LCI Industries (LCII) Q2 2025 earnings summary

Executive summary

• Net sales reached $1.1 billion in Q2 2025, up 5% year-over-year, driven by market share gains, acquisitions, and supply chain initiatives.

• Net income was $57.6 million ($2.29 per diluted share), down from $61.2 million in Q2 2024, impacted by higher costs and executive separation expenses; adjusted net income was $60 million.

• Adjusted EBITDA was $121 million (11.0% of net sales), down 1% year-over-year, with margin contraction due to tariffs, product mix, and executive costs.

• Growth supported by strategic acquisitions (Freedman Seating, Trans/Air), product innovation, and supply chain diversification.

• Strong liquidity with $192 million in cash and $595 million available on the revolving credit facility as of June 30, 2025.

Financial highlights

• Q2 2025 net sales were $1,107 million, up from $1,055 million in Q2 2024.

• Gross margin was 24.4% (down from 25.3%); operating margin was 7.9% (down from 8.6%).

• Net income for Q2 2025 was $57.6 million; adjusted EBITDA was $121 million.

• Cash and equivalents were $192 million at June 30, 2025; free cash flow for the first half was $133 million.

• Net debt/Adjusted EBITDA (TTM) was 2.1x as of June 30, 2025.

Outlook and guidance

• Full-year 2025 North America RV wholesale shipment forecast maintained at 320,000–350,000 units.

• Q3 2025 revenue expected to be up 5% year-over-year, with EBIT margins similar to 2024.

• On track to achieve $5 billion organic revenue by 2027 and 85 bps overhead/G&A improvement in 2025.

• Full-year 2025 capital expenditures estimated at $50–$70 million.

• Operating cash flows and credit facilities considered sufficient for anticipated needs over the next twelve months.