Patrick Industries, Inc. Reports First Quarter 2025 Financial Results

Net sales increased 7% to $1.0 billion, driven by revenue growth of 14% and 7% in the Company’s RV and Housing markets, respectively, which more than offset a 4% decline in Marine revenue and a 2% decline in Powersports revenue.

Operating margin increased 10 basis points to 6.5%. Adjusted operating margin¹ was 6.5% compared to 7.0% in the first quarter of 2024.

Net income was $38 million and diluted earnings per share (EPS) was $1.11, compared to net income of $35 million and diluted EPS of $1.06 in the first quarter of 2024. Adjusted diluted EPS¹ was $1.11 compared to $1.19 in the prior year period.

Reported and adjusted diluted EPS¹ included the dilutive impact of convertible notes and related warrants in the first quarter of 2025, or an estimated $0.05 per share, compared to $0.01 in the prior year period. 

EBITDA¹ increased 9%, or $9 million, to $108 million, and adjusted EBITDA¹ increased 4%; adjusted EBITDA margin¹ decreased 40 basis points to 11.5%.

Cash flow provided by operating activities grew to $40 million compared to $35 million in the same period last year. Free cash flow¹ on a trailing twelve-month basis, was $251 million.

Returned more than $22 million of cash to shareholders, including share repurchases of $8.5 million and regular quarterly dividends of $14 million; total net liquidity was $745 million at the end of the first quarter.

Completed the acquisitions of Elkhart Composites, Inc. and Medallion Instrumentation Systems, LLC.

Ended the first quarter with a total net leverage ratio of 2.7x.

Patrick Industries, Inc. (“Patrick” or the “Company”), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, reported financial results for the first quarter ended March 30, 2025.

Net sales increased 7%, or $70 million, to $1.0 billion, compared to the first quarter of 2024. The growth in net sales was due to stronger demand from our RV and Manufactured Housing (“MH”) customers, which more than offset the impact of lower demand in our Marine and Powersports end markets.

Operating income increased approximately 10% to $66 million in the first quarter of 2025, compared to $59 million in the first quarter of 2024. Operating margin of 6.5% increased 10 basis points compared to 6.4% in the same period a year ago. Adjusted operating margin¹, which excluded acquisition related transaction costs was 7.0% in the first quarter of 2024. First quarter 2025 adjusted operating margin¹ declined 50 basis points to 6.5%, primarily reflecting the seasonality of our growing aftermarket business and higher SG&A and warehouse and delivery expenses primarily related to acquisitions.

Net income increased 9% to $38 million, or $1.11 per diluted share, compared to $35 million, or $1.06 per diluted share, in the first quarter of 2024. Adjusted net income¹ was $38 million, or $1.11 per diluted share, in the first quarter of 2025, compared to adjusted net income¹ of $39 million, or $1.19 per diluted share, in the first quarter of 2024. Reported and adjusted diluted earnings per share¹ in the first quarter of 2025 include approximately $0.05 of dilution from our convertible notes and related warrants compared to $0.01 in the prior year period.

“The anticipated seasonal production increase in our RV and MH markets and dedication of our team members coupled with our commitment to the execution of our strategic and operating plans helped drive solid revenue growth and profitability in the first quarter,” said Andy Nemeth, Chief Executive Officer. “Additionally, our diversified business model continues to demonstrate its resilience and value, with strength in our RV and Housing markets offsetting lower demand from our Marine and Powersports customers. The ongoing investments we have made in strategic acquisitions, automation initiatives, new product development, and our Advanced Product Group have resulted in a stronger, more resilient customer-service focused business that is well positioned to capture opportunities as market conditions evolve. We are committed to serving our customers at the highest level and striving to be the supplier of choice for the Outdoor Enthusiast and Housing markets, while advancing our full-solutions model and aftermarket growth initiatives.”  

