 milionu USD, meziročně nižší o 2,3 %.
The market expects Patrick Industries (PATK - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis building products manufacturer is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -2%.
Revenues are expected to be $953.6 million, down 2.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Patrick Industries?For Patrick Industries, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.31%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Patrick Industries will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Patrick Industries would post earnings of $1.23 per share when it actually produced earnings of $1.29, delivering a surprise of +4.88%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Patrick Industries doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Patrick Industries, Inc. (NASDAQ:PATK – Get Free Report) shares hit a new 52-week low during trading on Tuesday. The stock traded as low as $63.00 and last traded at $64.20, with a volume of 372,631 shares traded. The stock had previously closed at $63.46.
Analyst Ratings Changes Several brokerages have recently weighed in on PATK. Benchmark reissued a “buy” rating and issued a $115.00 price target (down from $135.00) on shares of Patrick Industries in a research note on Tuesday, August 11th. Northcoast Research set a $121.00 price objective on Patrick Industries and gave the stock a “buy” rating in a research note on Tuesday, September 1st. Weiss Ratings cut Patrick Industries from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, September 29th. Raymond James Financial restated an “outperform” rating and set a $94.00 price target on shares of Patrick Industries in a report on Friday, July 31st. Finally, KeyCorp dropped their price target on shares of Patrick Industries from $115.00 to $100.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $112.33.
Get Our Latest Report on Patrick Industries
Patrick Industries Stock Performance The company has a quick ratio of 0.96, a current ratio of 2.67 and a debt-to-equity ratio of 1.25. The firm has a market capitalization of $2.06 billion, a P/E ratio of 15.21 and a beta of 1.16. The company’s 50 day moving average is $77.10 and its 200-day moving average is $87.91. Patrick Industries (NASDAQ:PATK – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The construction company reported $1.29 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.05. Patrick Industries had a net margin of 3.74% and a return on equity of 12.69%. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $994.95 million. During the same period in the previous year, the firm posted $1.50 earnings per share. The business’s revenue was down .6% compared to the same quarter last year. As a group, equities analysts anticipate that Patrick Industries, Inc. will post 4.17 EPS for the current year.
Patrick Industries Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were paid a $0.47 dividend. The ex-dividend date was Monday, August 24th. This represents a $1.88 annualized dividend and a dividend yield of 2.9%. Patrick Industries’s dividend payout ratio (DPR) is currently 44.55%.
Hedge Funds Weigh In On Patrick Industries Institutional investors have recently modified their holdings of the company. Foster & Motley Inc. bought a new stake in Patrick Industries during the second quarter worth $1,347,000. Harel Insurance Investments & Financial Services Ltd. bought a new position in Patrick Industries in the 1st quarter valued at $5,220,000. Jupiter Topco LLC bought a new position in Patrick Industries in the 2nd quarter valued at $1,289,000. Bank of America Corp DE bought a new position in Patrick Industries in the 2nd quarter valued at $30,646,000. Finally, Atom Investors LP purchased a new stake in shares of Patrick Industries during the 4th quarter valued at $7,272,000. 93.29% of the stock is owned by institutional investors and hedge funds.
Patrick Industries Company Profile (Get Free Report)
Patrick Industries, Inc is a manufacturer and distributor of component products and building materials used in recreational vehicles, marine vessels, manufactured housing, industrial applications and other markets. The company supplies original equipment manufacturers and other customers with products designed for use in interior, exterior and structural applications.
Its product portfolio includes cabinetry, furniture, countertops, flooring, wall panels, hardware, plumbing and electrical components, windows, doors, electronics, composite panels and other specialty products.
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, /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company") today announced that on August 13, 2026, its Board of Directors (the "Board") declared a quarterly cash dividend on its common stock of $0.47 per share. The dividend is payable on September 8, 2026, to shareholders of record at the close of business on August 24, 2026.
