Patrick Industries, Inc. Reports Second Quarter 2025 Financial Results

Patrick Industries, Inc. (“Patrick” or the “Company”), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, reported financial results for the second quarter and six months ended June 29, 2025.

Second Quarter 2025 Highlights

(compared to Second Quarter 2024 unless otherwise noted)

• Net sales increased 3% to $1.05 billion, driven by 7% growth in the Company’s RV business and 3% growth in its Housing business, which more than offset reductions of 1% and 7% in the Company’s Marine and Powersports businesses, respectively.
• Operating income increased 2% to $87 million, while operating margin was 8.3%, or flat versus the prior year.
• Net income was $32 million and diluted earnings per share (EPS) was $0.96.
• Excluding one-time expenses related to a legal settlement¹, adjusted net income² was $51 million and adjusted diluted EPS² was $1.50 compared to $1.44 in the prior year period.
• Reported and adjusted diluted EPS² include the dilutive impact of convertible notes and related warrants, or approximately $0.03 per share, compared to $0.02 in the prior year period.
• Adjusted EBITDA² increased 4% to $135 million; adjusted EBITDA margin² increased 10 basis points to 12.9%.
• Cash flow provided by operating activities, on a year-to-date basis, grew to $189 million compared to $173 million in the same period last year. Free cash flow² on a trailing twelve-month basis was $262 million.
• Returned $36.5 million of cash to shareholders, including share repurchases of more than $23 million and regular quarterly dividends of $13 million; total net liquidity was $835 million at the end of the second quarter.
• Ended the second quarter with a total net leverage ratio of 2.6x.

“Our performance and results, which included net sales and adjusted EPS² growth, reflect our team’s disciplined execution in what remains a very dynamic business environment,” said Andy Nemeth, Chief Executive Officer. “We continued to focus heavily in the quarter on expanding our innovative solutions-based offerings and capabilities through our prototyping and Advanced Product Group, along with our investments in the aftermarket through RecPro. Our strong cash flows, solid balance sheet with ample liquidity, and flexible operating model strategically position us to be scalable to quickly pivot and accelerate growth when the retail market inflection occurs while continuing to pursue accretive acquisitions that align with our long-term objectives.”

Net sales increased 3%, or $31 million, to $1.05 billion, compared to $1.02 billion in the second quarter of 2024. The growth in net sales was due to higher revenue in our RV and Manufactured Housing (“MH”) end markets as a result of acquisitions and share gains, which more than offset lower revenue in our Marine and Powersports end markets.

Operating income increased 2% to $87 million in the second quarter of 2025. Operating margin was flat at 8.3% versus the same period a year ago.

Net income decreased 32% to $32 million, or $0.96 per diluted share, compared to $48 million, or $1.44 per diluted share in the second quarter of 2024. Excluding one-time expenses related to a legal settlement¹, adjusted net income² in the second quarter of 2025 was $51 million, or $1.50 per diluted share, compared to adjusted net income² of $48 million, or $1.44 per diluted share, in the prior year period. Reported and adjusted diluted earnings per share² in the second quarter of 2025 include approximately $0.03 of dilution from our convertible notes and related warrants compared to $0.02 in the prior year period.

Jeff Rodino, President – RV, said, “Patrick’s diversified model continued to demonstrate its resilience in very dynamic market conditions following the tariff announcements in April. Despite the tariff uncertainty, our markets behaved largely in line with our expectations in the second quarter. We are highly focused on taking advantage of the current environment to optimize our processes, invest in our new product development and organic growth initiatives, execute on accretive acquisitions, and bolster our financial foundation so we can accelerate our growth trajectory as demand recovers.”

Second Quarter 2025 Revenue by Market Sector

(compared to Second Quarter 2024 unless otherwise noted)

RV (46% of Revenue)

• Revenue of $479 million increased 7% while wholesale RV industry unit shipments were flat.
• Content per wholesale RV unit (on a trailing twelve-month basis) was flat at $4,952 when compared to the prior year period, and increased 2% when compared to the first quarter of 2025.

Marine (15% of Revenue)

• Revenue of $156 million decreased 1% while estimated wholesale powerboat industry unit shipments decreased 5%.
• Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) increased 2% to $4,012 when compared to the prior year period, and increased 1% when compared to the first quarter of 2025.

Powersports (9% of Revenue)

• Revenue of $96 million decreased 7% as market share gains and a favorable shift in OEM attachment rates for premium utility vehicle content helped offset the impact of lower estimated total wholesale powersports industry unit shipments.

Housing (30% of Revenue, comprised of MH and Industrial)

• Revenue of $315 million increased 3%; estimated wholesale MH industry unit shipments increased 3%; total housing starts decreased 1%.
• Estimated content per wholesale MH unit (on a trailing twelve-month basis) increased 3% to $6,670 when compared to the prior year period, and was flat when compared to the first quarter of 2025.

Balance Sheet, Cash Flow and Capital Allocation

For the first six months of 2025, cash provided by operating activities was $189 million compared to $173 million for the prior year period. Purchases of property, plant and equipment totaled $18 million in the second quarter of 2025, reflecting continued investments in automation and innovation initiatives coupled with maintenance capital expenditures. On a trailing twelve-month basis, free cash flow² through the second quarter of 2025 was $262 million compared to $348 million through the second quarter of 2024. The Company repaid approximately $157 million of long-term debt during the second quarter of 2025.

Patrick remained disciplined in allocating and deploying capital during the quarter while returning cash to shareholders. During the quarter, the Company repurchased approximately 277,800 shares for more than $23 million and paid regular quarterly dividends of $13 million to shareholders. Unused capacity under the Company’s share repurchase authorization was $168 million at the end of the second quarter.

Total debt at the end of the second quarter was approximately $1.3 billion, resulting in a total net leverage ratio of 2.6x (as calculated in accordance with our credit agreement). Available liquidity, comprised of borrowing availability under our credit facility and cash on hand, was approximately $835 million.

Business Outlook and Summary

“We are optimistic that the resilience in the equity markets and added clarity related to tariffs following the uncertainty we experienced in April will help improve consumer sentiment as the year progresses,” continued Mr. Nemeth. “With the bulk of the retail selling season behind us in our Outdoor Enthusiast markets, our expectation for lower wholesale shipments in the second half of the year compared to the first half remains relatively unchanged. The strategic operational adjustments we have continued to make have positioned us to capitalize on positive market developments should demand exceed our forecast. Our team has focused on and delivered solid organic growth in the first half of the year, and we expect to more acutely focus our capital allocation on strategic acquisitions in the second half of 2025 and into 2026, as we believe pent-up demand and improving market conditions will catalyze the earnings power of Patrick’s differentiated business model. Our team remains fully engaged toward driving profitable growth while delivering exceptional value to our customers and other stakeholders at the highest level.”

1	The Company’s second quarter 2025 results include a non-product related legal settlement related to a motor vehicle accident, which resulted in a double-fatality.
2	See additional information at the end of this release regarding non-GAAP financial measures.

For full results click here.

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.