Patrick Industries, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results and Declares Quarterly Cash Dividend
ELKHART, Ind., Feb. 5, 2026 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the fourth quarter and year ended December 31, 2025.
Fourth Quarter and Full Year 2025 Highlights (compared to Fourth Quarter and Full Year 2024 unless otherwise noted)
"Our resilient fourth quarter results were driven by our team's continued execution on both organic and strategic growth initiatives as well as our disciplined operating execution and customer-first focus," said Andy Nemeth, Chief Executive Officer. "We continued to gain new business and expand content, while advancing our full-solutions model and aftermarket platform through strategic acquisitions and ongoing investment in innovation and automation. Our strong balance sheet and consistent cash flow generation enabled us to reinvest in the business, pursue accretive acquisitions, and return capital to shareholders. As we look ahead, we remain focused on the partnership with our customers and delivering the most innovative, cost-effective solutions, leveraging our operating model, reinvesting our cash flows back into the business, and continued investment in the capabilities and people that differentiate Patrick and support our sustainable, long-term profitable growth."
Fourth quarter net sales increased 9% to $924 million compared to $846 million in the fourth quarter of 2024. The improvement in net sales reflected higher revenue in each of the Company's Outdoor Enthusiast end markets driven by market share gains and the contribution of acquisitions, partially offset by lower Housing revenue.
Operating income of $57 million increased $18 million, or 45%, compared to the fourth quarter of 2024. Operating margin increased 150 basis points to 6.2%. Adjusted operating margin 1 increased 110 basis points to 6.3% compared to the same period last year.
Net income was $29 million in the fourth quarter of 2025, an increase of 100% compared to the same period last year. Diluted earnings per share increased 98% to $0.83 compared to the prior year period. Adjusted net income 1 increased 63% to $30 million and adjusted diluted EPS 1 increased 62% to $0.84 per diluted share versus the prior year period. Adjusted diluted EPS 1 included the estimated dilutive impact of our convertible notes and related warrants of $0.06 per share in the fourth quarter compared to $0.02 in the prior year period. Adjusted EBITDA 1 for the fourth quarter increased 17% to $105 million and adjusted EBITDA margin 1 increased 80 basis points to 11.4% versus the same period last year.
Jeff Rodino, President, said, "Throughout the fourth quarter, OEMs and dealers in our Outdoor Enthusiast markets maintained disciplined production and inventory levels, positioning themselves well for any potential retail inflection in our markets. Our team's close collaboration with customers through a busy model-year changeover season drove meaningful content growth and enabled us to outperform broader industry trends across each of our end markets. We completed five acquisitions in 2025, including two in the fourth quarter that reinforce and strengthen our marine electrical full-solutions platform."
Fourth Quarter 2025 Revenue by Market Sector
(compared to Fourth Quarter 2024 unless otherwise noted)
RV (43% of Revenue)
Marine (16% of Revenue)
Powersports (12% of Revenue)
Housing (29% of Revenue, comprised of Manufactured Housing ("MH") and Industrial)
Full Year 2025 Results
Net sales increased 6% on a year-over-year basis to $4.0 billion, as revenue increased in each of the Company's end markets driven primarily by organic content gains and acquisitions. RV revenue increased 9% to $1.8 billion, Marine revenue improved 6% to $606 million, Powersports revenue grew 9% to $384 million and Housing revenue increased 1% to $1.2 billion.
Operating income of $276 million increased 7% compared to 2024 and operating margin was 7.0% compared to 6.9% last year. Adjusted operating margin 1 was 7.0%, a decrease of 20 basis points compared to 2024.
Net income was $135 million in 2025 compared to $138 million in 2024, while diluted EPS was $3.90 compared to $4.11 in the prior year. Adjusted net income 1 increased 5% to $154 million and adjusted diluted EPS 1 increased 2% to $4.44 versus the prior year period. Adjusted diluted EPS included the estimated dilutive impact of our convertible notes and related warrants of $0.26 per share in 2025 compared to $0.10 in the prior year. Adjusted EBITDA 1 for 2025 increased 4% to $468 million and adjusted EBITDA margin 1 of 11.8% decreased 40 basis points versus 2024.
