PATK

ELKHART, Ind., Aug. 14, 2026 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company") today announced that on August 13, 2026, its Board of Directors (the "Board") declared a quarterly cash dividend on its common stock of $0.47 per share. The dividend is payable on September 8, 2026, to shareholders of record at the close of business on August 24, 2026. About Patrick Industries, Inc. Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com. Forward-Looking Statements This press release contains certain statements related to future results, our intentions, beliefs and expectations or predictions for the future, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any projections of financial performance or statements concerning expectations as to future developments should not be construed in any manner as a guarantee that such results or developments will, in fact, occur. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Information about certain risks that could affect our business and cause actual results to differ from those expressed or implied in the forward-looking statements is contained in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's Forms 10-Q for subsequent quarterly periods, which are filed with the Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. In addition, future dividends are subject to Board approval. Each forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made. Contact: Steve O'HaraVice President of Investor [email protected] 574.294.7511 View original content to download multimedia:https://www.prnewswire.com/news-releases/patrick-industries-inc-declares-quarterly-cash-dividend-302851797.html

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]

Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Steve O'Hara Chief Executive Officer - Andy Nemeth President - Jeffrey Rodino Chief Financial Officer - Matthew Filer Operator: Good morning, ladies and gentlemen, and welcome to Patrick Industries' Second Quarter 2026 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. And I'll now turn the call over to Mr. Steve O'Hara, Vice President of Investor Relations. Mr. O'Hara, you may begin. Steve O’Hara: Good morning, everyone, and welcome to our call this morning. I'm joined on the call today by Andy Nemeth, CEO; Jeff Rodino, President; and Matt Filer, CFO. Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's annual report on Form 10-K for the year ended December 31, 2025, and the company's other filings with the Securities and Exchange Commission. Before we begin, I want to briefly address our previously announced merger agreement with LCI Industries. As you would expect, we are limited in what we can say beyond the information that has been publicly disclosed. We remain focused on continuing to execute against our strategic priorities while working through the customary steps required to complete the transaction. I would now like to turn the call over to Andy Nemeth. Andy L. Nemeth: Thank you, Steve. Good morning, everyone. We appreciate you joining us on the call. The second quarter's results underscore the continued resilience of Patrick's business as a result of our strategic diversification efforts and reflect many of the same themes we've discussed over the past several quarters. Net sales for the second quarter were $1.04 billion, off less than 1% year-over-year in these uncertain market conditions as revenue growth in our Marine, Powersports and Housing end markets helped offset a decline in our RV revenue, which was heavily impacted by a 16% reduction in RV industry wholesale unit shipments. We estimate overall organic growth contributed 7% during the quarter. And adjusted earnings per diluted share was $1.29, including approximately $0.07 of dilution from our convertible notes and related warrants. On a trailing 12-month basis, net sales were approximately $3.9 billion. Our second quarter results are an important reminder that Patrick is not defined by one cycle or end market. Our targeted investments over the last decade towards strategically diversifying our business model have created a more resilient platform with broader exposure to attractive market categories within the outdoor enthusiast space. As an example, compared to 2019, RV and Marine wholesale unit shipments are both off more than 20%, yet our trailing 12-month net sales were up nearly 70% and our adjusted earnings per share is up more than 60%. We have thoughtfully expanded our capabilities across various end markets while continuing to deepen the technical, operational and commercial expertise that allows us to bring more value-added, cost-effective solutions to our customers from our deep and wide product portfolio. Our teams continue to execute with discipline and a clear focus on staying close to our customers. We are focused on strategically positioning the business based on the current run rates and thoughtfully managing costs while preserving operational flexibility needed to respond quickly as demand patterns evolve. This same discipline is also evident across the industries we serve as OEMs and dealers have continued to prudently manage inventory levels in a way that we believe is healthier than in prior cycles. While this does not eliminate near-term volume pressure, we believe it continues to support positive long-term industry dynamics and positions the channel more effectively for an eventual recovery in demand. We believe elevated domestic fuel prices, higher interest rates, lower consumer confidence and monthly payment and price sensitivity continue to weigh heavily on larger ticket discretionary purchases. Our role for our customers is to be a strong value-added solutions-oriented business partner. This work is showing up in several important ways. Through our value engineering initiatives, advanced manufacturing investments, composite solutions, electrical capabilities, aftermarket platform and the experience, we are helping customers address options and priorities around affordability, production efficiency, labor optimization, product differentiation and speed to market. Across our platforms, we are working closely with customers to partner on low-cost alternatives under a good, better, best product offering, support their product development needs, respond quickly to changing production schedules and help them deliver great products that meet consumers where they're at today, while continuing to grow our content and build a more durable platform over time. At the same time, we are prioritizing industry-leading investments in technology, data analytics and AI-enabled tools that we believe will help further shape our industries for the next era of design and operational excellence. Across Patrick, we are applying these capabilities in practical business-focused ways to improve our own operational performance and respond to customer needs with greater speed and precision. During the quarter, we piloted our first ever internal AI process competition across corporate administrative teams, focused on identifying and rewarding practical applications for automation, analytics and AI. We are also utilizing AI in our aftermarket platform to guide the introduction of new products to market and improve content generation, better capturing consumer attention and engagement across our digital channels. Additionally, we are excited to unveil our new advanced manufacturing and printing technology solution for the RV industry. Jeff will touch on this industry-leading advancement shortly. We also remain opportunistic in managing our balance sheet and the allocation of our capital. Our priorities continue to be centered on reinvesting in our business, supporting strategic and organic growth opportunities, maintaining financial flexibility and returning capital to shareholders. During the quarter, we intentionally increased our leverage profile in the short term and repurchased approximately $91 million of our shares, reflecting our confidence in both Patrick's long-term value creation opportunity and the strength of our cash flows. Finally, I'd like to briefly comment on our recently executed all-stock merger agreement with Lippert. We are incredibly excited about the opportunity ahead and look forward to working closely with key stakeholders as we move through the process. We believe the combination of the amazing Patrick and Lippert teams will create tremendous positive energy to support our customers, enhance our ability to innovate and deliver cost-effective solutions, and better serve the industries we care deeply about in a mutually beneficial way. We believe that together with expanded capabilities and a deeper product offering, we will be able to further enhance the value we can deliver to OEM customers, outdoor enthusiasts, team members and shareholders over the long term. As we have outlined previously, we expect the combination to generate approximately $150 million of net annual run rate cost synergies, allowing us to share savings with our customers in partnership to promote the long-term benefit of our markets with a focus on affordability. The transaction is targeted to close in the first half of 2027, subject to customary shareholder and regulatory approvals. Until closing, we remain 2 independent companies. And our team's focus is where it has always been, running Patrick's business in the pursuit of delivering the highest quality products and service to our customers. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets. Jeffrey Rodino: Thanks, Andy, and good morning, everyone. I'll start with a review of our operating performance by end market, including the key customer channel and product trends we saw during the quarter. Our second quarter RV revenue was $407 million, down 15% from the same period in 2025 and represented 39% of consolidated revenue. RV industry wholesale unit shipments declined by 16% in the quarter, which equates to approximately 15,300 fewer units being shipped. On a trailing 12-month basis, RV content per unit, or CPU, was up 7% to $5,303 and on a quarterly basis, CPU increased 2% year-over-year, highlighting our team's success in continuing to win new business through a period of contraction. RV retail demand has been softer than expected so far this year. Despite some early positive signals at the start of show season, macroeconomic and geopolitical factors have continued to weigh heavily on consumer purchasing behavior. We estimate second quarter 2026 RV retail unit shipments were off 12% to approximately 99,200 compared to RV wholesale unit shipments of approximately 77,600. This implies a seasonal dealer field inventory destock of approximately 21,600 units during the period, resulting in an estimated dealer inventory weeks on hand of approximately 18 to 20 weeks. This is below an estimated 20 to 22 weeks at the end of the first quarter of 2026 and well below the pre-COVID historical averages of 26 to 30 weeks. We remain encouraged by the disciplined production and inventory management across the RV value chain. At Patrick, we are committed to supporting OEM initiatives through product development, unique design services, continued investment in industry-leading technology and product solutions across our end markets. As Andy mentioned, we are now launching our multimillion-dollar advanced digital printing technology on our North American Forest Products campus. This industry-leading technology applies high-quality graphics and textures directly onto a much wider range of substrates, including our composite material. Because we can print straight to the substrate, when compared to traditional laminated vinyl or paper, we can improve design flexibility, manufacturing efficiency and quality while serving both value and premium markets, giving customers everything from cost-competitive finishes to richly textured premium surfaces. We are excited to play a key role in developing and producing the next era of interior and exterior solutions and believe this differentiated capability strengthens our decorative portfolio and creates a new opportunity for both OEM and retail customers. Second quarter Marine revenue increased 22% to $191 million, representing 18% of consolidated net sales, outperforming the marine industry wholesale powerboat unit shipments, which we estimated were flat compared to the prior year period. On a TTM basis, our estimated Marine content per wholesale powerboat unit increased 22% to $4,883. And more importantly, we estimate the majority of this growth was organic in nature. On a quarterly basis, estimated Marine CPU increased 22% year-over-year. We estimate Marine retail and Marine industry wholesale powerboat unit shipments were 57,800 and 38,800, respectively, in the second quarter. This implies a seasonal dealer inventory destock of approximately 19,000 units. Dealer inventory in the field remains lean at an estimated 17 to 19 weeks on hand, down from an estimated 22 to 24 weeks in the first quarter of 2026, remaining well below the pre-COVID historical averages of 36 to 40 weeks. Our Marine performance continues to reflect the strength of our organic growth within our diversified portfolio and the benefit of recent strategic acquisitions within the electrical solutions category. Although Marine consumers have not been immune to the broader macroeconomic pressures mentioned earlier, our exposure is skewed towards mid to higher-end categories that have generally been more resilient. Similar to RV, we continue to see OEMs and dealers focused on inventory management, production alignment and opportunities to improve affordability without compromising the overall consumer experience. Our electrical solutions platform remains another important area of strength within our Marine business. Through the combination of existing capabilities and recently acquired businesses, we are increasingly able to deliver more complete integrated solutions that help customers reduce complexity, avoid production delays and improve overall efficiency. Consistent with our long-term strategy, we are focused on bringing a good-better-best approach to the market, allowing customers to tailor product to consumer preferences, price points and model positioning. Looking ahead, we believe our ability to connect multiple brands into broader solutions will continue to differentiate us. Moving to Powersports. Revenue increased 28% to $123 million in the second quarter versus the prior year period, representing 12% of our second quarter 2026 consolidated sales. Our strong performance this quarter was driven by continued strength in utility-focused units where demand has remained more resilient than in the more discretionary recreational categories. We're encouraged to see some pockets of improvement in certain recreational categories, but remain mindful given the broader consumer discretionary environment. Sportech continues to be an important catalyst and contributor to our Powersports growth story. Consumer demand for cabin closures and other premium utility vehicle content remains healthy. And we are continuing to benefit from OEM adoption of these features. Much like in our other markets, the Sportech team is committed to advancing operational excellence. The team has recently activated AI-enabled camera systems within their facility, streamlining and enhancing quality control and inspection processes, driving greater consistency throughout production. On the Housing side of our business, second quarter revenue was up 2% to $320 million compared to the prior year period, representing 31% of consolidated sales. The increase in our Housing end markets reflects positive contributions from the industrial side of our business, including laminated panels selling into big-box stores, which offset continued softness in MH wholesale unit