Patrick Industries NASDAQ: PATK reported first-quarter 2026 results that executives said reflected the benefits of the company’s diversified end-market exposure and continued content and market-share gains, even as shipment levels declined in several core markets.
Net sales for the quarter were $997 million, down 1% from the prior-year period, while earnings were $1.10 per diluted share, according to CEO Andy Nemeth. Nemeth said results were supported by growth in marine and powersports revenue, which helped offset “double-digit shipment declines” in RV and manufactured housing.
Quarterly performance and margins
CFO Matt Filer said the year-over-year change in revenue reflected “2% acquisition growth, 8% organic growth, and -10% industry.” Gross margin was 22.8%, unchanged from a year ago, and operating margin was 6.5%, also flat year over year. Filer attributed stable margins to the company’s ability to “flex our operations in response to lower than expected RV and housing demand in the first quarter.”
Net income was $39 million, up 3%, compared with $38 million in the prior-year quarter. Adjusted EBITDA was $113 million, down from $116 million a year earlier, and adjusted EBITDA margin was 11.4%, down 10 basis points, Filer said.
Filer noted diluted EPS included about $0.10 of “additional accounting-related dilution” tied to the company’s 2028 convertible notes and related warrants as the stock price rose above the convertible option strike price. The prior year’s diluted EPS included $0.05 per share of dilution.
End-market trends: RV, marine, powersports, and housing
President Jeff Rodino detailed performance across Patrick’s end markets, emphasizing content-per-unit growth and market-share gains as key drivers.
RV: Rodino said RV revenue was $446 million, down 7% year over year and representing 45% of consolidated revenue. He said Patrick outperformed an estimated 12% reduction in RV industry wholesale unit shipments. Rodino said RV content per unit (CPU) on a trailing 12-month (TTM) basis increased 8% to $5,277, helped by “ongoing adoption of our composite products and solutions” and share gains.
Based on Statistical Surveys (SSI) data, Rodino estimated RV retail unit shipments were about 63,200 in the quarter, while the RV Industry Association (RVIA) reported wholesale shipments of about 86,100. Rodino said the difference implied a seasonal dealer inventory restock of roughly 22,900 units and an estimated 19 to 21 weeks of dealer inventory on hand, up from 16 to 18 weeks at the end of 2025 but below historical averages of 26 to 30 weeks.
Marine: Rodino said marine revenue rose 14% to $170 million, accounting for 17% of consolidated net sales, and outperformed what he described as an estimated 7% reduction in wholesale powerboat unit shipments. He said TTM marine content per wholesale powerboat unit increased 17% to $4,657, and quarterly marine CPU rose 23% year over year. Rodino attributed that performance to market-share gains tied to the latest model-year changeover, plus acquisitions completed last year that expanded the company’s marine electrical solution set and aftermarket presence.
Based on SSI and the National Marine Manufacturers Association (NMMA), Rodino estimated marine retail and wholesale powerboat shipments of 28,300 and 34,200 units, respectively, implying a dealer inventory restock of about 5,900 units. Dealer inventory was estimated at 22 to 24 weeks on hand, below historical averages of 36 to 40 weeks, he said.
Powersports: Rodino said powersports revenue increased 28% to $104 million, representing 10% of consolidated sales. He credited “further OEM adoption” of cabin closures through Sportech and other integrated solutions, along with higher attachment rates and expanded content across platforms. Rodino added that Patrick is concentrated on the utility side of the powersports market, which he described as relatively resilient.
Housing: Rodino said housing revenue was $277 million, down 6% and representing 28% of consolidated sales, with manufactured housing (MH) making up about 56% of housing revenue. TTM content per MH unit was $6,636, flat year over year. Rodino estimated MH wholesale shipments fell 11% in the quarter, while total housing starts increased 1%, which he attributed to “interest rates and affordability constraints.” He said the company believes underlying demand for affordable housing “remains intact” over the long term, though near-term demand is soft.
Retail demand, production discipline, and inventory levels
On the question-and-answer portion of the call, Rodino said RV retail conditions improved in April following a slow start to the year. “It is getting incrementally better,” he said, citing a weak January and February that he attributed in part to weather and macroeconomic factors affecting consumer confidence.
