Financial Performance - Fourth quarter net sales increased 9% to $924 million compared to $846 million in Q4 2024; full year net sales increased 6% to $4.0 billion[4] - Operating income for Q4 increased 45% to $57 million, with an operating margin of 6.2%; full year operating income increased 7% to $276 million, with an operating margin of 7.0%[4] - Net income for Q4 doubled to $29 million, while full year net income was $135 million compared to $138 million in 2024; adjusted net income for Q4 increased 63% to $30 million[4] - Diluted earnings per share (EPS) for Q4 was $0.83, a 98% increase; full year diluted EPS was $3.90 compared to $4.11 in 2024[8] - Adjusted EBITDA for Q4 grew 17% to $105 million, with an adjusted EBITDA margin of 11.4%; full year adjusted EBITDA increased 4% to $468 million[4] - Gross profit for the year ended December 31, 2025, was $912,860,000, up from $835,890,000 in 2024, reflecting a growth of 9.2%[19] - Operating income for the year increased to $275,989,000, compared to $258,040,000 in 2024, marking a rise of 7%[19] - Net income for Q4 2025 was $29,079,000, a significant increase of 99.5% from $14,558,000 in Q4 2024[19] - Basic earnings per share for the year ended December 31, 2025, was $4.16, down from $4.25 in 2024, reflecting a decrease of 2.1%[19] - Adjusted EBITDA for the year ended December 31, 2025, was $468,045,000, representing an increase of 3.5% from $451,658,000 in 2024[30] - Adjusted net income for the year ended December 31, 2025, was $153,915,000, up from $146,242,000 in 2024, showing an increase of approximately 5.7%[32] Cash Flow and Liquidity - Free cash flow in 2025 was $246 million, down from $251 million in 2024; $87 million was returned to shareholders through dividends and share repurchases[9] - Total net liquidity at the end of Q4 was $818 million, with a total net leverage ratio of 2.6x, down from 2.8x in Q3 2025[10] - Cash and cash equivalents at the end of 2025 were $26,432,000, down from $33,561,000 at the end of 2024[24] - Net cash provided by operating activities for the year was $329,414,000, slightly up from $326,841,000 in 2024[24] - Cash flows from operating activities for the year ended December 31, 2025, were $329,414,000, compared to $326,841,000 for 2024, reflecting a slight increase[31] - Free cash flow for the year ended December 31, 2025, was $246,493,000, down from $251,159,000 in 2024, indicating a decrease of approximately 1.3%[31] Acquisitions and Strategic Initiatives - The company completed five acquisitions in 2025, including two in Q4, with total capital deployed for acquisitions amounting to $122 million[4] - The company remains focused on strategic priorities including acquisitions, organic growth, and enhancing customer partnerships as it enters 2026[11] Assets and Liabilities - Total assets as of December 31, 2025, were $3,076,174,000, an increase from $3,020,954,000 in 2024[22] - Total liabilities decreased slightly to $1,891,877,000 in 2025 from $1,892,588,000 in 2024[22] Margins - The operating margin for the fourth quarter ended December 31, 2025, improved to 6.2%, up from 4.7% in the same quarter of 2024[31] - Adjusted operating margin for the year ended December 31, 2025, was 7.0%, slightly down from 7.2% in 2024[31]

ELKHART, Ind., Feb. 5, 2026 /PRNewswire/ -- 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 fourth quarter and year ended December 31, 2025. Fourth Quarter and Full Year 2025 Highlights (compared to Fourth Quarter and Full Year 2024 unless otherwise noted) "Our resilient fourth quarter results were driven by our team's continued execution on both organic and s ...

