LCI Industries (NYSE:LCII) Posts Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• LCI Industries beat earnings expectations: Quarterly EPS was $2.70, topping estimates by $0.09, while adjusted operating profit rose 8% and margins expanded to 9.3%. However, revenue fell 12.6% year over year to $1.06 billion, below the $1.12 billion consensus.
• Weak RV demand pressured the outlook: The company lowered its 2026 RV shipment forecast to 280,000–300,000 units and now expects adjusted EPS of $8.25–$8.75 and revenue of $3.9–$4.1 billion.
• Aftermarket sales increased 11%, while product innovation lifted RV content per unit 11%; LCI also maintained its $1.15 quarterly dividend and ended the quarter with $812 million in liquidity. Analysts’ consensus rating remains Hold, with an average price target of $140.57.

LCI Industries (NYSE:LCII - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $2.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.61 by $0.09, FiscalAI reports. The firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.12 billion. LCI Industries had a return on equity of 14.03% and a net margin of 4.84%.The business's revenue was down 12.6% on a year-over-year basis. During the same quarter last year, the company posted $2.39 earnings per share. LCI Industries updated its FY 2026 guidance to 8.250-8.750 EPS.

Here are the key takeaways from LCI Industries' conference call:

• Profitability improved despite weak demand: Q2 adjusted operating profit rose 8% to $99 million, with the margin expanding 110 basis points to 9.3%; adjusted EPS increased 13% to $2.70.
• The company lowered its 2026 RV wholesale shipment outlook to 280,000–300,000 units from 315,000–330,000 previously, reducing expected adjusted revenue to $3.9–$4.1 billion and adjusted EPS to $8.25–$8.75.
• Aftermarket sales grew 11% year over year, supported by repair and replacement demand, used-RV purchases, new automotive aftermarket business, and market-share gains following a competitor’s bankruptcy; management expects continued high-single- to low-double-digit growth.
• Product innovation and content gains remain important growth drivers, with RV content per unit up 11% to $5,831 and approximately $140 million of annualized revenue expected from new product placements during the 2027 model change.
• LCI ended the quarter with $812 million of liquidity and net debt leverage of 1.5x adjusted EBITDA, while maintaining its $1.15-per-share quarterly dividend; management also reiterated its 7.5%–8% full-year adjusted operating margin target.

LCI Industries Price Performance

LCI Industries stock traded up $0.76 during mid-day trading on Wednesday, reaching $107.81. The company had a trading volume of 198,821 shares, compared to its average volume of 404,379. The stock's 50-day simple moving average is $101.05 and its 200-day simple moving average is $119.78. The company has a market capitalization of $2.62 billion, a P/E ratio of 13.23 and a beta of 1.18. The company has a debt-to-equity ratio of 0.68, a current ratio of 2.91 and a quick ratio of 1.20. LCI Industries has a 1 year low of $84.33 and a 1 year high of $159.66.

LCI Industries Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were given a dividend of $1.15 per share. This represents a $4.60 annualized dividend and a yield of 4.3%. The ex-dividend date was Friday, May 29th. LCI Industries's dividend payout ratio is presently 56.51%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on LCII shares. Zacks Research cut LCI Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Truist Financial cut their price target on LCI Industries from $135.00 to $114.00 and set a "hold" rating for the company in a research note on Wednesday, July 8th. Stifel Nicolaus decreased their price target on LCI Industries from $152.00 to $137.00 and set a "buy" rating for the company in a report on Monday, July 20th. Benchmark lowered their price objective on shares of LCI Industries from $150.00 to $125.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Finally, Robert W. Baird set a $140.00 price objective on shares of LCI Industries in a research note on Wednesday, May 6th. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $140.57.

Hedge Funds Weigh In On LCI Industries

Several hedge funds and other institutional investors have recently bought and sold shares of LCII. T. Rowe Price Investment Management Inc. purchased a new position in shares of LCI Industries in the fourth quarter valued at $8,581,000. Invesco Ltd. boosted its position in shares of LCI Industries by 24.0% in the 4th quarter. Invesco Ltd. now owns 126,775 shares of the company's stock worth $15,383,000 after buying an additional 24,526 shares in the last quarter. Corient Private Wealth LLC grew its stake in LCI Industries by 155.1% in the 4th quarter. Corient Private Wealth LLC now owns 6,498 shares of the company's stock valued at $785,000 after acquiring an additional 3,951 shares during the last quarter. First Citizens Bank & Trust Co. grew its stake in LCI Industries by 52.5% in the 4th quarter. First Citizens Bank & Trust Co. now owns 4,120 shares of the company's stock valued at $500,000 after acquiring an additional 1,419 shares during the last quarter. Finally, NewEdge Advisors LLC increased its holdings in LCI Industries by 6,456.8% during the 4th quarter. NewEdge Advisors LLC now owns 2,426 shares of the company's stock valued at $294,000 after acquiring an additional 2,389 shares in the last quarter. 99.71% of the stock is owned by institutional investors and hedge funds.

About LCI Industries

LCI Industries is a publicly traded manufacturer specializing in engineered components and systems for the recreation vehicle (RV), marine and housing industries. The company develops and supplies a diverse range of products designed to enhance comfort, convenience and functionality in mobile and leisure applications. LCI Industries serves original equipment manufacturers (OEMs) and aftermarket customers throughout North America.

The company’s core offerings include power conversion and control systems, slideout mechanisms, entry and docking products, seating and furniture solutions, as well as window and door assemblies.

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