LCI Industries, a supplier of engineered components to the recreation and transportation markets, reported first quarter 2025 results.
First Quarter 2025 Highlights
- Net sales of $1 billion in the first quarter, up 8% year-over-year
- Net income of $49.4 million, which was 4.7% of net sales, or $1.94 per diluted share, in the first quarter, up 35% from the first quarter of 2024
- Net income, as adjusted for the loss on extinguishment of debt, was $55.6 million, or $2.19 per diluted share, in the first quarter, up 52% from the first quarter of 2024
- Adjusted EBITDA of $110.9 million, or 10.6% of net sales, in the first quarter, up 23% year-over-year
- Operating profit margin of 7.8% in the first quarter, up from 6.0% in the first quarter of 2024
- Cash flows from operating activities of $43 million, up $50 million from the first quarter of 2024
- Returned $57.6 million to shareholders through $28.3 million in share repurchases and a quarterly dividend of $1.15 per share, aggregating $29.4 million in the first quarter
“We delivered strong first quarter results, exceeding expectations despite ongoing macroeconomic headwinds. We continued to leverage both our innovative product portfolio and our distinct competitive advantages to capture content growth and market share across multiple product categories. This success, along with our steadfast focus on execution, effective cost management, and operational flexibility, enabled us to achieve both top and bottom line growth,” said Jason Lippert, LCI Industries’ president and CEO. “Our first quarter results also demonstrated the agility of our operations, as we scaled production to support modest RV inventory rebuilding and drove 20% sales growth in our North American RV OEM business. We also recently acquired Freedman Seating and Trans/Air, deepening our position in the bus market, an adjacency shielded from consumer swings as city and transit fleet upgrades remain essential. Our ability to scale operations and presence in diverse end markets continues to support strong margin expansion, effectively driving an operating margin increase of 180 basis points.”
“This performance reinforces our confidence in the long-term potential of our approach. With an experienced leadership team that has successfully navigated a range of operating environments, we are taking proactive steps to deliver results now, not just when conditions improve,” Lippert continued. “We remain on track toward our $5 billion organic revenue goal in 2027. We are also on track to deliver an 85 basis point margin improvement in 2025 through optimizing infrastructure. As we move throughout the year, we will continue to effectively monitor, adjust, and lead through changing macroeconomic dynamics.”
“Our team’s unwavering commitment to operational excellence continues to drive LCI Industries forward, even as we navigate a complex macro environment,” commented Ryan Smith, LCI Industries’ Group President – North America. “Backed by a strong culture of innovation, quality, and service, we are executing with discipline across our operations and remain focused on delivering sustainable growth in 2025 and beyond. I wish to offer a sincere thank you for our teams who continue to perform and lead well in this tough environment!”
First Quarter 2025 Results
Consolidated net sales for the first quarter of 2025 were $1,045.6 million, an increase of 8% from 2024 first quarter net sales of $968.0 million. Net income in the first quarter of 2025 was $49.4 million, or $1.94 per diluted share, compared to $36.5 million, or $1.44 per diluted share, in the first quarter of 2024. Adjusted net income in the first quarter of 2025 was $55.6 million, or $2.19 per diluted share, excluding the loss on extinguishment of debt, net of tax effect, during the quarter, which was up 52% from net income in the first quarter of 2024. Adjusted EBITDA in the first quarter of 2025 was $110.9 million, compared to Adjusted EBITDA of $90.3 million in the first quarter of 2024. Additional information regarding adjusted net income and Adjusted EBITDA, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure of net income, is provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.
The increase in year-over-year net sales for the first quarter of 2025 was primarily driven by a $65.2 million increase in net sales of the OEM Segment compared to the same period of 2024.
April 2025 Results
April 2025 consolidated net sales were approximately $392 million, up 3% from April 2024, primarily due to increases in Adjacent Industries OEM sales of 8% and RV OEM sales of 7%, partially offset by a decrease in international sales of 13%.
OEM Segment – First Quarter Performance
OEM net sales for the first quarter of 2025 were $823.6 million, an increase of $65.2 million compared to the same period of 2024. RV OEM net sales for the first quarter of 2025 were $530.8 million, up 15% compared to the same prior year period, primarily driven by an 18% increase in North American travel trailer and fifth-wheel wholesale shipments and market share gains, partially offset by an 11% decrease in motorhome wholesale shipments. Adjacent Industries OEM net sales for the first quarter of 2025 were $292.8 million, down 2% year-over-year, primarily due to lower sales to North American marine and powersports OEMs, partially offset by higher sales to utility trailers OEMs. The lower sales were driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumer demand.
Operating profit of the OEM Segment was $62.0 million in the first quarter of 2025, or 7.5% of net sales, compared to an operating profit of $32.8 million, or 4.3% of net sales, in the same period in 2024. The operating profit expansion of the OEM Segment for the quarter was primarily driven by the impact of fixed production overhead and SG&A costs spread over increased sales, decreases in material costs, and increases in production labor efficiencies, partially offset by decreases in selling prices.
Aftermarket Segment – First Quarter Performance
Aftermarket net sales for the first quarter of 2025 were $222.0 million, an increase of 6% compared to the same period of 2024. The increase was primarily driven by higher volumes within the RV and marine aftermarkets and market share gains in the automotive aftermarket. Operating profit of the Aftermarket Segment was $19.3 million in the first quarter of 2025, a decrease of $5.4 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 8.7% in the first quarter of 2025, compared to 11.8% in the same period in 2024, and was negatively impacted by increases in sales mix of lower margin products, decreases in automotive aftermarket production volume, and investments in capacity and distribution processes to support growth of the aftermarket segment.
“Our aftermarket business delivered strong results to start 2025, fueled by the success of recent innovations and the growing number of vehicles entering the repair and replacement cycle,” said Jamie Schnur, LCI Industries’ group president – Aftermarket. “Our long-term demand potential continues to expand as LCI Industries increases content on RVs, which increases the amount of components that will ultimately enter the repair and replacement cycle and require our support. To ensure we capitalize on this demand and other emerging opportunities, we remain focused on investing in dealer training programs and delivering exceptional service to strengthen our network relationships and enhance the customer experience.”
