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].

Financial Performance - Net sales reached $1.046 billion, an 8% increase year-over-year[10] - Net income was $49 million, representing 4.7% of net sales, a 35% increase year-over-year[10] - Adjusted EBITDA was $111 million, or 10.6% of net sales, up 23% year-over-year[10] - First quarter operating profit margin increased to 7.8%, up 180 bps year-over-year[10] Capital Allocation and Liquidity - The company has a strong liquidity position with $231 million in cash and cash equivalents and $595 million available on the revolving credit facility as of March 31, 2025[11] - $57.6 million was returned to shareholders through dividends of $1.15 per share, totaling $29.4 million, and $28.3 million in share repurchases[11] Segment Performance - RV OEM sales increased by 15% year-over-year in Q1 2025[17] - Adjacent Industries OEM sales decreased by 2% year-over-year in Q1 2025[27] - Aftermarket segment sales increased by 6% year-over-year in Q1 2025[32] Strategic Initiatives - The company acquired Trans/Air in March and Freedman Seating in April, representing approximately $200 million in annual revenues in the bus market[11] - The company is on track to deliver an additional 85 bps margin improvement in 2025 through optimizing infrastructure[10, 71]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) LCI Industries reported strong Q1 2025 results, with revenue up 8% to $1.046 billion and net income up 35% to $49.4 million, driven by operational efficiency and strategic growth Q1 2025 Key Financial Metrics | Metric | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $1 billion | +8% | | Net Income | $49.4 million | +35% | | Diluted EPS | $1.94 | +35% | | Adjusted Net Income | $55.6 million | +52% | | Adjusted Diluted EPS | $2.19 | +52% | | Adjusted EBITDA | $110.9 million | +23% | | Operating Profit Margin | 7.8% | +180 bps | | Operating Cash Flow | $43 million | +$50 million | - Returned **$57.6 million** to shareholders through **$28.3 million** in share repurchases and **$29.4 million** in dividends[4](index=4&type=chunk) - Completed strategic acquisitions of Trans/Air and Freedman Seating, strengthening its position in the bus and specialty vehicle markets with combined recent annual revenues of approximately **$200 million**[4](index=4&type=chunk) - Successfully refinanced long-term debt, extending most maturities to **2030** and **2032**, and ended the quarter with a strong liquidity position of **$231 million** in cash and **$595 million** available on its revolving credit facility[4](index=4&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Consolidated net sales for Q1 2025 grew 8% to $1.046 billion, driven by the OEM Segment, with net income significantly increasing Q1 2025 Consolidated Results vs. Q1 2024 (in millions, except EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $1,045.6 | $968.0 | | Net Income | $49.4 | $36.5 | | Diluted EPS | $1.94 | $1.44 | | Adjusted Net Income | $55.6 | $36.5 | | Adjusted Diluted EPS | $2.19 | $1.44 | | Adjusted EBITDA | $110.9 | $90.3 | - The increase in year-over-year net sales was primarily driven by a **$65.2 million** increase in the OEM Segment[7](index=7&type=chunk) - Preliminary consolidated net sales for April 2025 were approximately **$392 million**, up **3%** from April 2024, led by growth in Adjacent Industries OEM and RV OEM sales[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The OEM segment's net sales increased by $65.2 million with improved operating margin, while Aftermarket sales grew 6% but experienced a margin decline [OEM Segment](index=2&type=section&id=OEM%20Segment) OEM Segment Net Sales - Q1 2025 vs Q1 2024 (in millions) | Category | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | RV OEM | $530.8 | $459.6 | +15% | | Adjacent Industries OEM | $292.8 | $298.7 | -2% | | **Total OEM Net Sales** | **$823.6** | **$758.3** | **+8.6%** | - RV OEM sales growth was driven by an **18%** increase in North American travel trailer and fifth-wheel wholesale shipments, while Adjacent Industries sales declined due to lower demand from marine and powersports OEMs[9](index=9&type=chunk) - The OEM segment's operating profit margin expanded significantly to **7.5%** from **4.3%** in Q1 2024, driven by higher sales volume, lower material costs, and improved labor efficiencies[10](index=10&type=chunk) [Aftermarket Segment](index=2&type=section&id=Aftermarket%20Segment) Aftermarket Segment Performance - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $222.0 | $209.7 | +6% | | Operating Profit | $19.3 | $24.8 | -22% | | Operating Margin | 8.7% | 11.8% | -310 bps | - Sales growth was driven by higher volumes in RV and marine aftermarkets and market share gains in the automotive aftermarket[11](index=11&type=chunk) - The decline in operating profit margin was attributed to a sales mix shift towards lower-margin