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
Forward-Looking Statements
This press release contains certain statements related to future results, our intentions, beliefs and expectations or predictions for the future, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any projections of financial performance or statements concerning expectations as to future developments should not be construed in any manner as a guarantee that such results or developments will, in fact, occur. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Information about certain risks that could affect our business and cause actual results to differ from those expressed or implied in the forward-looking statements is contained in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's Forms 10-Q for subsequent quarterly periods, which are filed with the Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. In addition, future dividends are subject to Board approval. Each forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made.
Contact:
Steve O'Hara
Vice President of Investor Relations
[email protected]
574.294.7511
, /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the second quarter and six months ended June 28, 2026.
Second Quarter 2026 Highlights (compared to Second Quarter 2025 unless otherwise noted)
Net sales were $1.04 billion compared to $1.05 billion in the prior-year period. Revenue growth of 22% in Marine, 28% in Powersports, and 2% in Housing predominantly offset the impact of a 15% decline in RV end market revenue, driven by a 16% decline in RV industry wholesale unit shipments. Patrick's RV content per unit (on a trailing 12-month basis) increased 7%, while estimated Marine content per unit (on a trailing 12-month basis) grew 22%. Operating income was $77 million and operating margin was 7.4% compared to operating income of $87 million and operating margin of 8.3% in the prior-year period. On an adjusted basis1, operating margin was 7.5% compared to 8.3% in the prior-year period. Net income increased 34% to $43 million and diluted earnings per share (EPS) increased 33% to $1.28. On an adjusted basis1, net income was $44 million, or $1.29 per diluted share, compared to $51 million, or $1.50 per diluted share in the prior-year period. Reported and adjusted diluted EPS1 include the dilutive impact of convertible notes and related warrants of approximately $0.07 per share, compared to $0.03 in the prior-year period. Adjusted EBITDA1 was $126 million and adjusted EBITDA margin1 was 12.1% compared to adjusted EBITDA1 of $135 million and adjusted EBITDA margin1 of 12.9% in the prior-year period. On a year-to-date basis, cash flow provided by operating activities was $69 million compared to $189 million in the prior-year period. Free cash flow1, on a trailing twelve-month basis, was $128 million. Returned $106 million to shareholders in the second quarter of 2026, including $15 million through regular quarterly dividends and $91 million through share repurchases. Available liquidity was $691 million at the end of the second quarter; total net leverage ratio was 3.0x. Subsequent to the end of the second quarter, as previously announced on June 30, 2026, the Company signed a definitive agreement with LCI Industries to combine in an all-stock merger. Please visit www.patrickandlipperttogether.com for information regarding the transaction. "Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team, and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions," said Andy Nemeth, Chief Executive Officer. "Our strategic diversification across distinct end markets continued to support our overall performance in what has been a challenging consumer discretionary environment. Growth in our Marine, Powersports, and Housing businesses largely offset a double-digit percentage decline in our RV end market revenue amid equally soft RV industry wholesale unit shipments. Despite this uncertainty, we remain encouraged by the level of discipline across the value chain in each of our markets, as our teams, the OEMs we serve, and dealers continue to focus on measured production schedules and prudent inventory management, supporting healthy long-term industry dynamics. Across Patrick, we are staying close to our customers, investing in innovation, and driving additional operational efficiencies, while preserving the flexibility to exceed customer expectations."
Net sales of $1.04 billion declined less than 1% from the second quarter of 2025. Revenue growth in the Company's Marine, Powersports, and Housing end markets predominantly offset the impact of a decline in RV end market revenue, which was related to a 16% decline in RV industry wholesale unit shipments in the quarter. The Company's strong content per unit growth in Marine and a continued increase in attachment rates within the Company's Powersports business were instrumental in delivering solid revenue performance overall.
Operating income was $77 million compared to $87 million in the second quarter of 2025. Operating margin was 7.4% compared to 8.3% in the same period last year. The year-over-year decline partially reflected a number of factors, including the impact of a double-digit percentage decline in RV industry wholesale unit shipments, higher oil and fuel prices and the related fuel surcharges, and merger-related costs. Adjusted operating margin1 was 7.5% compared to 8.3% in the second quarter of 2025.
