Patrick Industries, Inc. Q4 FY2025 earnings call

· In 2025, the company welcomed Medallion Instrumentation Systems, Quality Engineered Services, Aegis Group, Lilypad Marine, and Elkhart Composites. These acquisitions brought new technology, innovation, and enhanced the marine full solutions platform. · Focus on composites as a superior solution to wood products in RV and marine industries, expecting further manufacturing capabilities in 2026. · Aftermarket business grew ~30% year-over-year, now 10% of total revenues, with over 500 Patrick SKUs on the RecPro site. · Launched the industry-leading full-scale virtual design and reality solution 'Experience' leveraging virtual reality and advanced technology for customer collaboration.

In the fourth quarter, net sales improved 9% to $924 million. RV revenues in the fourth quarter increased 10% to $392 million, representing 43% of consolidated sales. Marine revenues increased 24% to $150 million, representing 16% of fourth quarter consolidated sales. Powersports revenue increased 39% to $109 million, representing 12% of fourth quarter consolidated sales. Housing revenue was 29% of consolidated sales in the fourth quarter and decreased 5% to $272 million. For the full year, net sales increased 6% to approximately $4 billion. RV full-year revenue increased 9% to $1.8 billion, marine revenue increased 6% to $606 million, powersports revenue increased 9% to $384 million, and housing revenue increased 1% to $1.2 billion.

· 2026 RV: Full-year retail registrations flat, wholesale unit shipments up low to mid-single digits. · 2026 Marine: Full-year retail registrations flat, wholesale powerboat unit shipments up low single digits. · 2026 Powersports: Full-year unit shipments up low single digits, organic content up low single digits. · 2026 Housing: MH wholesale shipments flat to up 5%, residential housing starts flat to up 5%. · Estimate 2026 adjusted operating margin will improve by 70 to 90 basis points. · Operating cash flow estimated $380 million to $400 million, CapEx $70 million to $80 million, implying free cash flow ~$300 million or more.

· Macro-economic uncertainty due to the tariff environment. · Raw material cost pressures including copper, aluminum, and wood. · Potential impact on consumer spending and market dynamics.

Q: Joe Altobello asked about content per unit and its drivers.

A: Jeff Rodino responded that it was a combination of model change content pickup, composite play, electronics penetration, and mix shifts.

Q: Daniel Moore inquired about market outlook cadence.

A: Andy Nemeth stated that Q1 is disciplined, with optimism for uptick in Q2 and Q3.

Q: Craig Kennison asked about cost pressure and content per unit growth.

A: Jeff Rodino said cost pressures on commodities are managed, and growth is more from mix and organic content.

Q: Noah Zatzkin asked about marine revenue growth drivers.

A: Andy Nemeth replied most was from content gains and new product development.

Q: Tristan Thomas-Martin asked about composites TAM and margins.

A: Jeff Rodino mentioned TAM outlook and margins are closely managed but specific percentages vs other products not disclosed.

Q: Mike Albanese asked about aftersales SKU additions and pull-through.

A: Jeff Rodino said it's a timing game with pull-through expected in 6-12 months, and Andy Nemeth noted it's baked into overall margins.