Rodino said OEMs remain “very measured” in production and are not overproducing, which he said supports industry health. He also noted a shift in RV product mix compared with prior years: after a period where entry-level units were heavier, Rodino said the mix has “changed a little bit” with more activity in fifth wheels, though not back to what he called a normalized mix.
Aftermarket, product development, and technology investments
Nemeth and Rodino highlighted ongoing efforts around innovation and solution-based offerings across end markets. Nemeth said Patrick’s advanced product group is progressing on multiple product solutions, including its composite strategy and “an entry-level tower audio solution” intended to support affordability.
Rodino also provided an update on the company’s digital design studio initiative, known as “The Experience.” He said Patrick hosted more than 25 working sessions with OEMs ahead of the next model-year changeover and has “already eliminated dozens of prototypes through this process,” describing it as a durable competitive advantage that improves collaboration and speeds decision-making.
On the aftermarket, Rodino said that since acquiring RecPro in September 2024, Patrick has added more than 500 parts to the RecPro site, including additional RV offerings and “some on the marine side, and even some on the powersports.” Nemeth said aftermarket margins are “accretive to Patrick’s consolidated profile today,” and added the company may break out aftermarket results as it becomes more material.
Cash flow, capital allocation, tariffs, and 2026 outlook
Filer said cash used in operations was $14 million in the first three months of 2026, compared with $40 million of cash provided by operations in the prior-year period, reflecting an increase in working capital that was “partially related to our strategic decision to increase composite material inventory in anticipation of customer demand.” Capital expenditures were $19 million in the quarter.
Liquidity at quarter end totaled $734 million, including cash and approximately $696 million of unused revolver capacity, Filer said. The company’s net leverage was 2.8x, and there are “no major debt maturities until 2028,” he added.
Patrick returned $31 million to shareholders in the quarter through $16 million in dividends and $15 million in share repurchases for roughly 127,700 shares. Filer said $153 million remained on the repurchase authorization at quarter end, and the company repurchased about 153,100 additional shares for about $15 million through April 29.
On tariffs, Nemeth said the company does not expect a material impact to its full-year 2026 outlook, citing Patrick’s decentralized structure, sourcing flexibility, and supplier and customer coordination. Rodino told analysts the company works to mitigate tariff impacts at the supplier level and communicates cost impacts to customers, adding that the approach is intended to avoid margin impact from tariffs.
For full-year 2026, Filer updated shipment and financial expectations, citing continued macro uncertainty around consumer confidence, interest rates, and geopolitical conflicts. The company’s outlook includes:
- RV: Retail down low- to mid-single digits; wholesale shipments of 315,000 to 330,000 units.
- Marine: Retail flat to down slightly; wholesale up low single digits.
- Powersports: Unit shipments and organic content up low single digits, implying mid- to high-single-digit growth for Patrick’s powersports business.
- Housing: MH wholesale shipments and total housing starts down low- to mid-single digits.
- Adjusted operating margin: Expected to improve 30 to 50 basis points versus 2025.
- Operating cash flow: $370 million to $390 million; capex of $70 million to $80 million, implying about $300 million in free cash flow.
- Effective tax rate: 24% to 25%.
During Q&A, management said free cash flow guidance reflects working capital benefits, and said margin improvement should skew toward the second half of the year, consistent with seasonal patterns.
Finally, Nemeth briefly addressed Patrick’s previously announced discussions about a potential “merger of equals” with LCI Industries, reiterating that the company could not provide details beyond prepared remarks. He said management believes a combination “could provide additional opportunity to drive value and better partnerships with our customers,” including through innovation, value engineering, and potential synergies. In response to analyst questions, management said those discussions are not putting Patrick’s ongoing M&A strategy on hold and emphasized that “customer first” has been the guiding principle in evaluating the potential combination.
About Patrick Industries NASDAQ: PATK
Patrick Industries, Inc is a leading manufacturer and distributor of component products and building materials for the recreational vehicle (RV), manufactured housing, marine and industrial markets. The company supplies a broad array of interior and exterior products, including cabinetry, countertops, flooring, wall panels and decorative trim. Patrick Industries also offers engineered composites, adhesives, sealants and insulation solutions that cater to both original equipment manufacturers (OEMs) and aftermarket customers across North America.
Founded in 1959 and headquartered in Elkhart, Indiana, Patrick Industries began as a small distributor of hardwood and millwork products.
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