shipments. Manufactured Housing, or MH, represented 55% of our Housing revenue in the quarter. And we estimate MH wholesale unit shipments decreased 8%. Estimated content per MH unit on a TTM basis was $6,673, flat when compared to the prior year period as we focus on maintaining solid content in a softer demand environment. On a quarterly basis, estimated content per MH unit increased 4% year-over-year. Regarding the 1% decrease in total housing starts, we believe this reflects continued demand constraints related to overall housing affordability, mirroring the factors impacting other big-ticket consumer discretionary products. To that end, we are encouraged by the Road to Housing Act, which became law earlier this month. Over the long term, we believe this new legislation has the potential to unlock some of the pent-up housing demand on both MH and site-built sides. Our Housing businesses and teams are well positioned to benefit from the conversion of pent-up demand for affordable housing. Many studies estimate a significant shortage in affordable housing options in the United States, suggesting a multiyear opportunity to satisfy demand. I'll now turn the call over to Matt Filer, who will provide additional comments on financial performance. Matthew Filer: Thanks, Jeff, and good morning, everyone. Consolidated net sales for the quarter were $1.04 billion, off less than 1% from the second quarter of 2025. Revenue increases of 22% in Marine, 28% in Powersports and 2% in Housing end markets helped offset lower revenue in our RV end market attributable to reduced wholesale shipment levels in the quarter. We estimate the year-over-year change in our revenue was comprised of 7% organic growth, 1% acquisition growth and negative 9% industry. Despite the decline in RV revenue, gross margin was 23.8% compared to 23.9% in the second quarter of 2025 as a result of the strategic diversification of our business model. On an adjusted basis, operating margin was 7.5% compared to 8.3% in the prior year period, reflecting a number of factors, including the aforementioned 16% decline in RV wholesale industry unit shipments and higher oil and fuel prices. Our overall effective tax rate was 25.2% for the second quarter compared to 25.3% in the second quarter of 2025. Net income was up 34% to $43 million or $1.28 per diluted share compared to net income of $32 million or $0.96 per diluted share in the prior year quarter. On an adjusted basis, net income was $44 million or $1.29 per diluted share compared to $51 million or $1.50 per diluted share, respectively, in the prior year period. Last year's adjusted net income excluded the impact of onetime costs related to a legal settlement. Reported and adjusted diluted earnings per share for the second quarter of 2026 included approximately $0.07 in additional accounting-related dilution as a result of Patrick's stock price being above the convertible option strike price for our 2028 convertible notes and related warrants. The prior year's diluted EPS included just $0.03 per share. I would like to point out that our basic share count did decline due to the share repurchase completed in the first and second quarters. Adjusted EBITDA was $126 million compared to $135 million last year, while adjusted EBITDA margin was 12.1%, lower by 80 basis points from the second quarter of 2025. Cash provided by operations for the first 6 months of 2026 was $69 million compared to $189 million in the first 6 months of 2025. The year-over-year change reflected working capital investment, including inventory levels that remained elevated, both in support of the company's composite products growth strategy, which began in the second half of 2025 as well as our partnership methodology with our RV customers to continue to mitigate price increases and tariffs in providing good, better, best product offerings. Additionally, the decline in RV shipments has delayed a more fulsome release of inventory balances, especially related to composites and other raw materials. Based on conversations with customers, we expect improved composite adoption in the second half of the year. Purchases of property, plant and equipment were $18 million during the quarter. Available liquidity at the end of the second quarter was approximately $691 million, comprised of approximately $661 million of unused capacity on our revolving credit facility and cash on hand. With no major debt maturities until 2028, we have the financial strength and capital necessary to capture long-term organic and inorganic growth opportunities. At the end of the second quarter, our net leverage was 3.0x. With increased stock repurchases in the quarter and inventory investments we made for the benefit of our customers, our leverage for the second quarter increased from the prior quarter. We expect to bring leverage down in the coming 2 quarters in alignment with both normal seasonality of working capital needs as well as our operating model to effectively manage inventory turns. In the second quarter, we returned a total of approximately $106 million to shareholders, including quarterly dividends of $15 million and share repurchases totaling $91 million. During the quarter, we repurchased approximately 980,000 shares, reflecting our capital allocation strategy, which is focused on reinvesting in our business while directing capital toward the most attractive opportunities to create long-term shareholder value. We continue to view Patrick's shares as an attractive investment. At quarter end, approximately $62 million remained available under our existing repurchase authorization. Following the signing of the merger agreement on June 30th, we are generally restricted from repurchasing additional shares prior to closing under the agreement's customary interim operating covenants. I'll now turn to our financial outlook, which is based on Patrick as a stand-alone company and does not include the previously announced merger with LCI. We now estimate RV retail will be down low double digits and RV wholesale will be 285,000 to 300,000 units in 2026. In Marine, we continue to estimate retail shipments will be flat to down slightly and wholesale shipments will be up low single digits in 2026. In our Powersports end market, we continue to expect both full-year unit shipments and organic content to be up low single digits, implying an overall mid-to-high single-digit increase for our business. For Housing, we continue to estimate MH wholesale unit shipments and total new housing starts will both be down low to mid-single digits for 2026. Based on the revisions to our end market shipments, we now expect our 2026 adjusted operating margin will be flat versus 2025. However, in alignment with our commitment to our partnership with customers and the industries we serve, we are proactively in the marketplace working with customers with incremental volume-based programs in the second half of 2026 to help address affordability. This may negatively impact margins by an additional 20 basis points versus 2025. We have also updated our 2026 operating cash flow, which we now estimate will be between $320 million and $350 million, with capital expenditures totaling between $70 million to $80 million and implying free cash flow of approximately $250 million. For 2026, we continue to estimate that our effective tax rate will be 24% to 25%. That completes my remarks. We are now ready for questions. Operator: [Operator Instructions] Our first question is from the line of Scott Stember with ROTH Capital. Scott Stember: This morning, a large dealer indicated that sales in July took a little bit of a step down from what we've already seen being weak in the second quarter. Can you talk about what you're seeing with your touch points? And how are you envisioning production levels as we go through the summer and heading into the model year changeover in open house? Jeffrey Rodino: Scott, this is Jeff. We primarily are looking at the production numbers versus what they reported earlier as far as what they saw in July. It's different pockets with different OEMs as far as what they've said as far as the retail numbers in June and July. Some have been positive, some have not been as positive as others. As far as production levels, as we expected. And really, when you see the outlook that Matt talked about at 285 to 300, the production levels as we see those going into July and August, we are seeing those go down from where we were in the first half of the year. So they're tracking about where we're at. I know the OEMs are starting to do some sneak peeks with their new models and what they plan on showing at open house. And the hope is that at the open house, we'll be able to see some additional orders to get through the end of the year. But certainly, it's the OEMs and the dealers working together based on what retail is doing to determine the production numbers that we're seeing. Scott Stember: Got it. And Matt, you made a comment finishing up about -- I think it was about working with OEMs, I guess, on pricing for affordability. Maybe just give us a little snippet of what's going on? And when that could start to work its way into the marketplace to make units more affordable? Andy L. Nemeth: Scott, this is Andy. I'll take that one. Yes, we've been really thoughtful about really partnering with our customers, especially in these dynamic times. But also as we look to the back half and really look at this as an opportunity to demonstrate our partnership and help our OEM partners address the affordability issue that's out there. And it's consistent with some of the themes that we've talked about before, especially as it relates to our ability to bring solutions to customers, help drive value-add value engineering opportunities to reduce costs. And then just our ability to procure inventory, our ability to work with customers specifically on their production, their models in custom solutions and really help drive costs. And it's really simple from our perspective. We can do this because of the size and scale that we've got and our ability to flex with customers. And so as we're looking at these opportunities, we want to be out there in the second half, aggressively demonstrating that. And the volume opportunities for us, especially if we could -- with the procurement abilities to discount inventory for us, we can transfer that over to the customers. So we think this is a great opportunity to be on offense, again, in many different ways, but certainly in partnership with our customers and helping address affordability. Scott Stember: Got it. And then just lastly on Powersports, tremendous growth there, increased attachment rates, notably for, I guess, the cabin closures. One of your bigger customers a couple of days ago reported that they're seeing some increased demand in the AI data center end markets. Are you seeing anything on that front? And also, are you seeing increased adoption from other OEMs outside of the ones that we've talked about? Andy L. Nemeth: So our production -- what we're seeing from our orders with those customers is in alignment with what they're seeing. So we kind of move parallel because of the products that we supply to those markets. So incrementally, what we tell you is everybody is participating. And we feel like we're seeing not only the AI volume, but -- or I'm sorry, the data center volume, but more importantly, the uptake rate on cabin closures in the side-by-side units has continued to increase, which has just really been a positive for our Powersports business. Operator: Our next questions are from the line of Noah Zatzkin with KeyBanc Capital Markets. Noah Zatzkin: I guess, first, in Marine, obviously really strong performance there. So what's kind of driving that from a content perspective? And then from an end market perspective, just any thoughts around kind of what you're seeing there maybe relative to RV would be helpful. Andy L. Nemeth: Sure, Noah. In the Marine side, our solutions efforts are really starting to generate some positive traction. Our tower and windshield solutions, our electrical solutions, our digital systems, our SeaDek flooring programs that we've got out there today, fuel tanks. All those businesses are really gaining traction, especially as we are working with customers, again, similar to what we're doing in the RV side. But from a solutions perspective, we're gaining traction, gaining share on the Marine side because of that ability to put those solutions together. We're seeing resilience at the mid to high end in the Marine sector today. So mid to high-end boats are definitely moving right now. And that's been a positive for us, especially with our mix geared towards that sector. So all of it's been positive in Marine and fairly resilient. But we're really excited about the content growth. And the team has done an excellent job of gaining traction, especially as it relates to solutions. So there's a lot of opportunity ahead as well. Noah Zatzkin: Great. Very helpful. And then maybe just one on kind of the capacity side. Like how are you guys thinking about capacity? Have you made any changes with kind of the lower RV end market outlook? And then just any thoughts around your ability to flex if retail were to return next year? Andy L. Nemeth: Yes. So we are making some capacity adjustments across the platform, but really not losing any scalability. So we're looking at really optimizing our operations today. We're getting our models centered around kind of the current run rate environment to be able to continue to run at these run rates, continue to control what we can control and again, provide solutions for customers while maintaining that flexibility. We've taken a little bit of capacity out, but nothing that I feel will constrain us, especially if there's an inflection in retail. Operator: The next questions are from the line of Craig Kennison with Baird. Craig Kennison: I'm wondering if you could just add broader commentary around commodity pressures that you may be seeing in your business. Jeffrey Rodino: Craig, this is Jeff. Really, we've seen the commodities, I would say, level off. There's some areas maybe in some of the metals that we've seen a little bit of relief actually. But we're trying to monitor that and see where that takes us. Overall, I would tell you that we haven't had any major changes in the commodities in the last quarter. We have seen some things happen on the imported luan side. And -- but we've actually bought in really inventory to be able to mitigate that for our customers on a go-forward basis. But we will be seeing that kind of take effect in the -- probably end of third, fourth quarter. And that's some antidumping and countervailing that was put on luan plywood from Indonesia. So to that level, we're monitoring that and keeping an eye on it. But to that point, we haven't passed anything along to the customers. Andy L. Nemeth: Yes. I think one important thing to just add to that, Craig, is that as we look at kind of the imported plywood and we look at our inventory levels as well, we've definitely invested heavily in our composites program, which we believe has a tremendous future. And as we start to see some of the plywood pricing go up and above where composites are at, we would expect to see some transition over to composites in addition to the real value proposition for composites from a total cost perspective. And so because of our buying practices and strategies. We've been able to really partner with customers and hold off on a lot of the pricing as it relates to some of these dumping duties that have come into place. It has impacted our composites inventory a little bit. It's moved it a little bit slower. So we haven't had the turns that we wanted. But really in partnership with our