Lci Industries · NYSE:LCII
Lci Industries — Q1 2025 Earnings Presentation
18 slides from Lci Industries's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 Earnings Conference Call 5.6.2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions,
Slide 3: First Quarter 2025 Highlights
First Quarter 2025 Highlights Operational flexibility, strategic diversification, and effective cost management drove profitable growth Quarterly Financial Performance Gaining Share through Innovation • Net sales of $1.046 billion, up 8% year-over-year • Grew sales to RV OEMs in our top 5 product ca
Slide 4: RV OEM
RV OEM Performance and Trends • 86,400 North American wholesale towable units shipped in Q1 2025, up 18% YoY • 60,600 estimated North American retail towable units sold in Q1 2025, down 7% YoY • Gained share in our top 5 RV product categories: appliances, awnings, chassis, furniture, and windows for
Slide 5: Innovation Driving RV Content Growth, Share Gains
Innovation Driving RV Content Growth, Share Gains Key 2025 Model Year Product Wins New Window Designs Furrion® 18K Chill Cube Touring Coil and Integrated Shades Air Conditioner Suspension Sequential Towable Content Growth (LTM) YoY Towable Content Growth (LTM) +1% +3% * "Other" includes impact of RV
Slide 6: Adjacent Industries OEM
Adjacent Industries OEM Performance and Trends • Q1 2025 Adjacent Industries sales down 2% YoY • Decrease primarily due to lower sales to North American marine and powersports OEMs, partially offset by higher sales to utility trailer OEMs • Pressured by current dealer inventory levels, inflation, an
Slide 7: Aftermarket Segment
Aftermarket Segment Performance and Trends • Q1 2025 sales up 6% from the prior year driven by higher volumes within the RV and marine aftermarkets and market share gains in the automotive aftermarket • 310 bps YoY margin contraction primarily driven by increases in sales mix of lower margin product
Slide 8: Innovation Driving Growth
Helux Coil Spring Pin Box Residential Windows Anti-Lock Braking Systems Innovation Touring Coil Suspension Driving Growth 4000 Series Windows Continued focus on innovation driving an ongoing increase of new product introductions Bi Fold Sundeck Chill Cube Air Conditioner 8
Slide 9: Growth Strategy
Growth Strategy Expanding share across diversified portfolio with cutting-edge innovations and best-in-class service Focus on Delivering Unparalleled Customer Capture Share of $13 Billion of Addressable Experience Opportunities in Diverse End Markets • Developing innovations that enhance the outdoor
Slide 10: Capital Allocation Highlights
Capital Allocation Highlights Executing on our capital allocation strategy through acquisitions, debt refinancing, and returning capital to shareholders Strategic Acquisitions Refinanced Long-Term Debt • Recently completed two acquisitions to further • Issued $460M 3.000% convertible notes due 2030
Slide 11: Q1 2025 Financial Performance
Q1 2025 Financial Performance Consolidated Net Sales Operating Margin +8% +180 bps (in thousands) $968,029 $1,045,590 7.8% 6.0% First Quarter First Quarter First Quarter First Quarter 2024 2025 2024 2025 Consolidated Net Income Adjusted EBITDA* +35% +23% (in thousands) (in thousands) $49,438 $110,85
Slide 12: Liquidity and Cash Flow
Liquidity and Cash Flow As of and for the three months ended March 31 2025 2024 Cash and Cash Equivalents $231M $23M Remaining Availability under (1) $595M $154M Revolving Credit Facility Capital Expenditures $9M $9M Dividends $29M $27M Share Repurchases $28M $—M Debt / Net Income (TTM) 6.0x 9.1x (2
Slide 13: 2025 Tariff Update
2025 Tariff Update Raw Material & Component Tariff Mitigation Actions: Source by Market (at year-end) • Diversify supply chain - transition into 2024 Actual 2025 Estimate more strategically favorable regions Rest of World ~11% Rest of World • Tariff cost share with vendors ~23% China ~24% China • Pr
Slide 14: 2025 Outlook
2025 Outlook RV Industry • Our current full year 2025 North American forecast is 320 - 350k wholesale unit shipments • Continued momentum and product placement with newly launched products • Consolidated April 2025 sales up 3% YoY, driven by a 7% increase in RV OEM sales for the month Other Markets
Slide 15: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures ADJUSTED EBITDA Three Months Ended March 31, ADJUSTED EBITDA (TTM) Twelve months ended March 31, ($ in thousands) 2025 2024 ($ in thousands) 2025 2024 Net income $ 49,438 $ 36,545 Net income $ 155,760 $ 93,481 Interest expense, net 5,991 9,321 Interest ex
Slide 16: Appendix: Reconciliation of Non-GAAP Measures (cont.)
Appendix Reconciliation of Non-GAAP Measures (cont.) ADJUSTED NET INCOME Three Months Ended March 31, ($ in thousands, except per share amounts) 2025 2024 Net income $ 49,438 $ 36,545 Loss on extinguishment of debt 8,053 — Tax effect of adjustment (1,930) — Adjusted net income $ 55,561 $ 36,545 ADJU
Slide 17: Appendix: Historical Unit Mix of LCI RV OEM Chassis Shipments
Appendix Historical Unit Mix as Percentage of LCI RV OEM Chassis Shipments 100.0% 84.5% 84.2% 84.5% 84.1% 84.6% 81.4% 82.1% 80.7% 81.1% 79.5% 80.0% 77.0% 75.7% 76.3% 60.0% 40.0% 23.0% 24.3% 23.7% 20.5% 19.3% 18.6% 17.9% 18.9% 20.0% 15.5% 15.8% 15.5% 15.9% 15.4% —% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 18: Q&A
QS&A