One company I've been consistently bullish on for years is Patrick Industries, Inc. ( PATK ) , an enterprise that produces and sells components used in the construction of recreational vehicles, marine products, the housing industry, and more. My calls for the company to outperformCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get ...

Financial Data and Key Metrics Changes - The company reported a top line growth of 3%, resulting in revenue of approximately $1,050,000,000 for the second quarter, with a trailing twelve-month revenue of approximately $3,800,000,000 [5][20] - Adjusted earnings per diluted share was $1.50 in the second quarter, reflecting a 4% increase compared to the prior year period [22] - Gross margin improved to 23.9%, up 110 basis points from the same period last year, while operating margin remained flat at 8.3% [21] - Net income decreased 32% to $32,000,000, impacted by a non-recurring legal settlement [22][24] Business Line Data and Key Metrics Changes - RV revenue increased 7% to $479,000,000, representing 46% of consolidated revenue, with RV content per unit on a trailing twelve-month basis remaining flat at $4,952 [11][20] - Marine revenues were $156,000,000, up 1% from the prior year, while powersports revenues decreased 9% to $96,000,000 [15][16] - Housing revenues increased 3% to $315,000,000, with manufactured housing representing approximately 58% of housing revenues [17] Market Data and Key Metrics Changes - RV retail and wholesale unit shipments were approximately 109,692 units, indicating a seasonal dealer inventory destock of about 16,700 units [12] - Marine retail and wholesale powerboat unit shipments were estimated at 60,838 units, reflecting a seasonal dealer inventory destock of approximately 22,800 units [15] - Powersports wholesale shipments were down year over year, while the company noted resilience in the utility side of the market [16] Company Strategy and Development Direction - The company is focused on enhancing product integration and innovative design at scale, with a strong emphasis on automation and innovation [6][8] - The diversification of the portfolio is seen as a core strength, providing resilience across the business model [6] - The company is actively cultivating its acquisition pipeline while returning value to shareholders through dividends and share repurchases [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for outdoor enthusiast lifestyles, despite a temporary pause in consumer activity due to tariffs [7] - The company anticipates a traditional seasonal slowdown in RV production in the second half of the year, while expecting some upside in marine shipments [40] - Management remains optimistic about cash flow generation and the ability to capitalize on growth opportunities, with a solid balance sheet and liquidity of $835,000,000 [8][24] Other Important Information - The company has continued to invest in innovation and automation, creating an advanced product group to enhance its full solutions model [9] - The return of former CFO Jake Pekovich as President of Marine businesses is expected to advance the company's full solutions model [9] Q&A Session Summary Question: Discussion on end market outlook for RV and marine - Management indicated a traditional seasonal slowdown in RV production while expecting some upside in marine shipments due to solid inventory management [40] Question: Cash flow outlook and impact of legal settlement - The reduction in cash flow guidance was attributed solely to the legal settlement, with no other significant changes noted [41] Question: Powersports inventory and retail demand - Management noted stabilization in inventory levels and increasing attachment rates, indicating optimism for future growth in the powersports market [49] Question: M&A pipeline and leverage strategy - The company is actively cultivating its M&A pipeline and is comfortable with its current leverage position, willing to stretch for the right deals [57][59] Question: Pricing expectations and inflation impact - Management expects low to mid single-digit pricing increases in response to tariffs and inflation, which will affect content expectations for 2026 [62] Question: Aftermarket exposure and demand visibility - The company has good visibility into aftermarket demand through RecPro, with a focus on upgrading and refurbishing RVs rather than just new units [95][97]