Jeff Rodino, President – RV, said, “With our well-capitalized, strong balance sheet and cash flows, we continued to deploy capital in the first quarter toward our long-term growth objectives, completing the acquisitions of Elkhart Composites and Medallion Instrumentation Systems, which complement our existing product lines and expand the depth and breadth of solutions we can provide to our customers. We will continue to prudently deploy capital and manage our cost structure so that we are well positioned to navigate potential macroeconomic uncertainty, while retaining the ability to capture opportunities in any environment.”

First Quarter 2025 Revenue by Market Sector
(compared to First Quarter 2024 unless otherwise noted)

RV (48% of Revenue)

• Revenue of $479 million increased 14% while wholesale RV industry unit shipments increased 14%.
• Content per wholesale RV unit (on a trailing twelve-month basis) was flat at $4,870 when compared to the prior year period and the fourth quarter of 2024.

Marine (15% of Revenue)

• Revenue of $149 million decreased 4% while estimated wholesale powerboat industry unit shipments decreased 10%.
• Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) was flat at $3,979 when compared to the same prior year period. Compared to the fourth quarter of 2024, estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 2%.

Powersports (8% of Revenue)

• Revenue of $81 million decreased 2%.

Housing (29% of Revenue, comprised of MH and Industrial)

• Revenue of $295 million increased 7%; estimated wholesale MH industry unit shipments increased 6%; total housing starts decreased 2%.
• Estimated content per wholesale MH unit (on a trailing twelve-month basis) increased 4% to $6,671 when compared to the same prior year period. Compared to the fourth quarter of 2024, estimated content per wholesale MH unit (on a trailing twelve-month basis) increased 1%.

Balance Sheet, Cash Flow and Capital Allocation

In the first quarter of 2025, cash provided by operating activities was $40 million compared to $35 million for the prior year period. Purchases of property, plant and equipment totaled $20 million in the first quarter of 2025, reflecting continued investment in automation and innovation initiatives coupled with maintenance capital expenditures. On a trailing twelve-month basis, free cash flow¹ through the first quarter of 2025 was $251 million compared to $391 million through the first quarter of 2024. Long-term debt increased approximately $110 million during the first quarter of 2025, primarily due to the acquisitions of Elkhart Composites and Medallion Instrumentation Systems.  

Patrick remained disciplined in allocating and deploying capital during the quarter while returning cash to shareholders. During the quarter, the Company repurchased approximately 99,800 shares for $8.5 million and paid regular quarterly dividends of $14 million to shareholders. Unused capacity under the Company’s share repurchase authorization was $191.5 million at the end of the first quarter.

Our total debt at the end of the first quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 2.7x (as calculated in accordance with our credit agreement). Available liquidity, comprised of borrowing availability under our credit facility and cash on hand, was approximately $745 million.

Business Outlook and Summary

“The first quarter results were in line with our plan, reflecting thoughtful production increases in our RV market to flexibly position for the retail selling season, coupled with the successful implementation of our strategic initiatives, which all helped to drive revenue growth, solid profitability, and improved cash flow generation,” continued Mr. Nemeth. “As we enter the second quarter, the announced multi-country tariff rollout has resulted in higher levels of macroeconomic uncertainty and cautionary reports on consumer sentiment. Our team has the experience necessary to maneuver effectively through market volatility and we believe that this period of heightened uncertainty will reinforce our value proposition to our customers and stakeholders as we continue to harness our scale and flexibility with our full solutions model to best serve our customers in any environment. Our teams continue to leverage our proven strategic and operational playbook, strong liquidity position, and disciplined capital allocation strategy to execute on our strategic plan. As we move forward, we are focused on maintaining our financial strength and flexibility to continue to execute on our disciplined capital allocation strategy and also be able to pivot quickly and scale where needed, while continuing to drive long-term shareholder value and showcasing the earnings power of Patrick’s business model.”

For the full first quarter results, click here.

¹ See additional information at the end of this release regarding non-GAAP financial measures.

About Patrick Industries, Inc.

Patrick (NASDAQ: PATK) is a leading component solutions provider serving the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.

Source: Patrick Industries, Inc.