[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) LCI Industries reported a 5% YoY increase in Q2 2025 net sales to $1.1 billion, driven by market share gains and acquisitions, while maintaining strong liquidity and returning $67 million to shareholders Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.1 billion | $1.05 billion | +5% | | Net Income | $58 million | $61 million | -4.9% | | Diluted EPS | $2.29 | $2.40 | -4.6% | | Adjusted Net Income | $60 million | $61 million | -1.6% | | Adjusted Diluted EPS | $2.39 | $2.40 | -0.4% | | Adjusted EBITDA | $121 million | $123 million | -1.0% | | Operating Profit Margin | 7.9% | 8.6% | -70 bps | - Completed the acquisition of Freedman Seating Company, a manufacturer of transportation seating solutions, which is expected to contribute approximately **$125 million** in annual revenue[3](index=3&type=chunk)[5](index=5&type=chunk) - Returned **$67 million** to shareholders in Q2 through **$29 million** in dividends and **$38 million** in share repurchases. Year-to-date through August 1, 2025, a total of **$187 million** has been returned to shareholders[3](index=3&type=chunk)[5](index=5&type=chunk) - Maintained a strong liquidity position with **$192 million** of cash and cash equivalents and **$595 million** of availability on its revolving credit facility as of June 30, 2025[5](index=5&type=chunk) - An effective tariff mitigation strategy, including supply chain diversification and other sourcing strategies, helped minimize price impacts to customers and support profitability[1](index=1&type=chunk)[5](index=5&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Consolidated net sales rose 5.0% to $1.11 billion in Q2 2025, though operating profit and net income decreased due to executive separation costs and product mix changes [Operating Results (Income Statement)](index=5&type=section&id=Operating%20Results%20(Income%20Statement)) Consolidated Operating Results (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,107,250 | $1,054,544 | $2,152,840 | $2,022,573 | | Gross Profit | $270,021 | $266,445 | $521,770 | $490,351 | | Operating Profit | $87,804 | $90,604 | $169,121 | $148,215 | | Net Income | $57,635 | $61,163 | $107,073 | $97,708 | | Diluted EPS | $2.29 | $2.40 | $4.23 | $3.85 | [Balance Sheet](index=7&type=section&id=Balance%20Sheet) Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $191,931 | $165,756 | | Total current assets | $1,358,245 | $1,160,238 | | Total assets | $3,174,138 | $2,894,739 | | Long-term indebtedness | $944,313 | $756,830 | | Total liabilities | $1,789,038 | $1,507,853 | | Total stockholders' equity | $1,385,100 | $1,386,886 | - As of June 30, 2025, the company had outstanding long-term indebtedness of **$948.0 million** and was in compliance with all debt covenants[17](index=17&type=chunk) [Cash Flow Statement](index=8&type=section&id=Cash%20Flow%20Statement) Summary of Cash Flows - Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $154,937 | $185,282 | | Net cash used in investing activities | ($123,350) | ($40,733) | | Net cash used in financing activities | ($4,102) | ($79,093) | | Net increase in cash | $26,175 | $64,261 | - For the first six months of 2025, significant cash uses included **$98.2 million** for acquisitions, **$66.3 million** for share repurchases, **$58.4 million** for dividend payments, and **$21.8 million** for capital expenditures[16](index=16&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) OEM segment net sales increased 5% to $839.6 million, while Aftermarket sales grew 4% to $267.7 million, though both experienced operating margin contractions [OEM Segment](index=2&type=section&id=OEM%20Segment) OEM Segment Performance - Q2 2025 vs Q2 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $839,559 | $796,124 | +5.5% | | Operating Profit | $51,684 | $50,562 | +2.2% | | Operating Margin | 6.2% | 6.4% | -20 bps | - RV OEM net sales increased **3%** to **$503.3 million**, driven by market share gains and a higher mix of fifth-wheel units. Adjacent Industries OEM net sales grew **10%** to **$336.3 million**, primarily due to acquisitions[10](index=10&type=chunk) - The slight contraction in operating margin was primarily caused by executive separation costs and changes in sales mix, partially offset by production labor efficiencies[11](index=11&type=chunk) [Aftermarket Segment](index=2&type=section&id=Aftermarket%20Segment) Aftermarket Segment Performance - Q2 2025 vs Q2 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $267,691 | $258,420 | +3.6% | | Operating Profit | $36,120 | $40,042 | -9.8% | | Operating Margin | 13.5% | 15.5% | -200 bps | - Sales growth was primarily driven by product innovations and an expanding relationship with Camping World within the RV aftermarket[12](index=12&type=chunk) - The operating margin contraction was mainly due to changes in sales mix towards lower-margin products, investments in capacity and technology, and reduced fixed cost utilization in the automotive aftermarket[13](index=13&type=chunk) [Outlook & Other Information](index=2&type=section&id=Outlook%20%26%20Other%20Information) LCI Industries is on track for its $5 billion organic revenue target by 2027, with July 2025 sales up 5% YoY, and provided full-year 2025 guidance [Company Outlook & Guidance](index=2&type=section&id=Company%20Outlook%20%26%20Guidance) - The company remains on track to reach its **$5 billion** organic revenue target in 2027 and is making progress toward its **85 basis point** overhead and G&A improvement goal for 2025[6](index=6&type=chunk) - July 2025 consolidated net sales were approximately **$327 million**, representing a **5%** increase from July 2024[9](index=9&type=chunk) Estimated Full Year 2025 Guidance | Metric | Estimated Range | | :--- | :--- | | Capital expenditures (Millions USD) | $50 - $70 million | | Depreciation and amortization (Millions USD) | $115 - $125 million | | Stock-based compensation expense (Millions USD) | $18 - $23 million | | Annual tax rate (%) | 25% - 27% | [Supplementary & Industry Data](index=9&type=section&id=Supplementary%20%26%20Industry%20Data) Lippert Content Per RV Unit (Twelve Months Ended June 30) | RV Type | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Travel trailer and fifth-wheel RV | $5,234 | $5,237 | | Motorhome RV | $3,793 | $3,766 | RV Industry Wholesale Production (in thousands of units) | RV Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Travel trailer and fifth-wheel RVs | 81.4 | 82.0 | | Motorhome RVs | 9.3 | 8.8 | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) LCI provided non-GAAP metrics for Q2 2025, with Adjusted EBITDA at $121.3 million and Adjusted Net Income at $60.1 million, primarily adjusted for executive separation costs Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $57,635 | $61,163 | | Interest, Taxes, D&A | $59,492 | $61,480 | | EBITDA | $118,127 | $122,643 | | Executive separation costs | $3,193 | $— | | **Adjusted EBITDA** | **$121,320** | **$122,643** | Reconciliation of Net Income to Adjusted Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $57,635 | $61,163 | | Executive separation costs | $3,193 | $— | | Tax effect of adjustments | ($765) | $— | | **Adjusted net income** | **$60,063** | **$61,163** |

