LCI Industries(US:LCII)2025-10-30 14:55Financial Performance - Net sales for Q3 2025 reached $1,036,477, an increase of 13.2% compared to $915,497 in Q3 2024[9] - Gross profit for the nine months ended September 30, 2025, was $774,383, up 9.0% from $710,309 in the same period of 2024[9] - Operating profit increased to $75,439 in Q3 2025, representing a 39.9% rise from $53,888 in Q3 2024[9] - Net income for the nine months ended September 30, 2025, was $169,566, a 27.1% increase from $133,320 in the prior year[9] - Basic net income per share for Q3 2025 was $2.56, compared to $1.40 in Q3 2024, reflecting an 82.9% increase[9] - Total net sales for LCI Industries in Q3 2025 reached $1,036.5 million, a 13.2% increase from $915.5 million in Q3 2024[95] - Consolidated net sales in Q3 2025 were $1,036.5 million, a 13.2% increase from $915.5 million in Q3 2024, driven by sales price increases, acquisitions, and higher North American RV sales[121] - Net income for Q3 2025 was $62.5 million, or $2.55 per diluted share, compared to $35.6 million, or $1.39 per diluted share, in Q3 2024, including a $19.7 million gain on the sale of real estate[121] Assets and Cash Flow - Total assets as of September 30, 2025, amounted to $3,168,589, up from $2,894,739 at the end of 2024, indicating a growth of 9.5%[14] - Cash and cash equivalents increased to $199,721 as of September 30, 2025, compared to $165,756 at the end of 2024, a rise of 20.5%[14] - The company reported a net cash flow from operating activities of $252,104 for the nine months ended September 30, 2025, slightly down from $263,688 in the same period of 2024[16] - Net cash flows provided by operating activities were $252.1 million for the first nine months of 2025, a decrease of 4.9% compared to $263.7 million in the same period of 2024[153] - Cash flows used in investing activities totaled $121.6 million in the first nine months of 2025, primarily for business acquisitions ($103.0 million) and capital expenditures ($38.1 million)[155] - Cash flows used in financing activities were $96.2 million in the first nine months of 2025, including $368.9 million for repurchasing a portion of 2026 Convertible Notes and $128.6 million for common stock repurchases[158] Stockholder Equity and Dividends - The total stockholders' equity as of September 30, 2024, was $1,418,322,000, an increase from $1,394,413,000 as of June 30, 2024[21] - As of September 30, 2025, total stockholders' equity reached $1,361,678,000, with retained earnings of $1,289,467,000[23] - Cash dividends declared were $1.15 per share, totaling $27,827,000 for the quarter[23] - The Company declared total dividends of $86.215 million for the year 2025, with a per share dividend of $1.15 for each quarter[81] Acquisitions and Capital Expenditures - The company completed acquisitions totaling $102,990 during the nine months ended September 30, 2025, compared to $19,957 in the same period of 2024[16] - The Company acquired Bigfoot Hydraulic Systems for approximately $10.1 million in October 2025, expanding its offerings in hydraulic leveling solutions[44] - The acquisition of Freedman Seating Company in April 2025 had a total fair value of approximately $79.4 million, with $68.6 million paid in cash[45] - Capital expenditures for the nine months ended September 30, 2025, were $38,071, compared to $31,390 in the prior year, reflecting an increase of 21.3%[16] - The company expects full-year 2025 capital expenditures to be between $45 million and $55 million, focusing on automation and lean projects[156] Segment Performance - The OEM Segment accounted for 77% of consolidated net sales for the nine months ended September 30, 2025, with net sales of $2,453.1 million, up from $2,238.9 million in 2024[89] - The Aftermarket Segment represented 23% of consolidated net sales for the nine months ended September 30, 2025, generating $736.2 million, compared to $699.2 million in 2024[90] - OEM Segment net sales increased by $105.6 million to $790.0 million in Q3 2025, representing a 15% growth compared to $684.5 million in Q3 2024[120] - Aftermarket Segment net sales for the first nine months of 2025 were $736.2 million, up from $699.2 million in the same period of 2024, reflecting a 5.3% increase[95] - Aftermarket Segment net sales in Q3 2025 increased by $15.4 million to $246.5 million, primarily driven by product innovations and increased demand for upgrade and service parts[132] Debt and Financing - Long-term indebtedness increased from $756.830 million on December 31, 2024, to $944.167 million on September 30, 2025, with the issuance of $460 million in 2030 Convertible Notes[56] - The Company issued $460.0 million in aggregate principal amount of 2026 Convertible Notes, resulting in net proceeds of approximately $447.8 million after expenses[69] - The 2030 Convertible Notes issued in March 2025 bear a coupon rate of 3.000% per annum, with a conversion rate of 8.5745 shares per $1,000 principal amount[62][63] - The Company repurchased $368.0 million of the 2026 Convertible Notes, incurring a loss on extinguishment of debt of $6.2 million[75] - Interest expense for the nine months ended September 30, 2025, was $26.0 million, up from $23.8 million in the same period of 2024, primarily due to higher interest rates[138] Market and Economic Conditions - The company faces risks from negative economic conditions in the U.S. and abroad, including financial market fluctuations, increased inflation, and geopolitical tensions[30] - The prices of key raw materials, particularly steel and aluminum, have been volatile, with expectations of elevated prices through the remainder of 2025[169] - The RV industry saw a 4% decrease in wholesale shipments of travel trailers and fifth-wheels to 65,700 units in Q3 2025, while retail demand remained stable at 88,900 units, a 1% increase[108] - The U.S. RV ownership base reached a record 8.1 million households in 2025, driving strong demand for aftermarket products[116] Compliance and Accounting - The company is in compliance with all financial covenants as of September 30, 2025, maintaining a minimum interest coverage ratio[59] - The Company is evaluating the impact of several new accounting standards, including ASU 2023-09, which will enhance income tax disclosures effective for fiscal years beginning after December 15, 2024[36] - The Condensed Consolidated Financial Statements are prepared in accordance with the accounting policies described in the Annual Report for the year ended December 31, 2024[31] - The Company is evaluating the impact of the new accounting standards update regarding internal-use software, effective for fiscal years beginning after December 15, 2027[32]