LCII

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET Interim Chief Executive Officer - John Sirpilla Chief Financial Officer - Lillian Etzkorn VP of Finance and Treasurer - Kip Emenhiser Operator: Hello, everyone, and welcome to joining us today for the LCI Industries Second Quarter 2026 Earnings Call. My name is Rob, and I'll be coordinating your call today. Before we begin, I would like to remind you that certain statements made on today's call regarding LCI Industries and its operations may be considered forward-looking statements under the securities laws and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors are described in the company's earnings release, Form 10-K, and in other filings with the SEC. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date of the forward-looking statements are made, except as required by law. In addition, during today's conference call, management will refer to certain non-GAAP or adjusted financial measures. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are available in the company's earnings release and investor presentation, which have been posted on the Investor Relations section of the company's website and are also available on Form 8-K filed this morning with the SEC. On the call from management today are John Sirpilla, Interim Chief Executive Officer; Lillian Etzkorn, Chief Financial Officer; and Kip Emenhiser, VP of Finance and Treasurer. [Operator Instructions] With that, it is my pleasure to turn the call over to John Sirpilla. John Sirpilla: Thank you, operator, and thank you, everyone, for joining us. This morning, Lillian and I will provide an overview of the business and share why we are energized about LCI's future. We delivered solid second quarter results with expanded profitability despite continued soft outdoor recreation industry demand. Our 2026 performance has been driven first and foremost by our self-help initiatives. Through disciplined operational efficiencies and strategic cost reduction actions, we structurally improved our cost base and expanded net margins despite a challenging wholesale RV production environment and continued retail softness. Our disciplined cost management execution and increased product content per unit have fundamentally strengthened our earnings power and position us to generate higher returns throughout the cycle. Although I have been in the interim CEO role for only 2 months, I have served on LCI's Board for more than 7 years. My first priority when taking the CEO role was to spend time with our dedicated team members, supply chain partners, and valued customers. Those conversations have left me more impressed than ever by our team's commitment to supplying outdoor recreation, transportation, and housing markets with a broad array of highly engineered quality products and related services at affordable prices. I am energized by the opportunities ahead and by the appreciation expressed for the value LCI delivers every day across the dynamic markets we serve. It is an incredible honor to serve in my new capacity, working alongside trusted colleagues while leading such an impressive organization. Having spent nearly 3 decades in this industry, helping build a national retail brand after leading my own family dealership business, I come to my new role as a builder, not just a caretaker. My 4 proven yet simple guiding principles are: curiosity, alignment, accountability, and gratitude, and I intend to apply each of those as we move through this transition. Less than 2 months ago, my first investor call for LCI was to announce the proposed merger with Patrick Industries. As we continue to spend time with Patrick's leadership team, our enthusiasm and confidence continue to build around the meaningful long-term value and opportunities the merger will unlock. We are excited about the compelling strategic and financial rationale for the proposed merger. Together, we expect to create a broader, more innovative product platform and cost-effectively bring more products within reach of outdoor recreation consumers. But for the time being, until the transaction closes, it remains business as usual at LCI. Ryan Smith and Jamie Schnor continue to lead our operating segments as group presidents. Our senior leadership team remains intact, and execution remains sharp. Our talented innovation-minded teams remain squarely focused on our strategic priorities, maintaining a well-balanced portfolio, expanding across adjacent OEM markets, growing our aftermarket presence, considering accretive M&A opportunities, streamlining our operations and cost structure, partnering with our customers to deliver solutions, and accelerating content gains through new product innovation. Our expanding product pipeline, combined with our engineering capabilities and deep customer relationships, provides a meaningful runway for continued content expansion. This collaborative innovative spirit has driven remarkable growth over the year, with currently an estimated $270 million annual revenue run rate from our top 5 innovations. Backed by the strength of our balance sheet and disciplined capital allocation, our strategic focus and operational execution will propel our drive to enhance shareholder value. In the aftermarket, the large installed base of Lippert content already in the field creates a durable growth platform and strengthens our connection with customers throughout the product lifestyle through our network of dealer partners, technical care teams, factory service centers and mobile service capabilities. Our diversification strategy to add and build the aftermarket segment and other OEM markets adjacent to RV has enabled us to profitably grow our business with higher-margin offerings and mitigate the cyclicality of the RV industry. As part of our commitment to helping customers navigate the impact of rising prices, our finance and procurement teams moved quickly to identify, document, and file eligible claims early in the IHEPA tariff refund process. Their efforts will enable us to return nearly $90 million in tariff refunds directly to our customers, providing meaningful support to their businesses and to the broader industry. We took this responsibility seriously and made the deliberate decision to manage this effort internally rather than rely on third-party recovery firms that often charge large contingency fees on the amounts recovered. While this represented a significant undertaking for our team, they executed with exceptional discipline and expertise, maximizing the value returned to our customers. I want to personally thank our finance and procurement teams for their unwavering commitment and outstanding execution. Their work reflects our culture of partnership and our dedication to serving the markets in which we operate. While these refunds have a minimal impact on our P&L given their pass-through nature, they represent something more important. We made a commitment to our customers that we would work diligently to mitigate the impact of tariff-related price increases wherever possible, and we have honored that commitment. I want to thank all of our team members not only for their focus, resilience, and commitment during this transition, but also for the overwhelming warm welcome they've extended to me. Their execution and partnership are the foundation of our performance and give me great confidence in LCI's future. I'll now hand it over to Lillian to walk us through the quarterly results and our updated outlook for the full year. Lillian Etzkorn: Thank you, Johnny, and thanks, everyone, for being with us. We continue to execute well across the business in the second quarter, delivering improved profitability despite persistent softness in outdoor recreation demand. This performance reflects the strength of the platform we have built, the hard work of our talented team, and disciplined execution against our self-help initiatives, including operational efficiencies, strategic cost reductions, and increased product content per unit. Together, these actions have structurally improved our cost base, expanded margins and strengthened our earnings power across the cycle. As Johnny noted, it remains business as usual, and our team is squarely focused on advancing these priorities and driving shareholder value. With that, I'll walk through the key financial results and operating metrics for the quarter. For the second quarter of 2026, and speaking on an adjusted basis, our consolidated net sales were down 4% to $1.1 billion. OEM net sales declined 10%, while aftermarket net sales grew 11%. In the context of towable RV wholesale units being down 20% in the quarter, we are pleased with the resilience in our sales. Starting on the OEM side, our revenue performance reflects a decrease in North American travel trailer and fifth-wheel shipments as well as an increase in RV sales mix towards lower content single axle trailers. Favorably offsetting factors include targeted commercial actions to address higher input costs and adjustments tied to select commodity indices and content gains from recent product innovations. Top-line adjustments relate to tariff refunds passed through to customers. And in the earnings slide deck, in an effort to further enhance transparency, we've included a full income statement reconciliation for this quarter's adjustments. Innovation remains a key driver of LCI's growth and customer value proposition. Despite the reduced mix of fifth-wheel units, we saw an 11% year-over-year increase to $5,831 of content per unit. This was supported by strong adoption of recent product launches that are now generating more than $270 million in normalized annual revenues. Content per motorized unit increased 2% to $3,852. We expect approximately $140 million of additional annualized revenue from new product placements during the 2027 model change. Combined with our advanced manufacturing capabilities and expertise in mission-critical components, the innovation pipeline continues to deepen customer relationships and expand LCI's content across leading brands. Turning to our aftermarket business. The 11% year-over-year growth in adjusted net sales was driven by targeted commercial actions to address higher input costs and adjustments tied to select commodity indices, sales from acquired businesses, and new customer volumes in the automotive aftermarket. This increase also reflects the resilience of our installed base and continued execution across the business. More than $15 billion of replaceable LCI content has entered the RV market over the past decade, supporting a growing service opportunity as approximately 1.5 million units move into repair cycles over the next several years. We are expanding our reach through a 400-plus member care and technical organization, new dealer-based retail concepts, factory and mobile service offerings, and added distribution capacity. We continue to see repair and replacement demand as RV ownership and used unit acquisitions have increased over recent quarters, and this should serve as a tailwind moving forward. From a profitability standpoint, we saw significant improvements during the quarter, and the team is continuing to drive our self-help initiatives. Our consolidated operating profit of $99 million on an adjusted basis was up 8% over the prior year and reflects a 9.3% adjusted operating profit margin, which is up 110 basis points. On the OEM side, our adjusted margin expanded