Patrick Industries (PATK) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 grew 7% year-over-year to $1.003 billion, led by 14% growth in RV and 7% in Housing, while Marine and Powersports declined.

• Net income increased 9% to $38 million, with diluted EPS of $1.11; adjusted diluted EPS was $1.11, down from $1.19 last year due to higher dilution from convertible notes.

• EBITDA grew 9% to $108 million; adjusted EBITDA up 4% to $116 million, with margin down 40 bps to 11.5%.

• Two acquisitions completed in Q1 2025, expanding product offerings and contributing $4.3 million in net sales.

• Over $22 million was returned to shareholders via $8.5 million in share repurchases and $14 million in dividends.

Financial highlights

• Gross margin improved 90 bps to 22.8%; operating margin up 10 bps to 6.5%; adjusted operating margin down 50 bps to 6.5%.

• Adjusted diluted EPS was $1.11, down from $1.19 in Q1 2024.

• Operating cash flow for Q1 was $40 million, up 14% year-over-year; capex was $20 million.

• Free cash flow for the trailing twelve months was $251 million.

• Net leverage at 2.7x; total net liquidity of $745 million, including $87 million cash and $658 million undrawn revolver.

Outlook and guidance

• Full-year 2025 adjusted operating margin expected at 7.0%-7.3%.

• Free cash flow projected at $270 million–$305 million for FY 2025; capex of $70–85 million.

• Effective tax rate expected at 24%-25% for 2025.

• RV retail unit shipments now forecast down mid to high single digits; Marine retail expected down high single to low double digits.

• Management remains cautious on macroeconomic uncertainty, tariffs, and consumer sentiment, but confident in financial flexibility.