Patrick Industries, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Patrick Industries (NASDAQ: PATK) reported Q1 2026 results: net sales $997M (vs $1,003M prior year), operating income $65M, net income $39M and diluted EPS $1.10. Outdoor Enthusiast markets grew on content gains; RV and Housing volumes declined. Total net liquidity was $734M.
Positive
- Marine revenue +14% year-over-year in Q1 2026
- Powersports revenue +28% year-over-year in Q1 2026
- RV content per unit +8% (trailing 12 months)
- Returned $31 million to shareholders in Q1 2026
- Total net liquidity of $734 million at quarter-end
Negative
- Consolidated net sales down to $997 million from $1,003 million
- RV revenue -7% and wholesale RV shipments -12% year-over-year
- Housing revenue -6% and wholesale MH shipments -11% year-over-year
- Cash used in operating activities of $14 million (vs $40 million provided)
- Trailing twelve-month free cash flow declined to $194 million from $251 million
Key Figures
Market Reality Check
Peers on Argus
PATK slipped 1.08% with earnings, while key building/consumer durables peers like HNI (-3.40%), MBC (-3.48%), and MHK (-2.43%) were also weak, suggesting broader pressure but no scanner-confirmed sector momentum. One peer, SCS, traded modestly higher.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Quarterly earnings | Positive | +2.0% | Q3 2025 sales and income growth with stable leverage and liquidity. |
| Jul 31 | Quarterly earnings | Positive | -3.8% | Q2 2025 revenue and EPS growth plus strong cash flow and liquidity. |
| May 01 | Quarterly earnings | Positive | +6.0% | Q1 2025 sales and earnings growth with acquisitions and shareholder returns. |
| Oct 31 | Quarterly earnings | Positive | -6.0% | Q3 2024 revenue and income growth but slight margin compression in housing-led mix. |
| Aug 01 | Quarterly earnings | Positive | -1.8% | Q2 2024 strong revenue and EPS growth with improved operating margin. |
Earnings releases have generally been operationally positive, but share reactions skew slightly negative, with more divergence than alignment between fundamentals and next-day price moves.
Over the last five earnings reports from Aug 2024 through Oct 2025, Patrick consistently delivered year-over-year net sales growth and maintained net leverage around 2.6x–2.8x. Segments rotated between RV, Marine, Powersports, and Housing, but overall diversification and cash generation stayed solid, with liquidity often above $450M. Despite this, three of five earnings days saw negative price reactions, indicating that investor expectations have often been higher than reported results.
Historical Comparison
In the past five earnings releases, PATK’s average next-day move was -0.73%, with three negative reactions despite positive fundamentals. Today’s modest -1.08% move fits that historical pattern of cautious post-earnings trading.
Earnings since 2024 show steady revenue growth across end markets and stable net leverage near 2.6x–2.8x, reflecting a consistent balance between expansion, acquisitions, and shareholder returns.
Market Pulse Summary
This announcement highlights resilient Q1 performance with net income up 3% and operating margin steady at 6.5%, even as net sales and adjusted EBITDA ticked down and operating cash flow turned to -$14 million. Content gains in RV, Marine, and Powersports and liquidity of $734 million support flexibility. Investors may track cash generation, leverage at 2.8x, capital returns, and any updates on merger discussions with LCI Industries.
Key Terms
adjusted ebitda financial
free cash flow financial
trailing twelve-month basis financial
net leverage ratio financial
convertible notes financial
warrants financial
AI-generated analysis. Not financial advice.
