Patrick Industries Inc., a leading component solutions provider for the Outdoor Enthusiast and Housing markets, reported financial results for the first quarter ended March 30.
Net sales increased 7%, or $70 million, to $1 billion, compared to the first quarter of 2024. The growth in net sales was due to stronger demand from RV and Manufactured Housing (MH) customers, which more than offset the impact of lower demand in the company’s Marine and Powersports end markets.
Operating income increased approximately 10% to $66 million in the first quarter of 2025, compared to $59 million in the first quarter of 2024. Operating margin of 6.5% increased 10 basis points compared to 6.4% in the same period a year ago. Adjusted operating margin1, which excluded acquisition related transaction costs was 7% in the first quarter of 2024. First quarter 2025 adjusted operating margin1 declined 50 basis points to 6.5%, primarily reflecting the seasonality of our growing aftermarket business and higher SG&A and warehouse and delivery expenses primarily related to acquisitions.
Net income increased 9% to $38 million, or $1.11 per diluted share, compared to $35 million, or $1.06 per diluted share, in the first quarter of 2024. Adjusted net income1 was $38 million, or $1.11 per diluted share, in the first quarter of 2025, compared to adjusted net income1 of $39 million, or $1.19 per diluted share, in the first quarter of 2024. Reported and adjusted diluted earnings per share1 in the first quarter of 2025 include approximately $0.05 of dilution from our convertible notes and related warrants compared to $0.01 in the prior year period.
“The anticipated seasonal production increase in our RV and MH markets and dedication of our team members coupled with our commitment to the execution of our strategic and operating plans helped drive solid revenue growth and profitability in the first quarter,” said CEO Andy Nemeth. “Additionally, our diversified business model continues to demonstrate its resilience and value, with strength in our RV and Housing markets offsetting lower demand from our Marine and Powersports customers. The ongoing investments we have made in strategic acquisitions, automation initiatives, new product development, and our Advanced Product Group have resulted in a stronger, more resilient customer-service focused business that is well positioned to capture opportunities as market conditions evolve. We are committed to serving our customers at the highest level and striving to be the supplier of choice for the Outdoor Enthusiast and Housing markets, while advancing our full-solutions model and aftermarket growth initiatives.”
Jeff Rodino, president – RV, said, “With our well-capitalized, strong balance sheet and cash flows, we continued to deploy capital in the first quarter toward our long-term growth objectives, completing the acquisitions of Elkhart Composites and Medallion Instrumentation Systems, which complement our existing product lines and expand the depth and breadth of solutions we can provide to our customers. We will continue to prudently deploy capital and manage our cost structure so that we are well positioned to navigate potential macroeconomic uncertainty, while retaining the ability to capture opportunities in any environment.”
First Quarter 2025 Revenue by Market Sector
(compared to First Quarter 2024 unless otherwise noted)
RV (48% of Revenue)
Revenue of $479 million increased 14% while wholesale RV industry unit shipments increased 14%.
Content per wholesale RV unit (on a trailing twelve-month basis) was flat at $4,870 when compared to the prior year period and the fourth quarter of 2024.
Marine (15% of Revenue)
Revenue of $149 million decreased 4% while estimated wholesale powerboat industry unit shipments decreased 10%.
Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) was flat at $3,979 when compared to the same prior year period. Compared to the fourth quarter of 2024, estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 2%.