Net income increased 34% to $43 million, or $1.28 per diluted share, compared to $32 million, or $0.96 per diluted share in the second quarter of 2025. Adjusted net income1 in the second quarter of 2026 was $44 million, or $1.29 per diluted share1, compared to adjusted net income1 of $51 million, or $1.50 per diluted share1 in the prior-year period. Adjusted net income1 in the second quarter of 2025 excludes one-time expenses related to a legal settlement. Reported and adjusted diluted earnings per share1 in the second quarter of 2026 include approximately $0.07 of dilution from the Company's convertible notes and related warrants compared to $0.03 in the prior-year period.
Jeff Rodino, President, said, "Our strategic investments have positioned Patrick to better support our customers in more ways than ever before. As our OEM customers continue to focus on affordability, efficiency, labor productivity, product differentiation and managing retail demand patterns, we are bringing forward solutions in partnership that are practical, scalable, and aligned with the needs of today's market. Whether through new product development, component and composite solutions, electrical systems, aftermarket capabilities, advanced manufacturing, value engineering, or The Experience, our teams are working directly with customers to help solve the challenges that matter most to their businesses. Our solutions-oriented approach supports organic growth while helping customers deliver more value to the end consumer. While near-term demand conditions remain challenging, we believe our portfolio of brands, technical expertise, and ability to execute across our end markets continue to reinforce Patrick as a trusted partner across business cycles."
Second Quarter 2026 Revenue by Market Sector
(compared to Second Quarter 2025 unless otherwise noted)
RV (39% of Revenue)
Revenue of $407 million decreased 15% while RV industry wholesale unit shipments decreased 16%. Content per wholesale RV unit (on a trailing twelve-month basis) increased 7% to $5,303 when compared to the prior-year period and was flat compared to the first quarter of 2026. Marine (18% of Revenue)
Revenue of $191 million increased 22% compared to flat estimated wholesale powerboat industry unit shipments. Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 22% to $4,883 when compared to the prior-year period and increased 5% when compared to the first quarter of 2026. Powersports (12% of Revenue)
Revenue of $123 million increased 28% driven by continued demand for utility-focused units, increased OEM penetration, and stronger attachment rates for Sportech's cab enclosure solutions and other premium vehicle content, including audio. Housing (31% of Revenue, comprised of Manufactured Housing ("MH") and Industrial)
Revenue of $320 million increased 2%; estimated wholesale MH industry unit shipments decreased 8%; total housing starts decreased 1%. Estimated content per wholesale MH unit (on a trailing twelve-month basis) of $6,673 was flat compared to the prior-year period and increased 1% compared to the first quarter of 2026. Balance Sheet, Cash Flow and Capital Allocation
For the first six months of 2026, cash provided by operating activities was $69 million compared to $189 million in the prior-year period, reflecting higher working capital investment compared to the first half of 2025, as inventory levels remained elevated in connection with the Company's composite products growth strategy. Purchases of property, plant and equipment totaled $18 million in the second quarter of 2026, reflecting the disciplined deployment of capital toward strategic investments, including technology, automation, and other operational efficiency enhancements. On a trailing twelve-month basis, free cash flow1 through the second quarter of 2026 was $128 million compared to $262 million in the prior-year period primarily reflecting the aforementioned increase in working capital investment.
Patrick returned $106 million to shareholders during the second quarter of 2026, including $15 million through dividends and $91 million for the repurchase of 980,000 shares of the Company's common stock. At the end of the second quarter, the Company had unused capacity of $62 million under its current share repurchase authorization.
Total debt at the end of the second quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 3.0x (as calculated in accordance with the Company's credit agreement). Available liquidity, comprised of borrowing availability under the Company's credit facility and cash on hand, was approximately $691 million.
