Patrick Industries, a leading component solutions provider for the Outdoor Enthusiast and Housing markets, reported financial results for the first quarter ended March 29.
First Quarter 2026 Highlights (compared to First Quarter 2025 unless otherwise noted)
- Net sales were $997 million compared to $1,003 million. Marine revenue growth of 14% and Powersports revenue growth of 28% were offset by lower revenue in the company’s RV and Housing markets, primarily reflecting lower wholesale industry unit shipments.
- Patrick’s RV content per unit (on a trailing 12-month basis) increased 8%, while estimated Marine content per unit (on a trailing 12-month basis) grew 17%.
- Operating income was $65 million compared to $66 million. Operating margin was 6.5%, flat compared to the prior year period.
- Net income increased 3% to $39 million. Diluted earnings per share (EPS) was $1.10 compared to $1.11 in the prior year period. EPS includes the dilutive impact of convertible notes and related warrants of approximately $0.10 per share, compared to $0.05 in the prior year period.
- Adjusted EBITDA1 was $113 million compared to $116 million. Adjusted EBITDA margin1 was 11.4% compared to 11.5%.
- Cash flow used in operating activities was $14 million compared to cash provided by operating activities of $40 million in the prior year period. Free cash flow1, on a trailing twelve-month basis, was $194 million.
- Returned $31 million to shareholders in the first quarter of 2026, including $16 million through regular quarterly dividends and $15 million through share repurchases. During the second quarter through April 29, 2026, the Company repurchased approximately 153,100 shares for approximately $15 million.
- Total net liquidity was $734 million at the end of the first quarter; total net leverage ratio was 2.8x.
- On April 17, 2026, the Company confirmed that it is in discussions with LCI Industries (NYSE: LCII) regarding a potential merger of equals transaction. The Company provided no assurance that any transaction will result from these discussions nor provided any terms for a possible transaction. No further updates are available at this time.
“I want to thank our team members for their dedication and commitment, as they continued to execute with focus to deliver resilient performance and demonstrate the strength and adaptability of our diversified business model in a challenging and uncertain macroeconomic environment,” said Andy Nemeth, CEO. “Content gains were strong as a result of our team’s tremendous focus on innovation and product solutions, and helped to offset shipment declines in our RV, Marine, and Manufactured Housing markets. The demand environment in the first quarter was influenced by macroeconomic and geopolitical headwinds and dealer ordering discipline. Against this backdrop, our team’s ability to pivot quickly, combined with our customer-focused approach, enabled us to outperform in our Outdoor Enthusiast end markets.”
Net sales were $997 million compared to $1,003 million in the first quarter of 2025. Revenue from the Company’s Outdoor Enthusiast end markets, which include RV, Marine and Powersports, increased 2%, which was offset by a 6% decrease in revenue from its Housing end market. Content per wholesale RV unit (on a trailing 12-month basis) increased 8%, partially offsetting a 12% reduction in wholesale RV industry unit shipments, while estimated content per wholesale powerboat unit (on a trailing 12-month basis) increased 17%, which more than offset an estimated 7% decline in wholesale industry unit shipments.
Operating income was $65 million compared to $66 million in the first quarter of 2025. Operating margin of 6.5% was unchanged versus the same period a year ago.
Net income increased 3% to $39 million, or $1.10 per diluted share, compared to $38 million, or $1.11 per diluted share in the first quarter of 2025. EPS in the first quarter of 2026 includes approximately $0.10 of dilution from the company’s convertible notes and related warrants compared to $0.05 in the prior year period.
Jeff Rodino, president, said, “RV OEM adoption of our composite solutions continues to gain traction as we expand our capabilities and product lineup to meet evolving customer needs. On the Marine side, the growth in content per unit reflects our strong performance in the last model-year changeover and the impact of recent marine-related acquisitions. Additionally, attachment rates within our Powersports business have continued to grow, as OEMs have increasingly adopted the Sportech cab enclosures. Across our businesses, we remain committed to delivering the value-added products, services and solutions our customers expect.”
First Quarter 2026 Revenue by Market Sector
(compared to First Quarter 2025 unless otherwise noted)
RV (45% of Revenue)
- Revenue of $446 million decreased 7% while wholesale RV industry unit shipments decreased 12%.
- Content per wholesale RV unit (on a trailing twelve-month basis) increased 8% to $5,277 when compared to the prior year period and increased 2% when compared to the fourth quarter of 2025.
