Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering LCI (LCII) , which belongs to the Zacks Automotive - Original Equipment industry.When looking at the last two reports, this recreational vehicle parts supplier has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 36.72%, on average, in the last two quarters.For the most recent quarter, LCI was expected to post ear ...

Financial Performance - Net sales for Q1 2025 reached $1,045,590, an increase of 8.0% compared to $968,029 in Q1 2024[9] - Gross profit for the same period was $251,749, reflecting a 12.5% increase from $223,906 in Q1 2024[9] - Net income for Q1 2025 was $49,438, up 35.2% from $36,545 in Q1 2024[12] - Total comprehensive income for Q1 2025 was $59,867, compared to $33,282 in Q1 2024, marking an increase of 79.9%[12] - Operating profit for Q1 2025 was $81,317, a significant increase of 41.1% from $57,611 in Q1 2024[9] - The OEM Segment accounted for 79% of consolidated net sales in Q1 2025, with net sales of $823.6 million, up from $758.3 million in Q1 2024[84] - The Aftermarket Segment represented 21% of consolidated net sales in Q1 2025, generating $222.0 million, compared to $209.7 million in Q1 2024[85] - Gross profit for the three months ended March 31, 2025, was $251.7 million, reflecting a gross margin of approximately 24.1%[87] - Operating profit for the OEM Segment was $61.9 million, while the Aftermarket Segment reported an operating profit of $19.3 million for the same period[87] Cash and Assets - Cash and cash equivalents increased to $231,243 as of March 31, 2025, from $165,756 at the end of 2024, a rise of 39.5%[14] - Total assets grew to $3,099,998 as of March 31, 2025, up from $2,894,739 at the end of 2024, representing an increase of 7.1%[14] - The total stockholders' equity increased to $1,366,713,000 as of March 31, 2025, from $1,356,884,000 as of December 31, 2024[22] - As of March 31, 2025, the company had $231.2 million in cash and cash equivalents and $595.3 million available under its revolving credit facility[129] Debt and Financing - The company reported a loss on extinguishment of debt amounting to $8,053 in Q1 2025, with no such loss reported in Q1 2024[9] - Long-term indebtedness rose from $756.830 million on December 31, 2024, to $934.632 million on March 31, 2025, primarily due to the issuance of 2030 Convertible Notes[52] - The Company has a $600.0 million revolving credit facility, with a maturity date of March 25, 2030, and term loans of $400.0 million maturing on March 25, 2032[53] - The company issued $460.0 million in aggregate principal amount of 2030 Convertible Notes, resulting in net proceeds of approximately $447.0 million after expenses[58] - The company repaid $280.0 million of the previous term loan and recognized a loss on extinguishment of debt of $1.9 million during the three months ended March 31, 2025[57] Shareholder Returns - Cash dividends declared were $1.15 per share, totaling $29,352,000 for the three months ended March 31, 2025[22] - The company returned $57.6 million to shareholders in Q1 2025 through dividends and share repurchases[117] - As of March 31, 2025, the company had $147.6 million remaining under its stock repurchase program, having repurchased 308,898 shares at an average price of $91.47 per share in March 2025[82] Acquisitions and Investments - The company made an acquisition of a business costing $29,579 during Q1 2025[17] - The Company acquired Freedman Seating Company for approximately $78.7 million in April 2025, which will be included primarily in the OEM segment[44] - The Company acquired Trans/Air Manufacturing Corporation for $29.6 million in cash, with contingent consideration up to $2.0 million, included in the OEM segment[45] - Goodwill increased from $585.773 million on December 31, 2024, to $590.204 million on March 31, 2025, reflecting acquisitions and foreign currency translation[46] Operational Footprint - The company operated over 110 manufacturing and distribution facilities across North America and Europe as of March 31, 2025[25] - The company has diversified its portfolio beyond the RV OEM market into marine, building products, transportation, and aftermarket sectors, aiming for profitable growth and risk mitigation[94] Market Trends - The RV industry saw an 18% increase in wholesale shipments of travel trailers and fifth-wheels to 86,400 units in Q1 2025, while retail demand for these units decreased by 7%[99][101] - The U.S. RV ownership base reached a record 8.1 million households in 2025, driving robust demand for aftermarket products[109] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 26.5%, an increase from 24.3% in the same period of 2024[127] - As of March 31, 2025, the Company was in compliance with all financial covenants under the Credit Agreement[55] Future Outlook - The company anticipates that sales and profits will be strongest in the second quarter, influenced by seasonal demand patterns[26] - Capital expenditures for 2025 are estimated to be between $50 million and $70 million, including investments in automation and lean projects[137]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $1,000,000,000 for Q1 2025, an increase of 8% year over year, marking