Business Outlook and Summary
"Our long-term strategy and confidence in Patrick's value creation opportunity remain unchanged, even as we take a prudent view of the balance of the year given the continued macroeconomic uncertainty across our end markets," continued Mr. Nemeth. "We are not relying on a near-term market rebound and are focused on the actions within our control: staying close to our customers, delivering cost-effective product solutions, aligning our cost structure appropriately, advancing high-value growth initiatives, actioning M&A opportunities within our key markets and in alignment with our strategic plan, and continuing to strengthen the capabilities that differentiate Patrick in the marketplace. This focused mindset allows us to manage through near-term uncertainty while building a stronger, more agile platform for the future. With our diversified business model, solid balance sheet, entrepreneurial and customer-first culture, and proven execution capabilities, we believe Patrick is well positioned to deliver long-term profitable growth and shareholder value creation. Consistent with Patrick's long-term vision and strategy, we are excited about the enhanced value proposition the combination with LCI Industries will create for our stakeholders once the transaction is closed, and believe it can enable us to more effectively partner with OEMs to achieve their goals, while driving long-term profitable growth and enhanced shareholder value."
1 See additional information at the end of this release regarding non-GAAP financial measures.
Conference Call Webcast
Patrick Industries will host an online webcast of its second quarter 2026 earnings conference call that can be accessed on the Company's website, www.patrickind.com, under "Investors," on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time. A replay will also be available following the call. In addition, a supplemental earnings presentation can be accessed on the Company's website, www.patrickind.com, under "Investors."
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
Information set forth in this communication constitutes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Patrick Industries, Inc. as of the date hereof. The forward-looking statements are based on current expectations and our actual results may differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers, dealers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions, changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in our senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in Ukraine and evolving conflict in the Middle East, including, but not limited to conflict with Iran.
Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between the Company and LCI Industries ("LCI") (the "proposed transaction"), future financial and operating results, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: (1) the completion of the proposed transaction may not occur on the anticipated terms and timing or at all; (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transaction; (3) the risk that the necessary regulatory approvals for the proposed transaction may not be obtained or may be obtained subject to conditions that are not anticipated; (4) risks that any of the closing conditions to the proposed transaction may not be satisfied in a timely manner; (5) risks related to litigation brought in connection with the proposed transaction; (6) risks related to disruption of management time from ongoing business operations due to the proposed transaction; (7) effects of the announcement, pendency or completion of the proposed transaction on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with suppliers, distributors, advertisers, content providers, vendors and other business partners, and on its operating results and business generally; (8) negative effects of the announcement or the consummation of the proposed transaction on the market price of the Company's common stock; (9) risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; (10) inherent uncertainties involved in the estimates and assumptions used in the preparation of financial projections; (11) the ability to obtain or consummate financing or refinancing related to the proposed transaction; and (12) the response of the Company or LCI management to any of the aforementioned factors. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risks related to the proposed transaction.
