Highlights

  • Second quarter 2026 net sales were $1,041,704 thousand, and net income was $43,421 thousand, or $1.28 per diluted share.
  • On June 30, 2026, Patrick agreed to merge with LCI Industries, with each LCI share converting into 1.2440 Patrick shares.
  • Cash and cash equivalents were $29.2 million at June 28, 2026, with $661.4 million available under the 2024 Credit Facility.
  • Management estimated 2026 RV wholesale shipments of 285,000 to 300,000 units and free cash flow of approximately $250 million.

Patrick Industries (NASDAQ:PATK) shares were trading at USD 69.62 on October 28, 2026, down 3.20%, with a relative volume at time of 3.73. The company, which reports Manufacturing and Distribution segments, entered a merger agreement with LCI Industries on June 30, 2026, and filed its Form 10-Q for the second quarter ended June 28, 2026 on August 6, 2026.

Patrick Industries, Inc. is an Indiana corporation with principal executive offices in Elkhart, Indiana. It reports two segments, Manufacturing and Distribution, and sells to the recreational vehicle, marine, powersports, manufactured housing and industrial markets. Net sales to the RV industry were 39% of net sales in the second quarter of 2026, marine 18%, powersports 12%, manufactured housing 17% and industrial 14%. Its fiscal year ends December 31. As of July 31, 2026, there were 32,118,264 shares of common stock outstanding.

Second Quarter 2026 Results

Net sales for the three months ended June 28, 2026 were $1,041,704 thousand, compared with $1,047,554 thousand a year earlier. Gross profit was $247,575 thousand, compared with $250,632 thousand. Operating income was $77,035 thousand, compared with $86,722 thousand. Net income was $43,421 thousand, compared with $32,436 thousand, which included other expenses of $24,420 thousand in the prior-year quarter. Diluted earnings per share were $1.28, compared with $0.96.

By end market, sales to the RV market decreased $72.3 million, or 15%, and sales to the manufactured housing market decreased $7.3 million, or 4%. Sales to the marine market increased $34.9 million, or 22%, powersports increased $26.7 million, or 28%, and industrial increased $12.1 million, or 9%.

For the six months, net sales were $2,038,876 thousand, compared with $2,050,974 thousand, and net income was $82,901 thousand, or $2.37 per diluted share, compared with $70,674 thousand, or $2.07. On the call, management reported adjusted EBITDA, a non-GAAP measure, of $126 million, compared with $135 million a year earlier.

Merger Agreement, Cash Flow and Capital

Under the Merger Agreement, each LCI share will be converted into the right to receive 1.2440 shares of Patrick common stock. Patrick shareholders are expected to own approximately 52% of the combined company and LCI shareholders approximately 48%. The transaction remains subject to shareholder and regulatory approvals and had not been completed at the filing date. If the Merger Agreement is terminated under specified circumstances, Patrick may be required to pay LCI a termination fee of $94.2 million. The agreement restricts Patrick from repurchasing its common stock before closing.

Net cash provided by operating activities for the six months was $68.9 million, compared with $189.5 million. Stock repurchases under the buyback program were $106.1 million, and cash dividends paid were $31,208 thousand. Net borrowings under the revolving credit facility were $130.0 million.

Patrick reported compliance with its financial covenants at June 28, 2026. The consolidated secured net leverage ratio was 0.61, and the consolidated total net leverage ratio was 2.97. The company said cash, cash from operations and borrowings are expected to meet cash needs for at least the next 12 months, exclusive of any acquisitions.

2026 Outlook

The filing does not include numerical financial guidance. On the Q2 call, management gave an outlook based on Patrick as a stand-alone company that excludes the LCI merger. It estimated RV retail down low double digits and RV wholesale shipments of 285,000 to 300,000 units in 2026.

Management also said it 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, with an effective tax rate of 24% to 25%. It said it expects adjusted operating margin to be flat versus 2025 and targets closing the LCI transaction in the first half of 2027, subject to approvals.