Patrick Industries, Inc. Reports Third Quarter 2026 Financial Results
PATRICK INDUSTRIES INC (PATK) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release Patrick Industries, Inc. Reports Third Quarter 2026 Financial Results ELKHART, IN, October 29, 2026 – Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today re
How this was made
The 30-second read
Why it matters
The earnings release highlights flat top‑line but margin compression, suggesting near‑term downside risk while the merger may be a longer‑term catalyst.
Market read
First‑time disclosure of Q3 2026 results for PATK, providing fresh data for traders.
What to watch
Liquidity of $716 M and low leverage (2.9x) provide runway for strategic acquisitions.
Patrick Industries, Inc. Reports Third Quarter 2026 Financial Results
Net sales were essentially flat, with Marine, Powersports and Housing growth nearly offsetting lower RV revenue, while GAAP operating income, net income and diluted EPS declined. Adjusted EBITDA increased and adjusted diluted EPS increased, but merger-related and restructuring costs reduced reported profitability.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 27, 2026GAAP | $975.3M | – | – |
| Cost of goods sold, three months ended September 27, 2026GAAP | $745.4M | – | – |
| Gross profit, three months ended September 27, 2026GAAP | $229.9M | – | – |
| Warehouse and delivery expense, three months ended September 27, 2026GAAP | $48.87M | – | – |
| Selling, general and administrative expense, three months ended September 27, 2026GAAP | $107.9M | – | – |
| Amortization of intangible assets, three months ended September 27, 2026GAAP | $23.29M | – | – |
| Total operating expenses, three months ended September 27, 2026GAAP | $180.1M | – | – |
| Operating income, three months ended September 27, 2026GAAP | $49.84M | – | – |
| Operating margin, three months ended September 27, 2026GAAP | 5.1% | – | – |
| Interest expense, net, three months ended September 27, 2026GAAP | $18.83M | – | – |
| Income before income taxes, three months ended September 27, 2026GAAP | $31.01M | – | – |
| Income taxes, three months ended September 27, 2026GAAP | $9.95M | – | – |
| Net income, three months ended September 27, 2026GAAP | $21.06M | – | – |
| Basic earnings per common share, three months ended September 27, 2026GAAP | $0.67 | – | – |
| Diluted earnings per common share, three months ended September 27, 2026GAAP | $0.64 | – | – |
| Weighted average shares outstanding - Basic, three months ended September 27, 2026GAAP | 31.48M | – | – |
| Weighted average shares outstanding - Diluted, three months ended September 27, 2026GAAP | 32.66M | – | – |
| Adjusted operating margin, three months ended September 27, 2026non-GAAP | 6.8% | – | flat |
| EBITDA, three months ended September 27, 2026non-GAAP | $92.43M | – | – |
| Adjusted EBITDA, three months ended September 27, 2026non-GAAP | $115.7M | – | increased 3% |
| Adjusted EBITDA margin, three months ended September 27, 2026non-GAAP | 11.9% | – | expanded 40 basis points |
| Adjusted net income, three months ended September 27, 2026non-GAAP | $33.63M | – | – |
| Adjusted diluted earnings per common share, three months ended September 27, 2026non-GAAP | $1.03 | – | – |
| Net sales, nine months ended September 27, 2026GAAP | $3.01B | – | – |
| Gross profit, nine months ended September 27, 2026GAAP | $704.3M | – | – |
| Operating income, nine months ended September 27, 2026GAAP | $191.6M | – | – |
| Operating margin, nine months ended September 27, 2026GAAP | 6.4% | – | – |
| Net income, nine months ended September 27, 2026GAAP | $104.0M | – | – |
| Diluted earnings per common share, nine months ended September 27, 2026GAAP | $3.04 | – | – |
| Adjusted EBITDA, nine months ended September 27, 2026non-GAAP | $355.3M | – | – |
| Adjusted EBITDA margin, nine months ended September 27, 2026non-GAAP | 11.8% | – | – |
| Adjusted net income, nine months ended September 27, 2026non-GAAP | $117.0M | – | – |
| Adjusted diluted earnings per common share, nine months ended September 27, 2026non-GAAP | $3.42 | – | – |
| Net cash provided by operating activities, nine months ended September 27, 2026GAAP | $146.6M | – | – |
| Purchases of property, plant and equipment, nine months ended September 27, 2026GAAP | −$55.85M | – | – |
| Net cash used in investing activities, nine months ended September 27, 2026GAAP | −$79.39M | – | – |
| Net cash flows used in financing activities, nine months ended September 27, 2026GAAP | −$77.55M | – | – |
| Free cash flow, trailing twelve months ended September 27, 2026non-GAAP | $203.4M | – | – |