Balance Sheet, Cash Flow and Capital Allocation
Cash provided by operations for 2025 was $329 million compared to $327 million in 2024. Purchases of property, plant and equipment for 2025 totaled $83 million, reflecting targeted automation projects and other investments in the business, including innovative digital capabilities that support Patrick's operational efficiency and position us as a supplier of choice. For the year, business acquisitions totaled $122 million, primarily related to the acquisitions of Elkhart Composites, Medallion Instrumentation Systems, Lillipad Marine, QES, and Egis. Free cash flow 1 was $246 million in 2025 compared to $251 million in 2024.
In the fourth quarter, Patrick's Board of Directors authorized an increase of 17.5% in the Company's regular quarterly cash dividend, resulting in the payment of approximately $15 million in cash dividends to shareholders during the period. For the full year, and in alignment with our capital allocation strategy, we returned $87 million to shareholders, including the opportunistic repurchase of approximately 377,600 shares for a total of $32 million and $55 million in cash dividends.
Our total debt at the end of the fourth quarter of 2025 was approximately $1.3 billion, resulting in a total net leverage ratio of 2.6x (as calculated in accordance with our credit agreement). Available liquidity, comprised of borrowing availability under our senior credit facility and cash on hand, was approximately $818 million.
Business Outlook and Summary
"We remain optimistic about our markets and the potential for positive inflection while maintaining a disciplined cost structure, enabling us to pivot and deliver the scalability and quality-service value proposition our customers need," continued Mr. Nemeth. "As we enter 2026, our team is well positioned to execute and scale quickly as market conditions evolve, delivering value to customers across all demand environments. Our strong cash flows and liquidity provide flexibility to drive our capital allocation strategy and advance key strategic priorities: acquisitions, organic growth through innovative and cost-effective full component solutions, expanding our aftermarket presence, automation initiatives, and further strengthening our partnership with our customers through the efforts of our Advanced Product Group. These objectives strengthen the long-term earnings power of our business and position us to drive profitable, organic growth that exceeds end market demand."
1 See additional information at the end of this release regarding non-GAAP financial measures.
Quarterly Cash Dividend
On February 2, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.47 per share of common stock. The dividend is payable on March 9, 2026, to shareholders of record at the close of business on February 23, 2026.
Conference Call Webcast
As previously announced, Patrick Industries will host an online webcast of its fourth quarter 2025 earnings conference call that can be accessed on the Company's website, www.patrickind.com, under "Investors," on Thursday, February 5, 2026 at 10:00 a.m. Eastern time. In addition, a supplemental earnings presentation can be accessed on the Company's website, www.patrickind.com under "Investors."
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving original equipment manufacturers and aftermarket customers in the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs more than 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are forward-looking in nature. The forward-looking statements are based on current expectations and our actual results may differ materially from those projected in any forward-looking statement. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers, dealers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions, changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in our senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in Ukraine and evolving conflict in the Middle East.
The Company does not undertake to publicly update or revise any forward-looking statements. Information about certain risks that could affect our business and cause actual results to differ from those expressed or implied in the forward-looking statements are contained in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company's Forms 10-Q for subsequent quarterly periods, which are filed with the Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. In addition, future dividends are subject to Board approval. Each forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made.
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Fourth Quarter Ended
Year Ended
(in thousands, except per share data)
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net sales
$ 924,168
$ 846,123
$ 3,950,773
$ 3,715,683
Cost of goods sold
711,495
658,896
3,037,913
2,879,793
Gross profit
212,673
187,227
912,860
835,890
Operating Expenses:
Warehouse and delivery
42,863
41,768
177,969
155,821
Selling, general and administrative
88,429
81,137
361,588
325,754
Amortization of intangible assets
23,976
24,730
97,314
96,275
Total operating expenses
155,268
147,635
636,871
577,850
Operating income
57,405
39,592
275,989
258,040
Interest expense, net
18,075
18,987
74,507
79,470
Other expenses
—
—
24,420
—
Income before income taxes
39,330
20,605
177,062
178,570
Income taxes
10,251
6,047
42,006
40,169
Net income
$ 29,079
$ 14,558
$ 135,056
$ 138,401
Basic earnings per common share
$ 0.90
$ 0.45
$ 4.16
$ 4.25
Diluted earnings per common share
$ 0.83
$ 0.42
$ 3.90
$ 4.11
Weighted average shares outstanding -
Basic
32,387
32,597
32,488
32,568
Weighted average shares outstanding -
Diluted
35,206
34,447
34,637
33,699
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
