The adjusted EPS beat and revenue above consensus are positive, but the sharp GAAP EPS decline and restructuring charges signal underlying pressure. The key catalyst is the November 18 shareholder vote on the LCI merger; the outcome will determine the stock's near-term trajectory.
Price Chart
Executive Summary
Patrick Industries reported Q3 2026 net sales of $975M, essentially flat YoY, with GAAP diluted EPS of $0.64, down from $1.01 in Q3 2025. Adjusted diluted EPS was $1.03, slightly above the $0.99 consensus estimate. Revenue growth in Marine (+14%), Powersports (+30%), and Housing (+4%) nearly offset a 15% decline in RV revenue. Operating margin fell to 5.1% from 6.8%, impacted by $14.7M in merger-related costs and $2.0M in restructuring charges. The pending all-stock merger with LCI Industries remains on track, with a shareholder vote scheduled for November 18, 2026.
Key Financial Metrics
Key Facts
- Q3 2026 net sales of $975M, essentially flat vs $976M in Q3 2025
- GAAP diluted EPS of $0.64, down from $1.01 in Q3 2025
- Adjusted diluted EPS of $1.03, up from $1.01 in Q3 2025, beating the $0.99 consensus estimate
- Operating income of $50M, down from $66M; operating margin fell to 5.1% from 6.8%
- Adjusted operating margin of 6.8%, flat YoY
- Adjusted EBITDA of $116M, up 3% from $112M; margin expanded 40 bps to 11.9%
- RV revenue declined 15% to $362M; Marine revenue up 14% to $171M; Powersports up 30% to $128M; Housing up 4% to $314M
- Free cash flow of $203M on a trailing twelve-month basis, down from $211M
- Available liquidity of $716M; net leverage ratio of 2.9x
- Pending all-stock merger with LCI Industries; S-4 declared effective Oct 19, 2026; shareholder vote Nov 18, 2026
Financial Impact
Adjusted diluted EPS of $1.03 vs consensus $0.99, a beat of ~4%; revenue of $975M vs consensus $938.5M, a beat of ~3.9%
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| RV | $362.0M | -15.0% |
| Marine | $171.0M | +14.0% |
| Powersports | $128.0M | +30.0% |
| Housing | $314.0M | +4.0% |
Risk Factors
- Continued RV market weakness with 15% revenue decline and 13% drop in industry wholesale unit shipments
- Merger-related costs of $14.7M and restructuring costs of $2.0M weighing on GAAP profitability
- Pending merger with LCI Industries subject to shareholder approval and regulatory conditions
- Macroeconomic headwinds including high interest rates, elevated fuel costs, and softening consumer confidence
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000076605-26-000106 |
| Document: patk-20261029.htm | 0000076605-26-000106 |
| Document: 0000076605-26-000106-index-headers.html | 0000076605-26-000106 |
| Document: 0000076605-26-000106-index.html | 0000076605-26-000106 |
| Document: 0000076605-26-000106.txt | 0000076605-26-000106 |
| 8-K Data (Synthetic) | 0000076605-26-000106 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 today | 425 | $73.72 | awaiting T+20 | awaiting T+20 | $77.68 (+5.37%) |
Oct 29, 2026 1d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Oct 29, 2026 1d ago | Press Release | $75.18 | awaiting T+20 | awaiting T+20 | $77.68 (+3.33%) |
Oct 28, 2026 2d ago | 425 | $75.18 | awaiting T+20 | awaiting T+20 | $77.68 (+3.33%) |
Oct 28, 2026 2d ago | Press Release | $69.93 | awaiting T+20 | awaiting T+20 | $77.68 (+11.08%) |
Oct 22, 2026 8d ago | 425 | $68.86 | awaiting T+20 | awaiting T+20 | $77.68 (+12.81%) |
Oct 20, 2026 10d ago | EFFECT | $66.86 | awaiting T+20 | awaiting T+20 | $77.68 (+16.18%) |
Oct 19, 2026 11d ago | 425 | $66.86 | awaiting T+20 | awaiting T+20 | $77.68 (+16.18%) |
Oct 15, 2026 15d ago | Press Release | $68.04 | awaiting T+20 | awaiting T+20 | $77.68 (+14.17%) |
Oct 15, 2026 15d ago | S-4/A | $68.04 | awaiting T+20 | awaiting T+20 | $77.68 (+14.17%) |
US Market Status
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