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LCI Industries : Earnings Presentation Second Quarter 2026
LCI Industries : Earnings Presentation Second Quarter
About this update from Lci Industries
Q2 2026 EARNINGS CONFERENCE CALL | August 5, 2026 Important Disclosures Important Information About the Proposed Transaction and Where to Find It In connection with the proposed transaction between the Company and Patrick, the Company and Patrick intend to file relevant materials with the SEC, including, among other filings, a Patrick registration statement on Form S-4 that will include a joint proxy statement of the Company and Patrick that also constitutes a prospectus of Patrick with respect to shares of Patrick's common stock to be issued in the proposed transaction, and a definitive joint proxy statement/prospectus, which will be mailed to stockholders of the Company and Patrick (the "Joint Proxy Statement/ Prospectus"). The Company and Patrick may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Joint Proxy Statement/ Prospectus or any other document which the Company and Patrick may file with the SEC. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND PATRICK ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the registration statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by the Company and Patrick through the website maintained by the SEC at http://www.sec.gov . Copies of the documents filed with the SEC by the Company will be available free of charge on Company's website at lippert.com under the tab "Investors" and under the heading "Financials" and subheading "SEC Filings." Copies of the documents filed with the SEC by Patrick will be available free of charge on Patrick's website at patrickind.com under the tab "Investors" and under the heading "SEC Filings." Certain Information Regarding Participants The Company, Patrick and their respective directors and executive officers may be considered participants in the solicitation of proxies from the stockholders of each of the Company and Patrick in connection with the proposed transaction. Information about the directors and executive officers of the Company and their ownership of Company common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 26, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 27, 2026. Information about the directors and executive officers of Patrick and their ownership of Patrick common stock is set forth in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 19, 2026 and its proxy statement for its 2026 annual meeting, which was filed with the SEC on March 30, 2026. To the extent holdings of Company's or Patrick's securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of the Company and Patrick, including a description of their direct or indirect interests, by security holdings or otherwise, and other information regarding the potential participants in the proxy solicitations, which may be different than those of the Company's stockholders and Patrick's stockholders generally, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at http:// https://www.sec.gov and from Company's or Patrick's website as described above. No Offer or Solicitation This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law. LCI Industries | Q2 2026 Earnings Presentation 3 Second Quarter 2026 Highlights Diversification and Strong Execution Drives Expanded Profitability Quarterly Financial Performance Net sales of $968.7 million, down 13% YoY Adjusted net sales (1) of $1,057.5 million, down 4% YoY Net income of $67 million, up 16% YoY ($2.75 per diluted share, up 20%), or 6.9% of net sales Adjusted net income (1) of $66 million ($2.70 Adjusted EPS (1) , up 13% YoY) Adjusted EBITDA (1) of $129 million, up 7% YoY, or 12.2% of adjusted net sales Executing Continuous Improvement Initiatives Second quarter operating profit margin of 9.9%, up 200 bps YoY Cost improvement actions drove margin expansion Continued focus on operational efficiencies and disciplined strategic cost reduction actions Capital Allocation Strong liquidity position with $217 million of cash and cash equivalents and $595 million of availability on revolving credit facility at June 30, 2026 Paid quarterly dividend of $1.15 per share, aggregating $28 million in the second quarter Paid off remaining balance of $92 million of 2026 Convertible Notes at maturity using cash on hand Merger with Patrick Industries Entered into definitive agreement to combine with Patrick Industries, Inc. in an all-stock merger, forming a premier component solutions provider for the outdoor enthusiast, housing, and transportation markets Expected to close in the first half of 2027, subject to approval by stockholders of both companies and regulatory approvals 1 Additional information regarding adjusted net income, adjusted EPS, adjusted EBITDA, adjusted net sales, and adjusted EBITDA as a percentage of adjusted net sales, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, are provided in the Appendix. LCI Industries | Q2 2026 Earnings Presentation 4 Results by Market OEM Segment RV Transportation Marine Housing Aftermarket Segment 5 RV OEM Performance and