| Cash and cash equivalents, September 27, 2026GAAP | $16.04M | – | – |
| Total assets, September 27, 2026GAAP | $3.20B | – | – |
| Long-term debt, less current maturities, net, September 27, 2026GAAP | $1.37B | – | – |
| Total shareholders' equity, September 27, 2026GAAP | $1.14B | – | – |
| Total net leverage ratio, end of third quarter 2026non-GAAP | 2.9x | – | – |
| Available liquidity, end of third quarter 2026non-GAAP | approximately $716 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RV (37% of Revenue)RV industry wholesale unit shipments decreased 13%. Content per wholesale RV unit, on a trailing twelve-month basis, increased 4% to $5,263 when compared to the prior-year period and decreased 1% compared to the second quarter of 2026. | $362M | – | decreased 15% |
| Marine (18% of Revenue)The segment outperformed an estimated 8% increase in wholesale powerboat industry unit shipments. Estimated content per wholesale powerboat unit, on a trailing twelve-month basis, increased 20% to $4,942 when compared to the prior-year period and increased 1% when compared to the second quarter of 2026. | $171M | – | increased 14% |
| Powersports (13% of Revenue)Growth was driven by increased attachment rates for Sportech's cab enclosure solutions and other premium vehicle features, including audio, and continued solid demand for utility-focused units. | $128M | – | increased 30% |
| Housing (32% of Revenue, comprised of Manufactured Housing ("MH") and Industrial)Estimated wholesale MH industry unit shipments increased 2% and total housing starts decreased 4%. Estimated content per wholesale MH unit, on a trailing twelve-month basis, decreased 2% to $6,565 compared to the prior-year period and decreased 1% compared to the second quarter of 2026. | $314M | – | increased 4% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Returned $15 million to shareholders in the form of regular quarterly dividends during the third quarter of 2026.
- Patrick did not repurchase shares during the quarter due to restrictions related to the previously announced merger agreement with LCI Industries.
- At the end of the third quarter, the Company had $62 million of unused capacity under its current share repurchase authorization.
What drove it
- Marine growth was driven by growth in estimated content per unit and estimated wholesale powerboat industry unit shipments.
- Powersports benefited from continued solid demand for utility-focused units and stronger attachment rates for cab enclosures.
- Housing revenue increased 4%.
- The Company cited strategic working capital deployment to support its composite products growth strategy and proactive inventory management for customers as drivers of the year-to-date operating cash flow change.
- The Company launched Patrick Printing Solutions, a direct-to-panel printing platform that applies high-resolution graphics and physical textures directly onto composite, wood, and other substrates.
Concerns
- RV revenue decreased 15%, driven by soft RV industry wholesale unit shipments, which decreased 13%.
- GAAP operating margin was 5.1%, compared to 6.8% in the prior-year period.
- Merger-related costs were $14,656 (in thousands) and restructuring and related costs were $2,001 (in thousands) in the third quarter of 2026.
- Management cited high interest rates, elevated fuel costs, inflation and further softening in consumer confidence.
- Total debt at the end of the third quarter was approximately $1.4 billion, and the total net leverage ratio was 2.9x.
What to watch
- RV industry wholesale unit shipments and retail demand, as RV OEMs and dealers remained disciplined in managing field inventory levels.
- Sustainability of Marine content per wholesale powerboat unit, which increased 20% to $4,942 on a trailing twelve-month basis.
- Powersports demand for utility-focused units and attachment rates for cab enclosure solutions.
- Operating cash flow and working capital deployment supporting the composite products growth strategy.
- The pending all-stock merger with LCI Industries: the registration statement on Form S-4 was declared effective by the SEC on October 19, 2026, and Patrick will hold a special meeting of shareholders on November 18, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $16,040 (in thousands) at September 27, 2026, compared to $26,432 (in thousands) at December 31, 2025.
- Trade and other receivables, net were $286,177 (in thousands) at September 27, 2026, compared to $185,405 (in thousands) at December 31, 2025.
- Inventories were $668,964 (in thousands) at September 27, 2026, compared to $595,265 (in thousands) at December 31, 2025.
