Patrick Industries reports powersports revenue jump in Q3
Patrick Industries reported third-quarter 2026 net sales of $975 million, essentially unchanged from the $976 million recorded a year earlier, as growth in its powersports, marine and housing businesses helped offset a decline in RV revenue.
The Elkhart, Indiana-based supplier reported a 30% increase in powersports revenue to $128 million for the quarter ended Sept. 27. Powersports accounted for approximately 13% of Patrick’s total revenue. The growth was driven by continued demand for utility-focused vehicles, increased attachment rates for Sportech cab enclosure solutions and stronger sales of premium vehicle features, including audio systems.
Patrick’s results offer another indication of the strength of the utility vehicle segment, particularly for suppliers providing enclosed-cab and comfort-related products.
Across its business, Patrick reported operating income of $50 million, down from $66 million in the third quarter of 2025. Operating margin declined to 5.1% from 6.8%. Adjusted operating margin, which excludes merger-related expenses, restructuring costs and other nonrecurring items, was 6.8%, unchanged from the prior-year period.
Net income was $21 million, or 64 cents per diluted share, compared with $35 million, or $1.01 per diluted share, a year earlier. Adjusted net income was $34 million, compared with $35 million in the third quarter of 2025. Adjusted diluted earnings per share increased to $1.03 from $1.01.
Adjusted EBITDA increased 3% to $116 million, while adjusted EBITDA margin expanded 40 basis points to 11.9%.
“Our strategic market diversification and business model, in addition to our focus on innovation and product solutions for customers, continued to drive resilient results in the third quarter,” said Andy Nemeth, CEO of Patrick Industries, in its earnings call.
He said growth in marine, powersports and housing helped keep consolidated revenue in line with the previous year despite weaker RV industry shipments.
Powersports growth offsets RV weakness
Patrick’s RV business remained its largest market, representing 37% of third-quarter revenue. However, RV revenue fell 15% to $362 million as industry wholesale shipments declined 13%. Marine revenue increased 14% to $171 million, representing 18% of company revenue. The housing business, which includes manufactured housing and industrial markets, generated $314 million, up 4%.
Patrick President Jeff Rodino said the company continues to see demand for utility vehicles and products that add functionality and comfort.
“Our Powersports business continued to see sustained strength in utility vehicle demand, which aligns well with our cab enclosure offerings,” Rodino said in the earnings call.
He also pointed to economic pressures affecting consumer demand, including high interest rates, elevated fuel costs and inflation, which have contributed to softer consumer confidence.
Patrick said RV manufacturers and dealers have remained disciplined in managing field inventory levels in response to lower retail demand. The company continues to invest in manufacturing technology, automation and product development. During the quarter, Patrick launched Patrick Printing Solutions, a direct-to-panel printing platform that applies high-resolution graphics and physical textures to composite, wood and other substrates.
Pending merger
Patrick also provided an update on its previously announced all-stock merger agreement with LCI Industries. The companies signed a definitive agreement June 30, 2026, to combine their businesses. Patrick said its registration statement on Form S-4 was declared effective by the Securities and Exchange Commission on Oct. 19, with a special shareholder meeting scheduled for Nov. 18.
The proposed combination brings together two major suppliers serving the RV, marine and powersports markets. Patrick ended the third quarter with approximately $1.4 billion in total debt and a net leverage ratio of 2.9 times. Available liquidity was approximately $716 million.
For the first nine months of 2026, cash provided by operating activities totaled $147 million, compared with $199 million during the same period last year. Patrick attributed the difference in part to working capital investments supporting its composite products growth strategy and proactive inventory management for customers.
Looking ahead, Nemeth said Patrick will continue investing in engineering, emerging technologies and product solutions while working with OEM customers to address affordability and changing consumer expectations.