a full percentage point to 7.5%, reflecting disciplined execution across cost improvement initiatives including material sourcing strategies, along with targeted commercial actions to address higher input costs and adjustments tied to select commodity indices. These gains were partially offset by tariff-related material costs, higher steel, aluminum, and fuel costs, and lower fixed cost absorption. Aftermarket adjusted operating profit margin was a very solid 14%, up another 30 basis points over the past year, reflecting disciplined cost management and continued execution of material sourcing strategies, supported by targeted commercial actions to address higher input costs. These gains were partially offset by tariff-related material costs and higher commodity, fuel, and capacity-related costs. Our adjusted EBITDA grew 7% year-over-year, coming in at $129 million and reflecting a margin of 12.2%, up from 11% a year earlier. GAAP net income increased 16% to $67 million, with diluted GAAP EPS of $2.75, up significantly from the prior year period of $2.29. On an adjusted basis, diluted EPS of $2.70 was up from $2.39, which is a 13% year-over-year increase. Turning to our balance sheet. We continue to operate from a position of strength with cash and cash equivalents of $217 million as of June 30. Plus $595 million of availability under the revolver, bringing total liquidity to $812 million. Following the payoff of our 2026 convertible notes in May, our outstanding net debt balance was $636 million at the end of the quarter, and our net debt to adjusted EBITDA ratio stood at just 1.5x, significantly improved from 1.8x at the start of the year and at the conservative end of our targeted range of 1.5 to 2x. We remain both balanced and disciplined in terms of capital allocation. During the second quarter, our capital expenditures were $19 million. We also paid $28 million in dividends during the second quarter, maintaining our payout of $1.15 per share, which represented a yield of 4.3% as of the end of the quarter. I'll close with our updated outlook, starting with July adjusted net sales of approximately $315 million. For the full year, we now look for RV industry wholesale shipments to be in the range of 280,000 to 300,000 units relative to our prior range of 315,000 to 330,000 units. We expect full-year adjusted revenue of $3.9 billion to $4.1 billion. And given the success of our self-help initiatives, we still anticipate an adjusted operating profit margin in the range of 7.5% to 8%. We are pleased that even in this challenging industry environment, we are able to maintain the original guided margin range. The resulting outlook range for adjusted EPS is now $8.25 to $8.75. We also continue to expect full-year CapEx in the range of $55 million to $65 million. In closing, our priorities are clear: help our customers win through differentiated innovation, exceptional quality and service while executing with discipline across the business. Our content growth, diversified portfolio and expanding high-margin aftermarket platform, along with continued cost optimization, are strengthening profitability and positioning LCI to outperform across market cycles. With the commitment of our team and the trust of our customers, we are confident in our strategy and focused on delivering sustainable long-term shareholder value. Before we kick off the Q&A portion of the call, I wanted to briefly address our previously announced merger agreement with Patrick Industries. As you would expect, we are limited to what we can say beyond the information that has already been publicly disclosed. We will remain focused on continuing to execute against our strategic priorities, while we are supporting the customary regulatory review and undertaking appropriate integration planning subject to the applicable legal safeguards. And with that, we would be happy to take questions. Operator: [Operator Instructions] Your first question today comes from the line of Scott Stemler from ROTH Capital. Scott Stember: Before considering the proposed merger with Patrick and taking out the IEPA tariff refunds, which you will be giving back to your customers, is there a broader program going forward, addressing affordability? Are you guys working with the Thors and the Winnebago to help them bring prices down in the market? And if it is, is that baked into guidance for the remainder of this year? John Sirpilla: Scott, thank you for that question because that has been a big focus for us, because our goal in cost reduction is to help stimulate and drive volume really where we all win. So outside of the IEPA tariff giveback, we have really done a strong job on our self-help initiatives, whether it's through strong G&A reduction. We've had facility consolidations, five last year. We have another 8 to 10 planned in the back half of this year. We've really worked really hard on our quality initiatives over the past 18 months, and we're really starting to see those dividends with significantly strong quality gains that are positively impacting our customers and our efficiencies. We've reshored product procurement to look for more affordable countries for tariff mitigation. And overall, all of those coming together, we've really been able to see this impact that we could continue to drive forward to our customers. Scott Stember: And then moving over to the aftermarket. You guys alluded to the wear and tear cycle starting to kick in. I know a lot of us have been waiting for that with the post-COVID jump in units in operation. Are we really starting to see that? Could we see aftermarket demand accelerate in the quarters ahead? John Sirpilla: We believe that we can see that, Scott. And being in this industry a long time, I'm very accustomed to where the aftermarket side can drive sales, could also drive continued interest in the use of vehicles for our customers in the outdoor recreation space. So we're confident that can continue to happen. We've worked hard to ensure that our new DC footprint will be able to further service all the dealers out there, anyone in the aftermarket space where we can really drive a lot of on-time deliveries to them, get the product to them quickly so they can continue to take care of the customers that are in the market now that want to use their vehicles. Scott Stember: And then last question about cadence embedded in the guidance, Q3 and Q4, whether it's sales, margins, and EPS, how should we be modeling that with 2 quarters left? Lillian Etzkorn: Yes. I'd say, Scott, as we're looking at this year, it's probably a more normal year in terms of seasonality, whereas in past years, we've talked about there's anomalies going on. So, I would say just typical seasonality that you would expect. Obviously, in Q3, we have summer shutdowns. In Europe, basically, they shut down for a full month, which is very typical, again, just normal seasonality. And then you get into the fourth quarter, you start to get into the holiday shutdown. So very normal seasonal cadence as we round out the year. Operator: Your next question comes from the line of Nathan Jones from Stifel. Andres Loret de Mola: This is Andres on for Nathan Jones. I have more of a broad question on end markets and specifically aftermarket. Can you talk about the dynamics at play there and what your expectations are for the year? Lillian Etzkorn: I'm sorry, you're cutting out a little bit. Can you restate the question again? Andres Loret de Mola: Yes. Can you talk about the end markets driving increased aftermarket net sales and what your expectations are for the year? Lillian Etzkorn: Yes. So, as it relates to the aftermarket, you obviously have a few different elements that come into play. You have predominantly the OEM aftermarket that supports our RV business. That's been going well. And really, what comes into play there is the service and the repair cycle. So, as units are coming out of their warranty years, entering that service and repair. One of the elements that does also impact that, frankly, is the use of the units while they've been in service. So what I mean by that is if you had a unit that every weekend, somebody is camping, and they're using it in essence full time, there's going to be greater wear and tear on the units. So you're going to have more opportunities probably to have aftermarket servicing there, whereas if somebody is maybe a once-a-year type of RV and has come into play, you're going to have probably less service, or it's going to take more time for that unit to be coming into the service. So we have definitely seen more used units being purchased, which is what we hear from the dealers, which does offer opportunity there. As we think of the aftermarket as it relates to the automotive side, I'd say that industry itself has been a little bit more tepid as we've moved through the year, with the consumers being a little bit more sensitive to some of the affordability aspects out there and just the global macro; global macro has impacted some of the consumer confidence. I think we've seen some automotive weakness. That said, we have the benefit of gaining business, as we've talked about in prior calls, as a result of another competitor going through a bankruptcy process, and we've been able to pick up a nice amount of business from that. John Sirpilla: We've also put considerable focus on aftermarket upgrades. Innovation is the key lane that we are really strong in. And the team continues to put out products that give those consumers, as Lillian was mentioning, who are actively using their coaches, not only to look for opportunities when there is a repair needed, but when there's an upgrade. And the upgrade is the opportunity to further enhance their enjoyment in their coach and their vehicle. And so with that, we're going to continue on that focus, and our engineers do a great job of working with our teams on driving innovation. Andres Loret de Mola: Brings me to my next question, actually. Can we talk a little bit about the pricing dynamics in the market given a relatively soft demand and the company's ability to pass through higher costs? Generally, do you see easier to pass on price when it comes to the aftermarket business? Are you seeing that currently? Lillian Etzkorn: No. What I would say as it relates to pricing, so first, maybe more of a broad statement, is that unlike other industries, we don't participate in just pricing for the sake of pricing. Generally, if we are taking pricing, it's because the input costs have gone up, notably with commodity costs. So as an example, when I look at steel and aluminum, which are the primary commodities that we use in our products, aluminum is up 80% year-over-year. Steel has been up about 20% year-over-year. They've been stabilizing a bit, but they're definitely up. Those types of costs are on index pricing with our customers. So we pass that along when there are increases. At the same time, as you saw us several years ago, as the cost came down for those commodities, we also pass that through. So really, our approach and our philosophy with pricing is not to just pass on pricing for the sake of pricing. It really is as it relates to those input costs, really predominantly those commodities. Aftermarket operates similarly in terms of, again, it's not opportunistic pricing. It really is related to the cost and the input costs of our products. John Sirpilla: And as Lillian mentioned, with aluminum and steel