LCI INDUSTRIES REPORTS THIRD QUARTER FINANCIAL RESULTS
LCI INDUSTRIES (LCII) filed an SEC Form 8-K — Results of Operations and Financial Condition. LCI INDUSTRIES REPORTS THIRD QUARTER FINANCIAL RESULTS Growth in Adjacent Industries and Aftermarket; Strong Execution Drives Operating Margin Expansion Third Quarter 2026 Highlights versus Third Quarter 2025 • Consolidated net sales of $992 million relative to $1,036 million • D
How this was made
The 30-second read
Why it matters
The earnings release updates guidance and highlights margin improvement, offering fresh data for traders.
Market read
The earnings data provides a new decision point for investors in LCII and related RV component stocks.
What to watch
The merger with Patrick Industries may provide long‑term upside that the market is underweighting.
LCI Industries reported lower third-quarter sales and GAAP earnings amid reduced RV OEM demand, while Adjacent Industries and Aftermarket growth, cost actions and higher content per unit supported operating-margin expansion and adjusted EPS growth.
Consolidated net sales, net income and diluted EPS declined year over year as RV wholesale shipments and OEM sales fell, while adjusted operating profit margin, adjusted EPS and adjusted EBITDA improved. Diversified sales growth partly offset the RV downturn, but the outlook calls for October sales to be down 10% from the prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales — three months ended September 30, 2026GAAP | $992.5M | – | – |
| Cost of sales — three months ended September 30, 2026GAAP | $728.7M | – | – |
| Gross profit — three months ended September 30, 2026GAAP | $263.8M | – | – |
| Warehouse and transportation expense — three months ended September 30, 2026GAAP | $59.46M | – | – |
| Selling, general and administrative expenses — three months ended September 30, 2026GAAP | $129.3M | – | – |
| Operating profit — three months ended September 30, 2026GAAP | $75.02M | – | – |
| Operating profit margin — three months ended September 30, 2026GAAP | 7.6% | – | expanded 30 bps |
| Adjusted operating profit margin — three months ended September 30, 2026non-GAAP | 8.3% | – | expanded 100 bps |
| Interest expense, net — three months ended September 30, 2026GAAP | $8.39M | – | – |
| Income before income taxes — three months ended September 30, 2026GAAP | $68.31M | – | – |
| Provision for income taxes — three months ended September 30, 2026GAAP | $18.22M | – | – |
| Effective tax rate — three months ended September 30, 2026GAAP | 26.7% | – | – |
| Net income — three months ended September 30, 2026GAAP | $50.1M | – | – |
| Net income as a percentage of net sales — three months ended September 30, 2026GAAP | 5.0% | – | – |
| Diluted earnings per share — three months ended September 30, 2026GAAP | $2.05 | – | decreased 20% |
| Adjusted net income — three months ended September 30, 2026non-GAAP | $54M | – | – |
| Adjusted diluted EPS — three months ended September 30, 2026non-GAAP | $2.21 | – | increased 12% |
| Adjusted EBITDA — three months ended September 30, 2026non-GAAP | $111.5M | – | – |
| Adjusted EBITDA as a percentage of adjusted net sales — three months ended September 30, 2026non-GAAP | 11.2% | – | – |
| Depreciation — three months ended September 30, 2026GAAP | $16.00M | – | – |
| Amortization — three months ended September 30, 2026GAAP | $12.94M | – | – |
| Capital expenditures — three months ended September 30, 2026GAAP | $13.45M | – | – |
| Net sales — nine months ended September 30, 2026GAAP | $3.05B | – | – |
| Gross profit — nine months ended September 30, 2026GAAP | $838.6M | – | – |
| Operating profit — nine months ended September 30, 2026GAAP | $266.1M | – | – |
| Net income — nine months ended September 30, 2026GAAP | $180.2M | – | – |
| Diluted earnings per share — nine months ended September 30, 2026GAAP | $ 7.39 | – | – |
| Adjusted EBITDA — nine months ended September 30, 2026non-GAAP | $365.8M | – | – |
| Adjusted operating profit margin — nine months ended September 30, 2026non-GAAP | 8.8% | – | – |
| Adjusted EPS — nine months ended September 30, 2026non-GAAP | $ 7.50 | – | – |
| Cash flows from operations — last twelve months ended September 30, 2026GAAP | $316M | – | – |
| Net cash flows provided by operating activities — nine months ended September 30, 2026GAAP | $237.3M | – | – |
| Capital expenditures — nine months ended September 30, 2026GAAP | $41.88M | – | – |
| Cash and cash equivalents — September 30, 2026GAAP | $245.6M | – | – |
| Outstanding long-term indebtedness, including current maturities — September 30, 2026GAAP | $852.4M | – | – |
| Borrowing availability under revolving credit facility — September 30, 2026other | $595.4M | – | – |
| Travel trailer and fifth-wheel RV content per industry unit produced — twelve months ended September 30, 2026other | $ 5,733 | – | up 6% |
| Motorhome RV content per industry unit produced — twelve months ended September 30, 2026other | $ 3,873 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| OEM Segment — third quarter 2026Lower North American RV wholesale shipments reduced sales, partially offset by selling-price increases contractually tied to indices of select commodities, automotive aftermarket growth and acquired-business sales. | $732.3M | – | decreased $57.7 million, or 7% |