Group 1 - Patrick Industries, Inc. (NASDAQ:PATK) is recognized among the 15 Dividend Growth Stocks with the Highest Growth Rates [1] - Truist analyst Gregory Miller raised the price target for Patrick Industries to $126 from $114, maintaining a Buy rating, highlighting the company's strong performance in 2025 despite a challenging macro environment [2] - The aftermarket business through RecPro and the expanding presence in powersports, which now accounts for approximately 9%-10% of total revenue, are identified as key growth drivers for the company [3] Group 2 - In Q3 2025, Patrick reported net sales of $976 million, reflecting a 6% year-over-year increase, attributed to steady organic growth and acquisitions, despite industry-wide shipment declines [4] - Operating income decreased to $66 million from $74 million year-over-year, with operating margin easing to 6.8% from 8.1%, and net income fell to $35 million from $41 million [5] - Year-to-date operating cash flow was $199 million, down from $224 million in the same period last year, with free cash flow totaling $211 million over the trailing twelve months, and $13 million returned to shareholders through dividends [6]

Core Viewpoint - Benchmark analyst Michael Albanese has raised the price target for Patrick Industries (PATK) to $140 from $115 while maintaining a Buy rating on the shares, indicating a positive outlook for the company despite recent stock performance [1]. Group 1 - The stock has experienced a 14% year-to-date increase following a significant 30% gain in 2025, suggesting strong momentum [1]. - The analyst describes Patrick's current setup as "compelling," which reflects confidence in the company's future performance [1]. - Patrick Industries remains on Benchmark's Best Idea list for 2026, highlighting its potential as a top investment choice [1].

Core Viewpoint - Truist analyst Gregory Miller raised the price target on Patrick Industries (PATK) to $126 from $114 while maintaining a Buy rating, highlighting the company's strong performance in the recreation sector and earnings resilience amid macroeconomic challenges [1] Group 1: Company Performance - Patrick Industries outperformed the recreation sector in 2025, demonstrating strong earnings resilience despite macro headwinds [1] - The company's aftermarket growth through RecPro is identified as a key opportunity for expansion [1] Group 2: Revenue Insights - Powersports exposure now accounts for 9%-10% of Patrick Industries' revenue, indicating a growing segment within the company's overall business [1]

Core Viewpoint - Patrick Industries, Inc. has appointed Matthew Filer as the new Executive Vice President – Finance, Chief Financial Officer, and Treasurer, succeeding Andrew Roeder, who will remain with the company until the filing of its Form 10-K for the fiscal year ended December 31, 2025 [1][3]. Group 1: Leadership Transition - Matthew Filer, aged 53, has been with the company since November 2022, previously serving as Senior Vice President of Finance and Interim CFO [2]. - Andrew Roeder has decided to step down from his role, expressing a desire to pursue opportunities more aligned with his entrepreneurial background [3]. Group 2: Company Overview - Patrick Industries, Inc. is a leading component solutions provider for the RV, Marine, Powersports, and Housing markets, with a history dating back to 1959 [4]. - The company employs approximately 10,000 skilled team members across the United States and is known for its customer-focused approach, bringing together design, manufacturing, distribution, and transportation [4].

Core Viewpoint - Patrick Industries, Inc. has completed the acquisitions of Quality Engineered Services (QES) and Egis Group, LLC, enhancing its capabilities in the marine and RV industries [1][3]. Group 1: Acquisitions - The acquisitions of QES and Egis are aimed at expanding Patrick's offerings in engineered electrical components and system-level solutions for marine and specialty vehicle applications [1][3]. - QES manufactures wire harnesses and electrical systems, while Egis develops engineered electrical components such as terminal blocks and circuit breakers [1][2]. Group 2: Financial Impact - The combined revenue for QES and Egis for the trailing 12 months through November 2025 was approximately $39 million [2]. Group 3: Strategic Goals - The acquisitions align with Patrick's long-term strategy to provide innovative component solutions for OEMs in the Outdoor Enthusiast space and the aftermarket [3]. - QES's strategic location near major pontoon and RV OEMs and Egis's engineering talent will enhance Patrick's service offerings and operational capabilities [3]. Group 4: Company Overview - Patrick Industries is a leading component solutions provider serving the RV, Marine, Powersports, and Housing markets, with a commitment to quality and customer service [4]. - The company employs approximately 10,000 skilled team members across the United States and operates more than 85 leading brands [4].