As of December 31,
($ in thousands)
2025
2024
ASSETS
Current Assets:
Cash and cash equivalents
$ 26,432
$ 33,561
Trade and other receivables, net
185,405
178,206
Inventories
595,265
551,617
Prepaid expenses and other
66,020
59,233
Total current assets
873,122
822,617
Property, plant and equipment, net
408,502
384,903
Operating lease right-of-use assets
199,087
200,697
Goodwill and intangible assets, net
1,582,662
1,600,125
Other non-current assets
12,801
12,612
Total assets
$ 3,076,174
$ 3,020,954
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt
$ 6,250
$ 6,250
Current operating lease liabilities
54,956
53,697
Accounts payable
192,448
187,915
Accrued liabilities
94,412
105,753
Other current liabilities
424
—
Total current liabilities
348,490
353,615
Long-term debt, less current maturities, net
1,282,821
1,311,684
Long-term operating lease liabilities
148,889
151,026
Deferred tax liabilities, net
96,875
61,346
Other long-term liabilities
14,802
14,917
Total liabilities
1,891,877
1,892,588
Total shareholders' equity
1,184,297
1,128,366
Total liabilities and shareholders' equity
$ 3,076,174
$ 3,020,954
PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended December 31,
($ in thousands)
2025
2024
Cash flows from operating activities
Net income
$ 135,056
$ 138,401
Depreciation and amortization
170,212
166,545
Amortization of deferred debt financing costs
3,268
3,270
Loss on extinguishment of debt
—
2,549
Stock-based compensation expense
19,066
16,775
Deferred income taxes
35,529
(6,481)
Other adjustments to reconcile net income to net cash provided by
operating activities
(829)
139
Change in operating assets and liabilities, net of acquisitions of
businesses
(32,888)
5,643
Net cash provided by operating activities
329,414
326,841
Cash flows from investing activities
Purchases of property, plant and equipment
(82,921)
(75,682)
Business acquisitions and other investing activities
(123,565)
(437,167)
Net cash used in investing activities
(206,486)
(512,849)
Net cash flows (used in) provided by financing activities
(130,057)
208,160
Net (decrease) increase in cash and cash equivalents
(7,129)
22,152
Cash and cash equivalents at beginning of year
33,561
11,409
Cash and cash equivalents at end of year
$ 26,432
$ 33,561
PATRICK INDUSTRIES, INC.
Earnings Per Common Share (Unaudited)
The table below illustrates the calculation for earnings per common share:
Fourth Quarter Ended
Year Ended
(in thousands, except per share data)
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Numerator:
Net income attributable to common
shares
$ 29,079
$ 14,558
$ 135,056
$ 138,401
Denominator:
Weighted average common shares
outstanding - basic
32,387
32,597
32,488
32,568
Weighted average impact of
potentially dilutive convertible notes
1,500
1,039
1,243
644
Weighted average impact of
potentially dilutive warrants
924
368
612
137
Weighted average impact of
potentially dilutive securities
395
443
294
350
Weighted average common shares
outstanding - diluted
35,206
34,447
34,637
33,699
Earnings per common share:
Basic earnings per common share
$ 0.90
$ 0.45
$ 4.16
$ 4.25
Diluted earnings per common share
$ 0.83
$ 0.42
$ 3.90
$ 4.11
PATRICK INDUSTRIES, INC.
Non-GAAP Reconciliation (Unaudited)
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides financial metrics, such as net leverage ratio, content per unit, free cash flow, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted diluted earnings per share ("adjusted diluted EPS"), adjusted operating margin, adjusted EBITDA margin and available liquidity, which we believe are important measures of the Company's business performance. These metrics should not be considered alternatives to U.S. GAAP. Our computations of net leverage ratio, content per unit, free cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating margin, adjusted EBITDA margin and available liquidity may differ from similarly titled measures used by others. Content per unit metrics are generally calculated using our market sales divided by Company estimates based on third-party measures of industry volume. We calculate EBITDA by adding back depreciation and amortization, net interest expense, and income taxes to net income. We calculate adjusted EBITDA by taking EBITDA and adding back stock-based compensation, loss on extinguishment of debt, legal settlement, loss on sale of property, plant and equipment, acquisition related transaction costs, acquisition related fair-value inventory step-up adjustments and subtracting out the gain on sale of property, plant and equipment. Adjusted net income is calculated by removing the impact of acquisition related transaction costs, net of tax, legal settlement, net of tax, loss on extinguishment of debt, net of tax and acquisition related fair-value inventory step-up adjustments, net of tax. Adjusted diluted EPS is calculated as adjusted net income divided by our weighted average shares outstanding. Adjusted operating margin is calculated by removing the impact of acquisition related transaction costs, acquisition related fair-value inventory step-up adjustments and loss on extinguishment of debt. We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from net cash provided by operating activities. RV wholesale unit shipments are provided by the RV Industry Association. Marine wholesale unit shipments are Company estimates based on data provided by the National Marine Manufacturers Association. MH wholesale unit shipments are Company estimates based on data provided by the Manufactured Housing Institute. Housing starts are Company estimates based on data provided by the U.S. Census Bureau. You should not consider these metrics in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP.