| RV OEM — third quarter 2026Lower North American travel trailer and fifth-wheel shipments and a sales-mix shift toward lower-content single axle travel trailers were partly offset by commodity-index-linked selling-price increases. | $389.9M | – | decreased 17% |
| Adjacent Industries OEM — third quarter 2026Higher sales to North American transportation, marine and manufactured housing OEMs. | $342.4M | – | increased 7% year-over-year |
| Aftermarket Segment — third quarter 2026Higher automotive aftermarket volume. | $260.2M | – | increased 6% |
| OEM Segment operating profit — third quarter 2026Operating profit margin was 6.0% of net sales, compared to 5.5% in the same period in 2025. Pricing, cost improvement actions and component mix were partly offset by lower-volume fixed-cost absorption, tariff-related pricing changes, higher material and freight costs, and merger-related expenses. | $44.1M | – | – |
| Aftermarket Segment operating profit — third quarter 2026Operating profit margin was 11.9% of net sales, compared to 12.9% in the same period in 2025. Tariff-related material and freight costs, capacity and distribution investments, restructuring costs and merger-related expenses were partly offset by higher automotive aftermarket production volumes, cost actions and targeted pricing. | $30.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
October 2026 and full-year 2026 outlook
- RevenueOctober 2026 net sales of approximately $341 million, down 10% from prior year; 2026 revenue of $3.9 billion to $4.0 billion
- Tax rateAnnual tax rate 25% - 27%
- Note2026 North American RV wholesale shipments of 285,000 to 295,000
- Note2026 adjusted operating profit margin of 7.5% to 8.0%
- Note2026 adjusted EPS of $8.25 to $8.50
- NoteCapital expenditures of $55 - $65 million
- NoteDepreciation and amortization of $115 - $125 million
- NoteStock-based compensation expense of $22 - $25 million
Capital returns
- $28 million returned to shareholders via dividends during the quarter.
- The Company used $83.8 million for dividend payments to shareholders in the nine months ended September 30, 2026.
- The Company used $92.0 million to pay off the remaining balance of its 2026 Convertible Notes at maturity in the nine months ended September 30, 2026.
What drove it
- Adjacent Industries OEM net sales increased 7% year over year, driven by transportation, marine and manufactured housing OEM sales.
- Aftermarket net sales increased 6%, driven by automotive aftermarket volume.
- Cost improvement actions, including materials sourcing strategies, supported consolidated margin expansion.
- Towable RV content per unit was up 6% to $5,733.
- Selling-price increases contractually tied to indices of select commodities partly offset weaker RV OEM demand.
- Sales from acquired businesses contributed $5.2 million in the third quarter.
Concerns
- Consolidated net sales declined to $992.5 million from $1,036.5 million, primarily due to lower North American RV wholesale shipments.
- RV OEM net sales decreased 17% to $389.9 million amid lower travel trailer and fifth-wheel shipments and a shift toward lower-content single axle travel trailers.
- GAAP net income declined to $50.1 million from $62.5 million, and diluted EPS declined 20% to $2.05.
- Lower sales volumes reduced absorption of fixed costs.
- Higher steel and aluminum costs, rising fuel costs, tariff-related costs, restructuring costs and merger-related expenses pressured segment profitability.
- The company expects October 2026 net sales of approximately $341 million, down 10% from the prior year.
What to watch
- Execution against 2026 revenue guidance of $3.9 billion to $4.0 billion and adjusted operating profit margin guidance of 7.5% to 8.0%.
- North American RV wholesale shipments against the company's 2026 outlook of 285,000 to 295,000.
- Whether Adjacent Industries OEM and automotive aftermarket growth continues to mitigate constrained new-unit RV demand.
- The effect of materials sourcing, commodity-index-linked pricing, tariffs, steel and aluminum costs, and freight costs on margins.
- The special meeting of stockholders on November 18, 2026 and progress toward the proposed Patrick Industries merger, which the company expects to close in the first half of 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $245.6 million at September 30, 2026, relative to $222.6 million at December 31, 2025.
- Liquidity was $841 million, comprising $246 million of cash and cash equivalents and $595 million of availability on the revolving credit facility at September 30, 2026.
- Outstanding long-term indebtedness, including current maturities, was $852.4 million at September 30, 2026.
- Net cash flows provided by operating activities were $ 237,275 (In thousands) for the nine months ended September 30, 2026, compared to 252,104 in the prior-year period.
- Net cash flows used in investing activities were $ 30,495 (In thousands) for the nine months ended September 30, 2026, compared to 121,636 in the prior-year period.
