Patrick Industries reported financial results for the second quarter and six months ended June 30.
Net sales increased 10% to $1.02 billion, an increase of $96 million compared to the second quarter of 2023. The increase in sales was primarily driven by higher revenue from RV and housing end markets, combined with revenue from its first quarter acquisition of Sportech, which more than offset lower revenue from its marine end market (as a result of continued strict production discipline by marine OEMs in light of ongoing marine dealer inventory destocking).
Operating income of $85 million in the second quarter of 2024 increased $9 million, or 12%, compared to $76 million in the second quarter of 2023. Operating margin of 8.3% increased 10 basis points compared to 8.2% in the same period a year ago because of continued labor management and increased revenues.
Net income increased 13% to $48 million compared to $42 million in the second quarter of 2023. Diluted earnings per share of $2.16increased 11% compared to $1.94 for the second quarter of 2023. For the first six months of 2024 compared to the first six months of 2023, excluding acquisition transaction costs and purchase accounting adjustments in both periods, adjusted net income increased 20% to $87 million and adjusted diluted earnings per share increased 20% to $3.95.
“Our solid revenue and operating margin improvement in the second quarter reflect the strategic diversification investments we have made over the last several years as well as our cost management initiatives and capital expenditures related to automation projects,” said CEO Andy Nemeth. “I am proud of how hard the Patrick team worked in the first half of the year to leverage our variable cost structure and execute operational efficiencies during a time when market and macroeconomic conditions have been so volatile.”
Jeff Rodino, president of RV, said, “We believe our history of successful, targeted acquisitions has bolstered the resiliency of our business, deepened our talent bench and improved our ability to grow revenue and margins. Our acquisition philosophy remains intact, as we look for strong, culturally aligned management teams, solid risk-adjusted returns, and the potential for significant long-term demand growth. Additionally, we are investing in our platform through our Advanced Product Group, which is collaborating with our valued customers to develop innovative, full-component solutions that will help enable us to continue to drive organic growth. In the second quarter, we brought numerous products to market, creating momentum and excitement for the future of Patrick, supporting our goal of being the supplier of choice for our customers and generating returns for shareholders.”
By market sector, Q2 revenue for the RV segment (44% of Patrick’s revenue) increased 17% while wholesale RV industry unit shipments increased 7%. Content per wholesale RV unit (on a trailing twelve-month basis) decreased by 2% to $4,966. Compared to the first quarter of 2024, content per wholesale RV unit (on a trailing twelve-month basis) increased 2%.