First Quarter 2026 Highlights (compared to First Quarter 2025 unless otherwise noted)
- Net sales were
$997 million $1,003 million 14% and Powersports revenue growth of28% were offset by lower revenue in the Company's RV and Housing markets, primarily reflecting lower wholesale industry unit shipments. - Patrick's RV content per unit (on a trailing 12-month basis) increased
8% , while estimated Marine content per unit (on a trailing 12-month basis) grew17% . - Operating income was
$65 million $66 million 6.5% , flat compared to the prior year period. - Net income increased
3% to$39 million $1.10 $1.11 $0.10 $0.05 - Adjusted EBITDA1 was
$113 million $116 million 11.4% compared to11.5% . - Cash flow used in operating activities was
$14 million $40 million $194 million . - Returned
$31 million $16 million $15 million $15 million - Total net liquidity was
$734 million - On April 17, 2026, the Company confirmed that it is in discussions with LCI Industries (NYSE: LCII) regarding a potential merger of equals transaction. The Company provided no assurance that any transaction will result from these discussions nor provided any terms for a possible transaction. No further updates are available at this time.
"I want to thank our team members for their dedication and commitment, as they continued to execute with focus to deliver resilient performance and demonstrate the strength and adaptability of our diversified business model in a challenging and uncertain macroeconomic environment," said Andy Nemeth, Chief Executive Officer. "Content gains were strong as a result of our team's tremendous focus on innovation and product solutions, and helped to offset shipment declines in our RV, Marine, and Manufactured Housing markets. The demand environment in the first quarter was influenced by macroeconomic and geopolitical headwinds and dealer ordering discipline. Against this backdrop, our team's ability to pivot quickly, combined with our customer-focused approach, enabled us to outperform in our Outdoor Enthusiast end markets."
Net sales were
Operating income was
Net income increased
Jeff Rodino, President, said, "RV OEM adoption of our composite solutions continues to gain traction as we expand our capabilities and product lineup to meet evolving customer needs. On the Marine side, the growth in content per unit reflects our strong performance in the last model-year changeover and the impact of recent marine-related acquisitions. Additionally, attachment rates within our Powersports business have continued to grow, as OEMs have increasingly adopted the Sportech cab enclosures. Across our businesses, we remain committed to delivering the value-added products, services, and solutions our customers expect."
First Quarter 2026 Revenue by Market Sector
(compared to First Quarter 2025 unless otherwise noted)
RV (
- Revenue of
$446 million 7% while wholesale RV industry unit shipments decreased12% . - Content per wholesale RV unit (on a trailing twelve-month basis) increased
8% to$5,277 2% when compared to the fourth quarter of 2025.
Marine (
- Revenue of
$170 million 14% while estimated wholesale powerboat industry unit shipments decreased7% . - Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased
17% to$4,657 6% when compared to the fourth quarter of 2025.
Powersports (
- Revenue of
$104 million 28% primarily reflecting higher attachment rates for Patrick's premium utility vehicle content.
Housing (
- Revenue of
$277 million 6% ; estimated wholesale MH industry unit shipments decreased11% ; total housing starts increased1% . - Estimated content per wholesale MH unit (on a trailing twelve-month basis) was
$6,636
Balance Sheet, Cash Flow and Capital Allocation
For the first three months of 2026, cash used in operating activities was
Patrick returned
Total debt at the end of the first quarter was approximately
Business Outlook and Summary
"As we continue to navigate the dynamic demand environment in 2026, our team remains focused and our strategic direction is clear," continued Mr. Nemeth. "We are confident in our ability to execute on the strategic priorities we have outlined, including investing in and developing our aftermarket platform, driving organic growth, composite product innovation and adoption, execution of our disciplined M&A strategy, and the deployment of capital to support long-term value creation for our customers, employees and shareholders. Supported by our consistent cash flow and strong balance sheet, we remain engaged with our robust pipeline of acquisition candidates, focused on partnering with businesses that enhance our product portfolio, committed to deepening customer relationships, and aligned with our growth objectives. Additionally, we are making prudent organic investments in technology and advanced manufacturing capabilities, including AI-driven tools that are enhancing the visibility and efficiency of our decentralized business structure. We believe that reinvestment throughout the cycle is critical to maintaining our operational resilience and strong market position, while enhancing our ability to drive long-term profitable growth."