Financial Data and Key Metrics Changes - The company reported a 3% increase in revenue, totaling approximately $1,050,000,000 for the second quarter, with a trailing twelve-month revenue of approximately $3,800,000,000 [4][19] - Adjusted earnings per diluted share was $1.50, reflecting a 4% increase compared to the prior year period [21] - Gross margin improved to 23.9%, up 110 basis points year-over-year, while operating margin remained flat at 8.3% [20][24] - Net income decreased by 32% to $32,000,000, impacted by a non-recurring legal settlement [21][24] Business Line Data and Key Metrics Changes - RV revenue increased by 7% to $479,000,000, representing 46% of consolidated revenue, with RV content per unit remaining flat at $4,952 [11][19] - Marine revenues were $156,000,000, up 1% year-over-year, while powersports revenues decreased by 9% to $96,000,000 [13][15] - Housing revenues increased by 3% to $315,000,000, with manufactured housing content per unit rising by 3% to $6,670 [16][19] Market Data and Key Metrics Changes - RV retail and wholesale unit shipments were approximately 109,692 units, indicating a seasonal destock of about 16,700 units [12] - Marine retail and wholesale powerboat unit shipments were estimated at 60,838 units, reflecting a seasonal destock of approximately 22,800 units [14] - Powersports shipments were down year-over-year, with a focus on utility products showing resilience [15][100] Company Strategy and Development Direction - The company is focused on enhancing product integration and innovative design through a full solutions model, which is seen as a core strength [5][8] - There is an active cultivation of the acquisition pipeline, with ongoing investments in automation and innovation [6][24] - The company aims to optimize its cost structure and maximize cash flow generation while delivering high-quality service [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for outdoor enthusiast lifestyles, despite a temporary pause in consumer activity due to tariffs [6][26] - The company anticipates a seasonal slowdown in RV production in the second half of the year, while expecting potential upside in marine shipments [39][40] - The outlook for RV retail unit shipments is expected to decline in the mid-single digits, while housing starts are projected to decrease by approximately 10% year-over-year [26][27] Other Important Information - The company returned value to shareholders through $13,000,000 in dividends and over $23,000,000 in share repurchases during the second quarter [7][24] - The company has a solid balance sheet with liquidity of $835,000,000, allowing for strategic capital allocation [6][24] - The former CFO returned as President of Marine businesses, indicating a focus on leadership continuity [9] Q&A Session Summary Question: Can you discuss the end market outlook, particularly for RVs and marine? - Management indicated a traditional seasonal slowdown in RV production while expecting some upside in marine shipments due to solid inventory management [39][40] Question: What is the impact of the legal settlement on cash flow outlook? - The reduction in cash flow guidance is attributed solely to the legal settlement, with no other significant changes noted [40] Question: What are the current trends in powersports inventory and retail demand? - Inventory levels are stabilizing, and attachment rates are increasing, indicating potential for growth in the powersports market [47][100] Question: Can you elaborate on the new products and systems being developed? - The company is focusing on integrated solutions, such as a composite roofing system for RVs and a new polycarbonate windshield for golf carts, to enhance content per unit [50][52] Question: What is the status of the M&A pipeline and leverage strategy? - The M&A pipeline is actively cultivated, with a willingness to increase leverage for the right deals while maintaining a focus on financial flexibility [55][56] Question: How does pricing inflation affect content expectations for 2026? - Pricing is expected to see low to mid-single-digit increases, which will impact content expectations moving into 2026 [60][62]

Financial Performance - Patrick Industries reported $1.05 billion in revenue for the quarter ended June 2025, reflecting a year-over-year increase of 3% [1] - The EPS for the same period was $1.50, compared to $1.44 a year ago, indicating a positive trend in earnings [1] - The revenue reported was a slight miss of -0.01% compared to the Zacks Consensus Estimate of $1.05 billion, while the EPS exceeded the consensus estimate of $1.41 by +6.38% [1] Market Segment Performance - Net Sales in the Recreational Vehicle segment were $479 million, which was below the average estimate of $500.5 million, but showed a year-over-year increase of +6.5% [4] - Net Sales in the Powersports segment were reported at $96 million, falling short of the average estimate of $105 million [4] - Net Sales in the Marine segment reached $156 million, exceeding the average estimate of $133.5 million, but represented a year-over-year decline of -1.1% [4] Stock Performance - Shares of Patrick Industries have returned +2% over the past month, compared to a +2.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Patrick Industries reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $1.41 per share, and showing an increase from $1.44 per share a year ago, resulting in an earnings surprise of +6.38% [1] - The company posted revenues of $1.05 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $1.02 billion year-over-year [2] - Patrick Industries shares have increased by approximately 21.7% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.08 on revenues of $892.5 million, and for the current fiscal year, it is $4.27 on revenues of $3.79 billion [7] - The estimate revisions trend for Patrick Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Building Products - Mobile Homes and RV Builders industry, to which Patrick Industries belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Champion Homes, is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year decline of -3.3%, with revenues projected at $643.2 million, up 2.5% from the previous year [9][10]

Q2 2025 Earnings Presentation July 31, 2025 Forward-Looking Statements This presentation includes contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by words such as "estimates," "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks" and similar expressions. Forward-looking statements include information with respect to financial condition, results of ...