Discussions of additional risks and uncertainties are contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's Quarterly Reports on Form 10-Q for subsequent quarterly periods, which are filed with the SEC and available on the SEC's website at www.sec.gov. The Company expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, as a result of new information, future events, or otherwise, except as required by applicable law. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Contact:
Steve O'Hara
Vice President of Investor Relations
[email protected]
574.294.7511
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
Six Months Ended
(In thousands, except per share data)
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Net sales
$ 1,041,704
$ 1,047,554
$ 2,038,876
$ 2,050,974
Cost of goods sold
794,129
796,922
1,564,441
1,571,751
Gross profit
247,575
250,632
474,435
479,223
Operating Expenses:
Warehouse and delivery
50,608
46,075
95,640
90,657
Selling, general and administrative
96,188
93,206
189,284
187,137
Amortization of intangible assets
23,744
24,629
47,754
49,138
Total operating expenses
170,540
163,910
332,678
326,932
Operating income
77,035
86,722
141,757
152,291
Interest expense, net
18,978
18,869
37,366
37,981
Other expenses
—
24,420
—
24,420
Income before income taxes
58,057
43,433
104,391
89,890
Income taxes
14,636
10,997
21,490
19,216
Net income
$ 43,421
$ 32,436
$ 82,901
$ 70,674
Basic earnings per common share
$ 1.36
$ 1.00
$ 2.57
$ 2.17
Diluted earnings per common share
$ 1.28
$ 0.96
$ 2.37
$ 2.07
Weighted average shares outstanding - Basic
31,913
32,520
32,199
32,595
Weighted average shares outstanding - Diluted
33,973
33,823
34,993
34,116
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
($ in thousands)
June 28, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 29,160
$ 26,432
Trade and other receivables, net
276,863
185,405
Inventories
653,255
595,265
Prepaid expenses and other
63,180
66,020
Total current assets
1,022,458
873,122
Property, plant and equipment, net
410,230
408,502
Operating lease right-of-use assets
227,533
199,087
Goodwill and intangible assets, net
1,539,053
1,582,662
Other non-current assets
12,012
12,801
Total assets
$ 3,211,286
$ 3,076,174
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt
$ 6,250
$ 6,250
Current operating lease liabilities
57,977
54,956
Accounts payable
224,474
192,448
Accrued liabilities
94,135
94,412
Other current liabilities
416
424
Total current liabilities
383,252
348,490
Long-term debt, less current maturities, net
1,412,496
1,282,821
Long-term operating lease liabilities
174,717
148,889
Deferred tax liabilities, net
96,079
96,875
Other long-term liabilities
13,666
14,802
Total liabilities
2,080,210
1,891,877
Total shareholders' equity
1,131,076
1,184,297
Total liabilities and shareholders' equity
$ 3,211,286
$ 3,076,174
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended
($ in thousands)
June 28, 2026
June 29, 2025
Cash flows from operating activities
Net income
$ 82,901
$ 70,674
Depreciation and amortization
85,790
85,255
Stock-based compensation expense
11,986
11,300
Deferred income taxes
(796)
(7,782)
Other adjustments to reconcile net income to net cash provided by operating activities
1,782
2,283
Change in operating assets and liabilities, net of acquisitions of businesses
(112,756)
27,737
Net cash provided by operating activities
68,907
189,467
Cash flows from investing activities
Purchases of property, plant and equipment
(36,558)
(38,446)
Business acquisitions and other investing activities
(7,659)
(48,172)
Net cash used in investing activities
(44,217)
(86,618)
Net cash flows used in financing activities
(21,962)
(114,436)
Net increase (decrease) in cash and cash equivalents
2,728
(11,587)
Cash and cash equivalents at beginning of year
26,432
33,561
Cash and cash equivalents at end of period
$ 29,160
$ 21,974
PATRICK INDUSTRIES, INC.
Earnings Per Common Share (Unaudited)
The table below illustrates the calculation of earnings per common share:
Three Months Ended
Six Months Ended
(in thousands, except per share data)
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Numerator:
Net income attributable to common shares
$ 43,421
$ 32,436
$ 82,901
$ 70,674
Denominator:
Weighted average common shares outstanding - basic
31,913
32,520
32,199
32,595
Weighted average impact of potentially dilutive convertible notes
1,275
903
1,575
984
Weighted average impact of potentially dilutive warrants
641
199
1,012
295
Weighted average impact of potentially dilutive securities
144
201
207
242
Weighted average common shares outstanding - diluted
33,973
33,823
34,993
34,116
Earnings per common share:
Basic earnings per common share
$ 1.36
$ 1.00
$ 2.57
$ 2.17
Diluted earnings per common share
$ 1.28
$ 0.96
$ 2.37
$ 2.07
PATRICK INDUSTRIES, INC.
