PATRICK INDUSTRIES INC (PATK): Results of Operations and Financial Condition
PATRICK INDUSTRIES INC (PATK) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release Patrick Industries, Inc. Reports Second Quarter 2026 Financial Results ELKHART, IN, July 30, 2026 – Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today repo
How this was made
The 30-second read
Why it matters
Near-term trading focus is on margin compression versus prior year, operating cash flow deterioration, and whether the all-stock merger narrative supports valuation despite weaker RV demand.
Market read
Q2 results show revenue resilience from Marine, Powersports, and Housing offsetting RV weakness, while operating margin and operating cash flow are down year over year. The merger agreement adds a separate valuation catalyst.
What to watch
The excerpt cites merger-related costs and RV wholesale shipment declines as drivers; without deal terms, traders may overestimate merger value or timing.
Patrick Industries, Inc. Reports Second Quarter 2026 Financial Results
Marine, Powersports and Housing growth substantially offset a 15% RV revenue decline, but sales declined less than 1%, operating margin contracted, adjusted earnings and adjusted EBITDA declined, and cash flow was lower amid higher working-capital investment.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1.04 billion | – | declined less than 1% |
| Operating incomeGAAP | $77 million | – | – |
| Operating marginGAAP | 7.4% | – | – |
| Adjusted operating marginnon-GAAP | 7.5% | – | – |
| Net incomeGAAP | $43 million | – | increased 34% |
| Diluted earnings per shareGAAP | $1.28 per diluted share | – | increased 33% |
| Adjusted net incomenon-GAAP | $44 million | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $1.29 per diluted share | – | – |
| Dilutive impact of convertible notes and related warrants on reported and adjusted diluted earnings per shareother | approximately $0.07 per share | – | – |
| Adjusted EBITDAnon-GAAP | $126 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 12.1% | – | – |
| Cash provided by operating activities, first six monthsGAAP | $69 million | – | – |
| Free cash flow, trailing twelve-month basisnon-GAAP | $128 million | – | – |
| Purchases of property, plant and equipmentGAAP | $18 million | – | – |
| Total debtother | approximately $1.4 billion | – | – |
| Total net leverage ratioother | 3.0x | – | – |
| Available liquidityother | approximately $691 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RVRV industry wholesale unit shipments decreased 16%. Content per wholesale RV unit increased 7% to $5,303 on a trailing twelve-month basis and was flat compared to the first quarter of 2026. | $407 million | – | decreased 15% |
| MarineEstimated wholesale powerboat industry unit shipments were flat. Estimated content per wholesale powerboat unit increased 22% to $4,883 on a trailing twelve-month basis and increased 5% compared to the first quarter of 2026. | $191 million | – | increased 22% |
| PowersportsGrowth was driven by continued demand for utility-focused units, increased OEM penetration, and stronger attachment rates for Sportech's cab enclosure solutions and other premium vehicle content, including audio. | $123 million | – | increased 28% |
| HousingEstimated wholesale MH industry unit shipments decreased 8% and total housing starts decreased 1%. Estimated content per wholesale MH unit of $6,673 was flat compared to the prior-year period and increased 1% compared to the first quarter of 2026. | $320 million | – | increased 2% |
Capital returns
- Returned $106 million to shareholders during the second quarter of 2026.
- Returned $15 million through dividends during the second quarter of 2026.
- Repurchased 980,000 shares of common stock for $91 million during the second quarter of 2026.
- Unused capacity under the current share repurchase authorization was $62 million at the end of the second quarter.
What drove it
- Revenue growth of 22% in Marine, 28% in Powersports, and 2% in Housing predominantly offset the impact of a 15% decline in RV end market revenue.
- The RV revenue decline was related to a 16% decline in RV industry wholesale unit shipments.
- Strong Marine content per unit growth and continued increases in Powersports attachment rates supported overall revenue performance.
- The operating-margin decline reflected the decline in RV industry wholesale unit shipments, higher oil and fuel prices and related fuel surcharges, and merger-related costs.
- Higher working-capital investment reflected inventory levels remaining elevated in connection with the Company’s composite products growth strategy.
Concerns
- RV revenue decreased 15% as RV industry wholesale unit shipments decreased 16%.
- Operating margin was 7.4% compared to 8.3% in the prior-year period.
- Adjusted operating margin was 7.5% compared to 8.3% in the prior-year period.
- Adjusted net income was $44 million compared to $51 million in the prior-year period.
- Adjusted EBITDA was $126 million compared to $135 million in the prior-year period.
- Cash provided by operating activities for the first six months was $69 million compared to $189 million in the prior-year period.
- Management cited continued macroeconomic uncertainty across its end markets and stated that near-term demand conditions remain challenging.
What to watch
- RV industry wholesale unit shipments and RV revenue performance.
- Marine content per wholesale powerboat unit, which was $4,883 on a trailing twelve-month basis.
- Powersports demand for utility-focused units, OEM penetration, and attachment rates for premium vehicle content.
- Working-capital investment and inventory levels associated with the composite products growth strategy.
- The proposed all-stock merger with LCI Industries, for which the Company signed a definitive agreement on June 30, 2026.
Balance sheet and cash flow
- Cash provided by operating activities for the first six months of 2026 was $69 million compared to $189 million in the prior-year period.
- Free cash flow on a trailing twelve-month basis through the second quarter of 2026 was $128 million compared to $262 million in the prior-year period.