as examples, they have leveled off, but unfortunately, they've leveled off at a higher level. So that puts more pressure on us to look at our cost focus because really cost volatility today really no longer exists in the index-driven areas alone. The real movers are tariffs and trade and trade policy, energy costs, geopolitical issues, freight and demand uncertainty. So when we take all of that in, our team needs to work harder, which they have done. Our procurement team has done an outstanding job, as I mentioned before, looking for very creative sourcing solutions to reshore products from different locations. And so commodities, of course, are an impact to us, but there's just so many factors in play that I'm proud of what the group has done to help mitigate those costs. Operator: Your next question comes from the line of Joe Altobello from Raymond James. Joseph Altobello: I want to start on the aftermarket. You guys talked about a couple of different crosscurrents going on, obviously, gaining share from a competitor bankruptcy, also a lot of RVs moving into the repair cycle, for example. Should we start to think about that business as more of a steady-state, high single, low double-digit grower? Lillian Etzkorn: Yes. No, I think we have been seeing that type of growth recently. And I think that as we look forward, I would expect to continue to see those levels of growth. That really is one of the areas of the business, I think, from putting aside the cyclical nature and where we are right now in the RV industry, that obviously will be recovering. But what I'd say from just organic growth and continuing to grow a part of our business, aftermarket continues to be, I'd say, a bright spot for us as we look towards the future, both the opportunities in the RV side from the repair replacement cycle, the upfitting cycle, as Johnny was talking and the automotive aftermarket, I think, will continue to grow nicely for us on the top line. I think the other important element to highlight there because we've been talking in the past few quarters about some of the headwinds from a profitability perspective from the aftermarket business. As you know, we've been investing in the business for the infrastructure with the distribution centers. We're in the process of standing up a new facility down in Texas to support the Ranchan brand. So there have been a number of investments that we've put into the aftermarket business that will also start realizing the improved margins as those investments taper off, and we start realizing business. John Sirpilla: With our investment that we've had, Joe, when we look at Texas, we look at the opportunity there, consolidating facilities, opening really a new beautiful facility that we are going to be able to double our capacity for the future for the Ranchan products. That is a strong investment into aftermarket. When we look at the wins that we've had just in model year change, earlier this year, in the last 60 days or so, we have $140 million of new business awarded to us. That's on an annual run rate. Every time that we get that new business and our customers continue to choose us for our innovation and for our brands, that also boosts our opportunity in the aftermarket for any replacement or repair needs on those products that we've gotten into the market. So with that, we're going to continue on that path. When we look at the Furrion brand and the opportunities in the industry on the Furrion Chill AC, the team has done a really strong job with getting that stronger in the market as well. And so again, those opportunities for increased aftermarket are there for us. Joseph Altobello: And just moving on to the margin outlook. You maintained it, obviously, with roughly $250 million of lower revenue guidance here. What's the offset that's helping you maintain that margin? And is it more OEM or more aftermarket? Lillian Etzkorn: What I'd say as it relates to the margin is the team has been doing an outstanding job, call it, over the last 18 months of really executing hard on the self-help initiatives that we needed to be focused on. And that includes overhead reductions, indirect spend improvements, lower G&A, really just dialing in our cost structure and how we're able to execute. And one of the things, and I know this quarter is a little bit more complicated because of the various moving pieces. But one of the things, when you cut through the noise in terms of margin improvement from the self-help actions that we've done, there was actually 160 basis points year-over-year from the self-help. And it's because of that, frankly, that gives me the confidence as we go forward, despite the tepid top-line outlook because of lighter industry, I have that confidence that we'll continue to be able to execute and deliver that margin consistent with where we thought we would be when we started the year and put it out initially. John Sirpilla: As I said earlier as well, Dan, we've always done a great job on innovation. That's a strength of ours. But in this past year, we've really refocused innovation. And let's call it, 50% of our time is really looking at value-add analysis and engineering work where we are taking engineering initiatives to really reduce cost. And so apologies, Dan, I meant to say Joe. But when we look at that, that improvement that we're doing there and working on getting cost down, then taking the other half of our time in innovation, really looks at customer experience. So it's that combination of customer experience and bringing cost down that has really helped to hit the bottom line. Joseph Altobello: And just one last one for me. Will there be additional AEPA refund pass-through in the second half? Lillian Etzkorn: So in terms of receipt of the tariff refunds, yes, there will likely be some continued receipts. But with the accounting treatment that we've chosen, basically, we've accounted for everything that we expect to receive back. It's a matter of when the cash actually arrives. And then when the cash arrives, we're able to then turn it around and refund it back to the customers. So from a cash basis, it really is that as the tariff cash comes in, we'll get that back to our customers on the pass-through as we've talked about. But from an accounting perspective, we have fully accounted for anticipated tariff activity in the second quarter financials. Operator: Your next question comes from the line of Dan Moore from CJS Securities. Peter Lukas: It's Pete Lucas for Dan. You covered most of my questions. Just, I guess, a bigger picture question in terms of retail demand. Obviously, lots of headwinds: interest rates, inflation, oil prices. But just wanted to get your thoughts. Is it simply that we pulled forward so many units during the pandemic and are still working through that, or are there other factors in your mind impacting -- the biggest factors, I should say, impacting demand at the current stage? John Sirpilla: There is, of course, you could say the tail on the adjustment from when the market was flooded during COVID. But we've done a better job. Our customers, the OEMs, have done a great job on production, watching that, and the dealers have done a really nice job managing their inventory levels. And so when you look out in the marketplace today and see at the dealer level, 18 to 20 weeks of inventory in the field, we think that's really responsible at this time of the year. It's putting them in a really good position in the back half of the year for them to see what's going to happen here at Open House, which happens towards the end of September, and then be in a better position to stock up for Q1 and Q2 of 2027. Operator: Your next question comes from the line of Tristan Thomas-Martin from BMO Capital Markets. Tristan Thomas-Martin: Could you update your retail expectation for calendar '26? Lillian Etzkorn: We did not put that out there. But what I would say from a retail perspective, we would expect it a little bit higher than the wholesale. What we're hearing in talking to the dealers is that they're looking to continue to keep their inventories at a healthy range. So not necessarily replenishing unit for unit with the retail. John Sirpilla: But seeing retail outpace wholesale even by a small margin puts us in a better position than we've seen traditionally over the past year. Tristan Thomas-Martin: And then just curious with the model year 27 release, do you see any OEMs maybe trade down the product cycle going from maybe a good product to better or best? John Sirpilla: No, we have seen some shift there. Of course, entry-level product is always a focus to ensure that we get new people coming into the market. But where we have seen in some parts of the business, for example, in marine, mid- to high-end products, wholesaling and retailing are better. And that really for us is a strong thing because our product content is so much stronger in those price points. And whether it's windshields or Power biminis, Arches, high-end furniture, Luar, all of that is a good opportunity for us to be better represented in that price point. Operator: [Operator Instructions] Your next question comes from the line of Alice Wycklendt from Baird. Alice Wycklendt: Just back on that topic of affordability and pricing. Do you have any sense for where model year '27 pricing is shaking out on a like-for-like unit basis? John Sirpilla: I think you're going to see it up just a bit, which doesn't surprise us at this point with all that's been going on in the market, but there's been good mitigation to the best of everyone's ability. So I don't see it in my early thoughts right now to feel that it's significant. Alice Wycklendt: And then maybe can you just provide an update on what's going on in your international end markets? Lillian Etzkorn: Yes. I'd say we've been seeing pretty consistent with Europe is what we're seeing here in North America. I'd say, saying that, we don't think they've been impacted quite as significantly as what we've seen here in the North American markets. I think overall, the team is performing well there. I think we're continuing to see steady growth; I would characterize it as such. So there's still some softness overall, which is not inconsistent with what we're seeing here, but it's not to the magnitude that we're seeing in the U.S. Alice Wycklendt: And then one more for me. Is there any way to frame your exposure to the Housing Act that changed requirements for manufactured housing chassis? I'm not sure it's material, but we've had a few questions about it. Lillian Etzkorn: Yes. I'd say it really comes to the materiality question. It is a fairly small part of our business. So not material at all for us in the scheme of things. It is something that we're continuing to monitor just as we're supporting customers in the overall marketplace, but immaterial in terms of our results. Operator: Your next question comes from the line of Bret Jordan from Jefferies. Patrick Buckley: This is Patrick Buckley on for Bret. On the merger, from where you're seeing things today, what are you seeing as the greatest regulatory risk on the deal? And what has been the initial response from your peers and partners across the industry? Lillian Etzkorn: Yes. I think, Patrick, as I indicated before kicking off the Q&A, we're not going to be talking about the merger on today's call, just as we're going through our regulatory filings and preparing the proxy. I think we'll be in a