- Net cash flows used in financing activities were $ 185,781 (In thousands) for the nine months ended September 30, 2026, compared to 96,216 in the prior-year period.
Analysis
LCI Industries reported third-quarter consolidated net sales of $992.5 million, compared with $1,036.5 million in the same period of 2025. The decline was principally tied to lower North American RV wholesale shipments. OEM segment sales decreased 7% to $732.3 million, with RV OEM sales down 17% to $389.9 million. Lower travel trailer and fifth-wheel shipments and a shift toward lower-content single axle travel trailers weighed on RV sales. Adjacent Industries OEM sales increased 7% to $342.4 million, while Aftermarket sales increased 6% to $260.2 million, providing diversification against the weaker RV market.
Profitability improved on an adjusted basis despite the lower sales base. GAAP operating profit margin expanded to 7.6% from 7.3%, and adjusted operating profit margin expanded to 8.3% from 7.3%. The company attributed the operating-margin improvement primarily to cost improvement actions, including materials sourcing strategies. Lower fixed-cost absorption from reduced sales volumes and merger-related expenses remained offsets. Adjusted EBITDA increased to $111.5 million from $105.9 million and adjusted EBITDA margin was 11.2%, compared with 10.2%.
GAAP earnings declined, with net income of $50.1 million versus $62.5 million and diluted EPS of $2.05 versus $2.55. Adjusted net income rose to $54.0 million from $48.1 million, and adjusted diluted EPS increased to $2.21 from $1.97. The reconciliation identifies restructuring costs of $2,393 and merger expenses of $5,120 in the third quarter. The effective tax rate was 26.7%, compared with 25.6%, with the increase attributed to a reduction in a discrete tax benefit and a write-off of projected non-deductible deferred executive compensation.
Liquidity included $245.6 million of cash and cash equivalents and $595.4 million of revolver availability at September 30, 2026. The company reported $316 million of cash flows from operations for the last twelve months ended September 30, 2026. During the nine months ended September 30, 2026, it used $92.0 million to retire the remaining 2026 Convertible Notes balance, $83.8 million for dividends and $41.9 million for capital expenditures. It returned $28 million through dividends during the quarter.
The outlook calls for October 2026 net sales of approximately $341 million, down 10% from the prior year, and full-year revenue of $3.9 billion to $4.0 billion. The company guides to 2026 adjusted operating profit margin of 7.5% to 8.0% and adjusted EPS of $8.25 to $8.50. Management continues to frame constrained new-unit RV demand as the central market pressure, while identifying its product pipeline, the installed RV base, aftermarket demand and Adjacent Industries as growth opportunities. The company also expects the proposed merger with Patrick Industries to close in the first half of 2027.
Management, verbatim
Our third-quarter results reflect continued progress in improving profitability in a soft outdoor recreation market. Margin expansion and 6% growth in product content per unit contributed to our performance and position us to achieve our updated full-year outlook.
Johnny Sirpilla, Interim Chief Executive Officer
Our 2026 performance has been driven by taking actions on those areas within our control. This includes the ongoing pursuit of operational efficiencies and strategic cost reductions. Our cost management and growth in adjacent industries and aftermarket sales contributed to our bottom line results and we believe leave us well-positioned as conditions normalize.
Johnny Sirpilla, Interim Chief Executive Officer
Our new product pipeline and the repair and replacement needs of the installed RV base provide opportunities to serve customers even as demand for new units remains constrained. We are also advancing toward the proposed merger with Patrick Industries, which we continue to expect to close in the first half of 2027.
Johnny Sirpilla, Interim Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- GAAP gross margin was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Quarterly common-stock repurchases were not reported.
- Prior-quarter comparisons were not reported for the financial metrics.
- Forward gross margin guidance and forward operating-expense guidance were not reported.
- A quantitative full-year 2026 GAAP EPS outlook was not reported.
- A quantitative full-year 2026 GAAP operating profit margin outlook was not reported.
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 is checked against the filing text, and a metric the filing does not print, or 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
LCII filed an 8‑K reporting its third‑quarter financial results, including adjusted EPS, EBITDA, and a pending merger.
Ticker impact
LCII reported Q3 2026 results with lower net sales but margin expansion and updated full-year outlook.
likely modest pressure as investors weigh lower sales against margin expansion.
The primary disclosure of earnings numbers and updated guidance provides fresh data; the net sales drop may weigh on the stock while margin improvement offers some support.
Market effects
RV and aftermarket segments may see broader scrutiny as sales soften, potentially affecting peers.
U.S. recreational vehicle component suppliers could experience similar pressure.
Limited to North American component manufacturers.
Counterpoint
Margin expansion could signal operational resilience, suggesting a buying opportunity despite revenue decline.
Key entities
- companyLCII
LCI Industries, NYSE listed supplier of engineered components.
- companyPatrick Industries
Merger partner for LCII.
