LCI Industries

For Q2 2026, adjusted consolidated net sales were down 4% to $1.1 billion. OEM net sales declined 10% and aftermarket net sales grew 11%. Towable RV wholesale units were down 20% in the quarter. Adjusted operating profit was $99 million, up 8%, with adjusted operating margin at 9.3%, up 110 basis points. Adjusted EBITDA increased 7% to $129 million, with margin at 12.2% versus 11% a year ago. GAAP net income rose 16% to $67 million, with diluted GAAP EPS of $2.75 versus $2.29, and adjusted diluted EPS was $2.70 versus $2.39, up 13%. Cash and cash equivalents were $217 million, availability under the revolver was $595 million, total liquidity was $812 million, net debt was $636 million, and net debt to adjusted EBITDA was 1.5x. Capex was $19 million and dividends paid were $28 million, with a payout of $1.15 per share. For the full year, management now expects RV industry wholesale shipments of 280,000 to 300,000 units, adjusted revenue of $3.9 billion to $4.1 billion, adjusted operating margin of 7.5% to 8%, adjusted EPS of $8.25 to $8.75, and CapEx of $55 million to $65 million. July adjusted net sales were about $315 million.

John Sirpilla framed the quarter as a proof point for LCI's self-help strategy, saying profitability improved despite soft outdoor recreation demand. He highlighted disciplined cost reduction, facility consolidations, better quality, reshoring of procurement, and increased content per unit as the core levers supporting earnings power. He also said the Patrick merger could unlock long-term value, but until closing the company is operating normally and staying focused on execution, innovation, and aftermarket growth.

Lillian Etzkorn emphasized that the company is executing well against operational efficiencies and strategic cost reductions that have structurally improved the cost base. She pointed to 160 basis points of year-over-year margin improvement from self-help actions, 11% aftermarket sales growth, and margin expansion to 7.5% in OEM and 14% in aftermarket. On the balance sheet, she cited $217 million of cash, $595 million of revolver availability, $812 million of total liquidity, and 1.5x net debt to adjusted EBITDA after paying off the 2026 convertible notes in May. She also noted tariff refunds are pass-through items and that the company has already accounted for expected tariff activity in Q2 financials.

Analysts focused on affordability, aftermarket momentum, pricing power, Q3/Q4 cadence, and merger/regulatory questions. Management said broader affordability actions are already happening through G&A reduction, facility consolidations, quality improvements, and procurement reshoring, and that those efforts are intended to support volume. On aftermarket, they said repair/replacement and used-unit activity are creating a durable tailwind, while automotive is softer but benefiting from share gains after a competitor bankruptcy. They also said full-year seasonality should be more normal than in past years, and declined to discuss merger details beyond what has been publicly disclosed.