the highest quarterly growth since June 2022 [4][25] - Operating profit for the first quarter was $81,000,000, representing a 180 basis point improvement over the prior year period, with an operating margin of 7.8% [28] - GAAP net income for Q1 was $49,000,000, or $1.94 per diluted share, compared to $37,000,000, or $1.44 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - RV OEM net sales totaled $531,000,000 for Q1, up 15% year over year, driven by an 18% increase in North American travel trailer and fifth wheel wholesale shipments [6][25] - Aftermarket net sales were $222,000,000 for Q1, up 6% year over year, supported by higher volumes in the RV and marine aftermarket [9][27] - Adjacent Industries OEM net sales decreased by 2% to $293,000,000, primarily due to lower sales in the marine sector [12][26] Market Data and Key Metrics Changes - The company anticipates wholesale shipments in 2025 to range between 320,000 to 350,000 units, reflecting consumer demand headwinds and economic uncertainty [32] - April sales increased by 3% year over year, with RV sales up 7%, while marine sales were down 15% due to inflation and high interest rates affecting retail demand [9][32] Company Strategy and Development Direction - The company aims to achieve $5,000,000,000 in revenue by 2027, focusing on organic growth without including acquisitions [4][35] - Recent acquisitions of Freedom Seating and TransAir are expected to strengthen the company's position in the bus market, which is less susceptible to economic cycles [5][16] - The company is actively diversifying its supply chain to mitigate tariff impacts, with a goal to reduce reliance on Chinese suppliers from 35% to approximately 10% by the end of 2025 [18][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious confidence for the second and third quarters, acknowledging inflationary pressures and market volatility affecting consumer behavior [22][23] - The company is focused on maintaining solid operating margins despite headwinds, with expectations for RV OEM sales to increase by about 5% in Q2 [33][101] - Management emphasized the importance of operational flexibility and strategic diversification to navigate challenges and deliver shareholder value [35][23] Other Important Information - The company generated $43,000,000 in operating cash flow for Q1, significantly up from the prior year, and continued to return capital to shareholders through dividends and share repurchases [17][31] - The company has a net debt position of approximately 2x EBITDA, providing financial flexibility for future opportunities [18][32] Q&A Session Summary Question: What is the annualized revenue opportunity for the recent acquisitions? - The combined annualized revenue opportunity for TransAir and Freedom Seating is estimated at about $200,000,000, and both businesses are expected to be accretive to results [40] Question: What has been the measurable impact of tariffs on retail demand? - Currently, there has not been much movement in retail prices on dealer lots, but changes are expected with model year pricing in the summer [44] Question: What is the expected impact of tariffs on margins? - The company estimates a potential margin impact of 180 basis points for the year, which could be higher if mitigation efforts are not successful [52] Question: How is the company diversifying its supply chain out of China? - The company has diversified its supply chain significantly, moving production to countries like Vietnam, India, and Turkey, with a focus on appliances, furniture, and axles [68] Question: What are the expectations for organic revenue in Q2? - RV OEM sales are expected to be up about 5%, while overall organic revenue is likely to be flat due to softness in adjacent markets [101]

分组1 - LCI reported quarterly earnings of $2.19 per share, exceeding the Zacks Consensus Estimate of $1.55 per share, and up from $1.44 per share a year ago, representing an earnings surprise of 41.29% [1] - The company achieved revenues of $1.05 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.97%, compared to $968.03 million in the same quarter last year [2] - LCI has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 23.9% since the beginning of the year, while the S&P 500 declined by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $2.48 on revenues of $1.07 billion, and for the current fiscal year, it is $6.59 on revenues of $3.88 billion [7] - The Automotive - Original Equipment industry, to which LCI belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, which may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $1,000,000,000 for Q1 2025, an increase of 8% year over year, marking the highest quarterly growth since June 2022 [4][24]. - Operating profit for the quarter was $81,000,000, representing a 180 basis point improvement over the prior year period, with an operating margin of 7.8% [27]. - GAAP net income was $49,000,000, or $1.94 per diluted share, compared to $37,000,000, or $1.44 per diluted share in the prior year [29]. Business Line Data and Key Metrics Changes - RV OEM net sales totaled $531,000,000 for Q1 2025, up 15% year over year, driven by an 18% increase in North American travel