better position to talk to you and everybody about the status once we get the proxy out, which will be later. Patrick Buckley: Just wanted to try. And then I guess as a follow-up here. On the aftermarket side, is there any profitability or sales difference when you compare sales related to a used RV unit moving to a new owner versus existing owners that are investing in their current unit and performing maintenance? John Sirpilla: Well, there's always the opportunity when you look at somebody buying a used coach; they might be investing in that unit that the previous owner did not further invest in and take care of their unit. So we like to see those people with enthusiasm come into the market. There's, of course, a better price point opportunity for them when they're buying used. And so you see that enthusiasm and see people want to upgrade, and maybe some of the flaws in the coach that the previous owner was willing to accept, the new owner wants to make that change. And so that's a space that we enjoy, then keeping them enthused, and it's our job to keep them in the market then. Operator: And that concludes our question-and-answer session. I will now turn the call back over to John Sirpilla for closing comments. John Sirpilla: Well, thank you, Rob. Thank you for everyone being on the call today. We appreciate your continued interest in LCI Industries, and please don't hesitate to reach out if you should have any other further questions. We look forward to providing another update to you in the next quarter. And also, again, just have to thank our team here, the amazing colleagues that I have and team members, for welcoming me in and allowing me to serve in this capacity. It's truly an honor. Thank you. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends LCI Industries. The Motley Fool has a disclosure policy. LCI Industries (LCII) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in LCI Industries? Here are five stocks we like better. Profitability improved despite weaker RV demand: Second-quarter adjusted sales fell 4% to $1.1 billion as OEM sales declined 10%, but adjusted operating profit rose 8% and adjusted EPS increased 13% to $2.70. Cost reductions, operational efficiencies and higher product content lifted adjusted operating margin to 9.3%. Aftermarket and product innovation provided growth: Aftermarket sales increased 11%, while content per towable RV unit rose 11% to $5,831. LCI expects its recent innovations and new 2027 model-year placements to generate substantial additional annual revenue. LCI lowered its RV shipment and revenue outlook: Full-year wholesale shipment guidance was reduced to 280,000–300,000 units, with adjusted revenue now expected at $3.9 billion–$4.1 billion and adjusted EPS at $8.25–$8.75. The company maintained its margin target, ended the quarter with $812 million of liquidity, and continues operating normally while its proposed Patrick Industries merger undergoes regulatory review. Congress Beat the Market Again—Here Are the 3 Stocks They Bought LCI Industries (NYSE:LCII) reported improved second-quarter profitability despite continued softness in outdoor recreation demand, as cost-cutting initiatives, operational efficiencies and higher product content helped offset lower OEM sales. Adjusted net sales for the second quarter of 2026 declined 4% year over year to $1.1 billion. OEM net sales fell 10%, while aftermarket net sales rose 11%. The company said towable RV wholesale unit shipments declined 20% during the quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Automotive Parts Makers Growing at Double-Digit Rates “Our 2026 performance has been driven first and foremost by our self-help initiatives,” Interim Chief Executive Officer Johnny Sirpilla said. He cited operational efficiencies and strategic cost reductions that have structurally improved the company’s cost base and expanded net margins despite softer RV wholesale production and retail demand. Adjusted operating profit increased 8% from a year earlier to $99 million, while adjusted operating margin rose 110 basis points to 9.3%. Adjusted EBITDA increased 7% to $129 million, representing a 12.2% margin, compared with 11% in the prior-year period. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High RV stocks: A comfortable way to ride falling interest rates GAAP net income rose 16% to $67 million, or $2.75 per diluted share, from $2.29 per diluted share a year earlier. Adjusted diluted earnings per share increased 13% to $2.70 from $2.39. On the OEM side, adjusted operating margin expanded 100 basis points to 7.5%. Lillian Etzkorn, LCI’s executive vice president and chief financial officer, attributed the gain to cost-improvement actions, material sourcing strategies and commercial actions related to higher input costs and commodity indices. Those improvements were partly offset by tariff-related material costs, higher steel, aluminum and fuel costs, and lower fixed-cost absorption. → No Hangover: Revisiting Microsoft One Week After Earnings Aftermarket adjusted operating margin reached 14%, up 30 basis points from a year earlier. The company said cost management and material sourcing efforts supported that performance, although tariff-related costs, commodity costs, fuel costs and capacity-related expenses remained headwinds. Etzkorn said the company’s self-help efforts contributed 160 basis points of year-over-year margin improvement. Those efforts have included overhead reductions, lower general and administrative spending, indirect-spend improvements, facility consolidations and quality initiatives. Sirpilla said LCI completed five facility consolidations last year and plans another eight to 10 consolidations in the second half of 2026. He also said the company has reshored procurement to seek more affordable sourcing locations and mitigate tariff exposure. Despite a sales mix shift toward lower-content single-axle RV trailers and reduced fifth-wheel volume, content per towable RV unit increased 11% year over year to $5,831. Content per motorized unit rose 2% to $3,852. The company said its five largest recent innovations are producing an estimated $270 million in annual revenue at the current run rate. LCI also expects approximately $140 million in additional annualized revenue from new product placements associated with the 2027 model-year change. Aftermarket sales growth was driven by commercial actions tied to input costs, acquired businesses and new automotive aftermarket customer volume, according to Etzkorn. The company also pointed to its installed base of LCI products in RVs as a long-term service opportunity. More than $15 billion of replaceable LCI content entered the RV market during the past decade. Approximately 1.5 million units are expected to move into repair cycles over the next several years. LCI is expanding its service capabilities through its care and technical organization, dealer retail concepts, factory and mobile service operations, and additional distribution capacity. Management said it is seeing repair-and-replacement demand supported by higher RV ownership and more used-unit purchases. Sirpilla added that used RV buyers can represent an opportunity for upgrades and repairs that previous owners may have deferred. Etzkorn said aftermarket growth has recently been in the high-single-digit to low-double-digit range and that she expects that pace to continue. She also said investments in distribution infrastructure and a new Texas facility supporting the Ranch Hand brand should eventually support improved aftermarket profitability as those investments taper. LCI said its finance and procurement teams identified and filed eligible claims under the IEEPA tariff refund process and expect to return nearly $90 million in refunds to customers. The company said the refunds have minimal profit-and-loss impact because they are passed through to customers. The company chose to manage the recovery process internally rather than use third-party firms that typically charge contingency fees, Sirpilla said. Etzkorn said LCI fully accounted for anticipated tariff activity in its second-quarter financial results, though the timing of customer payments will depend on when the company receives the cash refunds. Management also discussed ongoing input-cost pressure. Etzkorn said aluminum prices were up 80% year over year and steel prices were up about 20%, though both had begun to stabilize at elevated levels. The company said commodity-related price movements are generally passed through to customers under index-based arrangements rather than through opportunistic pricing. LCI reported July adjusted net sales of approximately $315 million and reduced its full-year RV wholesale shipment outlook to 280,000 to 300,000 units, from its previous outlook of 315,000 to 330,000 units. The company now expects full-year adjusted revenue of $3.9 billion to $4.1 billion and adjusted EPS of $8.25 to $8.75. It maintained its full-year adjusted operating margin target of 7.5% to 8% and expects capital expenditures of $55 million to $65 million. Management said retail RV sales are expected to modestly exceed wholesale shipments in 2026, as dealers aim to maintain inventories at healthy levels rather than replenish sales on a unit-for-unit basis. Sirpilla said dealer inventory levels of roughly 18 to 20 weeks appear responsible for the current period and could position dealers to respond following the industry’s September Open House event and ahead of 2027. LCI ended the quarter with $217 million in cash and cash equivalents and $595 million of revolver availability, for total liquidity of $812 million. Net debt was $636 million following the payoff of its 2026 convertible notes in May, and net debt to adjusted EBITDA stood at 1.5 times, down from 1.8 times at the start of the year. Regarding LCI’s previously announced proposed merger with Patrick Industries, management said it remained limited in what it could discuss while regulatory review and proxy preparations continue. Sirpilla said the company is continuing to operate normally until the transaction closes, with its operating leadership and strategic priorities unchanged. LCI Industries is a publicly traded manufacturer specializing in engineered components and systems for the recreation vehicle (RV), marine and housing industries. The company develops and supplies a diverse range of products designed to enhance comfort, convenience and functionality in mobile and leisure applications. LCI Industries serves original equipment manufacturers (OEMs) and aftermarket customers throughout North America. The company’s core offerings include power conversion and control systems, slideout mechanisms, entry and docking products, seating and furniture solutions, as well as window and door assemblies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "LCI Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Adjusted Net Sales: $1.1 billion, down 4% year-over-year. OEM Net Sales: Declined 10% year-over-year. Aftermarket Net Sales: Grew 11% year-over-year. Adjusted Operating Profit: $99 million, up 8% year-over-year. Adjusted Operating Profit Margin: 9.3%, up 110 basis points. OEM Adjusted Operating Profit Margin: 7.5%, up 100 basis points. Aftermarket Adjusted Operating Profit Margin: 14%, up 30 basis points. Adjusted EBITDA: $129 million, up 7% year-over-year, with a margin of 12.2%. GAAP Net Income: $67 million, up 16% year-over-year. Diluted GAAP EPS: $2.75, up from $2.29 in the prior year period. Adjusted Diluted EPS: $2.70, up 13% year-over-year. Content per Unit (Towable RV): $5,831, up 11% year-over-year. Content per Motorized Unit: $3,852, up 2% year-over-year. Cash and Cash Equivalents: $217 million as of June 30. Total Liquidity: $812 million, including $595 million of revolver availability. Net Debt: $636 million at the end of the quarter. Net Debt to Adjusted EBITDA Ratio: 1.5 times. Capital Expenditures: $19 million in the second quarter. Dividends Paid: $28 million, maintaining a payout of $1.15 per share. July Adjusted Net Sales: Approximately $315 million. Full-Year Adjusted Revenue Outlook: $3.9 billion to $4.1 billion. Full-Year Adjusted Operating Profit Margin Outlook: 7.5% to 8%. Full-Year Adjusted EPS Outlook: $8.25 to $8.75. Full-Year CapEx Outlook: $55 million to $65 million. Warning! GuruFocus has detected 3 Warning Signs with LCII. Is LCII fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LCI Industries Inc (NYSE:LCII) delivered solid Q2 2026 results with expanded profitability, including a 110 basis point improvement in adjusted operating profit margin to 9.3% and a 13% year-over-year increase in adjusted diluted EPS to $2.70, despite soft industry demand. The company's self-help initiatives, including operational efficiencies, strategic cost reductions, and facility consolidations, have structurally improved its cost base, enabling it to maintain its original margin guidance despite a lowered revenue outlook. Content per unit increased 11% year-over-year to $5,831 in towable RVs, driven by strong adoption of recent product innovations, which are now generating over $270 million in annualized revenue, with an additional $140 million expected from 2027 model year placements. Aftermarket net sales grew 11% year-over-year, driven by targeted commercial actions, new customer volumes, and a growing repair/replacement cycle, supported by a $15 billion installed base of replaceable content and a 400-plus member care organization. The company's balance sheet remains strong, with total liquidity of $812 million, net debt to adjusted EBITDA improving to 1.5 times, and a commitment to returning capital to shareholders through a $1.15 per share dividend, representing a 4.3% yield. LCI Industries Inc (NYSE:LCII) successfully managed the IEEPA tariff refund process internally, returning nearly $90 million directly to customers, which strengthens customer relationships and demonstrates a commitment to partnership. The company is executing on its diversification strategy, with Aftermarket and adjacent OEM markets helping to mitigate RV cyclicality, and it continues to see growth opportunities in international markets, particularly Europe, which is performing steadily. Management's focus on innovation, including value-add engineering to reduce costs and enhance customer experience, is driving content gains and deepening customer relationships, positioning the company for long-term growth. The proposed merger with Patrick Industries is expected to create a broader, more innovative product platform and unlock meaningful long-term value, with management expressing growing confidence in the strategic rationale. The company's disciplined capital allocation, including a balanced approach to M&A, CapEx, and dividends, supports its ability to generate higher returns throughout the cycle and enhance shareholder value. LCI Industries Inc (NYSE:LCII) experienced a 4% decline in consolidated net sales to $1.1 billion in Q2 2026, with OEM net sales down 10%, reflecting continued softness in outdoor recreation demand and a 20% drop in towable RV wholesale units. The company lowered its full-year 2026 RV industry wholesale shipment forecast to 280,000-300,000 units, down from the prior range of 315,000-330,000 units, indicating a more challenging industry environment than initially expected. Persistent retail softness and affordability concerns, driven by higher interest rates, inflation, and elevated commodity costs (aluminum up 80% and steel up 20% year-over-year), continue to pressure demand and input costs. The company faces ongoing headwinds from tariff-related material costs, higher steel, aluminum, and fuel costs, and lower fixed cost absorption, which partially offset margin gains from self-help initiatives. The RV sales mix has shifted towards lower-content, single-axle trailers, which negatively impacts revenue per unit and overall content growth, despite overall content per unit increasing. The company's guidance for full-year adjusted revenue was reduced to $3.9 billion to $4.1 billion, reflecting a more cautious outlook due to weaker industry demand, and adjusted EPS guidance was lowered to $8.25-$8.75. The Aftermarket business, while growing, faces some tepidness in the automotive segment due to consumer sensitivity to affordability and global macro impacts, which could limit growth in that area. The company is incurring costs related to facility consolidations and new investments, such as the new Texas facility for the Ranchan brand, which may temporarily pressure margins before realizing benefits. The proposed merger with Patrick Industries introduces regulatory and integration risks, and management is limited in what they can disclose, creating uncertainty for investors. The company's international markets, particularly Europe, are experiencing softness, though not to the same magnitude as North America, which could limit diversification benefits. Q: Can you discuss the broader affordability program beyond the IEEPA tariff refunds, and is it baked into guidance? A: Johnny Sirpilla, Interim CEO, highlighted that beyond the IEEPA tariff giveback, the company's self-help initiatives are key. These include strong G&A reductions, facility consolidations (five last year, with 8-10 planned in the back half of this year), significant quality improvements, and re-shoring product procurement to more affordable countries for tariff mitigation. These efforts are designed to help reduce costs and stimulate volume, benefiting both the company and its customers. Q: Are you starting to see the wear-and-tear cycle kick in for the Aftermarket, and could demand accelerate? A: Johnny Sirpilla, Interim CEO, expressed confidence that the Aftermarket can see acceleration. He noted the company has worked hard to ensure its new distribution center footprint can service dealers and the Aftermarket space with on-time deliveries, allowing them to quickly take care of customers actively using their vehicles. Q: How should we model the cadence for Q3 and Q4 in terms of sales, margins, and EPS? A: Lillian Etzkorn, CFO, stated that 2026 is shaping up to be a more normal year in terms of seasonality. She pointed to typical summer shutdowns in Q3, including a full-month shutdown in Europe, and holiday shutdowns in Q4, indicating a very normal seasonal cadence for the remainder of the year. Q: Can you talk about the end markets driving increased Aftermarket net sales and your expectations for the year? A: Lillian Etzkorn, CFO, explained that the Aftermarket growth is driven by the service and repair cycle as units come out of warranty, increased usage of units, and more used units being purchased. While the automotive side has been more tepid due to consumer sensitivity, the company has gained business from a competitor's bankruptcy. Johnny Sirpilla added that a strong focus on Aftermarket upgrades and innovation provides opportunities for consumers to enhance their vehicles. Q: Given soft demand, how is the company's ability to pass through higher costs, and is it easier in the Aftermarket? A: Lillian Etzkorn, CFO, clarified that the company does not participate in pricing for the sake of pricing. Price increases are tied to input costs, notably commodities like steel and aluminum, which are on index pricing with customers. This approach applies to both OEM and Aftermarket segments. Johnny Sirpilla added that with commodities leveling off at higher levels, the team is focusing on creative sourcing solutions to mitigate costs. Q: Should we think of the Aftermarket business as a steady-state, high-single to low-double-digit grower? A: Lillian Etzkorn, CFO, confirmed that the company has been seeing that level of growth and expects it to continue. The Aftermarket is a bright spot, driven by the repair/replacement cycle, upfitting, and automotive Aftermarket. She also noted that investments in infrastructure, like distribution centers and a new Texas facility, will start realizing improved margins as they taper off. Johnny Sirpilla added that $140 million in new business awards and innovations like the Furrion Chill AC boost Aftermarket opportunities. Q: What is the offset that is helping you maintain the margin outlook despite lower revenue guidance? A: Lillian Etzkorn, CFO, attributed the margin maintenance to the team's execution on self-help initiatives over the last 18 months, including overhead reductions, indirect spend improvements, and lower G&A. She highlighted that self-help actions contributed 160 basis points year-over-year, giving confidence in delivering the guided margin despite a tepid top-line outlook. Johnny Sirpilla added that refocusing innovation, with 50% of time on value-add analysis and engineering to reduce costs, has helped the bottom line. Q: Will there be additional IEEPA refund pass-throughs in the second half? A: Lillian Etzkorn, CFO, stated that while there will likely be continued cash receipts of tariff refunds, the company has fully accounted for all anticipated tariff activity in the second-quarter financials. The timing of cash arrival will determine when refunds are turned around to customers. Q: What are the biggest factors impacting current retail demand? A: Johnny Sirpilla, Interim CEO, acknowledged the tail from the COVID-era market flood but noted that OEMs and dealers have managed production and inventory levels well. With 18-20 weeks of dealer inventory, he believes this is responsible for this time of year, positioning them well for the back half and for stocking up for Q1 and Q2 of 2027 after the September Open House. Q: Could you update your retail expectation for calendar '26? A: Lillian Etzkorn, CFO, did not provide a specific number but said retail is expected to be a little higher than wholesale. Dealers are looking to keep inventories at a healthy range, not necessarily replenishing unit for unit. Johnny Sirpilla added that retail outpacing wholesale, even by a small margin, puts the company in a better position than in the past year. Q: Do you see OEMs trading down the product cycle for model year '27? A: Johnny Sirpilla, Interim CEO, noted some shift, with entry-level products remaining a focus to attract new customers. However, in parts of the business like marine, mid- to high-end products are wholesaling and retailing better. This is a strong opportunity for LCI, as its product content is much stronger at those price points. Q: Do you have a sense for where model year '27 pricing is shaking out on a like-for-like unit basis? A: Johnny Sirpilla, Interim CEO, said pricing is expected to be up just a bit, which is not surprising given market conditions. However, there has been good mitigation to the best of everyone's ability, and he does not see the increase as significant. Q: Can you provide an update on your international end markets? A: Lillian Etzkorn, CFO, said Europe is seeing conditions consistent with North