Patrick Industries, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results and Declares Quarterly Cash Dividend

Core Insights - Patrick Industries, Inc. reported strong financial results for Q4 and the full year 2025, with net sales increasing by 9% to $924 million in Q4 and 6% to $4.0 billion for the full year, driven by growth in the Outdoor Enthusiast markets and strategic acquisitions [2][5][8]. Financial Performance - Q4 net sales rose to $924 million from $846 million in Q4 2024, reflecting higher revenue across Outdoor Enthusiast markets, partially offset by lower Housing revenue [3][5]. - Operating income for Q4 increased by 45% to $57 million, with an operating margin of 6.2%, while full-year operating income rose 7% to $276 million, maintaining a 7.0% operating margin [4][9]. - Net income for Q4 doubled to $29 million, with diluted EPS increasing by 98% to $0.83. For the full year, net income was $135 million, down from $138 million in 2024, with diluted EPS at $3.90 [6][12]. - 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, with a margin of 11.8% [5][12]. Market Sector Performance - In Q4 2025, revenue breakdown by market sector included RV (43%), Marine (16%), Powersports (12%), and Housing (29%). RV revenue increased by 9% to $1.8 billion, Marine revenue improved by 6% to $606 million, and Powersports revenue grew by 9% to $384 million [8][10]. - Housing revenue saw a modest increase of 1% to $1.2 billion, despite a 10% decrease in wholesale Manufactured Housing unit shipments [11]. Cash Flow and Capital Allocation - Free cash flow for 2025 was $246 million, slightly down from $251 million in 2024. The company returned $87 million to shareholders through dividends and share repurchases, with a 17.5% increase in the quarterly dividend authorized in Q4 [13][14]. - Total net liquidity at the end of Q4 was $818 million, with a net leverage ratio of 2.6x, down from 2.8x in Q3 2025 [15]. Strategic Initiatives - The company completed five acquisitions in 2025, including Quality Engineered Services and Egis Group in Q4, enhancing its marine electrical full-solutions platform [7][8]. - The management emphasized a focus on innovation, automation, and customer partnerships to drive sustainable long-term growth [3][16].