LCI Industries (LCII) Q1 2025 earnings summary

Executive summary

• Net sales reached $1.05 billion in Q1 2025, up 8% year-over-year, driven by OEM segment growth, market share gains, and the strongest quarterly growth since June 2022.

• Net income rose 35% to $49.4 million ($1.94 per diluted share); adjusted net income was $56 million, up 52% year-over-year.

• Adjusted EBITDA increased 23% to $111 million, representing 10.6% of net sales.

• Operating profit margin expanded to 7.8%, up 180 basis points, driven by manufacturing execution and cost actions.

• Strategic acquisitions of Freedman Seating and Trans/Air added $200 million in annualized revenue and deepened bus and specialty vehicle market presence.

Financial highlights

• Q1 2025 net sales: $1,045.6 million, up 8% year-over-year; OEM net sales: $823.6 million, up 9%; RV OEM net sales: $531 million, up 15%.

• Aftermarket net sales: $222 million, up 6%; Adjacent industries: $293 million, down 2%.

• Gross margin: 24.1% of net sales; operating profit: $81 million (7.8% margin).

• GAAP net income: $49 million; adjusted net income: $56 million ($2.19 EPS); adjusted EBITDA: $111 million (10.6% of net sales).

• Cash and equivalents: $231 million at March 31, 2025; net cash from operating activities: $43 million.

Outlook and guidance

• Projecting 320,000–350,000 North American RV wholesale shipments for 2025 amid tariff uncertainties.

• On track for $5 billion organic revenue target by 2027, excluding acquisitions.

• Q2 revenue expected to be flat year-over-year; RV OEM sales up ~5%, continued softness in marine and adjacent markets.

• Capital expenditures for 2025 anticipated at $50–$70 million; annual tax rate guidance 25%–27%.

• Targeting 85 basis point margin improvement in 2025 through infrastructure optimization.