Monitor the LCI Industries merger discussions for any definitive agreement or termination — a deal would be transformative for PATK's market position. The flat operating margin and declining free cash flow suggest limited near-term catalysts; watch for Q2 industry shipment trends in RV and Marine as key demand indicators.
Price Chart
Executive Summary
Patrick Industries reported Q1 2026 results with net sales of $997M, down slightly from $1,003M YoY, as growth in Marine (+14%) and Powersports (+28%) was offset by declines in RV (-7%) and Housing (-6%). Operating income was flat at $65M, net income rose 3% to $39M, and diluted EPS was $1.10 vs $1.11. The company disclosed it is in discussions with LCI Industries regarding a potential merger of equals, but provided no terms or assurance a deal will occur.
Key Facts
- Q1 2026 net sales $997M vs $1,003M YoY (-0.6%)
- Operating income $65M vs $66M YoY, operating margin flat at 6.5%
- Net income $39M vs $38M YoY (+3%), diluted EPS $1.10 vs $1.11
- RV revenue down 7% to $446M; Marine up 14% to $170M; Powersports up 28% to $104M; Housing down 6% to $277M
- Adjusted EBITDA $113M vs $116M YoY, margin 11.4% vs 11.5%
- Cash used in operations $14M vs cash provided $40M YoY; trailing 12-month free cash flow $194M vs $251M
- Returned $31M to shareholders in Q1 ($16M dividends, $15M buybacks); additional $15M in buybacks through April 29
- Total net leverage ratio 2.8x; available liquidity $734M
- Company confirmed discussions with LCI Industries regarding a potential merger of equals (no terms or assurance of deal)
- EPS includes $0.10 dilution from convertible notes/warrants vs $0.05 in prior year
Financial Impact
Net sales declined ~$6M YoY; net income increased ~$1.2M; free cash flow trailing 12-month declined ~$58M
Risk Factors
- RV and Housing revenue declines reflect broader industry weakness with wholesale unit shipments down 12% and 11% respectively
- Cash flow from operations turned negative $14M vs positive $40M last year due to working capital build
- Merger discussions with LCI Industries may not result in a transaction, creating uncertainty
- Convertible note dilution increased to $0.10 per share from $0.05, pressuring EPS growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000076605-26-000045 |
| Document: patk-20260430.htm | 0000076605-26-000045 |
| Document: 0000076605-26-000045-index-headers.html | 0000076605-26-000045 |
| Document: 0000076605-26-000045-index.html | 0000076605-26-000045 |
| Document: 0000076605-26-000045.txt | 0000076605-26-000045 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 7w ago | Press Release | $86.06 $72.98 | ▼ −15.20% | ▼ −13.21% | $67.16 (−21.96%) |
Aug 10, 2026 7w ago | 425 / 8-K | $87.42 $76.99 | ▼ −11.93% | ▼ −10.87% | $67.16 (−23.18%) |
Jul 30, 2026 9w ago | 8-K | $84.00 $83.09 | ▼ −1.08% | ▼ −5.05% | $67.16 (−20.05%) |
Jun 30, 2026 13w ago | 425 | $85.27 $86.62 | ▲ +1.58% | ▲ +3.77% | $67.16 (−21.24%) |
Jun 30, 2026 13w ago | 425 | $85.27 $86.62 | ▲ +1.58% | ▲ +3.77% | $67.16 (−21.24%) |
Jun 25, 2026 14w ago | Insider Cluster | $92.68 $85.45 | ▼ −7.80% | ▼ −8.33% | $67.16 (−27.54%) |
May 18, 2026 19w ago | 8-K | $89.85 $87.13 | ▼ −3.03% | ▼ −4.61% | $67.16 (−25.26%) |
May 7, 2026 21w ago | 8-K | $95.36 $90.65 | ▼ −4.94% | ▼ −8.08% | $67.16 (−29.57%) |
May 5, 2026 21w ago | Insider Cluster | $90.06 $90.66 | ▲ +0.67% | ▼ −4.29% | $67.16 (−25.43%) |
May 5, 2026 21w ago | Insider Cluster | $90.06 $90.66 | ▲ +0.67% | ▼ −4.29% | $67.16 (−25.43%) |
US Market Status
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