Patrick Industries reported that strong growth across its Marine and Powersports businesses largely offset a double-digit decline in RV revenue during the second quarter of 2026, demonstrating the benefits of the company’s expansion beyond its historically important recreational vehicle market.
The company generated second-quarter net sales of $1.04 billion, down less than 1% from $1.05 billion during the same period last year. Marine revenue increased 22%, Powersports revenue rose 28%, and Housing revenue grew 2%, predominantly offsetting a 15% decline in RV revenue.
RV remained Patrick Industries’ largest market, accounting for 39% of quarterly revenue. Revenue from the segment declined to $407 million as RV industry wholesale unit shipments fell 16%.
Patrick continued to expand the amount of content it provides for each RV despite the weaker market. Trailing 12-month RV content per wholesale unit increased 7% year-over-year to $5,303, though it remained unchanged from the first quarter of 2026.
Marine represented 18% of total revenue and generated $191 million during the quarter. The 22% increase was particularly notable because estimated wholesale powerboat industry shipments were flat year-over-year.
Patrick’s estimated content per wholesale powerboat unit increased 22% to $4,883 on a trailing 12-month basis. Content per unit also increased 5% compared with the first quarter, indicating that the company’s Marine growth came primarily from supplying more components and solutions for each boat rather than relying on higher industry production.
Powersports accounted for 12% of total revenue and generated $123 million, representing a 28% year-over-year increase. Patrick attributed the growth to continued demand for utility-focused vehicles, greater penetration among original equipment manufacturers, and higher attachment rates for Sportech cab enclosures.
The company also benefited from increased adoption of premium vehicle content, including audio systems and other components. Patrick said stronger attachment rates within Powersports were instrumental in maintaining relatively stable companywide revenue despite the RV downturn.
Housing, which includes manufactured housing and industrial operations, represented 31% of total revenue. Segment revenue increased 2% to $320 million even though estimated manufactured housing industry shipments declined 8% and total housing starts decreased 1%.
Estimated content per wholesale manufactured housing unit was unchanged year-over-year at $6,673 and increased 1% sequentially.
Although diversification helped stabilize revenue, Patrick Industries experienced pressure on profitability. Operating income declined to $77 million from $87 million, while operating margin contracted to 7.4% from 8.3%.
Adjusted operating margin was 7.5%, compared with 8.3% in the prior-year quarter. The company attributed the decline partly to lower RV industry shipments, increased oil and fuel prices, related fuel surcharges, and costs associated with its pending merger with LCI Industries.
Adjusted EBITDA declined to $126 million from $135 million, while adjusted EBITDA margin fell to 12.1% from 12.9%.
Reported net income increased 34% to $43 million, and diluted earnings per share increased 33% to $1.28. However, the prior-year quarter included a $24.4 million one-time legal settlement expense.
On an adjusted basis, net income declined to $44 million from $51 million, while adjusted diluted earnings per share decreased to $1.29 from $1.50. Second-quarter earnings per share also included approximately $0.07 of dilution from Patrick’s convertible notes and related warrants, compared with $0.03 in the prior-year period.
Cash flow weakened as Patrick invested in working capital and maintained elevated inventory levels to support its composite-products growth strategy. Cash provided by operating activities declined to $69 million during the first half of 2026 from $189 million in the prior-year period.
Trailing 12-month free cash flow decreased to $128 million from $262 million. Inventories increased to $653.3 million as of June 28, 2026, compared with $595.3 million at the end of 2025.
Patrick returned $106 million to shareholders during the second quarter. This included $15 million in quarterly dividends and $91 million used to repurchase 980,000 shares.
The company had $62 million remaining under its existing share repurchase authorization at the end of the quarter. Total debt was approximately $1.4 billion, its total net leverage ratio was three times, and available liquidity totaled approximately $691 million.
Patrick Industries is taking a cautious approach to the remainder of the year due to continued macroeconomic uncertainty across its end markets. Management said it is not depending on a near-term market rebound and is instead focusing on cost-effective product development, operating efficiencies, customer relationships, and higher-value growth initiatives.
The company also plans to continue pursuing acquisition opportunities that align with its strategic plan. Patrick announced after the quarter that it had signed a definitive agreement to combine with LCI Industries through an all-stock merger.
The proposed combination is expected to expand the companies’ ability to serve manufacturers across the RV, Marine, Powersports, and Housing markets, though completion remains subject to regulatory approvals and other closing conditions.
KEY QUOTES:
“Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team, and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions. Our strategic diversification across distinct end markets continued to support our overall performance in what has been a challenging consumer discretionary environment. Growth in our Marine, Powersports, and Housing businesses largely offset a double-digit percentage decline in our RV end market revenue amid equally soft RV industry wholesale unit shipments. Despite this uncertainty, we remain encouraged by the level of discipline across the value chain in each of our markets, as our teams, the OEMs we serve, and dealers continue to focus on measured production schedules and prudent inventory management, supporting healthy long-term industry dynamics. Across Patrick, we are staying close to our customers, investing in innovation, and driving additional operational efficiencies, while preserving the flexibility to exceed customer expectations.”
Andy Nemeth, Chief Executive Officer Of Patrick Industries