America, though not impacted to the same magnitude. The team is performing well, with steady growth, though there is still some overall softness. Q: Is there any way to frame your exposure to the Housing Act that changed requirements for manufactured housing chassis? For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ELKHART, Ind., August 07, 2026--(BUSINESS WIRE)--LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today announced that its Board of Directors approved a regular quarterly cash dividend of $1.15 per share of common stock. The dividend is payable on September 4, 2026, to stockholders of record at the close of business on August 21, 2026. About LCI Industries LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit www.lippert.com. Forward-Looking Statements Information in this communication, other than statements of historical facts, may constitute forward-looking statements, for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about the benefits of the proposed transaction between the Company and Patrick Industries ("Patrick"), including future financial and operating results (including the anticipated impact of the transaction on the Company’s and Patrick’s respective earnings), statements related to the expected timing of the transaction, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. Forward-looking statements may be identified by terminology such as "may," "will," "should," "targets," "scheduled," "plans," "intends," "goal," "anticipates," "expects," "believes," "forecasts," "outlook," "estimates," "potential," or "continue" or negatives of such terms or other comparable terminology, but not all forward-looking statements include such identifying terminology. Forward-looking statements, including, without limitation, those relating to production levels, future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, addressable markets, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company's customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807624839/en/ Contacts Contact: Lillian D. Etzkorn, CFOPhone: (574) 535-1125E Mail: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Profitability expansion was primarily driven by internal 'self-help' initiatives, including facility consolidations and disciplined operational efficiencies, which structurally improved the cost base. Management attributed the resilience in sales to increased product content per unit, which helped offset a 20% decline in North American towable RV wholesale shipments. Strategic diversification into adjacent OEM markets and the aftermarket segment has successfully mitigated the inherent cyclicality of the core RV industry. The company executed a deliberate strategy to manage IHEPA tariff refunds internally, returning nearly $90 million to customers to support industry-wide affordability. Content gains were supported by the adoption of recent product launches, now generating an estimated $270 million annual revenue run rate from the top five innovations. Operational focus has shifted toward value-add engineering, with approximately 50% of innovation efforts dedicated to cost reduction and the remainder to enhancing customer experience. Full-year RV industry wholesale shipment guidance was lowered to 280,000–300,000 units, reflecting persistent softness in outdoor recreation demand. Management expects approximately $140 million in additional annualized revenue from new product placements during the 2027 model change. The company anticipates maintaining an adjusted operating profit margin of 7.5% to 8% despite lower revenue, citing the success of cost-optimization programs. Seasonality for the remainder of 2026 is expected to return to historical norms, including typical summer shutdowns in Europe and holiday shutdowns in Q4. The aftermarket segment is positioned for growth as approximately 1.5 million RV units move into their repair and replacement cycles over the next several years. LCI is executing a facility consolidation plan, with five closures completed last year and another 8 to 10 planned for the second half of 2026. The company successfully paid off its 2026 convertible notes in May, contributing to a strengthened net debt to adjusted EBITDA ratio of 1.5x. Input cost volatility remains a headwind, with aluminum reported up 80% and steel up 20% year-over-year, though management noted these have begun to stabilize at higher levels. The proposed merger with Patrick Industries is undergoing customary regulatory review, with management maintaining a 'business as usual' operational stance until closing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is focusing on reshoring procurement to more affordable countries and consolidating facilities to help OEMs bring down retail prices. Quality initiatives over the last 18 months are yielding dividends in efficiency that are being passed through to customers to stimulate volume. LCI expects the 'wear and tear' cycle to kick in as units move out of warranty, particularly as used unit acquisitions increase. The company is investing in a new distribution footprint and a Texas facility to double capacity for the Ranchan brand to meet this anticipated demand. Pricing is primarily index-driven based on commodities like steel and aluminum rather than being opportunistic. Management noted that while commodities have leveled off, other factors like trade policy, energy, and freight now represent the primary movers of cost volatility. Management clarified that manufactured housing chassis represent a relatively small and immaterial portion of the overall business. The company continues to monitor the regulatory changes but does not expect a significant impact on financial results.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Patrick Industries stock has delivered a 67.2% gain over the past three years, yet its current valuation signals are splitting. The Discounted Cash Flow (DCF) intrinsic value estimate points to the shares trading at a steep discount, while market based multiples suggest the stock is on the expensive side. Patrick Industries has returned 67.2% over the last three years, which puts extra focus on whether the current price still offers value or mostly reflects past gains. The announced all stock merger with LCI Industries may support higher cash flow expectations. However, integration and execution risk may weigh on how much of that potential investors are willing to price in. Patrick Industries scores 4 out of 6 on the valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether the current Patrick Industries share price offers enough upside relative to its intrinsic value estimate to compensate for the risks investors are taking on. Find out why Patrick Industries' -13.2% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model estimates what Patrick Industries could be worth based on its projected free cash flows. On this view, the company is producing last twelve month free cash flow of about $121.0 million, with the model assuming growing cash flows over time followed by a slower second stage as the business matures. Those projections translate into an estimated intrinsic value of about $169 per share, which implies the stock screens roughly 48.1% undervalued relative to the current market price. The recent report of strong Q2 2026 results and the planned all stock merger with LCI Industries helps explain why cash flow expectations are being marked higher, yet the share price still sits well below the DCF estimate. On the DCF numbers alone, Patrick Industries stock appears undervalued compared with what its projected cash flows would support. Our Discounted Cash Flow (DCF) analysis suggests Patrick Industries is undervalued by 48.1%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Patrick Industries. The P/E ratio suits Patrick Industries because earnings are a key focus for investors in established manufacturers. Patrick Industries currently trades on a P/E of about 19.7x. That lines up closely with the wider Auto Components industry average of roughly 19.7x, but it sits above both the peer average of about 15.3x and the modelled fair P/E of around 16.8x. Compared with that fair multiple, the current P/E implies investors are paying a premium for each dollar of Patrick Industries earnings. The gap suggests the stock screens overvalued on this earnings based yardstick, even though it looks roughly in line with the broader industry. On the P/E multiple, Patrick Industries stock currently looks overvalued relative to what the fair earnings based ratio would suggest. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Patrick Industries focus on the future paths that could reconcile the DCF discount with the richer P/E multiple. They spell out what would need to happen to Patrick Industries' growth, margins and earnings for the stock to be worth materially more or less than today's price, and turn single valuation outputs into specific assumptions you can monitor over time. These sit on Simply Wall St's Community page. One of the top community narratives on Patrick Industries: 20% undervalued Read one of the top narratives on Patrick Industries Do you think there's more to the story for Patrick Industries? Head over to our Community to see what others are saying! Patrick Industries sits in a valuation tug of war. The Discounted Cash Flow (DCF) intrinsic value estimate points to a sizeable discount, while the P/E based view suggests the stock is priced at a premium to what a fair multiple would imply. That split mostly reflects different weight on future cash flow timing versus current earnings and sentiment around peers. The merger with LCI Industries puts even more focus on execution and integration. The key question from here is whether Patrick Industries can turn the expected cash flow uplift into realized margins without eroding the current earnings multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PATK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Diversification and Strong Execution Drives Expanded Profitability Second Quarter 2026 Highlights versus Second Quarter 2025 Net sales decreased 13% to $969 million Adjusted net sales decreased 4% to $1,057 million Operating profit margin expanded 200 bps to 9.9% from 7.9% Net income increased 16% to $67 million, or 6.9% of net sales Diluted earnings per share increased 20% to $2.75 from $2.29 Adjusted net income of $66 million; adjusted diluted EPS increased 13% to $2.70 from $2.39 Adjusted EBITDA increased 7% to $129 million, or 12.2% of adjusted net sales Towable RV content per unit up 11% to $5,831 Other Highlights Cash flows from operations of $346 million for the LTM ended June 30, 2026 $28 million returned to shareholders via dividends during the quarter Paid off remaining balance of 2026 Convertible Notes at maturity with cash of $92 million Strong liquidity position of $812 million, comprising $217 million of cash and cash equivalents and $595 million of availability on revolving credit facility at June 30, 2026 Innovation continues to drive profitable sales growth with top five new innovative products expected to contribute $270 million to annualized sales Entered into definitive agreement to combine with Patrick Industries, Inc. in an all-stock merger, to form a premier component solutions provider for the outdoor enthusiast, housing, and transportation markets. Please visit www.patrickandlipperttogether.com for more information. ELKHART, Ind., August 