Patrick Industries (PATK) Q4 2025 earnings summary

Executive summary

• Net sales rose 9% year-over-year in Q4 2025 to $924M, driven by strong growth in Outdoor Enthusiast markets and strategic acquisitions, partially offset by a decline in Housing revenue.

• Adjusted EBITDA increased 17% to $105M, with adjusted operating margin up 110 bps to 6.3% in Q4.

• Free cash flow for 2025 was $246M, up 49% from FY 2019.

• Five acquisitions completed in 2025, enhancing technology, engineering, and aftermarket capabilities.

• Launched 'The Experience,' a virtual design and reality solution to deepen customer collaboration and speed-to-market.

Financial highlights

• Q4 net sales increased 9% year-over-year to $924M; full-year net sales up 6% to $4B.

• Q4 adjusted EPS was $0.84 (up 62%); full-year adjusted EPS was $4.44 (up 2%).

• Q4 adjusted EBITDA rose 17% to $105M; margin up 80 bps to 11.4%.

• Free cash flow for the year was $246M; operating cash flow $329M.

• Dividend increased 17.5% in 2025; $87M returned to shareholders via buybacks and dividends.

Outlook and guidance

• 2026 adjusted operating margin expected to improve by 70-90 bps versus 2025.

• Free cash flow projected to exceed $300M in FY 2026; CapEx $70-$80M.

• RV and Marine wholesale shipments forecasted to grow low- to mid-single digits; Housing and Powersports expected flat to up 5%.

• 2026 tax rate estimated at 24-25%.

• Management focused on disciplined cost structure, scalability, and strategic priorities including acquisitions and automation.