- Purchases of property, plant and equipment totaled $18 million in the second quarter of 2026.
- Total debt at the end of the second quarter was approximately $1.4 billion.
- Total net leverage ratio was 3.0x.
- Available liquidity was approximately $691 million.
Analysis
Patrick reported second-quarter net sales of $1.04 billion, down less than 1% from $1.05 billion. The result reflected a clear mix split across end markets. RV revenue declined 15% to $407 million alongside a 16% decline in RV industry wholesale unit shipments, while Marine revenue rose 22% to $191 million, Powersports grew 28% to $123 million, and Housing increased 2% to $320 million. Marine content per wholesale powerboat unit increased 22% to $4,883, and RV content per wholesale RV unit increased 7% to $5,303, both on a trailing twelve-month basis.
Profitability was lower on an operating basis. Operating income was $77 million versus $87 million, and operating margin declined to 7.4% from 8.3%. Adjusted operating margin was 7.5%, also below 8.3% in the prior-year period. Management attributed the margin decline to lower RV wholesale shipments, higher oil and fuel prices and related fuel surcharges, and merger-related costs. Adjusted EBITDA declined to $126 million from $135 million and adjusted EBITDA margin declined to 12.1% from 12.9%.
GAAP net income increased 34% to $43 million and diluted EPS increased 33% to $1.28 per diluted share, compared with $32 million and $0.96 per diluted share. Adjusted net income, however, was $44 million, down from $51 million, while adjusted diluted EPS was $1.29 per diluted share versus $1.50 per diluted share. The release states that reported and adjusted diluted EPS included approximately $0.07 per share of dilution from convertible notes and related warrants, compared with $0.03 in the prior-year period. The prior-year adjusted result excluded one-time legal-settlement expenses.
Cash generation weakened as working-capital investment increased. Cash provided by operating activities for the first six months was $69 million, compared with $189 million in the prior-year period, and trailing-twelve-month free cash flow was $128 million compared with $262 million. Inventory levels remained elevated in support of the composite-products growth strategy. The Company spent $18 million on property, plant and equipment in the quarter, while returning $106 million to shareholders through $15 million of dividends and $91 million of share repurchases.
The balance sheet showed approximately $691 million of available liquidity, approximately $1.4 billion of total debt, and a 3.0x total net leverage ratio. Management gave no numerical outlook and instead characterized its view on the balance of the year as prudent amid continued macroeconomic uncertainty. It stated it is not relying on a near-term market rebound. The strategic backdrop also includes the definitive all-stock merger agreement with LCI Industries announced on June 30, 2026.
Management, verbatim
Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team, and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions.
Andy Nemeth, Chief Executive Officer
While near-term demand conditions remain challenging, we believe our portfolio of brands, technical expertise, and ability to execute across our end markets continue to reinforce Patrick as a trusted partner across business cycles.
Jeff Rodino, President
We are not relying on a near-term market rebound and are focused on the actions within our control: staying close to our customers, delivering cost-effective product solutions, aligning our cost structure appropriately, advancing high-value growth initiatives, actioning M&A opportunities within our key markets and in alignment with our strategic plan, and continuing to strengthen the capabilities that differentiate Patrick in the marketplace.
Andy Nemeth, Chief Executive Officer
Not in the filing
stated, not guessed- Numerical forward revenue guidance
- Numerical forward gross-margin guidance
- Numerical forward operating-expense guidance
- Numerical forward tax-rate guidance
- GAAP gross profit and gross margin
- Operating expenses
- Income tax expense and tax rate
- Cash and cash equivalents balance
- Quarterly cash flow from operating activities
- Free cash flow for the second quarter
- Debt maturity schedule and debt-component detail
- Prior-quarter revenue, operating income, net income, EPS, adjusted EBITDA, and margin comparisons
- Quarter-over-quarter segment revenue comparisons
- Separate revenue figures for Manufactured Housing and Industrial
- Net income attributable to Patrick Industries, Inc.
- Basic earnings per share
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K (Item 2.02) with an attached earnings release for Patrick Industries’ second quarter and six months ended June 28, 2026, plus a mention of a definitive all-stock merger agreement with LCI Industries.
Ticker impact
Patrick reports Q2 2026 results with net sales $1.04B, operating margin 7.4%, and a signed all-stock merger agreement with LCI Industries.
Likely two-sided reaction: margin/FCF softness vs prior year could pressure, while the LCI all-stock merger agreement can add deal premium speculation.
The filing provides concrete Q2 financial metrics (sales, margins, net income, operating cash flow) and states a definitive agreement for an all-stock merger with LCI, which is a material catalyst. However, the excerpt does not include deal terms, timing, or regulatory outlook, limiting precision on magnitude and direction.
Market effects
Signals continued end-market divergence in RV versus Marine, Powersports, and Housing for component suppliers.
Limited direct regional read-through; company-specific manufacturing exposure.
Low global relevance; primarily North American recreational and manufactured housing demand.
Counterpoint
Higher net income and EPS may be partly offset by weaker operating margin and a large year-over-year drop in operating cash flow, so equity upside may be less durable than earnings headline suggests.
Key entities
- issuerPatrick Industries, Inc.
Reports Q2 2026 financial results and references a definitive all-stock merger agreement with LCI Industries.
- counterpartyLCI Industries
Named as the merger partner in a definitive agreement referenced in the filing.