customers, we've been able to flex and really mitigate as much of the pricing as we can. So we feel good about where the commodities are at. But we do expect to see a little bit, as Jeff mentioned, as it relates to some countervailing and antidumping duties on the imported plywood going forward. So we do have offsets for that and feel like, again, we're going to continue to be able to partner with customers in addressing that affordability that's out there. Craig Kennison: Yes. And on the Powersports side, if I look at things right, I believe you had a very robust growth in the quarter, up 28%. But I think your guidance calls for more of like, what, mid-single-digit units in AI and content per unit. Is there a reason why things would slow? Is it a function of lapping very strong results? Just trying to understand that dynamic. Andy L. Nemeth: No, I think we're optimistic that we will continue to see traction there. Like I said, we've been pleasantly surprised with the take rates on cabin closures in the Powersports sector above and beyond our expectations and we would hope that would continue. We're just thoughtful about kind of where we sit today and the market conditions that are out there. But our hope is that we're going to continue to see positive upward trajectory on those take rates in addition to strong demand. So I think we're just probably a little bit cautiously optimistic, if you will. But I do believe there's tremendous opportunity for our products, especially with the traction that we've gained and again, some of the customer partnerships that we have out there. Operator: Our next question is from the line of Daniel Moore with CJS Securities. Dan Moore: Just looking ahead, obviously another quarter of strong discipline, both in the RV and Marine space from a dealer perspective. How much lower can RV and Marine inventory levels go? What have we seen in the past? And when do we start to maybe risk loss of incremental sales? I recognized we're in a tough dynamic market right now, but just kind of a little historic perspective would be helpful. Jeffrey Rodino: Sure. I think as we look at it today, I think there's capacity across the spectrum to support an inflection in retail. I think we're very encouraged by the discipline that we're seeing at the dealer level, the OE level as it relates to managing those production schedules, managing dealer inventories, especially when we look at weeks on hand. We actually, in our estimates, are thinking that dealers are going to take another week out at the end of the year compared to where it was last year. And that's built into this model right now just because they can and they can stay that disciplined. But we're positioned to flex very, very quickly and scale very quickly. And I think the OEs are positioned to scale very, very quickly as well. So I don't anticipate any constraints, especially with where inventories are at. In fact, I'm more excited because of where the inventories are at today with the upside potential. And I do think -- we still do believe there'll need to be a little bit of restock, not necessarily back to historical weeks on hand levels. But we believe that there needs to be a restock at some point in time when we do see a retail inflection to support the demand that's out there. And I think there's capacity across the platform to be able to support that. Dan Moore: Helpful. And just clarifying Matt's comments around volume-based pricing offerings and initiatives looking into the back half of the year. So the potential impact of an incremental 20 bps beyond the updated guidance, which potentially offset by incremental share and volume gains. Is that the right kind of way to think about it? Andy L. Nemeth: Yes. I mean, again, I think we're looking at this as a great opportunity to really embed our partnership with our customers, really provide some opportunities to continue to address affordability. We may sacrifice some margin because of that as it relates to really benefiting the long term of the industry and positioning ourselves really well with our customers. But we definitely want to demonstrate that partnership and I think this is a great opportunity to do so. And we've got the capacity. We've got the resources to be able to support that as well as our procurement strategies we feel like can be a benefit to our customers as we continue to share in this partnership with them as it relates to helping address that affordability issue. So again, we look at this as an opportunity to really be proactive, opportunistic, especially with where volume levels are at today. And we think we've got the platform to be able to do it. Dan Moore: Perfect. Last for me. Working capital, obviously, some strategic initiatives kind of building out the good, better, best and some of the new growth areas as well. Looking to the back half of the year, do you expect working capital to continue to build? Or could that be a source of incremental cash generation? Matthew Filer: Yes. No, I think it's a source of cash generation. We look to bring our turns back down a little bit. Like I said, we made some intentional -- certainly some intentional buys on the composite side. But we also, again, as I talked about, really partnered with customers on managing our imported plywood products and pricing, especially as it relates to some of the duties that are out there. And so again, we really look at this as a partnership across the board. But I do see that as an opportunity from a working capital perspective for cash generation in the back half and expect to do so and still want to stay on offense, though. I mean we're going to continue to do what we need to do to position the business for the long term and really support the scalability needs that will be there from an inflection point. So again, I do -- but to answer your question, I think it's a source of capital in the back half. Operator: Our next questions are from the line of Joe Altobello with Raymond James. Joseph Altobello: So first question, maybe more of a point of clarification on the commentary around working with customers to address affordability issues. Is it that you might see 20 basis points or so of margin degradation, but you'll pick up more volume. So the impact on operating profit dollars is probably going to be neutral? Andy L. Nemeth: That's a possibility for sure. And as we look at -- again, I think for us, it's more about really embedding this partnership for the future. And so to your point, yes. I mean, from a volume perspective and leveraging our fixed right now with the levels that we're seeing in the marketplace as it relates to shipments, shipments are down 15% for the quarter. But also we look at first half to second half. And first half run rates compared to second half run rate, second half run rates are likely to be down 20% to 25% from the first half run rates. And so as we look at absorption opportunities to really continue to drive content gains and solution opportunities with customers, we think this is the right time to do that. But yes, we could see some offset as it relates to absorption if we pick up that volume as well. So that's why we said up to or potentially 20 basis points. Joseph Altobello: Okay. And in terms of shipments, obviously they've been very weak to say the least. But it seems like mix is improving. Are you guys seeing that on your end in terms of more Class Cs, more fifth wheels, et cetera? Jeffrey Rodino: We're seeing a little bit of that, Joe. I mean it hasn't really gone back to what we would call the traditional mix in the marketplace. I think it's skewed so much towards the lower end in the last couple of years that it's -- every improvement is a little bit of an improvement, but not enough to really move the needle. I mean we've seen some better activity in some of the motorized where we may have a little bit more content with regards to like paint and some other things that we do on that side. But overall, not a big enough move to make a difference. Joseph Altobello: Okay. And maybe last one for me on pricing. You mentioned that commodity costs have leveled off here. How much should pricing play in terms of revenue growth in the back half of the year? Andy L. Nemeth: Revenue in the back half is your question, sorry, Joe? Joseph Altobello: Yes. Andy L. Nemeth: We don't have that built in. I think we expect it to be neutral in the back half. Operator: The next question is from the line of Tristan Thomas-Martin with BMO Capital Markets. Tristan Thomas-Martin: Just one quick clarification for your '26 wholesale unit guidance. Are you assuming shipments and production are in line? Andy L. Nemeth: I didn't hear the last part of that. Tristan Thomas-Martin: Shipments and production are in line with each other. Andy L. Nemeth: Shipments and... Jeffrey Rodino: Yes. Andy L. Nemeth: Yes, we are. Tristan Thomas-Martin: Okay. And then just are you seeing any of the OEMs kind of trade down the good-better-best price points? Andy L. Nemeth: We're definitely seeing interest in some of the programs that we're putting out there and the opportunities and options that we have as it relates to good, better, best. So yes, what I would say is that the OEMs are definitely interested in some of the programs. They're definitely interested in different product options to be able to help address this affordability. So I would say yes. Tristan Thomas-Martin: Okay. And then is that kind of potential trade down? Is that included in that essentially 20 basis points of margin headwinds or no? Andy L. Nemeth: Yes. Yes, that's included. Tristan Thomas-Martin: Okay. And then just maybe a Jeff question. The digital printing, is there any way to think about like sizing or kind of impact or margin profile or anything you can give us would be helpful. Jeffrey Rodino: Yes. So we're really excited about this digital printing process. It's not come without, like, years of research and development from our team to get to where we are at today. We really think it will move the needle in the way we think about interior panels within an RV. And so I think from a pricing standpoint, we're working through that. It's going to be very competitive with where we are at today with regards to our traditional laminated product, but give us a lot more flexibility to design and develop really kind of on the fly, be able to service product well on down the road because we can print one-off panels. So there's a lot of exciting features to what we're doing. And the reception from the customers so far has been very positive. So we're looking forward to seeing how that develops. As far as sizing right now, we're really working on traditional sized panels. However, in the coming quarters, you'll probably hear more from us about some additional developments as we work towards more exciting parts to what we're looking to accomplish for the OEMs. Operator: Thank you. Ladies and gentlemen, I'll turn the call over to Andy Nemeth for closing remarks. Andy L. Nemeth: I just want to finish up by really thanking our team for some tremendous efforts in some very dynamic market conditions. The energy of the team, the spirit that we're seeing out of our entire team across the platform has been just really inspiring, especially as we kind of see some volatility in certain markets and the upside potential that we have in our other markets. I think we also want to thank our customers for their partnership. I think as we sit here today and look at the market conditions and the volatility. We really feel like this is a great opportunity to further embed our value proposition with our customers. And I think as we look at our ability to generate cash, the opportunity to really be thoughtful as we have been in our capital allocation strategy and deploy capital and reinvesting in the business, we just think there's a ton of opportunity. And we feel like we can be in a position to be on offense. Our M&A pipeline is starting to gain some traction. And we're feeling some possibilities certainly there to continue to execute in the back half of the year. So we look at the options that are in front of us. And we're very optimistic about what we can do despite these market conditions and control what we can control. So again, we're feeling good about where Patrick is positioned. We're excited about the team. And I'm really excited about the opportunities to really, really partner with customers on a go-forward basis even more so. So with that, we look forward to talking to you at the end of the next quarter. Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Patrick Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Patrick Industries wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* That performance is why people listen. 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Patrick Industries (PATK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Steve O'Hara Chief Executive Officer - Andy Nemeth President - Jeffrey Rodino Chief Financial Officer - Matthew Filer Operator: Good morning, ladies and gentlemen, and welcome to Patrick Industries' Second Quarter 2026 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. And I'll now turn the call over to Mr. Steve O'Hara, Vice President of Investor Relations. Mr. O'Hara, you may begin. Steve O’Hara: Good morning, everyone, and welcome to our call this morning. I'm joined on the call today by Andy Nemeth, CEO; Jeff Rodino, President; and Matt Filer, CFO. Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's annual report on Form 10-K for the year ended December 31, 2025, and the company's other filings with the Securities and Exchange Commission. Before we begin, I want to briefly address our previously announced merger agreement with LCI Industries. As you would expect, we are limited in what we can say beyond the information that has been publicly disclosed. We remain focused on continuing to execute against our strategic priorities while working through the customary steps required to complete the transaction. I would now like to turn the call over to Andy Nemeth. Andy L. Nemeth: Thank you, Steve. Good morning, everyone. We appreciate you joining us on the call. The second quarter's results underscore the continued resilience of Patrick's business as a result of our strategic diversification efforts and reflect many of the same themes we've discussed over the past several quarters. Net sales for the second quarter were $1.04 billion, off less than 1% year-over-year in these uncertain market conditions as revenue growth in our Marine, Powersports and Housing end markets helped offset a decline in our RV revenue, which was heavily impacted by a 16% reduction in RV industry wholesale unit shipments. We estimate overall organic growth contributed 7% during the quarter. And adjusted earnings per diluted share was $1.29, including approximately $0.07 of dilution from our convertible notes and related warrants. On a trailing 12-month basis, net sales were approximately $3.9 billion. Our second quarter results are an important reminder that Patrick is not defined by one cycle or end market. Our targeted investments over the last decade towards strategically diversifying our business model have created a more resilient platform with broader exposure to attractive market categories within the outdoor enthusiast space. As an example, compared to 2019, RV and Marine wholesale unit shipments are both off more than 20%, yet our trailing 12-month net sales were up nearly 70% and our adjusted earnings per share is up more than 60%. We have thoughtfully expanded our capabilities across various end markets while continuing to deepen the technical, operational and commercial expertise that allows us to bring more value-added, cost-effective solutions to our customers from our deep and wide product portfolio. Our teams continue to execute with discipline and a clear focus on staying close to our customers. We are focused on strategically positioning the business based on the current run rates and thoughtfully managing costs while preserving operational flexibility needed to respond quickly as demand patterns evolve. This same discipline is also evident across the industries we serve as OEMs and dealers have continued to prudently manage inventory levels in a way that we believe is healthier than in prior cycles. While this does not eliminate near-term volume pressure, we believe it continues to support positive long-term industry dynamics and positions the channel more effectively for an eventual recovery in demand. We believe elevated domestic fuel prices, higher interest rates, lower consumer confidence and monthly payment and price sensitivity continue to weigh heavily on larger ticket discretionary purchases. Our role for our customers is to be a strong value-added solutions-oriented business partner. This work is showing up in several important ways. Through our value engineering initiatives, advanced manufacturing investments, composite solutions, electrical capabilities, aftermarket platform and the experience, we are helping customers address options and priorities around affordability, production efficiency, labor optimization, product differentiation and speed to market. Across our platforms, we are working closely with customers to partner on low-cost alternatives under a good, better, best product offering, support their product development needs, respond quickly to changing production schedules and help them deliver great products that meet consumers where they're at today, while continuing to grow our content and build a more durable platform over time. At the same time, we are prioritizing industry-leading investments in technology, data analytics and AI-enabled tools that we believe will help further shape our industries for the next era of design and operational excellence. Across Patrick, we are applying these capabilities in practical business-focused ways to improve our own operational performance and respond to customer needs with greater speed and precision. During the quarter, we piloted our first ever internal AI process competition across corporate administrative teams, focused on identifying and rewarding practical applications for automation, analytics and AI. We are also utilizing AI in our aftermarket platform to guide the introduction of new products to market and improve content generation, better capturing consumer attention and engagement across our digital channels. Additionally, we are excited to unveil our new advanced manufacturing and printing technology solution for the RV industry. Jeff will touch on this industry-leading advancement shortly. We also remain opportunistic in managing our balance sheet and the allocation of our capital. Our priorities continue to be centered on reinvesting in our business, supporting strategic and organic growth opportunities, maintaining financial flexibility and returning capital to shareholders. During the quarter, we intentionally increased our leverage profile in the short term and repurchased approximately $91 million of our shares, reflecting our confidence in both Patrick's long-term value creation opportunity and the strength of our cash flows. Finally, I'd like to briefly comment on our recently executed all-stock merger agreement with Lippert. We are incredibly excited about the opportunity ahead and look forward to working closely with key stakeholders as we move through the process. We believe the combination of the amazing Patrick and Lippert teams will create tremendous positive energy to support our customers, enhance our ability to innovate and deliver cost-effective solutions, and better serve the industries we care deeply about in a mutually beneficial way. We believe that together with expanded capabilities and a deeper product offering, we will be able to further enhance the value we can deliver to OEM customers, outdoor enthusiasts, team members and shareholders over the long term. As we have outlined previously, we expect the combination to generate approximately $150 million of net annual run rate cost synergies, allowing us to share savings with our customers in partnership to promote the long-term benefit of our markets with a focus on affordability. The transaction is targeted to close in the first half of 2027, subject to customary shareholder and regulatory approvals. Until closing, we remain 2 independent companies. And our team's focus is where it has always been, running Patrick's business in the pursuit of delivering the highest quality products and service to our customers. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets. Jeffrey Rodino: Thanks, Andy, and good morning, everyone. I'll start with a review of our operating performance by end market, including the key customer channel and product trends we saw during the quarter. Our second quarter RV revenue was $407 million, down 15% from the same period in 2025 and represented 39% of consolidated revenue. RV industry wholesale unit shipments declined by 16% in the quarter, which equates to approximately 15,300 fewer units being shipped. On a trailing 12-month basis, RV content per unit, or CPU, was up 7% to $5,303 and on a quarterly basis, CPU increased 2% year-over-year, highlighting our team's success in continuing to win new business through a period of contraction. RV retail demand has been softer than expected so far this year. Despite some early positive signals at the start of show season, macroeconomic and geopolitical factors have continued to weigh heavily on consumer purchasing behavior. We estimate second quarter 2026 RV retail unit shipments were off 12% to approximately 99,200 compared to RV wholesale unit shipments of approximately 77,600. This implies a seasonal dealer field inventory destock of approximately 21,600 units during the period, resulting in an estimated dealer inventory weeks on hand of approximately 18 to 20 weeks. This is below an estimated 20 to 22 weeks at the end of the first quarter of 2026 and well below the pre-COVID historical averages of 26 to 30 weeks. We remain encouraged by the disciplined production and inventory management across the RV value chain. At Patrick, we are committed to supporting OEM initiatives through product development, unique design services, continued investment in industry-leading technology and product solutions across our end markets. As Andy mentioned, we are now launching our multimillion-dollar advanced digital printing technology on our North American Forest Products campus. This industry-leading technology applies high-quality graphics and textures directly onto a much wider range of substrates, including our composite material. Because we can print straight to the substrate, when compared to traditional laminated vinyl or paper, we can improve design flexibility, manufacturing efficiency and quality while serving both value and premium markets, giving customers everything from cost-competitive finishes to richly textured premium surfaces. We are excited to play a key role in developing and producing the next era of interior and exterior solutions and believe this differentiated capability strengthens our decorative portfolio and creates a new opportunity for both OEM and retail customers. Second quarter Marine revenue increased 22% to $191 million, representing 18% of consolidated net sales, outperforming the marine industry wholesale powerboat unit shipments, which we estimated were flat compared to the prior year period. On a TTM basis, our estimated Marine content per wholesale powerboat unit increased 22% to $4,883. And more importantly, we estimate the majority of this growth was organic in nature. On a quarterly basis, estimated Marine CPU increased 22% year-over-year. We estimate Marine retail and Marine industry wholesale powerboat unit shipments were 57,800 and 38,800, respectively, in the second quarter. This implies a seasonal dealer inventory destock of approximately 19,000 units. Dealer inventory in the field remains lean at an estimated 17 to 19 weeks on hand, down from an estimated 22 to 24 weeks in the first quarter of 2026, remaining well below the pre-COVID historical averages of 36 to 40 weeks. Our Marine performance continues to reflect the strength of our organic growth within our diversified portfolio and the benefit of recent strategic acquisitions within the electrical solutions category. Although Marine consumers have not been immune to the broader macroeconomic pressures mentioned earlier, our exposure is skewed towards mid to higher-end categories that have generally been more resilient. Similar to RV, we continue to see OEMs and dealers focused on inventory management, production alignment and opportunities to improve affordability without compromising the overall consumer experience. Our electrical solutions platform remains another important area of strength within our Marine business. Through the combination of existing capabilities and recently acquired businesses, we are increasingly able to deliver more complete integrated solutions that help customers reduce complexity, avoid production delays and improve overall efficiency. Consistent with our long-term strategy, we are focused on bringing a good-better-best approach to the market, allowing customers to tailor product to consumer preferences, price points and model positioning. Looking ahead, we believe our ability to connect multiple brands into broader solutions will continue to differentiate us. Moving to Powersports. Revenue increased 28% to $123 million in the second quarter versus the prior year period, representing 12% of our second quarter 2026 consolidated sales. Our strong performance this quarter was driven by continued strength in utility-focused units where demand has remained more resilient than in the more discretionary recreational categories. We're encouraged to see some pockets of improvement in certain recreational categories, but remain mindful given the broader consumer discretionary environment. Sportech continues to be an important catalyst and contributor to our Powersports growth story. Consumer demand for cabin closures and other premium utility vehicle content remains healthy. And we are continuing to benefit from OEM adoption of these features. Much like in our other markets, the Sportech team is committed to advancing operational excellence. The team has recently activated AI-enabled camera systems within their facility, streamlining and enhancing quality control and inspection processes, driving greater consistency throughout production. On the Housing side of our business, second quarter revenue was up 2% to $320 million compared to the prior year period, representing 31% of consolidated sales. The increase in our Housing end markets reflects positive contributions from the industrial side of our business, including laminated panels selling into big-box stores, which offset continued softness in MH wholesale unit shipments. Manufactured Housing, or MH, represented 55% of our Housing revenue in the quarter. And we estimate MH wholesale unit shipments decreased 8%. Estimated content per MH unit on a TTM basis was $6,673, flat when compared to the prior year period as we focus on maintaining solid content in a softer demand environment. On a quarterly basis, estimated content per MH unit increased 4% year-over-year. Regarding the 1% decrease in total housing starts, we believe this reflects continued demand constraints related to overall housing affordability, mirroring the factors impacting other big-ticket consumer discretionary products. To that end, we are encouraged by the Road to Housing Act, which became law earlier this month. Over the long term, we believe this new legislation has the potential to unlock some of the pent-up housing demand on both MH and site-built sides. Our Housing businesses and teams are well positioned to benefit from the conversion of pent-up demand for affordable housing. Many studies estimate a significant shortage in affordable housing options in the United States, suggesting a multiyear opportunity to satisfy demand. I'll now turn the call over to Matt Filer, who will provide additional comments on financial performance. Matthew Filer: Thanks, Jeff, and good morning, everyone. Consolidated net sales for the quarter were $1.04 billion, off less than 1% from the second quarter of 2025. Revenue increases of 22% in Marine, 28% in Powersports and 2% in Housing end markets helped offset lower revenue in our RV end market attributable to reduced wholesale shipment levels in the quarter. We estimate the year-over-year change in our revenue was comprised of 7% organic growth, 1% acquisition growth and negative 9% industry. Despite the decline in RV revenue, gross margin was 23.8% compared to 23.9% in the second quarter of 2025 as a result of the strategic diversification of our business model. On an adjusted basis, operating margin was 7.5% compared to 8.3% in the prior year period, reflecting a number of factors, including the aforementioned 16% decline in RV wholesale industry unit shipments and higher oil and fuel prices. Our overall effective tax rate was 25.2% for the second quarter compared to 25.3% in the second quarter of 2025. Net income was up 34% to $43 million or $1.28 per diluted share compared to net income of $32 million or $0.96 per diluted share in the prior year quarter. On an adjusted basis, net income was $44 million or $1.29 per diluted share compared to $51 million or $1.50 per diluted share, respectively, in the prior year period. Last year's adjusted net income excluded the impact of onetime costs related to a legal settlement. Reported and adjusted diluted earnings per share for the second quarter of 2026 included approximately $0.07 in additional accounting-related dilution as a result of Patrick's stock price being above the convertible option strike price for our 2028 convertible notes and related warrants. The prior year's diluted EPS included just $0.03 per share. I would like to point out that our basic share count did decline due to the share repurchase completed in the first and second quarters. Adjusted EBITDA was $126 million compared to $135 million last year, while adjusted EBITDA margin was 12.1%, lower by 80 basis points from the second quarter of 2025. Cash provided by operations for the first 6 months of 2026 was $69 million compared to $189 million in the first 6 months of 2025. The year-over-year change reflected working capital investment, including inventory levels that remained elevated, both in support of the company's composite products growth strategy, which began in the second half of 2025 as well as our partnership methodology with our RV customers to continue to mitigate price increases and tariffs in providing good, better, best product offerings. Additionally, the decline in RV shipments has delayed a more fulsome release of inventory balances, especially related to composites and other raw materials. Based on conversations with customers, we expect improved composite adoption in the second half of the year. Purchases of property, plant and equipment were $18 million during the quarter. Available liquidity at the end of the second quarter was approximately $691 million, comprised of approximately $661 million of unused capacity on our revolving credit facility and cash on hand. With no major debt maturities until 2028, we have the financial strength and capital necessary to capture long-term organic and inorganic growth opportunities. At the end of the second quarter, our net leverage was 3.0x. With increased stock repurchases in the quarter and inventory investments we made for the benefit of our customers, our leverage for the second quarter increased from the prior quarter. We expect to bring leverage down in the coming 2 quarters in alignment with both normal seasonality of working capital needs as well as our operating model to effectively manage inventory turns. In the second quarter, we returned a total of approximately $106 million to shareholders, including quarterly dividends of $15 million and share repurchases totaling $91 million. During the quarter, we repurchased approximately 980,000 shares, reflecting our capital allocation strategy, which is focused on reinvesting in our business while directing capital toward the most attractive opportunities to create long-term shareholder value. We continue to view Patrick's shares as an attractive investment. At quarter end, approximately $62 million remained available under our existing repurchase authorization. Following the signing of the merger agreement on June 30th, we are generally restricted from repurchasing additional shares prior to closing under the agreement's customary interim operating covenants. I'll now turn to our financial outlook, which is based on Patrick as a stand-alone company and does not include the previously announced merger with LCI. We now estimate RV retail will be down low double digits and RV wholesale will be 285,000 to 300,000 units in 2026. In Marine, we continue to estimate retail shipments will be flat to down slightly and wholesale shipments will be up low single digits in 2026. In our Powersports end market, we continue to expect both full-year unit shipments and organic content to be up low single digits, implying an overall mid-to-high single-digit increase for our business. For Housing, we continue to estimate MH wholesale unit shipments and total new housing starts will both be down low to mid-single digits for 2026. Based on the revisions to our end market shipments, we now expect our 2026 adjusted operating margin will be flat versus 2025. However, in alignment with our commitment to our partnership with customers and the industries we serve, we are proactively in the marketplace working with customers with incremental volume-based programs in the second half of 2026 to help address affordability. This may negatively impact margins by an additional 20 basis points versus 2025. We have also updated our 2026 operating cash flow, which we now estimate will be between $320 million and $350 million, with capital expenditures totaling between $70 million to $80 million and implying free cash flow of approximately $250 million. For 2026, we continue to estimate that our effective tax rate will be 24% to 25%. That completes my remarks. We are now ready for questions. Operator: [Operator Instructions] Our first question is from the line of Scott Stember with ROTH Capital. Scott Stember: This morning, a large dealer indicated that sales in July took a little bit of a step down from what we've already seen being weak in the second quarter. Can you talk about what you're seeing with your touch points? And how are you envisioning production levels as we go through the summer and heading into the model year changeover in open house? Jeffrey Rodino: Scott, this is Jeff. We primarily are looking at the production numbers versus what they reported earlier as far as what they saw in July. It's different pockets with different OEMs as far as what they've said as far as the retail numbers in June and July. Some have been positive, some have not been as positive as others. As far as production levels, as we expected. And really, when you see the outlook that Matt talked about at 285 to 300, the production levels as we see those going into July and August, we are seeing those go down from where we were in the first half of the year. So they're tracking about where we're at. I know the OEMs are starting to do some sneak peeks with their new models and what they plan on showing at open house. And the hope is that at the open house, we'll be able to see some additional orders to get through the end of the year. But certainly, it's the OEMs and the dealers working together based on what retail is doing to determine the production numbers that we're seeing. Scott Stember: Got it. And Matt, you made a comment finishing up about -- I think it was about working with OEMs, I guess, on pricing for affordability. Maybe just give us a little snippet of what's going on? And when that could start to work its way into the marketplace to make units more affordable? Andy L. Nemeth: Scott, this is Andy. I'll take that one. Yes, we've been really thoughtful about really partnering with our customers, especially in these dynamic times. But also as we look to the back half and really look at this as an opportunity to demonstrate our partnership and help our OEM partners address the affordability issue that's out there. And it's consistent with some of the themes that we've talked about before, especially as it relates to our ability to bring solutions to customers, help drive value-add value engineering opportunities to reduce costs. And then just our ability to procure inventory, our ability to work with customers specifically on their production, their models in custom solutions and really help drive costs. And it's really simple from our perspective. We can do this because of the size and scale that we've got and our ability to flex with customers. And so as we're looking at these opportunities, we want to be out there in the second half, aggressively demonstrating that. And the volume opportunities for us, especially if we could -- with the procurement abilities to discount inventory for us, we can transfer that over to the customers. So we think this is a great opportunity to be on offense, again, in many different ways, but certainly in partnership with our customers and helping address affordability. Scott Stember: Got it. And then just lastly on Powersports, tremendous growth there, increased attachment rates, notably for, I guess, the cabin closures. One of your bigger customers a couple of days ago reported that they're seeing some increased demand in the AI data center end markets. Are you seeing anything on that front? And also, are you seeing increased adoption from other OEMs outside of the ones that we've talked about? Andy L. Nemeth: So our production -- what we're seeing from our orders with those customers is in alignment with what they're seeing. So we kind of move parallel because of the products that we supply to those markets. So incrementally, what we tell you is everybody is participating. And we feel like we're seeing not only the AI volume, but -- or I'm sorry, the data center volume, but more importantly, the uptake rate on cabin closures in the side-by-side units has continued to increase, which has just really been a positive for our Powersports business. Operator: Our next questions are from the line of Noah Zatzkin with KeyBanc Capital Markets. Noah Zatzkin: I guess, first, in Marine, obviously really strong performance there. So what's kind of driving that from a content perspective? And then from an end market perspective, just any thoughts around kind of what you're seeing there maybe relative to RV would be helpful. Andy L. Nemeth: Sure, Noah. In the Marine side, our solutions efforts are really starting to generate some positive traction. Our tower and windshield solutions, our electrical solutions, our digital systems, our SeaDek flooring programs that we've got out there today, fuel tanks. All those businesses are really gaining traction, especially as we are working with customers, again, similar to what we're doing in the RV side. But from a solutions perspective, we're gaining traction, gaining share on the Marine side because of that ability to put those solutions together. We're seeing resilience at the mid to high end in the Marine sector today. So mid to high-end boats are definitely moving right now. And that's been a positive for us, especially with our mix geared towards that sector. So all of it's been positive in Marine and fairly resilient. But we're really excited about the content growth. And the team has done an excellent job of gaining traction, especially as it relates to solutions. So there's a lot of opportunity ahead as well. Noah Zatzkin: Great. Very helpful. And then maybe just one on kind of the capacity side. Like how are you guys thinking about capacity? Have you made any changes with kind of the lower RV end market outlook? And then just any thoughts around your ability to flex if retail were to return next year? Andy L. Nemeth: Yes. So we are making some capacity adjustments across the platform, but really not losing any scalability. So we're looking at really optimizing our operations today. We're getting our models centered around kind of the current run rate environment to be able to continue to run at these run rates, continue to control what we can control and again, provide solutions for customers while maintaining that flexibility. We've taken a little bit of capacity out, but nothing that I feel will constrain us, especially if there's an inflection in retail. Operator: The next questions are from the line of Craig Kennison with Baird. Craig Kennison: I'm wondering if you could just add broader commentary around commodity pressures that you may be seeing in your business. Jeffrey Rodino: Craig, this is Jeff. Really, we've seen the commodities, I would say, level off. There's some areas maybe in some of the metals that we've seen a little bit of relief actually. But we're trying to monitor that and see where that takes us. Overall, I would tell you that we haven't had any major changes in the commodities in the last quarter. We have seen some things happen on the imported luan side. And -- but we've actually bought in really inventory to be able to mitigate that for our customers on a go-forward basis. But we will be seeing that kind of take effect in the -- probably end of third, fourth quarter. And that's some antidumping and countervailing that was put on luan plywood from Indonesia. So to that level, we're monitoring that and keeping an eye on it. But to that point, we haven't passed anything along to the customers. Andy L. Nemeth: Yes. I think one important thing to just add to that, Craig, is that as we look at kind of the imported plywood and we look at our inventory levels as well, we've definitely invested heavily in our composites program, which we believe has a tremendous future. And as we start to see some of the plywood pricing go up and above where composites are at, we would expect to see some transition over to composites in addition to the real value proposition for composites from a total cost perspective. And so because of our buying practices and strategies. We've been able to really partner with customers and hold off on a lot of the pricing as it relates to some of these dumping duties that have come into place. It has impacted our composites inventory a little bit. It's moved it a little bit slower. So we haven't had the turns that we wanted. But really in partnership with our customers, we've been able to flex and really mitigate as much of the pricing as we can. So we feel good about where the commodities are at. But we do expect to see a little bit, as Jeff mentioned, as it relates to some countervailing and antidumping duties on the imported plywood going forward. So we do have offsets for that and feel like, again, we're going to continue to be able to partner with customers in addressing that affordability that's out there. Craig Kennison: Yes. And on the Powersports side, if I look at things right, I believe you had a very robust growth in the quarter, up 28%. But I think your guidance calls for more of like, what, mid-single-digit units in AI and content per unit. Is there a reason why things would slow? Is it a function of lapping very strong results? Just trying to understand that dynamic. Andy L. Nemeth: No, I think we're optimistic that we will continue to see traction there. Like I said, we've been pleasantly surprised with the take rates on cabin closures in the Powersports sector above and beyond our expectations and we would hope that would continue. We're just thoughtful about kind of where we sit today and the market conditions that are out there. But our hope is that we're going to continue to see positive upward trajectory on those take rates in addition to strong demand. So I think we're just probably a little bit cautiously optimistic, if you will. But I do believe there's tremendous opportunity for our products, especially with the traction that we've gained and again, some of the customer partnerships that we have out there. Operator: Our next question is from the line of Daniel Moore with CJS Securities. Dan Moore: Just looking ahead, obviously another quarter of strong discipline, both in the RV and Marine space from a dealer perspective. How much lower can RV and Marine inventory levels go? What have we seen in the past? And when do we start to maybe risk loss of incremental sales? I recognized we're in a tough dynamic market right now, but just kind of a little historic perspective would be helpful. Jeffrey Rodino: Sure. I think as we look at it today, I think there's capacity across the spectrum to support an inflection in retail. I think we're very encouraged by the discipline that we're seeing at the dealer level, the OE level as it relates to managing those production schedules, managing dealer inventories, especially when we look at weeks on hand. We actually, in our estimates, are thinking that dealers are going to take another week out at the end of the year compared to where it was last year. And that's built into this model right now just because they can and they can stay that disciplined. But we're positioned to flex very, very quickly and scale very quickly. And I think the OEs are positioned to scale very, very quickly as well. So I don't anticipate any constraints, especially with where inventories are at. In fact, I'm more excited because of where the inventories are at today with the upside potential. And I do think -- we still do believe there'll need to be a little bit of restock, not necessarily back to historical weeks on hand levels. But we believe that there needs to be a restock at some point in time when we do see a retail inflection to support the demand that's out there. And I think there's capacity across the platform to be able to support that. Dan Moore: Helpful. And just clarifying Matt's comments around volume-based pricing offerings and initiatives looking into the back half of the year. So the potential impact of an incremental 20 bps beyond the updated guidance, which potentially offset by incremental share and volume gains. Is that the right kind of way to think about it? Andy L. Nemeth: Yes. I mean, again, I think we're looking at this as a great opportunity to really embed our partnership with our customers, really provide some opportunities to continue to address affordability. We may sacrifice some margin because of that as it relates to really benefiting the long term of the industry and positioning ourselves really well with our customers. But we definitely want to demonstrate that partnership and I think this is a great opportunity to do so. And we've got the capacity. We've got the resources to be able to support that as well as our procurement strategies we feel like can be a benefit to our customers as we continue to share in this partnership with them as it relates to helping address that affordability issue. So again, we look at this as an opportunity to really be proactive, opportunistic, especially with where volume levels are at today. And we think we've got the platform to be able to do it. Dan Moore: Perfect. Last for me. Working capital, obviously, some strategic initiatives kind of building out the good, better, best and some of the new growth areas as well. Looking to the back half of the year, do you expect working capital to continue to build? Or could that be a source of incremental cash generation? Matthew Filer: Yes. No, I think it's a source of cash generation. We look to bring our turns back down a little bit. Like I said, we made some intentional -- certainly some intentional buys on the composite side. But we also, again, as I talked about, really partnered with customers on managing our imported plywood products and pricing, especially as it relates to some of the duties that are out there. And so again, we really look at this as a partnership across the board. But I do see that as an opportunity from a working capital perspective for cash generation in the back half and expect to do so and still want to stay on offense, though. I mean we're going to continue to do what we need to do to position the business for the long term and really support the scalability needs that will be there from an inflection point. So again, I do -- but to answer your question, I think it's a source of capital in the back half. Operator: Our next questions are from the line of Joe Altobello with Raymond James. Joseph Altobello: So first question, maybe more of a point of clarification on the commentary around working with customers to address affordability issues. Is it that you might see 20 basis points or so of margin degradation, but you'll pick up more volume. So the impact on operating profit dollars is probably going to be neutral? Andy L. Nemeth: That's a possibility for sure. And as we look at -- again, I think for us, it's more about really embedding this partnership for the future. And so to your point, yes. I mean, from a volume perspective and leveraging our fixed right now with the levels that we're seeing in the marketplace as it relates to shipments, shipments are down 15% for the quarter. But also we look at first half to second half. And first half run rates compared to second half run rate, second half run rates are likely to be down 20% to 25% from the first half run rates. And so as we look at absorption opportunities to really continue to drive content gains and solution opportunities with customers, we think this is the right time to do that. But yes, we could see some offset as it relates to absorption if we pick up that volume as well. So that's why we said up to or potentially 20 basis points. Joseph Altobello: Okay. And in terms of shipments, obviously they've been very weak to say the least. But it seems like mix is improving. Are you guys seeing that on your end in terms of more Class Cs, more fifth wheels, et cetera? Jeffrey Rodino: We're seeing a little bit of that, Joe. I mean it hasn't really gone back to what we would call the traditional mix in the marketplace. I think it's skewed so much towards the lower end in the last couple of years that it's -- every improvement is a little bit of an improvement, but not enough to really move the needle. I mean we've seen some better activity in some of the motorized where we may have a little bit more content with regards to like paint and some other things that we do on that side. But overall, not a big enough move to make a difference. Joseph Altobello: Okay. And maybe last one for me on pricing. You mentioned that commodity costs have leveled off here. How much should pricing play in terms of revenue growth in the back half of the year? Andy L. Nemeth: Revenue in the back half is your question, sorry, Joe? Joseph Altobello: Yes. Andy L. Nemeth: We don't have that built in. I think we expect it to be neutral in the back half. Operator: The next question is from the line of Tristan Thomas-Martin with BMO Capital Markets. Tristan Thomas-Martin: Just one quick clarification for your '26 wholesale unit guidance. Are you assuming shipments and production are in line? Andy L. Nemeth: I didn't hear the last part of that. Tristan Thomas-Martin: Shipments and production are in line with each other. Andy L. Nemeth: Shipments and... Jeffrey Rodino: Yes. Andy L. Nemeth: Yes, we are. Tristan Thomas-Martin: Okay. And then just are you seeing any of the OEMs kind of trade down the good-better-best price points? Andy L. Nemeth: We're definitely seeing interest in some of the programs that we're putting out there and the opportunities and options that we have as it relates to good, better, best. So yes, what I would say is that the OEMs are definitely interested in some of the programs. They're definitely interested in different product options to be able to help address this affordability. So I would say yes. Tristan Thomas-Martin: Okay. And then is that kind of potential trade down? Is that included in that essentially 20 basis points of margin headwinds or no? Andy L. Nemeth: Yes. Yes, that's included. Tristan Thomas-Martin: Okay. And then just maybe a Jeff question. The digital printing, is there any way to think about like sizing or kind of impact or margin profile or anything you can give us would be helpful. Jeffrey Rodino: Yes. So we're really excited about this digital printing process. It's not come without, like, years of research and development from our team to get to where we are at today. We really think it will move the needle in the way we think about interior panels within an RV. And so I think from a pricing standpoint, we're working through that. It's going to be very competitive with where we are at today with regards to our traditional laminated product, but give us a lot more flexibility to design and develop really kind of on the fly, be able to service product well on down the road because we can print one-off panels. So there's a lot of exciting features to what we're doing. And the reception from the customers so far has been very positive. So we're looking forward to seeing how that develops. As far as sizing right now, we're really working on traditional sized panels. However, in the coming quarters, you'll probably hear more from us about some additional developments as we work towards more exciting parts to what we're looking to accomplish for the OEMs. Operator: Thank you. Ladies and gentlemen, I'll turn the call over to Andy Nemeth for closing remarks. Andy L. Nemeth: I just want to finish up by really thanking our team for some tremendous efforts in some very dynamic market conditions. The energy of the team, the spirit that we're seeing out of our entire team across the platform has been just really inspiring, especially as we kind of see some volatility in certain markets and the upside potential that we have in our other markets. I think we also want to thank our customers for their partnership. I think as we sit here today and look at the market conditions and the volatility. We really feel like this is a great opportunity to further embed our value proposition with our customers. And I think as we look at our ability to generate cash, the opportunity to really be thoughtful as we have been in our capital allocation strategy and deploy capital and reinvesting in the business, we just think there's a ton of opportunity. And we feel like we can be in a position to be on offense. Our M&A pipeline is starting to gain some traction. And we're feeling some possibilities certainly there to continue to execute in the back half of the year. So we look at the options that are in front of us. And we're very optimistic about what we can do despite these market conditions and control what we can control. So again, we're feeling good about where Patrick is positioned. We're excited about the team. And I'm really excited about the opportunities to really, really partner with customers on a go-forward basis even more so. So with that, we look forward to talking to you at the end of the next quarter. Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Patrick Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Patrick Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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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. Diversification efforts across Marine, Powersports, and Housing markets successfully offset a 16% decline in RV wholesale shipments, maintaining flat year-over-year revenue. Management attributes performance to a decade of targeted investments that reduced reliance on any single end market, evidenced by 70% revenue growth since 2019 despite lower industry volumes. Operational focus is centered on value engineering and advanced manufacturing to help OEM partners address consumer price sensitivity and affordability challenges. The company is prioritizing AI-enabled tools and automation to improve internal administrative efficiency and enhance digital engagement within the aftermarket platform. Strategic inventory management and procurement scale are being used as competitive advantages to mitigate the impact of new tariffs and duties on imported materials. The recently announced merger with LCI Industries is framed as a synergy-driven move to enhance innovation and deliver cost-effective solutions through a combined $150 million run rate savings. Management expects to bring leverage down over the next two quarters through seasonal working capital releases and improved inventory turns. The 2026 outlook assumes RV wholesale units between 285,000 and 300,000, with production levels expected to decrease in the second half of the year compared to the first half. A proactive volume-based pricing program in the second half of 2026 may impact operating margins by 20 basis points to support OEM affordability initiatives. The merger with LCI Industries is targeted to close in the first half of 2027, with the company operating independently until that time. Future growth is expected to be driven by increased adoption of composite materials as traditional plywood costs rise due to anti-dumping duties. RV retail demand remains softer than expected due to high interest rates, elevated fuel prices, and low consumer confidence impacting discretionary spending. New anti-dumping and countervailing duties on Indonesian luan plywood are expected to create pricing pressure in the third and fourth quarters. Share repurchases are currently restricted under the LCI merger agreement's interim operating covenants following the $91 million repurchased in Q2. The launch of advanced digital printing technology aims to replace traditional laminated vinyl, offering better design flexibility and manufacturing efficiency. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is aggressively pursuing volume-based discounts and value engineering to help OEMs lower unit costs for consumers. The potential 20 basis point margin headwind is viewed as a strategic investment to embed long-term partnerships and capture market share during a downturn. Dealer inventories are currently well below pre-COVID historical averages, with RV weeks on hand at 18-20 weeks versus the historical 26-30 weeks. Management believes the lean channel positions the industry for a rapid recovery once retail demand inflects, as restocking will eventually be necessary. Growth of 28% in Powersports was driven by high take rates for cabin closures in utility-focused side-by-side units. Management remains cautiously optimistic about continued upward trajectory in this segment despite broader discretionary spending headwinds.

ELKHART, Ind., July 30, 2026 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the second quarter and six months ended June 28, 2026. Second Quarter 2026 Highlights (compared to Second Quarter 2025 unless otherwise noted) Net sales were $1.04 billion compared to $1.05 billion in the prior-year period. Revenue growth of 22% in Marine, 28% in Powersports, and 2% in Housing predominantly offset the impact of a 15% decline in RV end market revenue, driven by a 16% decline in RV industry wholesale unit shipments. Patrick's RV content per unit (on a trailing 12-month basis) increased 7%, while estimated Marine content per unit (on a trailing 12-month basis) grew 22%. Operating income was $77 million and operating margin was 7.4% compared to operating income of $87 million and operating margin of 8.3% in the prior-year period. On an adjusted basis1, operating margin was 7.5% compared to 8.3% in the prior-year period. Net income increased 34% to $43 million and diluted earnings per share (EPS) increased 33% to $1.28. On an adjusted basis1, net income was $44 million, or $1.29 per diluted share, compared to $51 million, or $1.50 per diluted share in the prior-year period. Reported and adjusted diluted EPS1 include the dilutive impact of convertible notes and related warrants of approximately $0.07 per share, compared to $0.03 in the prior-year period. Adjusted EBITDA1 was $126 million and adjusted EBITDA margin1 was 12.1% compared to adjusted EBITDA1 of $135 million and adjusted EBITDA margin1 of 12.9% in the prior-year period. On a year-to-date basis, cash flow provided by operating activities was $69 million compared to $189 million in the prior-year period. Free cash flow1, on a trailing twelve-month basis, was $128 million. Returned $106 million to shareholders in the second quarter of 2026, including $15 million through regular quarterly dividends and $91 million through share repurchases. Available liquidity was $691 million at the end of the second quarter; total net leverage ratio was 3.0x. Subsequent to the end of the second quarter, as previously announced on June 30, 2026, the Company signed a definitive agreement with LCI Industries to combine in an all-stock merger. Please visit www.patrickandlipperttogether.com for information regarding the transaction. "Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team, and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions," said Andy Nemeth, Chief Executive Officer. "Our strategic diversification across distinct end markets continued to support our overall performance in what has been a challenging consumer discretionary environment. Growth in our Marine, Powersports, and Housing businesses largely offset a double-digit percentage decline in our RV end market revenue amid equally soft RV industry wholesale unit shipments. Despite this uncertainty, we remain encouraged by the level of discipline across the value chain in each of our markets, as our teams, the OEMs we serve, and dealers continue to focus on measured production schedules and prudent inventory management, supporting healthy long-term industry dynamics. Across Patrick, we are staying close to our customers, investing in innovation, and driving additional operational efficiencies, while preserving the flexibility to exceed customer expectations." Net sales of $1.04 billion declined less than 1% from the second quarter of 2025. Revenue growth in the Company's Marine, Powersports, and Housing end markets predominantly offset the impact of a decline in RV end market revenue, which was related to a 16% decline in RV industry wholesale unit shipments in the quarter. The Company's strong content per unit growth in Marine and a continued increase in attachment rates within the Company's Powersports business were instrumental in delivering solid revenue performance overall. Operating income was $77 million compared to $87 million in the second quarter of 2025. Operating margin was 7.4% compared to 8.3% in the same period last year. The year-over-year decline partially reflected a number of factors, including the impact of a double-digit percentage decline in RV industry wholesale unit shipments, higher oil and fuel prices and the related fuel surcharges, and merger-related costs. Adjusted operating margin1 was 7.5% compared to 8.3% in the second quarter of 2025. Net income increased 34% to $43 million, or $1.28 per diluted share, compared to $32 million, or $0.96 per diluted share in the second quarter of 2025. Adjusted net income1 in the second quarter of 2026 was $44 million, or $1.29 per diluted share1, compared to adjusted net income1 of $51 million, or $1.50 per diluted share1 in the prior-year period. Adjusted net income1 in the second quarter of 2025 excludes one-time expenses related to a legal settlement. Reported and adjusted diluted earnings per share1 in the second quarter of 2026 include approximately $0.07 of dilution from the Company's convertible notes and related warrants compared to $0.03 in the prior-year period. Jeff Rodino, President, said, "Our strategic investments have positioned Patrick to better support our customers in more ways than ever before. As our OEM customers continue to focus on affordability, efficiency, labor productivity, product differentiation and managing retail demand patterns, we are bringing forward solutions in partnership that are practical, scalable, and aligned with the needs of today's market. Whether through new product development, component and composite solutions, electrical systems, aftermarket capabilities, advanced manufacturing, value engineering, or The Experience, our teams are working directly with customers to help solve the challenges that matter most to their businesses. Our solutions-oriented approach supports organic growth while helping customers deliver more value to the end consumer. While near-term demand conditions remain challenging, we believe our portfolio of brands, technical expertise, and ability to execute across our end markets continue to reinforce Patrick as a trusted partner across business cycles." Second Quarter 2026 Revenue by Market Sector(compared to Second Quarter 2025 unless otherwise noted) RV (39% of Revenue) Revenue of $407 million decreased 15% while RV industry wholesale unit shipments decreased 16%. Content per wholesale RV unit (on a trailing twelve-month basis) increased 7% to $5,303 when compared to the prior-year period and was flat compared to the first quarter of 2026. Marine (18% of Revenue) Revenue of $191 million increased 22% compared to flat estimated wholesale powerboat industry unit shipments. Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 22% to $4,883 when compared to the prior-year period and increased 5% when compared to the first quarter of 2026. Powersports (12% of Revenue) Revenue of $123 million increased 28% driven by continued demand for utility-focused units, increased OEM penetration, and stronger attachment rates for Sportech's cab enclosure solutions and other premium vehicle content, including audio. Housing (31% of Revenue, comprised of Manufactured Housing ("MH") and Industrial) Revenue of $320 million increased 2%; estimated wholesale MH industry unit shipments decreased 8%; total housing starts decreased 1%. Estimated content per wholesale MH unit (on a trailing twelve-month basis) of $6,673 was flat compared to the prior-year period and increased 1% compared to the first quarter of 2026. Balance Sheet, Cash Flow and Capital Allocation For the first six months of 2026, cash provided by operating activities was $69 million compared to $189 million in the prior-year period, reflecting higher working capital investment compared to the first half of 2025, as inventory levels remained elevated in connection with the Company's composite products growth strategy. Purchases of property, plant and equipment totaled $18 million in the second quarter of 2026, reflecting the disciplined deployment of capital toward strategic investments, including technology, automation, and other operational efficiency enhancements. On a trailing twelve-month basis, free cash flow1 through the second quarter of 2026 was $128 million compared to $262 million in the prior-year period primarily reflecting the aforementioned increase in working capital investment. Patrick returned $106 million to shareholders during the second quarter of 2026, including $15 million through dividends and $91 million for the repurchase of 980,000 shares of the Company's common stock. At the end of the second quarter, the Company had unused capacity of $62 million under its current share repurchase authorization. Total debt at the end of the second quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 3.0x (as calculated in accordance with the Company's credit agreement). Available liquidity, comprised of borrowing availability under the Company's credit facility and cash on hand, was approximately $691 million. Business Outlook and Summary "Our long-term strategy and confidence in Patrick's value creation opportunity remain unchanged, even as we take a prudent view of the balance of the year given the continued macroeconomic uncertainty across our end markets," continued Mr. Nemeth. "We are not relying on a near-term market rebound and are focused on the actions within our control: staying close to our customers, delivering cost-effective product solutions, aligning our cost structure appropriately, advancing high-value growth initiatives, actioning M&A opportunities within our key markets and in alignment with our strategic plan, and continuing to strengthen the capabilities that differentiate Patrick in the marketplace. This focused mindset allows us to manage through near-term uncertainty while building a stronger, more agile platform for the future. With our diversified business model, solid balance sheet, entrepreneurial and customer-first culture, and proven execution capabilities, we believe Patrick is well positioned to deliver long-term profitable growth and shareholder value creation. Consistent with Patrick's long-term vision and strategy, we are excited about the enhanced value proposition the combination with LCI Industries will create for our stakeholders once the transaction is closed, and believe it can enable us to more effectively partner with OEMs to achieve their goals, while driving long-term profitable growth and enhanced shareholder value." 1 See additional information at the end of this release regarding non-GAAP financial measures. Conference Call Webcast Patrick Industries will host an online webcast of its second quarter 2026 earnings conference call that can be accessed on the Company's website, www.patrickind.com, under "Investors," on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time. A replay will also be available following the call. In addition, a supplemental earnings presentation can be accessed on the Company's website, www.patrickind.com, under "Investors." About Patrick Industries, Inc. Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com. Cautionary Statement Regarding Forward-Looking Statements Information set forth in this communication constitutes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Patrick Industries, Inc. as of the date hereof. The forward-looking statements are based on current expectations and our actual results may differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers, dealers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions, changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in our senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in Ukraine and evolving conflict in the Middle East, including, but not limited to conflict with Iran. Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between the Company and LCI Industries ("LCI") (the "proposed transaction"), future financial and operating results, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties outside of our control. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: (1) the completion of the proposed transaction may not occur on the anticipated terms and timing or at all; (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transaction; (3) the risk that the necessary regulatory approvals for the proposed transaction may not be obtained or may be obtained subject to conditions that are not anticipated; (4) risks that any of the closing conditions to the proposed transaction may not be satisfied in a timely manner; (5) risks related to litigation brought in connection with the proposed transaction; (6) risks related to disruption of management time from ongoing business operations due to the proposed transaction; (7) effects of the announcement, pendency or completion of the proposed transaction on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with suppliers, distributors, advertisers, content providers, vendors and other business partners, and on its operating results and business generally; (8) negative effects of the announcement or the consummation of the proposed transaction on the market price of the Company's common stock; (9) risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; (10) inherent uncertainties involved in the estimates and assumptions used in the preparation of financial projections; (11) the ability to obtain or consummate financing or refinancing related to the proposed transaction; and (12) the response of the Company or LCI management to any of the aforementioned factors. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risks related to the proposed transaction. Discussions of additional risks and uncertainties are contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's Quarterly Reports on Form 10-Q for subsequent quarterly periods, which are filed with the SEC and available on the SEC's website at www.sec.gov. The Company expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, as a result of new information, future events, or otherwise, except as required by applicable law. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Contact: Steve O'HaraVice President of Investor [email protected] PATRICK INDUSTRIES, INC.Non-GAAP Reconciliation (Unaudited) Use of Non-GAAP Financial Metrics In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides financial metrics, such as net leverage ratio, content per unit, free cash flow, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted diluted earnings per share ("adjusted diluted EPS"), adjusted operating margin, adjusted EBITDA margin and available liquidity, which we believe are important measures of the Company's business performance. These metrics should not be considered alternatives to U.S. GAAP. Our computations of net leverage ratio, content per unit, free cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating margin, adjusted EBITDA margin and available liquidity may differ from similarly titled measures used by others. We calculate available liquidity by taking our revolving credit facility capacity, subtracting the outstanding revolver balance and outstanding letters of credit, and adding cash and cash equivalents. Content per unit metrics are generally calculated using our market sales divided by Company estimates based on third-party measures of industry volume. We calculate EBITDA by adding back depreciation and amortization, net interest expense, and income taxes to net income. We calculate adjusted EBITDA by taking EBITDA and adding back stock-based compensation, acquisition-related transaction costs, merger-related costs, loss on sale of business unit, legal settlement, loss on sale of property, plant and equipment and subtracting out the gain on sale of property, plant and equipment. Adjusted net income is calculated by removing the impact of acquisition-related transaction costs, net of tax, legal settlement, net of tax, merger-related costs, net of tax and the loss on sale of business unit, net of tax. Adjusted diluted EPS is calculated as adjusted net income divided by our diluted weighted average shares outstanding. Adjusted operating margin is calculated by removing the impact of acquisition-related transaction costs, merger-related costs and loss on sale of business unit. We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from net cash provided by operating activities. RV wholesale unit shipments are provided by the RV Industry Association. Marine wholesale unit shipments are Company estimates based on data provided by the National Marine Manufacturers Association. MH wholesale unit shipments are Company estimates based on data provided by the Manufactured Housing Institute. Housing starts are provided by the U.S. Census Bureau. You should not consider these metrics in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. The following tables reconcile net income to EBITDA, adjusted EBITDA and margins: The following table reconciles cash flow from operations to free cash flow on a trailing twelve-month basis: The following table reconciles operating margin to adjusted operating margin: The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share: View original content to download multimedia:https://www.prnewswire.com/news-releases/patrick-industries-inc-reports-second-quarter-2026-financial-results-302838945.html

Interested in Patrick Industries, Inc.? Here are five stocks we like better. Second-quarter sales were broadly stable at $1.04 billion, but adjusted EPS fell to $1.29 from $1.50 and adjusted EBITDA declined to $126 million. RV revenue dropped 15%, while marine, powersports and housing posted double-digit or modest growth that offset much of the weakness. Patrick lowered its 2026 RV outlook and expects adjusted operating margin to be flat year over year, with affordability programs potentially creating an additional 20-basis-point pressure. The company projects $320 million–$350 million in operating cash flow and about $250 million in free cash flow for 2026. The company repurchased roughly 980,000 shares for $91 million during the quarter, but further buybacks are generally restricted pending its planned all-stock merger with Lippert. The combination, targeted for the first half of 2027, is expected to generate approximately $150 million in annual run-rate cost synergies. 3 Undervalued And Under-the-Radar Automotive Stocks Patrick Industries (NASDAQ:PATK) reported second-quarter net sales of $1.04 billion, down less than 1% from a year earlier, as growth in marine, powersports and housing largely offset a decline in recreational vehicle revenue tied to lower industry shipments. Adjusted earnings were $1.29 per diluted share, including approximately $0.07 of dilution from convertible notes and related warrants, compared with $1.50 per diluted share in the prior-year period. Net income rose 34% to $43 million, or $1.28 per diluted share, while adjusted EBITDA declined to $126 million from $135 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chief Executive Officer Andy Nemeth said the results reflected the company’s diversification strategy. While RV and marine wholesale unit shipments remain more than 20% below 2019 levels, Patrick’s trailing 12-month sales have increased nearly 70% and adjusted earnings per share have risen more than 60%, he said. RV revenue fell 15% year over year to $407 million, accounting for 39% of consolidated revenue. The decline tracked a 16% reduction in RV industry wholesale shipments, or roughly 15,300 fewer units, during the quarter. → 3 Value ETFs to Consider as Growth Stocks Lag Behind President Jeff Rodino said RV retail demand was softer than expected, with macroeconomic and geopolitical conditions continuing to affect consumer purchasing decisions. Patrick estimated second-quarter RV retail shipments declined 12% to approximately 99,200 units, compared with wholesale shipments of about 77,600 units. That gap implied a seasonal dealer inventory reduction of about 21,600 units. Estimated RV dealer inventory was 18 to 20 weeks on hand at quarter-end, below 20 to 22 weeks at the end of the first quarter and below pre-pandemic averages of 26 to 30 weeks. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Despite the shipment decline, Patrick estimated trailing-12-month RV content per unit increased 7% to $5,303. Quarterly content per unit rose 2% year over year. Marine revenue increased 22% to $191 million, representing 18% of sales, despite Patrick’s estimate that marine wholesale powerboat shipments were flat year over year. Trailing-12-month marine content per wholesale powerboat unit rose 22% to an estimated $4,883, with the company saying most of that growth was organic. Nemeth attributed marine gains to the company’s expanded solutions offerings, including tower and windshield products, electrical systems, digital systems, SeaDek flooring and fuel tanks. He said Patrick’s exposure to mid- and higher-end boat categories has also been relatively resilient. Powersports revenue rose 28% to $123 million, or 12% of total sales. Rodino said growth was driven by demand for utility-focused units, as well as continued OEM adoption of cabin closures and other premium utility-vehicle content supplied by Sportech. Housing revenue increased 2% to $320 million, supported by industrial products including laminated panels sold to big-box stores. That growth offset an estimated 8% decline in manufactured-housing wholesale shipments. Manufactured housing represented 55% of housing revenue in the quarter. Gross margin was 23.8%, essentially unchanged from 23.9% a year earlier. Adjusted operating margin declined to 7.5% from 8.3%, reflecting the drop in RV wholesale shipments and higher oil and fuel prices, Chief Financial Officer Matt Filer said. The company estimated that second-quarter revenue changes included 7% organic growth, 1% acquisition growth and a 9% decline attributable to industry conditions. Cash provided by operations was $69 million for the first six months of 2026, compared with $189 million a year earlier. Filer said the decline reflected working-capital investment, including elevated inventory intended to support Patrick’s composite-products strategy and customer programs designed to mitigate pricing pressures and tariffs. Patrick expects improved adoption of composite products in the second half of the year and expects working capital to become a source of cash generation, Nemeth said during the question-and-answer session. Available liquidity totaled approximately $691 million at quarter-end. Net leverage was 3.0 times, following inventory investment and increased share repurchases. The company repurchased approximately 980,000 shares for $91 million during the quarter. Total shareholder returns during the quarter were approximately $106 million, including $15 million in dividends. About $62 million remained under the company’s existing repurchase authorization at quarter-end. Filer said Patrick is generally restricted from further share repurchases before the completion of its merger agreement due to customary interim operating covenants. Patrick lowered its 2026 RV outlook, now expecting retail demand to decline by low double digits and wholesale shipments to range from 285,000 to 300,000 units. The company expects second-half RV production run rates to be below those in the first half, management said. For marine, Patrick continues to expect retail shipments to be flat to down slightly and wholesale shipments to rise by low single digits. It expects powersports unit shipments and organic content to increase by low single digits, resulting in a mid- to high-single-digit increase for Patrick’s powersports business. The company still expects manufactured-housing wholesale shipments and total housing starts to decline by low- to mid-single digits. Based on revised end-market forecasts, Patrick now expects 2026 adjusted operating margin to be flat with 2025. However, Filer said the company is pursuing incremental volume-based programs with customers during the second half to address affordability, which could reduce margins by an additional 20 basis points compared with 2025. Nemeth said the programs are intended to provide lower-cost product alternatives and share the benefits of Patrick’s purchasing scale and production flexibility with customers. He said additional volume could partially offset margin pressure through greater absorption of fixed costs. The company expects 2026 operating cash flow of $320 million to $350 million, capital expenditures of $70 million to $80 million, and free cash flow of approximately $250 million. It continues to project an effective tax rate of 24% to 25%. Patrick highlighted new investments in automation, analytics and AI-enabled tools. The company conducted an internal AI process competition among corporate administrative teams and is using AI in its aftermarket platform for product introductions and digital content generation. Sportech has also activated AI-enabled camera systems for quality control and inspection processes, Rodino said. The company is also launching advanced digital printing technology at its North American Forest Products campus. Rodino said the technology can apply graphics and textures directly to a broader range of substrates, including composite materials, potentially improving design flexibility, manufacturing efficiency and quality compared with traditional laminated vinyl or paper products. Management also discussed its previously announced all-stock merger agreement with LCI Industries, also known as Lippert. The transaction is targeted to close in the first half of 2027, subject to shareholder and regulatory approvals. Patrick expects the combination to generate approximately $150 million of net annual run-rate cost synergies. Until the transaction closes, Nemeth said, the companies will remain independent and Patrick will continue operating as a standalone business. Patrick Industries, Inc is a leading manufacturer and distributor of component products and building materials for the recreational vehicle (RV), manufactured housing, marine and industrial markets. The company supplies a broad array of interior and exterior products, including cabinetry, countertops, flooring, wall panels and decorative trim. Patrick Industries also offers engineered composites, adhesives, sealants and insulation solutions that cater to both original equipment manufacturers (OEMs) and aftermarket customers across North America. Founded in 1959 and headquartered in Elkhart, Indiana, Patrick Industries began as a small distributor of hardwood and millwork products. 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 "Patrick Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Sales: $1.04 billion for Q2 2026, down less than 1% year-over-year. Revenue by End Market: RV revenue down 15% to $407 million; Marine revenue up 22% to $191 million; Powersports revenue up 28% to $123 million; Housing revenue up 2% to $320 million. Gross Margin: 23.8% for Q2 2026, compared to 23.9% in Q2 2025. Adjusted Operating Margin: 7.5% for Q2 2026, compared to 8.3% in the prior year period. Net Income: $43 million, or $1.28 per diluted share, up 34% from $32 million ($0.96 per diluted share) in Q2 2025. Adjusted Net Income: $44 million, or $1.29 per diluted share, compared to $51 million ($1.50 per diluted share) in the prior year period. Adjusted EBITDA: $126 million for Q2 2026, compared to $135 million last year; margin was 12.1%. Cash Flow: Cash provided by operations for the first six months of 2026 was $69 million. Share Repurchases: Repurchased approximately $91 million of shares (980,000 shares) during the quarter. Leverage: Net leverage was 3.0 times at the end of Q2 2026. RV Content Per Unit (CPU): Trailing 12-month CPU up 7% to $5,303; quarterly CPU up 2% year-over-year. Marine Content Per Unit (CPU): Trailing 12-month CPU up 22% to $4,883; quarterly CPU up 22% year-over-year. Housing Content Per Unit (CPU): Trailing 12-month CPU flat at $6,673; quarterly CPU up 4% year-over-year. Warning! GuruFocus has detected 6 Warning Signs with PATK. Is PATK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue growth in marine (+22%), powersports (+28%), and housing (+2%) end markets helped offset a 15% decline in RV revenue, demonstrating the resilience of Patrick Industries Inc (NASDAQ:PATK)'s strategic diversification. Trailing 12-month net sales are up nearly 70% and adjusted EPS is up more than 60% compared to 2019, despite RV and marine wholesale unit shipments being off more than 20%. Estimated organic growth contributed 7% during the quarter, driven by content gains and new business wins across multiple end markets. The company is launching a new advanced digital printing technology for the RV industry, which is expected to improve design flexibility, manufacturing efficiency, and quality. Patrick Industries Inc (NASDAQ:PATK) repurchased approximately $91 million of its shares during the quarter, reflecting confidence in its long-term value creation and strong cash flows. RV revenue declined 15% year-over-year, heavily impacted by a 16% reduction in RV industry wholesale unit shipments due to softer-than-expected retail demand. Adjusted operating margin decreased to 7.5% from 8.3% in the prior year period, reflecting the impact of lower RV volumes and higher fuel prices. The company expects to implement incremental volume-based programs in the second half of 2026 to address affordability, which may negatively impact margins by an additional 20 basis points. Cash provided by operations for the first six months of 2026 was $69 million, down significantly from $189 million in the same period last year, due to working capital investments and elevated inventory levels. Net leverage increased to 3.0 times in the second quarter due to increased stock repurchases and inventory investments, though the company expects to bring leverage down in the coming quarters. Here are the key highlights from the Patrick Industries Inc (NASDAQ:PATK) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Can you talk about what you're seeing with your touch points regarding retail demand in July and how you envision production levels heading into the model year changeover? A: (Jeffrey Rodino, President) We are seeing production levels in July and August decline from the first half of the year, tracking in line with our revised outlook of 285,000 to 300,000 wholesale units. OEMs are doing sneak peeks of new models, and the hope is that the upcoming open house will generate additional orders. The OEMs and dealers are working together based on retail trends to determine production numbers. Q: You mentioned working with OEMs on pricing for affordability. Can you give us a little more detail on what's going on and when this could start to work its way into the marketplace? A: (Andrew Nemeth, CEO) We are being proactive in the second half to demonstrate our partnership and help OEMs address affordability. We can do this because of our size and scale, using our value engineering, procurement abilities, and custom solutions to drive down costs. We are offering volume-based programs, which may negatively impact margins by up to 20 basis points versus 2025, but we see this as a great opportunity to be on offense and help our customers. Q: In Marine, you had very strong performance. What is driving that from a content perspective, and what are you seeing in that end market relative to RV? A: (Andrew Nemeth, CEO) Our solutions efforts are gaining traction in marine, particularly in tower and windshield solutions, electrical solutions, digital systems, flooring, and fuel tanks. We are gaining share by providing these integrated solutions. The mid-to-high end of the marine market is proving resilient, which is positive for our mix. We are excited about the content growth and the team's execution. Q: How much lower can RV and marine dealer inventory levels go? When do we start to risk loss of incremental sales? A: (Andrew Nemeth, CEO) We are encouraged by the discipline at the dealer and OEM level. We estimate dealers will take another week out of inventory by year-end. However, there is capacity across the spectrum to support an inflection in retail. We are positioned to flex and scale very quickly. We believe there will need to be a restock at some point when we see a retail inflection to support demand. Q: Regarding the volume-based pricing initiatives, is the potential 20 bps margin impact potentially offset by incremental share and volume gains? A: (Andrew Nemeth, CEO) Yes, that is a possibility. We see this as an opportunity to embed our partnership with customers and address affordability. We may sacrifice margin for the long-term benefit of the industry. With second-half run rates likely down 20-25% from the first half, we see this as the right time to drive content gains and solutions, and we could see an offset from absorption if we pick up volume. Q: On the Powersports side, you had 28% growth, but your guidance calls for more mid-single-digit growth. Is there a reason things would slow? A: (Andrew Nemeth, CEO) We are optimistic about continued traction. The take rates on cabin closures have been above our expectations, and we hope that continues. We are just being thoughtful about current market conditions, so we are cautiously optimistic. There is tremendous opportunity for our products given the traction we have gained and our customer partnerships. Q: Are you seeing any of the OEMs trade down in the good, better, best price blends? A: (Andrew Nemeth, CEO) Yes, we are definitely seeing interest in the programs and product options we are offering to help address affordability. The OEMs are interested in different options to help support their pricing. This potential trade-down is included in the 20 basis points of margin headwinds we discussed. Q: Can you provide any sizing or margin profile on the new advanced digital printing technology? A: (Jeffrey Rodino, President) We are very excited about this technology, which came from years of R&D. It will be very competitive with our traditional laminated product from a pricing standpoint but offers much more design flexibility and the ability to print one-off panels. The reception from customers has been very positive. We are starting with traditional size panels and will have more developments to announce in the coming quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Patrick Industries (PATK) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.88%. A quarter ago, it was expected that this building products manufacturer would post earnings of $1.08 per share when it actually produced earnings of $1.1, delivering a surprise of +1.85%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Patrick Industries, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.04 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.29%. This compares to year-ago revenues of $1.05 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. Patrick Industries shares have lost about 20.1% since the beginning of the year versus the S&P 500's gain of 6.9%. While Patrick Industries 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 Patrick Industries was unfavorable. 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 #5 (Strong Sell) for the stock. So, the shares are expected to underperform 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 $1.18 on $1.01 billion in revenues for the coming quarter and $4.50 on $3.96 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 37% 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, Adient (ADNT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This automotive seating and interiors supplier is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +17.8%. The consensus EPS estimate for the quarter has been revised 4.9% higher over the last 30 days to the current level. Adient's revenues are expected to be $3.7 billion, down 1% 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 Patrick Industries, Inc. (PATK) : Free Stock Analysis Report Adient (ADNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research