Patrick Industries Inc. reported financial results for the fourth quarter and year ended Dec. 31, 2024.
Fourth quarter net sales increased 8% to $846 million compared to $781 million in the fourth quarter of 2023. The improvement in sales reflected the contribution of acquisitions completed during the year, a 12% improvement in Housing end market revenue and market share gains. The improvement in sales was partially offset by lower revenue from our Marine end market due to lower marine industry wholesale shipments.
Operating income of $40 million decreased $17 million, or 31%, compared to the fourth quarter of 2023. Operating margin decreased 260 basis points to 4.7%, reflecting higher amortization related to acquisitions and our strategic decision to maintain production capacity to enhance our ability to serve customers as they prepare for the upcoming selling season. On an adjusted basis1, operating margin was 5.2%.
Net income was $15 million or $0.42 per diluted share in the fourth quarter of 2024 compared to $31 million or $0.94 per diluted share in the same period last year. On an adjusted basis, net income was $18 million or $0.52 per diluted share in the fourth quarter of 2024. Adjusted diluted EPS1 includes the dilutive impact of our convertible notes and related warrants, or an estimated $0.02 per share. Adjusted EBITDA1 was $89 million and adjusted EBITDA margin1 was 10.6% in the fourth quarter of 2024 compared to adjusted EBITDA1of $100 million and adjusted EBITDA margin1 of 12.8% in the same period last year.
“Our team continued to execute in 2024 with a steadfast commitment to excellence and innovation, addressing evolving customer needs while advancing our long-term strategic objectives,” said CEO Andy Nemeth. “As we navigated dynamic markets facing demand and interest rate pressures, we prioritized optimizing our operations and elevating our customer first expectations, presence and capabilities. Last year was strategically significant, as we completed two key acquisitions: Sportech, which solidifies our platform in the Powersports market, and RecPro, which meaningfully expands our presence in the Outdoor Enthusiast aftermarket space. We also bolstered our liquidity and financial flexibility by expanding and extending our credit facility and by refinancing a portion of our debt, which extended our maturity horizon and reduced the average interest rate of our fixed rate debt, supporting our strong foundation to capitalize on future opportunities and drive shareholder value in 2025 and beyond.”
Jeff Rodino, president of RV, said, “Last year, we continued to see diligent dealer inventory management due to high floorplan costs and uncertain consumer demand. Looking at 2025, we believe there are promising trends occurring in our RV market as the industry prepares for the upcoming selling season. While our experience suggests that RV tends to be the first of our Outdoor Enthusiast markets to improve after a down cycle, we will closely monitor the impact of interest rates and consumer confidence on all of our end markets and continue to drive our business for long-term profitable growth.”
Fourth quarter 2024 revenue by market sector (compared to Q4 2023 unless otherwise noted)
RV (42% of revenue)
Revenue of $358 million increased 1% while wholesale RV industry unit shipments increased 3%.
Full year content per wholesale RV unit increased 1% to $4,870. Compared to the trailing twelve-month period through the third quarter of 2024, content per wholesale RV unit was flat.
Marine (14% of revenue)
Revenue of $122 million decreased 17% while estimated wholesale powerboat industry unit shipments decreased 20%. The Marine end market revenue previously included Powersports revenue, which the company began to report separately following the Sportech acquisition. End market revenue and content per unit have been adjusted to reflect this change for the relevant periods.
Full year estimated content per wholesale powerboat unit decreased 3% to $3,967. Compared to the trailing twelve-month period through the third quarter of 2024, content per wholesale powerboat unit increased 1%.