Non-GAAP Reconciliation (Unaudited)
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides financial metrics, such as net leverage ratio, content per unit, free cash flow, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted diluted earnings per share ("adjusted diluted EPS"), adjusted operating margin, adjusted EBITDA margin and available liquidity, which we believe are important measures of the Company's business performance. These metrics should not be considered alternatives to U.S. GAAP. Our computations of net leverage ratio, content per unit, free cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating margin, adjusted EBITDA margin and available liquidity may differ from similarly titled measures used by others. We calculate available liquidity by taking our revolving credit facility capacity, subtracting the outstanding revolver balance and outstanding letters of credit, and adding cash and cash equivalents. Content per unit metrics are generally calculated using our market sales divided by Company estimates based on third-party measures of industry volume. We calculate EBITDA by adding back depreciation and amortization, net interest expense, and income taxes to net income. We calculate adjusted EBITDA by taking EBITDA and adding back stock-based compensation, acquisition-related transaction costs, merger-related costs, loss on sale of business unit, legal settlement, loss on sale of property, plant and equipment and subtracting out the gain on sale of property, plant and equipment. Adjusted net income is calculated by removing the impact of acquisition-related transaction costs, net of tax, legal settlement, net of tax, merger-related costs, net of tax and the loss on sale of business unit, net of tax. Adjusted diluted EPS is calculated as adjusted net income divided by our diluted weighted average shares outstanding. Adjusted operating margin is calculated by removing the impact of acquisition-related transaction costs, merger-related costs and loss on sale of business unit. We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from net cash provided by operating activities. RV wholesale unit shipments are provided by the RV Industry Association. Marine wholesale unit shipments are Company estimates based on data provided by the National Marine Manufacturers Association. MH wholesale unit shipments are Company estimates based on data provided by the Manufactured Housing Institute. Housing starts are provided by the U.S. Census Bureau. You should not consider these metrics in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP.
The following tables reconcile net income to EBITDA, adjusted EBITDA and margins:
Three Months Ended
($ in thousands)
June 28, 2026
% of Net Sales
June 29, 2025
% of Net Sales
Net income
$ 43,421
4.2 %
$ 32,436
3.1 %
+
Depreciation & amortization
43,013
4.1 %
42,609
4.1 %
+
Interest expense, net
18,978
1.8 %
18,869
1.8 %
+
Income taxes
14,636
1.4 %
10,997
1.0 %
EBITDA
120,048
11.5 %
104,911
10.0 %
+
Stock-based compensation
6,008
0.6 %
6,051
0.6 %
+
Merger-related costs
437
— %
—
— %
+
Loss on sale of business unit
226
— %
—
— %
+
Legal settlement
—
— %
24,420
2.3 %
+
(Gain) loss on sale of property, plant and equipment
(429)
— %
52
— %
Adjusted EBITDA
$ 126,290
12.1 %
$ 135,434
12.9 %
Six Months Ended
($ in thousands)
June 28, 2026
% of Net Sales
June 29, 2025
% of Net Sales
Net income
$ 82,901
4.1 %
$ 70,674
3.4 %
+
Depreciation & amortization
85,790
4.2 %
85,255
4.2 %
+
Interest expense, net
37,366
1.8 %
37,981
1.9 %
+
Income taxes
21,490
1.1 %
19,216
0.9 %
EBITDA
227,547
11.2 %
213,126
10.4 %
+
Stock-based compensation
11,986
0.6 %
11,300
0.6 %
+
Acquisition-related transaction costs
—
— %
64
— %
+
Merger-related costs
437
— %
—
— %
+
Loss on sale of business unit
226
— %
—
— %
+
Legal settlement
—
— %
24,420
1.2 %
+
(Gain) loss on sale of property, plant and equipment
(584)
— %
2,094
— %
Adjusted EBITDA
$ 239,612
11.8 %
$ 251,004
12.2 %
The following table reconciles cash flow from operations to free cash flow on a trailing twelve-month basis:
Trailing Twelve Months Ended
($ in thousands)
June 28, 2026
June 29, 2025
Cash flows from operating activities
$ 208,854
$ 343,650
Less: purchases of property, plant and equipment
(81,033)
(81,717)
Free cash flow
$ 127,821
$ 261,933
The following table reconciles operating margin to adjusted operating margin:
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Operating margin
7.4 %
8.3 %
7.0 %
7.4 %
Merger-related costs
0.1 %
— %
— %
— %
Adjusted operating margin
7.5 %
8.3 %
7.0 %
7.4 %
The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share:
