Key Highlights

  • Net sales of USD 975 million were flat year over year and above the consensus estimate of USD 938.49 million.
  • GAAP diluted EPS of USD 0.64 fell from USD 1.01 and trailed the consensus estimate of USD 0.97.
  • Adjusted diluted EPS rose to USD 1.03 from USD 1.01, and adjusted EBITDA grew 3% to USD 116 million.
  • Powersports Revenue climbed 30% and Marine rose 14%, nearly offsetting a 15% drop in RV revenue.

Patrick Industries, Inc. (NASDAQ:PATK) reported third quarter 2026 net sales of USD 975 million, essentially unchanged from USD 976 million a year earlier and above the consensus estimate of USD 938.49 million. GAAP Diluted Earnings per Share were USD 0.64 against USD 1.01 a year earlier, below the consensus estimate of USD 0.97. Adjusted diluted EPS, which excludes merger-related expenses, restructuring costs and other non-recurring items, was USD 1.03 compared with USD 1.01.

Market Mix and Margin Detail

RV revenue fell 15% to USD 362 million as industry wholesale unit shipments dropped 13%, while content per wholesale RV unit on a trailing twelve month basis rose 4% to USD 5,263. Marine revenue rose 14% to USD 171 million, ahead of an estimated 8% increase in industry powerboat shipments. Powersports revenue grew 30% to USD 128 million on cab enclosure attachment rates and Utility vehicle demand, and Housing revenue rose 4% to USD 314 million.

Operating income fell to USD 50 million from USD 66 million, a margin of 5.1% against 6.8%, though adjusted Operating Margin held flat at 6.8%. Adjusted EBITDA margin widened 40 basis points to 11.9%. The reported tax rate was 32% against 26% a year earlier. Chief Executive Officer Andy Nemeth said a diversified end market strategy supported resilient results, and the company launched Patrick Printing Solutions, a direct-to-panel printing platform.

Outlook, Merger and Cash Position

For 2026, the Chief Financial Officer projected an adjusted operating margin flat versus 2025, with volume-based customer programs that could take a further 20 basis points. The company estimates RV wholesale shipments of 285,000 to 295,000 units, Operating Cash Flow of USD 300 million to USD 330 million, capital expenditures of USD 70 million to USD 80 million and an effective tax rate of 24% to 25%. For 2027, it projects flat RV and marine shipments and an adjusted operating margin up 30 to 50 basis points.

Under the definitive all-stock merger agreement with LCI Industries signed on June 30, 2026, Patrick did not repurchase shares in the quarter, leaving USD 62 million of authorization. Total Debt was about USD 1.4 billion, net Leverage 2.9x and available Liquidity USD 716 million. Nine month operating cash flow was USD 147 million versus USD 199 million, while third quarter operating cash flow was about USD 78 million versus about USD 9 million.

Dated Events and Measures Behind the Next Report

The merger vote is the nearest dated item: the registration statement was declared effective on October 19, and special meetings of Patrick and LCI shareholders are scheduled for November 18, 2026. Management said it is limited in what it can say beyond public filings.

Operating measures include dealer inventory weeks on hand of about 15 to 17 weeks against 26 to 30 weeks pre-COVID, third quarter RV retail shipments of 88,000 units versus wholesale of 66,900, and a restructuring program targeting about USD 10 million of annualized savings. Marine content per powerboat unit of USD 4,942 and manufactured housing content per unit of USD 6,565 are further reference points, along with the USD 15 million paid in quarterly dividends.