LCI Industries, through its wholly owned subsidiary Lippert, reported second quarter 2024 results.
“We delivered strong second quarter results, with revenue growth in towable RV OEM, aftermarket and certain adjacent OEM businesses while achieving over 300 basis points of operating profit margin expansion compared to the second quarter of 2023,” commented Jason Lippert, LCI Industries’ president and CEO. “Our strategy has been working. Diversification continues to help mitigate market cyclicality and support margins, while innovation is fueling content growth. Continued expansion into new product markets is also broadening our reach, which has opened up over $12 billion in combined addressable opportunities across our business. As a result, we continue to deliver strong results in a challenging backdrop and are well-placed to benefit meaningfully when the RV market rebounds and retail demand improves.”
“We are generating substantial cash flows through disciplined working capital management, having notably reduced inventories by $142 million in the past year, as well as by taking action to optimize and enhance our manufacturing footprint. Efforts to increase efficiencies, driving operational effectiveness through continuous improvements, are also helping to lift profitability. As our results reinforce our financial foundation, we plan to continue paying down debt and investing in growth opportunities for our business,” continued Lippert. “Heading further into the year, we will keep executing our strategy and drive sustained value creation for our stakeholders.”
“Thanks to the hard work and dedication of our team members, we showed solid performance in the second quarter while navigating a challenging environment. Through a consistent focus on our key strategic pillars, including customer service, safety, quality, culture and leadership, and innovation, we are delivering profitable growth while solidifying our leading position across the recreation space,” commented Ryan Smith, LCI Industries’ group president – North America.
Second Quarter 2024 Results
Consolidated net sales for the second quarter of 2024 were $1.1 billion, an increase of 4% from 2023 second quarter net sales of $1.0 billion. Net income in the second quarter of 2024 was $61.2 million, or $2.40 per diluted share, compared to $33.4 million, or $1.31 per diluted share, in the second quarter of 2023. EBITDA in the second quarter of 2024 was $122.6 million, compared to EBITDA of $88.2 million in the second quarter of 2023.
The increase in year-over-year net sales for the second quarter of 2024 was primarily driven by increased North American RV wholesale shipments of travel trailers and fifth-wheels and market share gains in the automotive aftermarket, partially offset by lower North American marine sales volume.
July 2024 Results
July 2024 consolidated net sales were approximately $311 million, up 6% from July 2023, primarily due to an approximate 15% increase in North American RV production, partially offset by an approximate 16% decline in marine sales compared to July 2023.
Click here to read the full release and view LCI’s non-GAAP reconciliation tables.