- Total debt at the end of the third quarter was approximately $1.4 billion.
- Net cash provided by operating activities was $146,551 (in thousands) for the first nine months of 2026, compared to $198,571 (in thousands) in the prior-year period.
- Purchases of property, plant and equipment were $19 million in the third quarter of 2026.
- Free cash flow was $203,371 (in thousands) on a trailing twelve-month basis, compared to $211,060 (in thousands) in the prior-year period.
Analysis
Third-quarter net sales were $975,277 (in thousands), compared with $975,631 (in thousands) in the prior-year period. The portfolio mix was notably divergent: Powersports revenue increased 30% to $128 million, Marine increased 14% to $171 million, and Housing increased 4% to $314 million, while RV revenue decreased 15% to $362 million. Management attributed the RV decline to soft wholesale unit shipments, while Marine benefited from content growth and estimated wholesale powerboat industry unit shipments and Powersports benefited from utility-focused demand and cab enclosure attachment rates.
Reported profitability declined. Operating income was $49,835 (in thousands), compared with $66,293 (in thousands), and operating margin was 5.1%, compared with 6.8%. Net income was $21,056 (in thousands), or $0.64 per diluted share, compared with $35,303 (in thousands), or $1.01 per diluted share. Merger-related costs of $14,656 (in thousands) and restructuring and related costs of $2,001 (in thousands) were material reconciling items. Excluding specified adjustments, adjusted operating margin was unchanged at 6.8%, adjusted EBITDA increased 3% to $115,719 (in thousands), and adjusted diluted EPS increased to $1.03 from $1.01.
Cash generation moderated during the first nine months. Net cash provided by operating activities was $146,551 (in thousands), compared with $198,571 (in thousands), which management attributed to strategic working capital deployment for its composite products strategy and proactive customer inventory management. Trailing-twelve-month free cash flow was $203,371 (in thousands), compared with $211,060 (in thousands). The Company paid $15 million of regular quarterly dividends and did not repurchase shares because of merger-agreement restrictions.
The balance sheet ended the quarter with approximately $716 million of available liquidity, approximately $1.4 billion of total debt, and a 2.9x total net leverage ratio. The near-term outlook commentary describes demand as uneven and points to high interest rates, elevated fuel costs, inflation and weaker consumer confidence. Patrick provided no quantitative forward guidance. The pending all-stock merger with LCI Industries remains central to the strategic discussion, with the Form S-4 declared effective on October 19, 2026 and a shareholder special meeting scheduled for November 18, 2026.
Management, verbatim
Our strategic market diversification and business model, in addition to our focus on innovation and product solutions for customers, continued to drive resilient results in the third quarter.
Andy Nemeth, Chief Executive Officer
Our markets remain dynamic with continued macroeconomic headwinds, including high interest rates, elevated fuel costs and inflation, resulting in a further softening in consumer confidence.
Jeff Rodino, President
We continue to advance Patrick’s full-solutions vision by combining innovative products and components, differentiated technologies, and advanced manufacturing capabilities, even as the near-term demand environment remains uneven.
Andy Nemeth, Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward revenue guidance
- Quantitative forward gross margin guidance
- Quantitative forward operating expense guidance
- Quantitative forward tax rate guidance
- Prior-quarter comparisons for consolidated third-quarter income-statement metrics
- Quantitative earnings guidance
- Share repurchase amount for the third quarter of 2026, as the Company stated that it did not repurchase shares
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Patrick Industries provides component solutions for outdoor, marine, powersports and housing markets; announced an all‑stock merger with LCI Industries.
Ticker impact
Q3 2026 earnings released via 8‑K showing flat sales, lower operating margin and EPS miss.
likely pressure as the market prices in weaker profitability.
Revenue is essentially unchanged year‑over‑year, but operating income fell 24% and EPS dropped from $1.01 to $0.64, prompting downside bias.
Market effects
Outdoor‑enthusiast component market sees mixed signals; marine and powersports growth offset by RV weakness.
U.S. consumer discretionary sector may see modest pullback.
Limited to investors tracking small‑cap industrials.
Counterpoint
Despite earnings miss, cash flow remains strong and merger with LCI Industries could unlock value.
Key entities
- CompanyPatrick Industries, Inc.
NASDAQ‑listed maker of outdoor‑enthusiast components.
- CompanyLCI Industries
Merger partner in an all‑stock transaction.