products, decreased automotive aftermarket production volume, and investments in capacity and distribution[12](index=12&type=chunk) [Balance Sheet, Liquidity, and Financing Activities](index=3&type=section&id=Balance%20Sheet%2C%20Liquidity%2C%20and%20Financing%20Activities) The company ended Q1 2025 with strong liquidity, including $231.2 million in cash, and successfully refinanced long-term debt, extending most maturities - Cash and cash equivalents increased to **$231.2 million** at March 31, 2025, from **$165.8 million** at December 31, 2024[15](index=15&type=chunk) - Key uses of cash in Q1 2025 included **$29.6 million** for an acquisition, **$29.4 million** for dividends, **$28.3 million** for share repurchases, and **$9.0 million** for capital expenditures[15](index=15&type=chunk) - The company executed significant debt refinancing, including issuing **$460 million** of **3.000%** convertible notes due **2030** and entering a new credit agreement with a **$600 million** revolving facility and a **$400 million** term loan[16](index=16&type=chunk)[17](index=17&type=chunk) - As of March 31, 2025, total long-term debt was **$938.3 million**, and the company had **$595.3 million** of borrowing availability under its revolving credit facility[19](index=19&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The unaudited financial statements provide detailed figures for the company's operating results, segment performance, balance sheet, and cash flows [Operating Results (Income Statement)](index=6&type=section&id=Operating%20Results%20%28Income%20Statement%29) Condensed Income Statement (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $1,045,590 | $968,029 | | Gross profit | $251,749 | $223,906 | | Operating profit | $81,317 | $57,611 | | Net income | $49,438 | $36,545 | | Diluted EPS | $1.94 | $1.44 | [Segment Results](index=7&type=section&id=Segment%20Results) Net Sales & Operating Profit by Segment (in thousands) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | **OEM Segment** | **Net Sales** | **$823,555** | **$758,311** | | | Operating Profit | $61,974 | $32,836 | | **Aftermarket Segment** | **Net Sales** | **$222,035** | **$209,718** | | | Operating Profit | $19,343 | $24,775 | | **Total** | **Net Sales** | **$1,045,590** | **$968,029** | | | Operating Profit | $81,317 | $57,611 | [Balance Sheet](index=8&type=section&id=Balance%20Sheet) Condensed Balance Sheet (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $231,243 | $165,756 | | Total current assets | $1,367,088 | $1,160,238 | | Total assets | $3,099,998 | $2,894,739 | | Total current liabilities | $461,267 | $412,053 | | Long-term indebtedness | $934,632 | $756,830 | | Total liabilities | $1,733,285 | $1,507,853 | | Total stockholders' equity | $1,366,713 | $1,386,886 | [Cash Flow Statement](index=9&type=section&id=Cash%20Flow%20Statement) Condensed Cash Flow Statement (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $42,718 | $(7,654) | | Net cash used in investing activities | $(42,040) | $(8,435) | | Net cash from financing activities | $66,871 | $(26,447) | | **Net increase (decrease) in cash** | **$65,487** | **$(43,532)** | [Supplementary Information & Outlook](index=10&type=section&id=Supplementary%20Information%20%26%20Outlook) The company provided key RV industry data, showing increased wholesale production and higher content per unit, alongside its full-year 2025 guidance RV Industry Data (Units in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Travel trailer & fifth-wheel wholesale | 86.4 | 73.5 | | Travel trailer & fifth-wheel retail | 60.6 | 65.4 | | Motorhome wholesale | 9.3 | 10.4 | | Motorhome retail | 9.3 | 9.8 | Lippert Content Per Unit (Twelve Months Ended March 31) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Travel trailer & fifth-wheel RV | $5,164 | $5,097 | | Motorhome RV | $3,750 | $3,656 | Estimated Full Year 2025 Guidance | Item | Guidance | | :--- | :--- | | Capital expenditures | $50 - $70 million | | Depreciation and amortization | $115 - $125 million | | Stock-based compensation expense | $18 - $23 million | | Annual tax rate | 25% - 27% | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) The company provided reconciliations for non-GAAP measures, with Adjusted EBITDA for Q1 2025 at $110.9 million and Adjusted net income at $55.6 million Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $49,438 | $36,545 | | Interest, Taxes, D&A | $53,368 | $53,755 | | Loss on extinguishment of debt | $8,053 | $— | | **Adjusted EBITDA** | **$110,859** | **$90,300** | | Adjusted EBITDA as % of net sales | 10.6% | 9.3% | Reconciliation of Net Income to Adjusted Net Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $49,438 | $36,545 | | Loss on extinguishment of debt (net of tax) | $6,123 | $— | | **Adjusted net income** | **$55,561** | **$36,545** | | **Adjusted net income per diluted share** | **$2.19** | **$1.44** |

