The revenue beat was driven by non-RV segments masking a 15% RV decline, while operating margin compression and a 51% drop in TTM free cash flow signal deteriorating profitability. Monitor the RV wholesale shipment trajectory and the LCI merger closing timeline – the all-stock deal transforms the equity story but introduces integration risk.
Price Chart
Executive Summary
PATK reported Q2 2026 results with an adjusted EPS beat ($1.29 vs $1.24 estimate, +4.0%) and a revenue beat ($1.04B vs $994.9M, +4.7%), though total revenue was essentially flat YoY (-0.6%). Operating income fell 11% to $77M, operating margin contracted 90bp to 7.4%, and free cash flow (TTM) plunged to $128M from $262M. The company also disclosed its definitive all-stock merger agreement with LCI Industries (subsequent event), adding deal uncertainty.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $1.29 beat consensus of $1.24 by 4.0%
- Revenue of $1.04B was flat YoY but topped estimates by ~4.7%
- RV revenue fell 15% (industry shipments -16%), offset by Marine +22%, Powersports +28%, Housing +2%
- Operating income down 11% to $77M; operating margin 7.4% vs 8.3% a year ago
- Net income rose 34% to $43M, aided by absence of $24.4M legal settlement that hit Q2 2025
- Adjusted net income declined to $43.9M from $50.8M in prior-year period
- Free cash flow (TTM) collapsed to $128M from $262M as operating cash flow YTD fell 64%
- Net leverage rose to 3.0x from 2.6x at year-end 2025
- Returned $106M to shareholders via buybacks ($91M) and dividends ($15M)
- Subsequent to quarter end, signed definitive all-stock merger agreement with LCI Industries on June 30, 2026
Financial Impact
Q2 2026 revenue $1,041,704 ($1.04B), adjusted net income $43.9M, adjusted diluted EPS $1.29, free cash flow TTM $127.8M
Risk Factors
- Prolonged RV industry downturn (shipments -16% this quarter)
- Further operating margin compression from fuel costs and merger-related expenses
- Leverage increase to 3.0x limits financial flexibility
- Execution risk on pending LCI Industries all-stock merger
- Weak operating cash flow trend may constrain capital returns
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000076605-26-000069 |
| Document: patk-20260730.htm | 0000076605-26-000069 |
| Document: 0000076605-26-000069-index-headers.html | 0000076605-26-000069 |
| Document: 0000076605-26-000069-index.html | 0000076605-26-000069 |
| Document: 0000076605-26-000069.txt | 0000076605-26-000069 |
| 8-K Data (Synthetic) | 0000076605-26-000069 |
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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