Group 1 - Wall Street anticipates a year-over-year decline in earnings for LCI, with expected earnings of $2.22 per share, reflecting a -7.5% change, while revenues are projected to be $1.08 billion, up 2.2% from the previous year [3][12] - The upcoming earnings report is scheduled for August 5, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2][12] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Group 2 - LCI's Earnings ESP is +4.62%, suggesting a positive outlook for earnings, as the Most Accurate Estimate is higher than the Zacks Consensus Estimate [12] - The company has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters, including a +41.29% surprise in the last reported quarter [13][14] - The Zacks Rank for LCI is 3, indicating a hold position, which combined with a positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [12][19] Group 3 - In the automotive industry, Magna is expected to report earnings of $1.19 per share, reflecting an -11.9% year-over-year change, with revenues projected at $10.41 billion, down 5% from the previous year [18] - Magna's consensus EPS estimate has been revised 3.1% higher in the last 30 days, resulting in an Earnings ESP of +5.04%, indicating a potential to beat the consensus EPS estimate [19]

Core Insights - LCI (LCII) is positioned to potentially continue its earnings-beat streak, having surpassed earnings estimates by an average of 36.72% in the last two quarters [1][5] Earnings Performance - For the most recent quarter, LCI reported earnings of $1.55 per share, falling short of the expected $2.19 per share, resulting in a surprise of 41.29% [2] - In the previous quarter, LCI exceeded the consensus estimate of $0.28 per share by reporting $0.37 per share, achieving a surprise of 32.14% [2] Earnings Estimates and Predictions - Estimates for LCI have been trending higher, influenced by its history of earnings surprises [5] - The stock currently has a positive Zacks Earnings ESP of +4.62%, indicating increased analyst optimism regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

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].

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].