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].

Company Overview - LCI (LCII) shares increased by 8.9% to close at $81.71, supported by high trading volume, contrasting with a 17.9% loss over the past four weeks [1] - The company is a supplier of recreational vehicle parts and is expected to report quarterly earnings of $1.59 per share, reflecting a year-over-year increase of 10.4% [3] Earnings Expectations - Revenue for the upcoming quarter is projected to be $967.78 million, showing no change from the previous year [3] - The consensus EPS estimate for LCI has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] Market Context - LCI's stock surge coincided with a broader market rebound following the Trump administration's temporary halt on reciprocal tariffs, aimed at alleviating recession fears [2] - In the same automotive industry, Visteon (VC) saw a 9.7% increase in its stock price, closing at $73.77, despite a -20.6% return over the past month [4]

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].

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2024 were $803 million, a decrease of 4% from Q4 2023 [49] - Full year net sales were $3.7 billion, down 1% year-over-year [58] - EBITDA in Q4 was $46 million, a 29% increase compared to the prior year period [56] - Operating profit margin for the full year increased to 5.8%, up from 3.3% in 2023 [58] Business Line Data and Key Metrics Changes - RV OEM net sales for Q4 2024 were $621.6 million, down 6% from the same period in 2023 [50] - Aftermarket net sales for Q4 2024 were $181.6 million, an increase of 1% year-over-year [53] - Sales to RV OEMs increased 7% to $1.7 billion for the full year, driven by a 13% increase in wholesale shipments of travel trailers and fifth-wheel units [57] - Sales to adjacent markets decreased 13% to $1.1 billion in 2024, primarily due to lower sales to North American marine and utility trailer OEMs [58] Market Data and Key Metrics Changes - January RV sales were up 17% year-over-year, indicating a positive trend in the RV market [31] - Marine sales were down 15% due to inflation and high interest rates impacting retail demand [53] - The company anticipates wholesale shipments in 2025 to be between 335,000 to 350,000 units, which could add over $100 million to RV OEM sales [31] Company Strategy and Development Direction - The company aims to reach an organic target of $5 billion in total revenue by 2027 [7] - Focus on expanding market leadership through innovation and strategic acquisitions [24][44] - Plans to improve operational leverage and optimize overhead costs to support profitability and long-term value creation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing improved RV orders and dealer profits [12][14] - The company is confident in mitigating potential impacts from tariffs and expects to see a reasonable margin uplift in 2025 [91][100] - Management highlighted the importance of maintaining a strong workplace culture to drive results [45] Other Important Information - The company reduced net debt below 2x EBITDA, creating cash flow from operations of $370 million [10] - A dividend increase of 10% to $1.15 per share was announced, reflecting confidence in business resilience [44] - The company has invested over $50 million in glass processing technology to maintain leadership in glass and window products [30] Q&A Session Summary Question: What is the outlook for steel and aluminum tariffs? - Management has not included tariffs in their plan but estimates a 50 basis point impact, which they believe can be mitigated through pricing strategies [70][75] Question: What is the expected trend for single axle trailer mix? - Management anticipates that the single axle trailer mix will normalize after Q2 2025, as dealer inventories have been adequately managed [78] Question: How is the retail outlook for the year? - Management remains cautiously optimistic, expecting to be at the mid- to high end of the retail spectrum, influenced by various market factors [107] Question: What is the current status of the partnership with Camping World? - The company plans to upfit approximately 100 additional Camping World stores, enhancing product visibility and sales [110] Question: What is the impact of pricing mix on towable content? - The pricing mix impact was minimal, with the single axle trailer mix being the primary factor affecting content numbers [121]