trailer and fifth wheel wholesale shipments [6][24]. - Aftermarket net sales were $222,000,000, a 6% increase year over year, supported by higher volumes in the RV and marine aftermarket [10][26]. - Adjacent Industries OEM net sales decreased by 2% to $293,000,000, primarily due to lower sales in the marine sector [13][25]. Market Data and Key Metrics Changes - The company anticipates wholesale shipments in 2025 to range between 320,000 and 350,000 units, reflecting consumer demand headwinds and economic uncertainty [32]. - April sales increased by 3% year over year, with RV sales up 7%, while adjacent sales rose by 9% due to the TransAir acquisition [32]. Company Strategy and Development Direction - The company aims to achieve $5,000,000,000 in revenue by 2027, focusing on organic growth without including acquisitions [34]. - Recent acquisitions of Freedom Seating and TransAir are expected to strengthen the company's position in the bus market, which is less susceptible to economic cycles [5][16]. - The company is actively diversifying its supply chain to mitigate tariff impacts, with a goal to reduce reliance on Chinese suppliers from 35% to approximately one-third by the end of the year [18][60]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious confidence for the second and third quarters, acknowledging inflationary pressures and market volatility affecting consumer behavior [21][22]. - The company is focused on aligning its cost structure and capital deployment with real-time market signals to adapt to changing conditions [21][22]. Other Important Information - The company generated $43,000,000 in operating cash flow for the quarter, significantly up from the previous year, and maintained a strong balance sheet with net debt around 2x EBITDA [17][30]. - The company continues to return capital to shareholders, with a dividend yield over 5% and share repurchases totaling $28,300,000 during the quarter [17][31]. Q&A Session Summary Question: What is the annualized revenue opportunity for the recent acquisitions? - The combined annualized revenue opportunity for TransAir and Freedom Seating is estimated at approximately $200,000,000, with expectations for accretive results moving forward [39]. Question: What has been the measurable impact of tariffs on retail demand? - Currently, there has not been significant movement in retail prices on dealer lots, but changes are expected with model year pricing in June and July [42][43]. Question: What is the expected revenue for Q2? - Revenue is expected to be flattish year over year, with RV OEM sales projected to be up about 5% [44][99]. Question: How is the company mitigating tariff impacts? - The company is implementing pricing strategies, negotiating with vendors, and diversifying its supply chain to mitigate tariff impacts, with potential price increases in the range of 3% to 9% [50][54]. Question: What categories are most impacted by supply chain diversification? - The most impacted categories include appliances, furniture, and axles and suspension products, while windows and chassis are less affected as they are primarily sourced in the U.S. [67][68].

Forward-Looking Statements This presentation contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this presentation that are not historical facts are "forward-looking ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Lillian D. Etzkorn, CFO Phone: (574) 535-1125 E Mail: LCII@lci1.com LCI INDUSTRIES REPORTS FIRST QUARTER FINANCIAL RESULTS Operational flexibility, strategic diversification, and ef ective cost management drove profitable growth First Quarter 2025 Highlights Elkhart, Indiana - May 6, 2025 - LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported first quarter 2025 results. "We delivered ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights LCI Industries (LCII) as a strong value stock opportunity based on its financial metrics and Zacks Rank system [2][4][6]. Company Analysis - LCI Industries (LCII) currently has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for undervaluation [4]. - The stock has a P/E ratio of 11.69, significantly lower than the industry average P/E of 17.44, suggesting it may be undervalued [4]. - LCII's Forward P/E has fluctuated between 10.75 and 19.38 over the past year, with a median of 16.14, indicating variability in market perception [4]. - The company has a P/B ratio of 1.49, which is favorable compared to the industry average P/B of 3.04, further supporting the notion of undervaluation [5]. - Over the past year, LCII's P/B ratio has ranged from 1.37 to 2.27, with a median of 2.01, reflecting its relative market value [5]. - Overall, the combination of these metrics suggests that LCII is likely undervalued and presents an attractive investment opportunity based on its earnings outlook [6].

LCI (LCII) shares soared 8.9% in the last trading session to close at $81.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.9% loss over the past four weeks.LCI stock surged amid a broader market rebound following the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. The move came in response to steep market declines and growing fears that tariff increases could push the econom ...

