Patrick Industries (PATK) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $1.04 billion, down less than 1% year-over-year, with strong growth in Marine (+22%), Powersports (+28%), and Housing (+2%) offsetting a 15% decline in RV revenue due to a 16% drop in RV industry shipments.

• Net income rose 34% to $43.4 million, and diluted EPS increased 33% to $1.28; adjusted net income was $44 million ($1.29 per share), down from $51 million ($1.50 per share) last year.

• Strategic diversification and organic growth enabled resilience despite lower RV shipments, with trailing 12-month net sales up nearly 70% and adjusted EPS up over 60% compared to 2019.

• Announced a definitive all-stock merger agreement with LCI Industries (Lippert), expected to close in H1 2027, targeting $150 million in annual cost synergies; Patrick shareholders will own 52% and LCI shareholders 48% of the combined company.

• Returned $106 million to shareholders in Q2 2026 via $15 million in dividends and $91 million in share repurchases.

Financial highlights

• Adjusted operating margin was 7.5%, down from 8.3% prior year; operating income was $77 million (7.4% margin).

• Adjusted EBITDA was $126 million (12.1% margin), down from $135 million (12.9% margin) last year.

• Gross margin for Q2 2026 was 23.8%, nearly flat year-over-year.

• Cash from operations for the first six months was $69 million, down from $189 million a year ago, reflecting working capital investments.

• Available liquidity at quarter-end was $691 million, with $661 million unused revolver capacity; net leverage ratio stood at 3.0x.

Outlook and guidance

• FY 2026 RV wholesale shipments expected at 285,000–300,000 units, down low double digits from 2025.

• Marine and powersports shipments projected flat to up low single digits; housing starts and MH shipments expected down low to mid single digits.

• 2026 adjusted operating margin expected flat versus 2025, with potential 20 bps margin headwind from affordability initiatives; operating cash flow guidance $320–$350 million.

• Management remains cautious for the remainder of 2026 due to macroeconomic uncertainty and is not relying on a near-term market rebound.

• The merger with LCI Industries is expected to enhance long-term value and growth opportunities, subject to regulatory and shareholder approvals.