Patrick Industries, Inc. Q1 FY2026 earnings call

• First quarter results highlight diversified platform strength, innovation, and team dedication. - Marine and power sports revenue growth offset RV and manufactured housing declines. - Disciplined OEMs and dealers keep dealer field inventories lean. - Diverse end market exposure and brand portfolio as advantage. - Advanced product group driving progress on composite and audio solutions. - Technology and innovation investments enhancing operations. - Decentralized structure and sourcing flexibility mitigating tariff impacts. - Excitement about potential merger of equals with LCI Industries. - Digital design studio elevating OEM engagement.

Consolidated net sales for the quarter were $997 million, off 1% from the first quarter of 2025. RV revenue was $446 million, off 7% (45% of consolidated revenue). Marine revenue increased 14% to $170 million (17% of consolidated net sales). Power sports revenue increased 28% to $104 million (10% of first quarter 2026 consolidated sales). Manufactured housing revenue was $277 million, off 6% (28% of consolidated sales). Trailing 12-month RV CPU up 8% to $5,277, marine content per wholesale powerboat unit up 17% to $4,657, power sports driven by OEM adoption, manufactured housing estimated content per MH unit flat.

• 2026 RV retail down low to mid single digits, wholesale 315,000 - 330,000 units. - Marine retail flat to slightly down, wholesale up low single digits. - Power sports full year unit shipments and organic content up low single digits. - Housing MH wholesale unit shipments and new housing starts down low to mid single digits. - 2026 adjusted operating margin to improve 30 - 50 basis points vs 2025. - Operating cash flow estimated $370 - $390 million, CAPEX $70 - $80 million, free cash flow ~$300 million. - Effective tax rate 24% - 25%.

• Macroecnomic uncertainty impacting retail demand. - War in Iran, consumer confidence, interest rate uncertainty affecting markets. - Tariff impacts if not managed effectively. - Uncertainty in timing of end market recovery.

Q: Talk about state of retail, production, mix in RV.

A: Retail incrementally better, OEMs measured in production, mix changing but not normalized.

Q: Impact of LCI discussions on M&A strategy.

A: Not impeded, continuing active M&A.

Q: Marine content per unit growth.

A: Driven by innovation, collaborative solution-oriented products.

Q: Manufactured housing end market.

A: Soft, declining due to macroeconomic pressures.

Q: Tariffs and supply chain.

A: Domestic focus, working with suppliers and customers to mitigate.

Q: Operating margin cadence.

A: Second half expected stronger.

Q: Aftermarket cross-selling.

A: Strategy with M&A potential, organic growth opportunity.

Q: Advanced integrated solutions examples.

A: Low-cost tower audio, Helm solutions, roofing and flooring solutions in RV and marine