Patrick Touts Results of ‘Diversified Platform’ in Q2 Financials

Patrick Industries Inc. reported financial results for the second quarter and six months ended June 28.

Second Quarter 2026 Highlights (compared to Second Quarter 2025 unless otherwise noted)

• Net sales were $1.04 billion compared to $1.05 billion in the prior-year period. Revenue growth of 22% in Marine, 28% in Powersports, and 2% in Housing predominantly offset the impact of a 15% decline in RV end market revenue, driven by a 16% decline in RV industry wholesale unit shipments.
• Patrick’s RV content per unit (on a trailing 12-month basis) increased 7%, while estimated Marine content per unit (on a trailing 12-month basis) grew 22%.
• Operating income was $77 million and operating margin was 7.4% compared to operating income of $87 million and operating margin of 8.3% in the prior-year period. On an adjusted basis, operating margin was 7.5% compared to 8.3% in the prior-year period.
• Net income increased 34% to $43 million and diluted earnings per share (EPS) increased 33% to $1.28. On an adjusted basis, net income was $44 million, or $1.29 per diluted share, compared to $51 million, or $1.50 per diluted share in the prior-year period.
• Reported and adjusted diluted EPS include the dilutive impact of convertible notes and related warrants of approximately $0.07 per share, compared to $0.03 in the prior-year period.
• Adjusted EBITDA was $126 million and adjusted EBITDA margin was 12.1% compared to adjusted EBITDA of $135 million and adjusted EBITDA margin of 12.9% in the prior-year period.
• On a year-to-date basis, cash flow provided by operating activities was $69 million compared to $189 million in the prior-year period. Free cash flow, on a trailing twelve-month basis, was $128 million.
• Returned $106 million to shareholders in the second quarter of 2026, including $15 million through regular quarterly dividends and $91 million through share repurchases.
• Available liquidity was $691 million at the end of the second quarter; total net leverage ratio was 3.0x.
• Subsequent to the end of the second quarter, as previously announced on June 30, 2026, the Company signed a definitive agreement with LCI Industries to combine in an all-stock merger. Please visit www.patrickandlipperttogether.com for information regarding the transaction.

“Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions,” said Patrick Industries CEO Andy Nemeth. “Our strategic diversification across distinct end markets continued to support our overall performance in what has been a challenging consumer discretionary environment. Growth in our marine, powersports, and housing businesses largely offset a double-digit percentage decline in our RV end market revenue amid equally soft RV industry wholesale unit shipments. Despite this uncertainty, we remain encouraged by the level of discipline across the value chain in each of our markets, as our teams, the OEMs we serve and dealers continue to focus on measured production schedules and prudent inventory management, supporting healthy long-term industry dynamics. Across Patrick, we are staying close to our customers, investing in innovation, and driving additional operational efficiencies while preserving the flexibility to exceed customer expectations.”

Net sales of $1.04 billion declined less than 1% from the second quarter of 2025. Revenue growth in the company’s marine, powersports and housing end markets predominantly offset the impact of a decline in RV end market revenue, which was related to a 16% decline in RV industry wholesale unit shipments in the quarter. The Company’s strong content per unit growth in Marine and a continued increase in attachment rates within the Company’s Powersports business were instrumental in delivering solid revenue performance overall.

Operating income was $77 million compared to $87 million in the second quarter of 2025. Operating margin was 7.4% compared to 8.3% in the same period last year. The year-over-year decline partially reflected a number of factors, including the impact of a double-digit percentage decline in RV industry wholesale unit shipments, higher oil and fuel prices and the related fuel surcharges, and merger-related costs. Adjusted operating margin¹ was 7.5% compared to 8.3% in the second quarter of 2025.

Net income increased 34% to $43 million, or $1.28 per diluted share, compared to $32 million, or $0.96 per diluted share in the second quarter of 2025. Adjusted net income in the second quarter of 2026 was $44 million, or $1.29 per diluted share, compared to adjusted net income of $51 million, or $1.50 per diluted share in the prior-year period. Adjusted net income in the second quarter of 2025 excludes one-time expenses related to a legal settlement. Reported and adjusted diluted earnings per share in the second quarter of 2026 include approximately $0.07 of dilution from the company’s convertible notes and related warrants compared to $0.03 in the prior-year period.

“Our strategic investments have positioned Patrick to better support our customers in more ways than ever before,” said Patrick Industries President Jeff Rodino. “As our OEM customers continue to focus on affordability, efficiency, labor productivity, product differentiation and managing retail demand patterns, we are bringing forward solutions in partnership that are practical, scalable and aligned with the needs of today’s market. Whether through new product development, component and composite solutions, electrical systems, aftermarket capabilities, advanced manufacturing, value engineering or The Experience, our teams are working directly with customers to help solve the challenges that matter most to their businesses. Our solutions-oriented approach supports organic growth while helping customers deliver more value to the end consumer. While near-term demand conditions remain challenging, we believe our portfolio of brands, technical expertise and ability to execute across our end markets continue to reinforce Patrick as a trusted partner across business cycles.”

Second Quarter 2026 Revenue by Market Sector
(compared to Second Quarter 2025 unless otherwise noted)

RV (39% of Revenue)

• Revenue of $407 million decreased 15% while RV industry wholesale unit shipments decreased 16%.
• Content per wholesale RV unit (on a trailing twelve-month basis) increased 7% to $5,303 when compared to the prior-year period and was flat compared to the first quarter of 2026.

Marine (18% of Revenue)

• Revenue of $191 million increased 22% compared to flat estimated wholesale powerboat industry unit shipments.
• Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 22% to $4,883 when compared to the prior-year period and increased 5% when compared to the first quarter of 2026.

Powersports (12% of Revenue)

• Revenue of $123 million increased 28% driven by continued demand for utility-focused units, increased OEM penetration, and stronger attachment rates for Sportech’s cab enclosure solutions and other premium vehicle content, including audio.

Housing (31% of Revenue, comprised of Manufactured Housing (“MH”) and Industrial)

• Revenue of $320 million increased 2%; estimated wholesale MH industry unit shipments decreased 8%; total housing starts decreased 1%.
• Estimated content per wholesale MH unit (on a trailing twelve-month basis) of $6,673 was flat compared to the prior-year period and increased 1% compared to the first quarter of 2026.