Group 1: Fund Performance - The Mairs & Power Small Cap Fund returned 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which was up 10.39% [1] - The fund also lagged behind the S&P Small Cap 600 TR, which rose 4.24%, and the Morningstar U.S. Fund Small Blend, which returned 6.15% [1] Group 2: Investment Highlights - The fund initiated a position in Patrick Industries, Inc. (NASDAQ:PATK) during the third quarter of 2025, recognizing its potential due to ongoing outsourcing trends in its markets [3] - Patrick Industries, Inc. manufactures components and materials for various sectors, including recreational vehicles and marine markets, and has seen a one-month return of 12.72% and a 52-week gain of 25.89% [2] - As of December 10, 2025, Patrick Industries, Inc. stock closed at $114.13 per share, with a market capitalization of $3.798 billion [2] Group 3: Market Analysis - The market concentration in 2025 is driven by a few dominant mega-cap stocks linked to artificial intelligence, impacting overall fund performance [1] - Despite the potential of Patrick Industries, certain AI stocks are viewed as having greater upside potential and less downside risk [4] - In Q3 2025, Patrick Industries, Inc.'s consolidated net sales increased by 6% to $976 million [4]

Core Insights - Patrick Industries, Inc. will participate in the Raymond James 2025 TMT and Consumer Conference in New York from December 8-10, 2025, with management engaging in a fireside chat and one-on-one meetings with institutional investors and analysts on December 8, 2025 [1]. Company Overview - Patrick Industries, Inc. is a leading component solutions provider for the RV, Marine, Powersports, and Housing markets, established in 1959 [3]. - The company employs approximately 10,000 skilled team members across the United States and is headquartered in Elkhart, Indiana [3]. - Patrick is known for its customer-focused approach, integrating design, manufacturing, distribution, and transportation, and is home to over 85 leading brands committed to quality, customer service, and innovation [3].

Market Overview - Major U.S. indexes have shown significant year-to-date gains: Nasdaq Composite up 78.1%, S&P 500 up 15.8%, and Dow Jones Industrial Average up 11.5% [1] - Despite strong performance, volatility remains as investors shift to safer sectors, moving away from high-valuation technology and AI stocks [1] - Ongoing instability from government tariff policies and economic uncertainty continues to impact market participants [1] Employment and Economic Data - The unemployment rate for September rose to 4.4%, the highest in four years, while nonfarm payrolls increased by 119,000 [2] - Retail sales in September grew by only 0.2%, below expectations, with higher prices raising affordability concerns [2] - The Producer Price Index (PPI) increased by 0.3% in September, aligning with market expectations [2] - The consumer confidence index fell to 88.7, a seven-month low, significantly below the consensus estimate of 93.5 [2] Federal Reserve Expectations - Investors are anticipating a 25-basis point cut in benchmark interest rates by the Federal Reserve in December to address labor-market softness and support growth [3] Dividend-Paying Stocks - In a volatile market, dividend-paying stocks are recommended for portfolio diversification [4] - Notable dividend-paying companies include: - **Orange County Bancorp, Inc. (OBT)**: Declared an 18-cent dividend with a yield of 1.9% [5][6] - **United Bankshares (UBSI)**: Declared a 38-cent dividend with a yield of 3.9% [7] - **Dillard's (DDS)**: Declared a $30 dividend with a yield of 0.2% [10] - **Patrick Industries (PATK)**: Declared a 47-cent dividend with a yield of 1.5% [11][12] - **Agilent Technologies (A)**: Declared a 26-cent dividend with a yield of 0.6% [13][14] - Companies with consistent dividend payouts indicate a healthy business model and tend to outperform non-dividend-paying entities in volatile markets [4]