Trends Q2 2026 RV OEM sales down 33% YoY, primarily due to a reduction for IEEPA tariff refunds expected to be passed through to customers (1) , a decrease in North American travel trailer and fifth-wheel shipments, and an increase in RV sales mix toward lower content single axle trailers These headwinds were partially offset by sales price increases implemented for targeted products and to cover higher material costs and content gains from recent product innovations 65,500 North American wholesale towable units shipped in Q2 2026, down 20% YoY 86,000 estimated North American retail towable units sold in Q2 2026, down 15% YoY Quarterly Net Sales $503M NA RV Wholesale/Retail/Inventory Change Q2 2025 Q2 2026 150,000 $336M 100,000 50,000 3Q22 0 40,000 20,000 - (20,000) (40,000) (60,000) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 (80,000) 4Q22 1Q23 2Q23 3Q23 4Q23 1 The ultimate amount and timing of any remaining refunds and related payments to customers remain subject to uncertainty, including the outcome of the U.S. government's appeal of the March 2026 Court of International Trade order. Retail Wholesale Inventory Linear (Inventory) LCI Industries | Q2 2026 Earnings Presentation 6 Innovation Driving RV Organic Content Growth Key 2026/2027 Model Year Product Wins Atlas™ Leveling System New Window Designs and Integrated Shades Furrion® 18K Chill Cube Air Conditioner Touring Coil Suspension Sequential Towable Content Growth (LTM) YoY Towable Content Growth (LTM) * "Other" includes impact of RV unit shipments versus industry production, index sales price adjustments, and the impact of acquisitions and divestitures LCI Industries | Q2 2026 Earnings Presentation 7 Transportation OEM Performance and Trends Q2 2026 Transportation OEM sales down 2% YoY Decrease primarily due to a reduction for IEEPA tariff refunds expected to be passed through to customers (1) , partially offset by sales from 2025 acquisitions in the resilient bus market where integration efforts and synergies are driving results Trans Air (acquired in March 2025) - bus climate control systems Freedman Seating (acquired in April 2025) - bus seating solutions Expanding presence in transportation markets: Increasing sales of axles and suspension products to top utility trailer brands. Utility trailer industry produces 500K+ utility and cargo trailers annually Supplying windows in off-road vehicles and school buses Focusing on innovative new products Approximately 65,000 city, shuttle and school buses delivered in 2025 1 The ultimate amount and timing of any remaining refunds and related payments to customers remain subject to uncertainty, including the outcome of the U.S. government's appeal of the March 2026 Court of International Trade order. Quarterly Net Sales $214M $210M Q2 2025 Q2 2026 LCI Industries | Q2 2026 Earnings Presentation 8 Marine OEM Performance and Trends Q2 2026 Marine sales up 8% YoY Sales growth driven by recent innovations and improving run rates Building momentum with newer products Quarterly Net Sales $73M $79M Q2 2025 Q2 2026 9 9 LCI Industries | Q2 2026 Earnings Presentation 9 Housing OEM Performance and Trends Q2 2026 Housing OEM sales up 2% YoY 2026 manufactured housing unit shipments were down about 7% through May Expanding presence in residential window market through 2025 acquisition of Moss Supply Company and new distribution partnerships June 2026 privately-owned housing starts up 19% over May 2026 and up 4% YoY according to the US Census Bureau Quarterly Net Sales $49M $50M Q2 2025 Q2 2026 10 10 LCI Industries | Q2 2026 Earnings Presentation 10 Aftermarket Performance and Trends Q2 2026 sales up 10% from the prior year period primarily driven by sales price increases for targeted products and to cover higher material costs, sales from acquired businesses, and increases in volume in the automotive aftermarket Driving portfolio expansion in diversified markets with towing and truck accessories, boating accessories, appliances, and electronics Meeting repair and replacement demand as RV ownership and used unit acquisitions have increased over recent quarters Lippert Factory Service network of service and repair centers provides retail customers with expanded access to highly technical upgrades through both Lippert Factory Service locations and certified installation dealer partners $268M $294M Quarterly Net Sales Q2 2026 Aftermarket Net Sales by Market 7% 10% 31% 52% Q2 2025 Q2 2026 Automotive RV Marine Other 11 LCI Industries | Q2 2026 Earnings Presentation 11 Consolidated Results 12 Q2 2026 Financial Performance Consolidated Net Sales Operating Margin -13% +200 bps $968,675 $1,107,250 7.9% 9.9% (in thousands) Second Quarter 2025 Second Quarter 2026 Second Quarter 2025 Second Quarter 2026 $129,391 $121,320 +7% +16% Consolidated Net Income Adjusted EBITDA* $57,635 $67,141 (in thousands) (in thousands) Second Quarter 2025 Second Quarter 2026 Second Quarter 2025 Second Quarter 2026 13 * Additional information regarding Adjusted EBITDA, as well as reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, is provided in the Appendix. LCI Industries | Q2 2026 Earnings Presentation 13 Capital