Patrick Industries Reports ‘Resilient Results’ in Q3

Patrick Industries, a leading component solutions provider for the outdoor enthusiast and housing markets, reported financial results for the third quarter and nine months ended Sept. 27.

Third Quarter 2026 Highlights

• 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 margin, 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 income was $34 million compared to $35 million. Adjusted diluted EPS was $1.03 compared to $1.01.
• Reported and adjusted diluted EPS 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 EBITDA increased 3% to $116 million and adjusted EBITDA margin 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, 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 Oct. 19, and the company will hold a special meeting of shareholders on Nov.18. More information can be found at 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 margin 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 income in the third quarter of 2026 was $34 million, or $1.03 per diluted share, compared to adjusted net income of $35 million, or $1.01 per diluted share¹ in the prior-year period. Reported and adjusted diluted EPS 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

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.

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