LCI Industries reported third quarter 2026 results.
“Our third-quarter results reflect continued progress in improving profitability in a soft outdoor recreation market. Margin expansion and 6% growth in product content per unit contributed to our performance and position us to achieve our updated full-year outlook,” said Johnny Sirpilla, interim CEO. “Our 2026 performance has been driven by taking actions on those areas within our control. This includes the ongoing pursuit of operational efficiencies and strategic cost reductions. Our cost management and growth in adjacent industries and aftermarket sales contributed to our bottom line results and we believe leave us well-positioned as conditions normalize.”
Sirpilla continued, “Our new product pipeline and the repair and replacement needs of the installed RV base provide opportunities to serve customers even as demand for new units remains constrained. We are also advancing toward the proposed merger with Patrick Industries, which we continue to expect to close in the first half of 2027. Until that time, our focus remains on disciplined execution and strengthening the business under current market conditions, while driving long-term shareholder value.”
Third Quarter 2026 Results
Consolidated net sales of $992.5 million in the third quarter of 2026 compares to $1,036.5 million in the same period of 2025. The decrease in consolidated net sales was primarily driven by lower North American RV wholesale shipments, partially offset by increases in selling prices contractually tied to indices of select commodities, growth in the automotive aftermarket and sales from acquired businesses ($5.2 million in the third quarter).
Net income was $50.1 million, or $2.05 per diluted share, compared to $62.5 million, or $2.55 per diluted share, in the third quarter of 2025. Adjusted net income increased to $54.0 million, or $2.21 per diluted share, compared to $48.1 million, or $1.97 per diluted share. Adjusted EBITDA increased to $111.5 million, compared to $105.9 million in the third quarter of 2025. Operating profit margin increased to 7.6% in the third quarter of 2026 compared to 7.3% in the same period of 2025. Year-over-year margin expansion was driven primarily by cost improvement actions, including materials sourcing strategies, partially offset by lower absorption of fixed costs due to lower sales volumes and merger-related expenses.
*Additional information regarding adjusted net income, adjusted EPS, adjusted EBITDA, and adjusted operating profit margin used throughout this release, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, is provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.
OEM Segment — Q3 Performance
OEM net sales decreased $57.7 million, or 7%, to $732.3 million for the third quarter of 2026, compared to $790.0 million in the same period of 2025. RV OEM net sales decreased 17% to $389.9 million, primarily due to a decrease in North American travel trailer and fifth-wheel shipments, and a change in RV sales mix toward more lower content single axle travel trailers, partially offset by increases in selling prices contractually tied to indices of select commodities. Adjacent Industries OEM net sales increased 7% year-over-year to $342.4 million, primarily driven by higher sales to North American transportation, marine, and manufactured housing OEMs.
Operating profit of the OEM Segment was $44.1 million in the third quarter of 2026, or 6.0% of net sales, compared to $43.6 million, or 5.5% of net sales, in the same period in 2025. Operating profit margin of the OEM Segment benefited primarily from increases in selling prices contractually tied to indices of select commodities, cost improvement actions, including materials sourcing strategies, and a favorable shift in component sales mix, partially offset by the impact of fixed costs spread over decreased production volumes, decreases in selling prices for certain products primarily related to changes in tariff costs, higher material and freight costs, including higher steel and aluminum costs and rising fuel costs, as well as merger-related expenses.
Aftermarket Segment — Q3 Performance
Aftermarket net sales increased 6% to $260.2 million for the third quarter of 2026, compared to $246.5 million in the same period of 2025. The increase was primarily driven by increases in volume in the automotive aftermarket.
Operating profit of the Aftermarket Segment was $30.9 million, or 11.9% of net sales in the third quarter of 2026, compared to $31.9 million, or 12.9% of net sales, in the same period of 2025. Operating profit margin of the Aftermarket Segment was negatively impacted by higher material and freight costs related to tariffs, higher steel and aluminum costs, rising fuel costs, investments in capacity and distribution to support the Aftermarket Segment, restructuring costs to support growth in the automotive aftermarket, and merger-related expenses, partially offset by the impact of fixed costs spread over increased automotive aftermarket production volumes, cost improvement actions, including materials sourcing strategies, and increases in selling prices for targeted products and to cover increased material costs.
Outlook
Based on current market and economic conditions along with existing tariffs, the company currently expects the following:
- October 2026 net sales of approximately $341 million, down 10% from prior year
- 2026 North American RV wholesale shipments of 285,000 to 295,000
- 2026 revenue of $3.9 billion to $4.0 billion
- 2026 adjusted operating profit margin of 7.5% to 8.0%
- 2026 adjusted EPS of $8.25 to $8.50