Core Viewpoint - LCI (LCII) reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing a significant improvement from a loss of $0.09 per share a year ago, indicating a strong earnings surprise of 32.14% [1] Financial Performance - LCI achieved revenues of $803.14 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.34%, although this represents a decline from year-ago revenues of $837.54 million [2] - Over the last four quarters, LCI has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance and Outlook - LCI shares have declined approximately 1.4% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for LCI is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.41 on revenues of $940.45 million, and for the current fiscal year, it is $6.70 on revenues of $3.89 billion [7] Industry Context - The Automotive - Original Equipment industry, to which LCI belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Garrett Motion (GTX), is expected to report quarterly earnings soon, with a consensus EPS estimate of $0.26, reflecting an 18.2% year-over-year increase, although its revenue is projected to decline by 15.1% from the previous year [9][10]

Financial Performance - Fourth quarter 2024 net sales were $803 million, a decrease of 4% year-over-year from $837.5 million in Q4 2023[5] - Net income for Q4 2024 was $9.5 million, or $0.37 per diluted share, compared to a net loss of $2.4 million in Q4 2023[5] - EBITDA for Q4 2024 was $46 million, representing 5.7% of net sales, up 29% year-over-year from $35.6 million in Q4 2023[5][7] - Full year 2024 net sales totaled $3.7 billion, down 1% from $3.8 billion in 2023, while net income increased 123% to $143 million[9] - The company achieved a 35% year-over-year increase in EBITDA for 2024, totaling $344 million[5][9] - Net sales for Q4 2024 were $803,138, a decrease of 4.1% from $837,544 in Q4 2023; total net sales for the year were $3,741,208, down 1.2% from $3,784,808 in 2023[26] - Gross profit for Q4 2024 increased to $169,406, up 5.3% from $161,051 in Q4 2023; annual gross profit rose to $879,715, a 13.3% increase from $776,190[26] - Operating profit for Q4 2024 was $16,134, compared to $2,621 in Q4 2023; total operating profit for the year reached $218,237, up 76.7% from $123,428[26] - Net income for Q4 2024 was $9,547, a turnaround from a net loss of $2,377 in Q4 2023; annual net income increased to $142,867, up 122.4% from $64,195[26] - Net income as a percentage of net sales improved to 1.2% in Q4 2024 from (0.3%) in Q4 2023[37] - EBITDA as a percentage of net sales increased to 5.7% in Q4 2024, compared to 4.2% in Q4 2023[37] - For the full year 2024, net income reached $142,867,000, a substantial increase from $64,195,000 in 2023[37] - Full year EBITDA rose to $343,930,000 in 2024, up from $255,196,000 in 2023, indicating a growth of 35%[37] Cash Flow and Capital Expenditures - Cash flows from operating activities for 2024 were $370 million, with $109 million returned to shareholders through dividends[5][18] - The company reported capital expenditures of $42,333 for the year, down from $62,209 in 2023; estimated capital expenditures for 2025 are projected to be between $50 million and $70 million[32][34] - Cash and cash equivalents at the end of Q4 2024 were $165,756, significantly up from $66,157 at the end of Q4 2023[30] - The remaining availability under the revolving credit facility increased to $452.5 million in Q4 2024 from $245.3 million in Q4 2023[34] Tax and Depreciation - The effective tax rate for 2024 was 24.5%, compared to 22.7% in 2023, primarily due to an increase in the state tax rate[17] - The company expects an annual tax rate of 24% to 26% for 2025, with depreciation and amortization projected between $115 million and $125 million[34] - Depreciation expense for the full year 2024 was $70,393,000, slightly lower than $74,693,000 in 2023[37] - The provision for income taxes in Q4 2024 was $1,487,000, compared to a benefit of $(4,458,000) in Q4 2023[37] Product Development and Market Strategy - The company introduced the innovative Touring Coil Suspension product, contributing to content expansion and market share gains[5][3] - January 2025 consolidated net sales were approximately $328 million, up 6% from January 2024, driven by a 17% increase in RV OEM sales[11] - The company aims for $5 billion in net sales organically by 2027, targeting a return to double-digit operating margins[4] Segment Performance - The OEM Segment net sales for Q4 2024 were $621,553, down 5.6% from $658,095 in Q4 2023; Aftermarket Segment net sales increased to $181,585, up 1.3% from $179,449[28] - Interest expense for Q4 2024 was $5,100,000, down from $9,456,000 in Q4 2023, showing a reduction of 46%[37]