Patrick Industries(US:PATK)2025-10-30 12:28Financial Performance - Net sales increased by 6% to $976 million compared to $919 million in Q3 2024, driven by market-share gains and acquisitions [2]. - Operating income was $66 million, down from $74 million in the prior year, with an operating margin of 6.8%, a decrease of 130 basis points [4]. - Net income decreased to $35 million, or $1.01 per diluted share, compared to $41 million, or $1.20 per diluted share in Q3 2024 [3]. - Adjusted EBITDA was $112 million, down from $121 million in the same period last year, with an adjusted EBITDA margin of 11.5% compared to 13.2% [4]. - Net income for the nine months ended September 28, 2025, was $105,977 thousand, a decrease of 14.4% compared to $123,843 thousand for the same period in 2024 [21]. - Adjusted EBITDA for the nine months ended September 28, 2025, was $363,102 thousand, slightly up from $362,235 thousand in the prior year, reflecting a margin of 12.0% [28]. - Basic earnings per common share for the nine months ended September 28, 2025, was $3.26, down from $3.80 in the same period of 2024 [23]. - The operating margin for the nine months ended September 28, 2025, was 7.2%, down from 7.6% in the same period of 2024 [29]. Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date was $199 million, down from $224 million in the prior year [4]. - Free cash flow for the trailing twelve months was $211 million, compared to $277 million in the prior year [4]. - Free cash flow for the trailing twelve months ended September 28, 2025, was $211,060 thousand, down from $277,211 thousand for the same period in 2024 [29]. - Cash and cash equivalents decreased to $20,698 thousand at the end of the period from $33,561 thousand at the beginning of the year, a decline of 38.3% [21]. Debt and Equity - Total debt at the end of Q3 was approximately $1.3 billion, resulting in a total net leverage ratio of 2.8x [8]. - The total shareholders' equity increased to $1,168,506 thousand as of September 28, 2025, from $1,128,366 thousand at December 31, 2024, reflecting a growth of 3.6% [20]. - Total current liabilities increased to $407,578 thousand as of September 28, 2025, compared to $353,615 thousand at December 31, 2024, marking a rise of 15.3% [20]. Strategic Initiatives - The company completed the acquisition of LilliPad Marine, enhancing its product offerings in the marine accessories market [5]. - The company expects to enhance execution of its profitable growth plan and improve margins in fiscal 2026 [9]. Investment Activities - The company reported a net cash used in investing activities of $136,895 thousand for the nine months ended September 28, 2025, compared to $485,401 thousand in the prior year [21]. Asset Growth - Total assets increased to $3,147,175 thousand as of September 28, 2025, up from $3,020,954 thousand at December 31, 2024, representing a growth of 4.2% [20].