05, 2026--(BUSINESS WIRE)--LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported second quarter 2026 results. "We delivered solid second quarter results with expanded profitability despite continued soft outdoor recreation industry demand. Our 2026 performance has been driven first and foremost by our self-help initiatives. Through disciplined operational efficiencies and strategic cost reduction actions, we've structurally improved our cost base and expanded net margins despite a challenging wholesale RV production environment and continued retail softness. Our disciplined cost management execution and increased product content per unit has fundamentally strengthened our earnings power and position us to generate higher returns throughout the cycle," said Johnny Sirpilla, Interim Chief Executive Officer. Mr. Sirpilla continued, "I am energized by the opportunities ahead and appreciate the value LCI delivers to its customers across the many dynamic markets we serve. I’m equally excited about the compelling strategic and financial rationale for our proposed merger with Patrick. Together, we expect to create a broader, more innovative product platform, expand our addressable market, and cost-effectively bring more products within reach of outdoor recreation consumers. In the meantime, our talented, innovation-minded team remains squarely focused on advancing our strategic investments and cost optimization initiatives and we look forward to finishing the year strong in our drive to enhance shareholder value." Second Quarter 2026 Results Consolidated net sales decreased 12.5% to $968.7 million in the second quarter of 2026, down from $1,107.3 million in the same period of 2025. Excluding the $88.8 million negative impact of IEEPA tariff refunds expected to be passed through to customers, adjusted net sales decreased 4.5% to $1,057.5 million. The decrease in consolidated net sales and adjusted net sales was primarily driven by lower North American RV wholesale shipments, partially offset by sales price increases for targeted products and to cover higher material costs, sales from acquired businesses ($16.7 million in the second quarter), growth in the automotive aftermarket, and content gains in North American RV sales driven by recent product innovations, and, in the case of consolidated net sales, the impact of IEEPA tariff refunds expected to be passed through to customers. Net income was up 16% to $67.1 million, or $2.75 per diluted share, compared to $57.6 million, or $2.29 per diluted share, in the second quarter of 2025. Adjusted net income increased to $65.9 million, or $2.70 per adjusted diluted share, compared to $60.1 million, or $2.39 per adjusted diluted share. Adjusted EBITDA increased 7% to $129.4 million, compared to $121.3 million in the second quarter of 2025. Operating profit margin increased to 9.9% in the second quarter of 2026 compared to 7.9% in the same period of 2025. Year-over-year margin expansion was driven primarily by cost improvement actions, including materials sourcing strategies, and the benefit of the net impact of IEEPA tariff refunds, partially offset by merger-related expenses, and investments in capacity and distribution to support the Aftermarket Segment. *Additional information regarding adjusted net income, adjusted diluted EPS, adjusted net sales, and adjusted EBITDA used throughout this release, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, is provided in the "Supplementary Information - Reconciliation of Non-GAAP Measures" section below. OEM Segment - Second Quarter Performance OEM net sales decreased $164.8 million, or 20%, to $674.8 million for the second quarter of 2026, compared to $839.6 million in the same period of 2025. RV OEM net sales decreased 33% to $336.1 million, primarily due to a reduction for IEEPA tariff refunds expected to be passed through to customers, a decrease in North American travel trailer and fifth-wheel shipments, and an increase in RV sales mix toward lower content single axle travel trailers, partially offset by sales price increases for targeted products and to cover increased material costs, and recent product innovations. Adjacent Industries OEM net sales increased 1% year-over-year to $338.7 million, primarily driven by sales from acquired businesses and higher sales to North American marine OEMs, partially offset by a reduction for IEEPA tariff refunds expected to be passed through to customers. Operating profit of the OEM Segment was $44.1 million in the second quarter of 2026, or 6.5% of net sales, compared to $51.7 million, or 6.2% of net sales, in the same period in 2025. Operating profit of the OEM Segment included a net positive impact related to IEEPA tariff refunds after deducting the related refunds expected to be passed through to customers. In addition to the favorable net impact of tariff refunds, the operating profit margin benefitted primarily from increases in selling prices contractually tied to indices of select commodities, increases in selling prices for targeted products and to cover increased material costs, and cost improvement actions, including materials sourcing strategies. The positive factors, other than the favorable net impact of tariff refunds, were more than offset by the impact of fixed costs spread over decreased production volumes, higher material costs related to tariffs, higher steel and aluminum costs, rising fuel costs, as well as merger-related expenses. Aftermarket Segment - Second Quarter Performance Aftermarket net sales increased 10% to $293.9 million for the second quarter of 2026, compared to $267.7 million in the same period of 2025. The increase was primarily driven by sales price increases for targeted products and to cover increased material costs, sales from acquired businesses, and increases in volume in the automotive aftermarket, partially offset by a reduction for IEEPA tariff refunds expected to be passed through to customers. Operating profit of the Aftermarket Segment was $51.9 million, or 17.7% of net sales in the second quarter of 2026, compared to $36.1 million, or 13.5% of net sales, in the same period of 2025. Operating profit of the Aftermarket Segment included a net positive impact related to IEEPA tariff refunds after deducting the related refunds expected to be passed through to customers. In addition to the favorable net impact of IEEPA tariff refunds, the operating profit margin benefitted primarily from increases in selling prices for targeted products and to cover increased material costs and cost improvement actions, including materials sourcing strategies. These positive factors, other than the favorable net impact of IEEPA tariff refunds, were more than offset by higher material and freight costs related to tariffs, higher steel and aluminum costs, rising fuel costs, merger-related expenses, and investments in capacity and distribution. Income Taxes The Company's effective tax rate was 25.6% for the quarter ended June 30, 2026, compared to 26.2% for the quarter ended June 30, 2025. The improvement in the effective tax rate was primarily due to the recognition of a discrete tax benefit related to an increase in the cash surrender value of company-owned life insurance policies compared to the prior year period and a statute release of an uncertain tax position on state R&D tax credits, partially offset by a write-off of projected non-deductible deferred executive compensation. Balance Sheet and Other Items At June 30, 2026, the Company's cash and cash equivalents balance was $216.5 million, relative to $222.6 million at December 31, 2025. The Company used $92.0 million to pay off the remaining balance of its 2026 Convertible Notes at maturity, $55.9 million for dividend payments to shareholders, and $28.4 million for capital expenditures in the six months ended June 30, 2026. The Company's outstanding long-term indebtedness, including current maturities, was $852.6 million at June 30, 2026. As of June 30, 2026, the Company had $595.2 million of borrowing availability under its revolving credit facility. Outlook Based on current market and economic conditions along with existing tariffs, the Company expects the following: July 2026 net sales of approximately $315 million, down 4% from prior year 2026 North American RV wholesale shipments of 280,000 to 300,000, lowering from the previous range of 315,000 to 330,000 2026 revenue of $3.9 billion to $4.1 billion, reduced to reflect softened market conditions 2026 operating profit margin of 7.5% to 8.0%, reaffirming prior guidance range 2026 adjusted EPS of $8.25 to $8.75 Conference Call & Webcast LCI Industries will host a conference call to discuss its second quarter results on Wednesday, August 5, 2026, at 8:30 a.m. Eastern time. An online, real-time webcast, as well as a supplemental earnings presentation, will be available on the Company's website, investors.lci1.com. The conference call and webcast can also be accessed by dialing (888) 596-4144 for participants in the U.S. and (646) 968-2525 for participants outside the U.S. using the required access code 5713129#. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call. A replay of the conference call will be available for two weeks by dialing (800) 770-2030 for participants in the U.S. and (609) 800-9909 for those outside the U.S. and referencing access code 5713129#. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call. About LCI Industries LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit www.lippert.com. Forward-Looking Statements This press release contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margins, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties. Forward-looking statements, including, without limitation, those relating to the Company's 2026 outlook and related assumptions, production levels, future financial results and business prospects, net sales, expenses and income (loss), operating margins, capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand and shipments, run rates, integration of acquisitions, planned divestitures and facility consolidations, optimization of facilities and infrastructure, R&D investments, commodity prices, addressable markets, industry trends, and the Company's proposed merger with Patrick Industries, Inc. ("Patrick"), whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, (1) the impacts of costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, (2) tariff refunds and related pass through to customers, (3) future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company's customers, suppliers, team members, business and cash flows, (4) pricing pressures due to domestic and foreign competition, (5) seasonality and cyclicality in the industries to which we sell our products, (6) availability of credit for financing the retail and wholesale purchase of products for which we sell our components, (7) inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, (8) the financial condition of our customers, (9) the financial condition of retail dealers of products for which we sell our components, (10) retention and concentration of significant customers, (11) the costs, pace of and successful integration of acquisitions and other growth initiatives, (12) availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, (13) efficiency improvements and cost reductions, (14) the disruption of business resulting from natural disasters or other unforeseen events, (15) the successful