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 first quarter 2026 earnings conference call that can be accessed on the Company's website, www.patrickind.com, under "Investors," on Thursday, April 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
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are forward-looking in nature. The forward-looking statements are based on current expectations and our actual results may differ materially from those projected in any forward-looking statement. 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
The Company does not undertake to publicly update or revise any forward-looking statements. 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 are 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. 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'Hara
Vice President of Investor Relations
oharas@patrickind.com
574.294.7511
PATRICK INDUSTRIES, INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||
First Quarter Ended | ||||
(In thousands, except per share data) | March 29, | March 30, | ||
Net sales | $ 997,172 | $ 1,003,420 | ||
Cost of goods sold | 770,312 | 774,829 | ||
Gross profit | 226,860 | 228,591 | ||
Operating Expenses: | ||||
Warehouse and delivery | 45,032 | 44,582 | ||
Selling, general and administrative | 93,096 | 93,931 | ||
Amortization of intangible assets | 24,010 | 24,509 | ||
Total operating expenses | 162,138 | 163,022 | ||
Operating income | 64,722 | 65,569 | ||
Interest expense, net | 18,388 | 19,112 | ||
Income before income taxes | 46,334 | 46,457 | ||
Income taxes | 6,854 | 8,219 | ||
Net income | $ 39,480 | $ 38,238 | ||
Basic earnings per common share | $ 1.21 | $ 1.17 | ||
Diluted earnings per common share | $ 1.10 | $ 1.11 | ||
Weighted average shares outstanding - Basic | 32,494 | 32,671 | ||
Weighted average shares outstanding - Diluted | 36,047 | 34,416 | ||
PATRICK INDUSTRIES, INC. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited) | ||||
($ in thousands) | March 29, 2026 | December 31, 2025 | ||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ 37,472 | $ 26,432 | ||
Trade and other receivables, net | 285,379 | 185,405 | ||
Inventories | 626,069 | 595,265 | ||
Prepaid expenses and other | 65,792 | 66,020 | ||
Total current assets | 1,014,712 | 873,122 | ||
Property, plant and equipment, net | 413,991 | 408,502 | ||
Operating lease right-of-use assets | 216,083 | 199,087 | ||
Goodwill and intangible assets, net | 1,561,248 | 1,582,662 | ||
Other non-current assets | 12,409 | 12,801 | ||
Total assets | $ 3,218,443 | $ 3,076,174 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Current maturities of long-term debt | $ 6,250 | $ 6,250 | ||
Current operating lease liabilities | 57,232 | 54,956 | ||
Accounts payable | 217,645 | 192,448 | ||
Accrued liabilities | 92,463 | 94,412 | ||
Other current liabilities | 430 | 424 | ||
Total current liabilities | 374,020 | 348,490 | ||
Long-term debt, less current maturities, net | 1,378,433 | 1,282,821 | ||
Long-term operating lease liabilities | 163,753 | 148,889 | ||
Deferred tax liabilities, net | 100,669 | 96,875 | ||
Other long-term liabilities | 13,198 | 14,802 | ||
Total liabilities | 2,030,073 | 1,891,877 | ||
Total shareholders' equity | 1,188,370 | 1,184,297 | ||
Total liabilities and shareholders' equity | $ 3,218,443 | $ 3,076,174 | ||
PATRICK INDUSTRIES, INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||
Three Months Ended | ||||
($ in thousands) | March 29, 2026 | March 30, 2025 | ||
Cash flows from operating activities | ||||
Net income | $ 39,480 | $ 38,238 | ||
Depreciation and amortization | 42,777 | 42,646 | ||
Stock-based compensation expense | 5,978 | 5,249 | ||
Deferred income taxes | 3,794 | (5,737) | ||
Other adjustments to reconcile net income to net cash provided by operating activities | 879 | 1,232 | ||
Change in operating assets and liabilities, net of acquisitions of businesses | (106,916) | (41,551) | ||
Net cash (used in) provided by operating activities | (14,008) | 40,077 | ||
Cash flows from investing activities | ||||
Purchases of property, plant and equipment | (18,926) | (20,171) | ||
Business acquisitions and other investing activities | (7,010) | (45,915) | ||
Net cash used in investing activities | (25,936) | (66,086) | ||
Net cash flows provided by financing activities | 50,984 | 79,009 | ||
Net increase in cash and cash equivalents | 11,040 | 53,000 | ||
Cash and cash equivalents at beginning of year | 26,432 | 33,561 | ||
Cash and cash equivalents at end of period | $ 37,472 | $ 86,561 | ||
PATRICK INDUSTRIES, INC.