Second Quarter 2025 Highlights (compared to Second Quarter 2024 unless otherwise noted) ELKHART, IN, July 31, 2025 – Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the second quarter and six months ended June 29, 2025. "Our performance and results, which included net sales and adjusted EPS growth, reflect our team's disciplined execution in what remains a very dy ...

Core Insights - Rockford Fosgate has launched the next generation of TMS direct replacement motorcycle speakers, designed for various motorcycle models, enhancing the riding experience with superior sound quality [1][2]. Product Features - The new TMS series includes 6.5-inch and 6x9-inch speakers, engineered to deliver a balanced sound profile with enhanced mids, deep bass, and clear highs [1][3]. - Each speaker provides 150 watts of power, featuring long-throw woofers for deep low-end response and a wide frequency range for improved bass output [3]. - The speakers are built from premium materials, ensuring high performance, durability, and reliability in motorcycle audio [3]. Installation and Compatibility - The TMS speakers are Element Ready®, designed to withstand harsh conditions such as water, vibration, dirt, and dust, ensuring consistent performance [4]. - They are direct drop-in replacements for factory mounting locations, with model-specific grilles available for select Harley-Davidson® models, facilitating a clean and integrated appearance [4]. Company Background - Rockford Fosgate is a leader in high-performance audio systems, catering to the mobile, motorsport, motorcycle, and marine audio aftermarket and OEM markets [6]. - The company is headquartered in Tempe, Arizona, and is a wholly owned subsidiary of Patrick Industries, Inc. [6].

Core Insights - Rockford Fosgate has introduced advanced audio systems designed specifically for motorcycles, featuring high-performance components that enhance sound quality and durability [1][2][3]. Product Features - The Stage-3 Kit (HD24-STG3) includes a Saddlebag Kit (HD24BL69) with 1000-watt systems that deliver balanced sound with rich mids, strong bass, and ultra-sharp highs [1]. - The updated saddlebag kit features new 6x9 speakers capable of handling up to 150 watts each, representing a 40% increase in power compared to the previous generation [1]. - The TMA 1000-watt digital amplifier is designed for motorcycles, allowing for future system expansion and seamless integration with the Skyline OS via A2B interface [2]. - Bluetooth connectivity is included for instant DSP tuning tailored to specific Rockford Fosgate kits [2]. Company Overview - Rockford Corporation, headquartered in Tempe, Arizona, markets high-performance audio systems under the Rockford Fosgate brand for various markets including mobile, motorcycle, motorsport, and marine audio [3]. - Rockford Corporation is a wholly owned subsidiary of Patrick Industries, Inc. (NASDAQ: PATK) [3]. Technical Specifications - The audio systems feature long-throw woofers for extended low-end output, heat-resistant motor structures for consistent sound, oversized voice coils for louder performance, and extended frequency response for high-fidelity playback [5].

Core Insights - Rockford Fosgate has launched the next-generation Stage-6 aftermarket RZR Audio Kit, designed for high-performance in extreme SXS environments [1][2] Product Features - The Stage-6 kit is an all-in-one, plug-and-play system compatible with select 2024+ Polaris RZR XP vehicles, offering seamless integration and intuitive installation [2] - It includes a 2.7-inch PMX-3 digital media receiver, M2 6.5" coaxial front speakers, door-mounted tweeters, and M2 8-inch rear speakers in low-profile pods [3] - The system features an M2 10-inch subwoofer in a ported enclosure for deep bass, powered by a robust 1,500-watt amplifier for high-output sound [4] Additional Options - A Ride Command-integrated version of the Stage-6 kit is available, utilizing the existing Ride Command system interface while including all components [4] Company Background - Rockford Corporation, headquartered in Tempe, Arizona, is a leader in high-performance audio systems, serving the mobile, marine, motorsports, and motorcycle audio aftermarket and OEM markets [5]