entry into new markets, (16) the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, (17) information technology performance and security, (18) the ability to protect intellectual property, (19) warranty and product liability claims or product recalls, (20) interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, (21) risks related to the pending merger with Patrick, including (a) the risk that the cost savings and any revenue synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (b) disruption to each party’s business as a result of the announcement and pendency of the transaction, (c) the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate as a result of unexpected factors or events, (d) the failure to obtain the necessary approvals by the stockholders of the Company or Patrick, (e) the ability by each of the Company and Patrick to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction, (f) reputational risk and the reaction of each party’s customers, suppliers, employees or other business partners to the transaction, (g) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, (h) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (i) risks related to management and oversight of the expanded business and operations of the combined company due to the increased size and complexity, (j) the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the transaction or the size, scope and complexity of the combined company’s business operations, and (k) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against the Company, Patrick or the combined company before or after the transaction, and (22) other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. Important Information About the Proposed Transaction and Where to Find It In connection with the proposed transaction between the Company and Patrick, the Company and Patrick intend to file relevant materials with the SEC, including, among other filings, a Patrick registration statement on Form S-4 that will include a joint proxy statement of the Company and Patrick that also constitutes a prospectus of Patrick with respect to shares of Patrick’s common stock to be issued in the proposed transaction, and a definitive joint proxy statement/prospectus, which will be mailed to stockholders of the Company and Patrick (the "Joint Proxy Statement/Prospectus"). The Company and Patrick may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Joint Proxy Statement/Prospectus or any other document which the Company and Patrick may file with the SEC. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND PATRICK ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the registration statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by the Company and Patrick through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by the Company will be available free of charge on Company’s website at lippert.com under the tab "Investors" and under the heading "Financials" and subheading "SEC Filings." Copies of the documents filed with the SEC by Patrick will be available free of charge on Patrick’s website at patrickind.com under the tab "Investors" and under the heading "SEC Filings." Certain Information Regarding Participants The Company, Patrick and their respective directors and executive officers may be considered participants in the solicitation of proxies from the stockholders of each of the Company and Patrick in connection with the proposed transaction. Information about the directors and executive officers of the Company and their ownership of Company common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 26, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 27, 2026. Information about the directors and executive officers of Patrick and their ownership of Patrick common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 19, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 30, 2026. To the extent holdings of Company’s or Patrick’s securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of the Company and Patrick, including a description of their direct or indirect interests, by security holdings or otherwise, and other information regarding the potential participants in the proxy solicitations, which may be different than those of the Company’s stockholders and Patrick’s stockholders generally, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at http://www.sec.gov and from Company’s or Patrick’s website as described above. No Offer or Solicitation This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law. LCI INDUSTRIESSUPPLEMENTARY INFORMATIONRECONCILIATION OF NON-GAAP MEASURES(unaudited) The following table reconciles net income to Adjusted EBITDA, net sales to adjusted net sales, and net income as a percentage of net sales to Adjusted EBITDA as a percentage of adjusted net sales. The following table reconciles net income to adjusted net income and net income per diluted share to adjusted net income per adjusted diluted share ("Adjusted EPS"). In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of Adjusted EBITDA, adjusted net sales, Adjusted EBITDA as a percentage of adjusted net sales, adjusted net income, and Adjusted EPS to illustrate and improve comparability of its results from period to period. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, amortization expense, loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, and executive separation costs, as applicable, during the three and six month periods ended June 30, 2026 and 2025. Adjusted net sales is defined as net sales adjusted for the reduction in net sales related to IEEPA tariff refunds expected to be passed through to customers. Adjusted net income is defined as net income adjusted for loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, including interest income, executive separation costs, and the related tax effects, as applicable, during the three and six month periods ended June 30, 2026 and 2025. Adjusted EPS is defined as adjusted net income divided by weighted average common shares outstanding - adjusted diluted, which includes an adjustment for the dilutive effect of the 2030 Convertible Notes under the if-converted method for the six month period ended June 30, 2026. The restructuring costs adjusted out of the non-GAAP measures relate to the Company's plant consolidations at our U.S. glass and automotive aftermarket facilities. The Company considers these non-GAAP measures in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. These measures are not in accordance with, nor are they substitutes for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies. Further, the Company has provided its outlook for full-year 2026 Adjusted EPS and adjusted operating profit margin in this release. The Company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because the Company is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. The financial impact of such items is uncertain and is dependent on various factors, including timing, and could be material to the Company's consolidated statements of income. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805164191/en/ Contacts Lillian D. Etzkorn, CFO (574) [email protected]

For the quarter ended June 2026, LCI (LCII) reported revenue of $968.68 million, down 12.5% over the same period last year. EPS came in at $2.70, compared to $2.39 in the year-ago quarter. The reported revenue represents a surprise of -14.21% over the Zacks Consensus Estimate of $1.13 billion. With the consensus EPS estimate being $2.63, the EPS surprise was +2.66%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how LCI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Total OEM Segment: $674.79 million versus the three-analyst average estimate of $861.63 million. Net sales- Total Aftermarket Segment: $293.88 million versus $278.47 million estimated by three analysts on average. Net sales- Total OEM Segment- Adjacent Industries OEMs: $338.67 million versus $351.57 million estimated by three analysts on average. Net sales- Total OEM Segment-Travel Trailer and Fifth-Wheels: $282.35 million compared to the $448 million average estimate based on two analysts. Net sales- Total OEM Segment- Motorhomes [$M]: $53.77 million versus the two-analyst average estimate of $62.15 million. Operating profit- Aftermarket Segment: $51.88 million versus $37.9 million estimated by two analysts on average. Operating profit- OEM Segment: $44.08 million versus $65.55 million estimated by two analysts on average. View all Key Company Metrics for LCI here>>> Shares of LCI have returned +1.2% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LCI Industries (LCII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LCI (LCII) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $2.63 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.66%. A quarter ago, it was expected that this recreational vehicle parts supplier would post earnings of $2.22 per share when it actually produced earnings of $2.59, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. LCI, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $968.68 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 14.21%. This compares to year-ago revenues of $1.11 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. LCI shares have lost about 11.8% since the beginning of the year versus the S&P 500's gain of 13%. While LCI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for LCI was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.30 on $1.06 billion in revenues for the coming quarter and $8.71 on $4.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Dauch (DCH), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This maker of auto parts is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has been revised 17.9% higher over the last 30 days to the current level. Dauch's revenues are expected to be $2.79 billion, up 81.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LCI Industries (LCII) : Free Stock Analysis Report Dauch Corporation (DCH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Allison Transmission (ALSN) came out with quarterly earnings of $2.73 per share, beating the Zacks Consensus Estimate of $2.6 per share. This compares to earnings of $2.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this automatic transmission maker would post earnings of $2.54 per share when it actually produced earnings of $2.57, delivering a surprise of +1.18%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Allison Transmission, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.57 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.82%. This compares to year-ago revenues of $814 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Allison Transmission shares have added about 17% since the beginning of the year versus the S&P 500's gain of 9.4%. While Allison Transmission has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Allison Transmission was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $1.45 billion in revenues for the coming quarter and $9.65 on $5.79 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, LCI (LCII), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This recreational vehicle parts supplier is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. LCI's revenues are expected to be $1.13 billion, up 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report LCI Industries (LCII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research