Earnings Per Common Share (Unaudited)
The table below illustrates the calculation of earnings per common share:
First Quarter Ended | ||||
(in thousands, except per share data) | March 29, | March 30, | ||
Numerator: | ||||
Net income attributable to common shares | $ 39,480 | $ 38,238 | ||
Denominator: | ||||
Weighted average common shares outstanding - basic | 32,494 | 32,671 | ||
Weighted average impact of potentially dilutive convertible notes | 1,885 | 1,067 | ||
Weighted average impact of potentially dilutive warrants | 1,396 | 395 | ||
Weighted average impact of potentially dilutive securities | 272 | 283 | ||
Weighted average common shares outstanding - diluted | 36,047 | 34,416 | ||
Earnings per common share: | ||||
Basic earnings per common share | $ 1.21 | $ 1.17 | ||
Diluted earnings per common share | $ 1.10 | $ 1.11 | ||
PATRICK INDUSTRIES, INC.
Non-GAAP Reconciliation (Unaudited)
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with
The following table reconciles net income to EBITDA, adjusted EBITDA and margins:
First Quarter Ended | |||||||||
($ in thousands) | March 29, | % of Net | March 30, | % of Net | |||||
Net income | $ 39,480 | 4.0 % | $ 38,238 | 3.8 % | |||||
+ | Depreciation & amortization | 42,777 | 4.3 % | 42,646 | 4.3 % | ||||
+ | Interest expense, net | 18,388 | 1.8 % | 19,112 | 1.9 % | ||||
+ | Income taxes | 6,854 | 0.7 % | 8,219 | 0.8 % | ||||
EBITDA | 107,499 | 10.8 % | 108,215 | 10.8 % | |||||
+ | Stock-based compensation | 5,978 | 0.6 % | 5,249 | 0.5 % | ||||
+ | Acquisition related transaction costs | — | — % | 64 | — % | ||||
- | (Gain) loss on sale of property, plant and equipment | (155) | — % | 2,042 | 0.2 % | ||||
Adjusted EBITDA | $ 113,322 | 11.4 % | $ 115,570 | 11.5 % | |||||
The following table reconciles cash flow from operations to free cash flow on a trailing twelve-month basis:
Trailing Twelve Months Ended | ||||
($ in thousands) | March 29, 2026 | March 30, 2025 | ||
Cash flows from operating activities | $ 275,329 | $ 331,742 | ||
Less: purchases of property, plant and equipment | (81,676) | (80,358) | ||
Free cash flow | $ 193,653 | $ 251,384 | ||
The following table reconciles operating margin to adjusted operating margin:
First Quarter Ended | ||||
March 29, | March 30, | |||
Operating margin | 6.5 % | 6.5 % | ||
Acquisition related transaction costs | — % | — % | ||
Adjusted operating margin | 6.5 % | 6.5 % | ||
The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share:
First Quarter Ended | |||||
($ in thousands, except per share data) | March 29, | March 30, | |||
Net income | $ 39,480 | $ 38,238 | |||
+ | Acquisition related transaction costs | — | 64 | ||
- | Tax impact of adjustments | — | (16) | ||
Adjusted net income | $ 39,480 | $ 38,286 | |||
Diluted earnings per common share | $ 1.10 | $ 1.11 | |||
Acquisition related transaction costs, net of tax | — | — | |||
Adjusted diluted earnings per common share | $ 1.10 | $ 1.11 | |||
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SOURCE Patrick Industries, Inc.