Financial Performance - Consolidated net sales for 2024 were $3.7 billion, a decrease of 1% from $3.8 billion in 2023, primarily due to decreased production levels in the North American marine and utility trailer markets[27]. - Net income for 2024 was $142.9 million, or $5.60 per diluted share, compared to $64.2 million, or $2.52 per diluted share, in 2023[28]. - Operating profit for 2024 was $218.2 million, up from $123.4 million in 2023, resulting in an operating profit margin of 5.8% compared to 3.3% in the previous year[190]. - The effective tax rate for 2024 was 24.5%, higher than the previous year, primarily due to tax adjustments[193]. - Net interest expense decreased to $28.9 million in 2024 from $40.4 million in 2023, primarily due to net repayments on the revolving credit facility and principal payments on the Term Loan[197]. - Net cash flows provided by operating activities were $370.3 million in 2024, down from $527.2 million in 2023, primarily due to a smaller decrease in inventory levels[203]. Segment Performance - The OEM Segment contributed 76% of consolidated net sales, with RV OEM sales totaling $1.7 billion, representing 61% of OEM Segment net sales[22]. - The Aftermarket Segment accounted for 24% of consolidated net sales, with net sales totaling $880.8 million in 2024, driven by U.S. RV ownership reaching an estimated 8.1 million households[25]. - OEM Segment net sales decreased by 1% to $2.86 billion in 2024, with travel trailers and fifth-wheels sales increasing by 11% to $1.51 billion, while motorhomes decreased by 13% to $233.1 million[191]. - Aftermarket Segment net sales for 2024 were $880.8 million, consistent with $881.1 million in 2023, showing no significant change[195]. - Operating profit for the Aftermarket Segment increased to $111.2 million in 2024, up from $106.1 million in 2023, with an operating profit margin of 12.6% compared to 12.0%[196]. Acquisitions and Investments - The company completed one acquisition in 2024 for $20 million, with the acquired company generating approximately $28 million in net sales for the preceding twelve months[30]. - Capital expenditures for 2024 were $42 million, including $6 million for capacity investments and $3 million for automation[36]. - Cash flows used in investing activities were $61.1 million in 2024, including $42.3 million for capital expenditures and $20.0 million for a business acquisition[206]. - Future capital expenditures for 2025 are estimated to be between $50 million and $70 million, primarily funded by cash generated from operations[207]. Workforce and Community Engagement - As of December 31, 2024, the company had approximately 11,500 full-time team members, with 10,100 in North America and 1,400 internationally[51]. - The retention percentage for team members in North America for the year ended December 31, 2024, was 71 percent, consistent with the prior year[54]. - In 2024, team members logged approximately 160,000 volunteer hours, with 87 percent participation, an increase from 85 percent in 2023[56]. - The company donated more than $1.2 million in 2024 to support community needs, focusing on children and families, educational programs, and community health[56]. Safety and Compliance - The Total Recordable Incident Rate (TRIR) in North America decreased from 4.29 in 2023 to 3.13 in 2024, indicating improved safety performance[61]. - The company is currently operating in compliance with applicable laws and regulations, with no material effect on operations or financial condition anticipated[50]. - Compliance with numerous international, federal, state, and local regulations is critical, as failure to comply could result in significant financial penalties and operational disruptions[115]. - The company faces potential liabilities from product recalls and compliance with safety regulations, which could adversely impact its reputation and financial condition[116]. Risks and Challenges - The company experienced lower marine, utility trailer, and motorhome OEM volumes in 2024 due to inflation and elevated interest rates impacting consumer discretionary spending[74]. - The company is exposed to risks from natural disasters and climate change, which could disrupt supply chains and negatively affect operations[100]. - A tight labor market has led to difficulties in obtaining skilled labor, potentially increasing production costs and impacting operational results[95]. - The company faces challenges in integrating acquired businesses, which could divert management attention and affect operational efficiency[106]. - Changes in consumer preferences and the inability to innovate could adversely affect sales, emphasizing the need for timely product development[92]. Financial Obligations and Debt - Financing through debt may increase leverage, making the company more vulnerable to economic downturns and limiting future financing options[135]. - The company faces significant cash flow challenges in servicing its substantial debt, which may require asset sales or restructuring if cash flow is insufficient[136]. - Debt agreements impose covenants that could restrict operations and acquisitions, with potential adverse impacts on business and financial condition if not complied with[137]. - An increase in interest rates could raise borrowing costs, adversely affecting financial condition and cash flows, as current borrowings are tied to variable rates[139]. Cybersecurity and IT Risks - The company relies heavily on its information technology systems for managing business data, supply chain, and financial results, indicating potential risks if these systems fail[111]. - Cyber-attacks are increasing in frequency and sophistication, posing significant risks to the company's information systems and overall operations[113]. - The cybersecurity risk management program is aligned with the company's business strategy, with no material incidents reported in the last three fiscal years[152]. Market Position and Strategy - The company aims to maintain market leadership in the North American RV market while expanding into adjacent industries through innovation and operational excellence[24]. - The company has expanded into adjacent industries and international markets, which may strain resources and carry risks of failure due to limited brand recognition[102]. - Two key customers represented 34% of consolidated net sales in 2024, indicating a significant reliance on these customers for revenue[85].