LCI Industries reported third quarter 2025 results.
“Our diversification strategy has continued to fundamentally contribute to our strong performance, as our team’s outstanding efforts resulted in 13% revenue growth, which drove strong margin expansion and a meaningful increase in adjusted earnings per share of 42%. Our leadership teams have worked diligently to optimize our productivity, footprint and resources, positioning the company for strong performance as the industry begins to recover from this prolonged cycle,” said Jason Lippert, president and chief executive officer. “We continue to strengthen our structural competitive advantages through implementation of operational excellence, while benefitting from our investments in innovation that have created another competitive moat. We are also once again adding outstanding businesses to our flagship brands through disciplined, strategic acquisitions. As we look ahead, we believe Lippert is well-positioned to build on our sustained incremental margin improvement and meaningfully enhance shareholder value over time.”
Third Quarter 2025 Results
Consolidated net sales grew 13.2% to $1,036.5 million from 2024 third quarter net sales of $915.5 million. The increase was primarily due to a $105.6 million increase in net sales of the OEM Segment driven by sales price increases related to material costs, sales from acquired businesses and higher North American RV sales driven by market share gains and an increased mix of higher content fifth-wheel units. Net sales from acquisitions completed in the twelve months ended September 30, 2025 contributed $41.9 million in the third quarter of 2025.
Net income was $62.5 million, or $2.55 per diluted share, up 75%, compared to $35.6 million, or $1.39 per diluted share, in the third quarter of 2024. Adjusted net income increased to $48.1 million, up 35%, to $1.97 per diluted share, excluding loss on extinguishment of debt and gain on sale of real estate, net of tax effect. Adjusted EBITDA grew 24% to $105.9 million, compared to $85.2 million in the third quarter of 2024. Operating profit margin was 7.3% in the third quarter of 2025 compared to 5.9% in the same period of 2024. The margin expansion was primarily driven by reduced costs from materials sourcing strategies and increased North American RV sales volume related to market share gains and increased sales mix of higher content fifth-wheel units.
OEM Segment – Third Quarter Performance
OEM net sales rose $105.6 million, or 15%, to $790.0 million for the third quarter of 2025, compared to the same period of 2024. RV OEM net sales increased 11% to $470.1 million, primarily driven by sales price increases related to material costs, an increase in RV sales mix toward higher content fifth-wheel units, market share gains and an increase in North American motorhome RV unit shipments, partially offset by volume decreases in the European RV market. Adjacent Industries OEM net sales grew 22% year over year to $319.9 million, driven primarily by sales from acquired businesses and higher sales to North American utility trailer and marine OEMs.
Operating profit of the OEM Segment was $43.6 million in the third quarter of 2025, or 5.5% of net sales, compared to an operating profit of $21.8 million, or 3.2% of net sales, in the same period in 2024. The operating profit margin expansion of the OEM Segment was primarily driven by increases in selling prices for targeted products, primarily related to increased material costs, reduced costs from material sourcing strategies, improved fixed cost absorption, and production labor efficiencies, partially offset by higher material costs on the expense side, which were impacted by tariffs and higher steel, aluminum, and freight costs.
Aftermarket Segment – Third Quarter Performance
Aftermarket net sales grew 7% to $246.5 million compared to the same period of 2024. The increase was primarily driven by product innovations, increased demand for the company’s upgrade and service parts as more units enter the upgrade and repair cycle, and the expanding Camping World relationship within the RV aftermarket, partially offset by lower volumes within the automotive aftermarket. Operating profit of the Aftermarket Segment of $31.9 million was relatively flat compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 12.9%, compared to 13.9% in the same period in 2024. The operating profit margin change was primarily driven by higher material costs related to tariffs and higher steel, aluminum, and freight costs, lower production volumes in the automotive aftermarket in response to lower retail volumes, and investments in capacity, distribution and logistics technology to support growth of the Aftermarket Segment, partially offset by increases in selling prices for targeted products, primarily related to increased material costs, and reduced costs from material sourcing strategies.
Click here to view the full release and LCI Industries’ financial tables.