Allocation Highlights Executing on our capital allocation strategy through complementary acquisitions, focus on innovation, and returning capital to shareholders Returning Capital to Shareholders Paid quarterly dividend of $1.15 per share, aggregating $28 million in the second quarter Strong Balance Sheet Strong quarter-end cash position of $217 million Borrowing availability of $595 million on revolving credit facility; repaid with cash 2026 notes at maturity in Q2 2026 14 (in millions) Debt to net income of 4.0x, and net debt to adjusted Strategic Acquisitions Acquisitions completed in 2025 delivering results in 2026 in both OEM and AM segments Continue to review thoughtful and complementary acquisition targets as part of our balanced capital allocation strategy (2) 1 Additional information regarding net debt to adjusted EBITDA, and a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, is provided in the Appendix. 2 Subject to the terms and conditions set forth in the merger agreement relating to our pending merger with Patrick Industries, Inc. Future Debt M aturities $464 $373 $2 $4 $4 $4 $4 2H26 2027 2028 2029 2030 2031 2032 EBITDA of 1.5x (1) , reflecting disciplined leverage management $490 $- 2030 Convertible Notes Term Loan B LCI Industries | Q2 2026 Earnings Presentation 14 Liquidity and Cash Flow 2026 2025 Cash and Cash Equivalents $217M $192M Remaining Availability under $595M $595M Capital Expenditures $28M $22M Dividends $56M $58M Share Repurchases $- $66M Debt / Net Income (TTM) 4.0x 6.2x Net Debt/Adjusted EBITDA (TTM) (2) 1.5x 2.1x Cash from Operating Activities $170M $155M Free Cash Flow (2) $142M $133M As of and for the six months ended June 30 Revolving Credit Facility (1) 1 Remaining availability under the revolving credit facility is subject to covenant restrictions. 15 2 Additional information regarding net debt to Adjusted EBITDA and free cash flow, as well as a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, is provided in the Appendix. LCI Industries | Q2 2026 Earnings Presentation 15 2026 Outlook 16 2026 Outlook July 2026 Results July 2026 net sales of approximately $315 million, down 4% YoY RV Industry Our current full year 2026 North American forecast is 280K - 300K wholesale unit shipments, down from the previous range of 315K to 330K Expect continued momentum and product placement with newly launched products in recent model year updates Other Markets Transportation - expect market to be down low single digits Marine - expect market to be down low single digits Housing - expect market to be down mid to high single digits 17 Aftermarket - new market share gains in automotive aftermarket expected to continue to help mitigate overall decline in all aftermarket channels LCI Industries | Q2 2026 Earnings Presentation 17 2026 Outlook Full Year 2026 Financial Outlook Based on current market and economic conditions along with existing tariffs, the Company expects the following: 2025 Actual 2026 Estimate Revenue $4.1B $3.9 billion - $4.1 billion Adjusted Operating Profit Margin 6.8% 7.5% - 8.0%* Adjusted Diluted EPS $7.46 $8.25 - $8.75 *Reaffirming prior guidance range (estimate excludes impact of IEEPA tariff refunds and merger-related expenses) 18 LCI Industries | Q2 2026 Earnings Presentation 18 ADJUSTED EBITDA Three months ended June 30, Six months ended June 30, Twelve months ended June 30, ($ in thousands) 2026 2025 2026 2025 2026 2025 Net income $ 67,141 $ 57,635 $ 130,088 $ 107,073 $ 211,265 $ 152,232 Interest expense, net 6,319 9,689 16,232 15,680 36,262 27,296 Provision for income taxes 23,054 20,480 45,353 38,315 73,857 51,562 Depreciation and amortization 30,858 30,323 60,656 59,865 122,022 120,830 EBITDA $ 127,372 $ 118,127 $ 252,329 $ 220,933 $ 443,406 $ 351,920 Loss on extinguishment of debt - - - 8,053 806 8,053 Gain on sale of real estate (554) - (554) - (20,270) Restructuring costs 4,421 - 4,421 - 8,321 - Merger expenses 14,124 - 14,124 - 14,124 - Net impact of IEEPA tariff refunds (15,972) - (15,972) - (15,972) - Executive separation costs - 3,193 - 3,193 - 3,193 Adjusted EBITDA $ 129,391 $ 121,320 $ 254,348 $ 232,179 $ 430,415 $ 363,166 Net Sales $ 968,675 $ 1,107,250 $ 2,059,192 $ 2,152,840 $ 4,028,369 $ 3,871,475 IEEPA tariff refunds impact on net sales 88,792 - 88,792 - 88,792 - Adjusted net sales $ 1,057,467 $ 1,107,250 $ 2,147,984 $ 2,152,840 $ 4,117,161 $ 3,871,475 Net income as a % of net sales 6.9 % 5.2 % 6.3 % 5.0 % 5.2 % 3.9 % Adjusted EBITDA as a % of adjusted net sales 12.2 % 11.0 % 11.8 % 10.8 % 10.5 % 9.4 % FREE CASH FLOW Six months ended June 30, NET DEBT/ADJUSTED EBITDA (TTM) ($ in thousands) 2026 2025 ($ in thousands) June 30, 2026 June 30, 2025 Net cash flows provided by operating activities $ 170,218 $ 154,937 Total debt $ 852,590 $ 947,990 Capital expenditures (28,432) (21,774) Less cash and cash equivalents 216,512 191,931 Free cash flow $ 141,786 $ 133,163 Net debt $ 636,078 $ 756,059 Total Debt/Net Income (TTM) 4.0x 6.2x Net Debt/Adjusted EBITDA (TTM) 1.5x 2.1x Appendix Reconciliation of Non-GAAP Measures 20 Attention : This is an excerpt of the original content. 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