Patrick Industries (PATK) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales were $997.2 million, down 1% year-over-year, with Marine and Powersports growth offsetting RV and Housing declines; net income rose 3% to $39.5 million and diluted EPS was $1.10, including $0.10 dilution from convertible notes.

• Operating margin held steady at 6.5%, with operating income at $65 million; adjusted EBITDA was $113 million (11.4% margin), down from $116 million.

• Diversified platform and innovation in marine and powersports offset double-digit shipment declines in RV and manufactured housing.

• $31 million was returned to shareholders in Q1 2026 via dividends and share repurchases.

• Announced merger of equals discussions with LCI Industries, aiming for enhanced value and synergies.

Financial highlights

• Gross margin was 22.8%, unchanged year-over-year; operating margin was 6.5%, also flat.

• Adjusted EBITDA was $113 million (11.4% margin), down from $116 million last year.

• Free cash flow for the trailing twelve months was $194 million.

• Cash used in operations was $14 million, reflecting inventory build for anticipated demand.

• Net leverage at 2.8x; total net liquidity at quarter-end was $734 million, with $696 million in unused revolver capacity.

Outlook and guidance

• FY 2026 RV wholesale shipments expected between 315,000 and 330,000 units; marine and powersports shipments projected flat to up low-single digits; housing starts expected flat to up 5%.

• Adjusted operating margin guidance raised by 30–50 basis points to 7.0% for FY 2026; free cash flow expected at $300 million+, with capex of $70–$80 million.

• Management expects existing liquidity and cash flow to cover working capital and capital expenditures for at least the next 12 months.

• Strategic focus remains on organic growth, composite product innovation, disciplined M&A, and capital deployment for long-term value.

• Continued investment in technology and advanced manufacturing, including AI-driven tools, to enhance operational efficiency.