The following table reconciles net income to EBITDA and adjusted EBITDA:
Fourth Quarter Ended
($ in thousands)
December 31,
2025
% of Net
Sales
December 31,
2024
% of Net
Sales
Net income
$ 29,079
3.1 %
$ 14,558
1.7 %
+
Depreciation & amortization
42,990
4.7 %
42,543
5.0 %
+
Interest expense, net
18,075
2.0 %
18,987
2.3 %
+
Income taxes
10,251
1.1 %
6,047
0.7 %
EBITDA
100,395
10.9 %
82,135
9.7 %
+
Stock-based compensation
3,899
0.4 %
2,408
0.3 %
+
Acquisition related fair-value inventory step-up
571
0.1 %
2,166
0.3 %
+
Loss on extinguishment of debt
—
— %
2,549
0.3 %
+
Loss on sale of property, plant and equipment
78
— %
165
— %
Adjusted EBITDA
$ 104,943
11.4 %
$ 89,423
10.6 %
Year Ended
($ in thousands)
December 31,
2025
% of Net
Sales
December 31,
2024
% of Net
Sales
Net income
$ 135,056
3.4 %
$ 138,401
3.7 %
+
Depreciation & amortization
170,212
4.3 %
166,545
4.5 %
+
Interest expense, net
74,507
1.9 %
79,470
2.1 %
+
Income taxes
42,006
1.1 %
40,169
1.1 %
EBITDA
421,781
10.7 %
424,585
11.4 %
+
Stock-based compensation
19,066
0.4 %
16,775
0.5 %
+
Acquisition related fair-value inventory step-up
571
— %
2,988
0.1 %
+
Acquisition related transaction costs
64
— %
4,998
0.1 %
+
Legal settlement (1)
24,420
0.6 %
—
— %
+
Loss on extinguishment of debt
—
— %
2,549
0.1 %
+
Loss (gain) on sale of property, plant and
equipment
2,143
0.1 %
(237)
— %
Adjusted EBITDA
$ 468,045
11.8 %
$ 451,658
12.2 %
(1) Reflects a legal settlement which was included as "Other expenses" for the year ended December 31, 2025.
The following table reconciles full year cash flow from operations to free cash flow:
Year Ended
($ in thousands)
December 31,
2025
December 31,
2024
Cash flows from operating activities
$ 329,414
$ 326,841
Less: purchases of property, plant and
equipment
(82,921)
(75,682)
Free cash flow
$ 246,493
$ 251,159
The following table reconciles operating margin to adjusted operating margin:
Fourth Quarter Ended
Year Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Operating margin
6.2 %
4.7 %
7.0 %
6.9 %
Acquisition related fair-value inventory
step-up
0.1 %
0.2 %
— %
0.1 %
Acquisition related transaction costs
— %
— %
— %
0.2 %
Loss on extinguishment of debt
— %
0.3 %
— %
— %
Adjusted operating margin
6.3 %
5.2 %
7.0 %
7.2 %
The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share:
Fourth Quarter Ended
Year Ended
($ in thousands, except per share data)
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net income
$ 29,079
$ 14,558
$ 135,056
$ 138,401
+
Acquisition related fair-value
inventory step-up
571
2,166
571
2,988
+
Acquisition related transaction costs
—
—
64
4,998
+
Legal settlement (1)
—
—
24,420
—
+
Loss on extinguishment of debt
—
2,549
—
2,549
-
Tax impact of adjustments
(141)
(1,206)
(6,196)
(2,694)
Adjusted net income
$ 29,509
$ 18,067
$ 153,915
$ 146,242
Diluted earnings per common share (per
above)
$ 0.83
$ 0.42
$ 3.90
$ 4.11
Acquisition related fair-value inventory
step-up, net of tax
0.01
0.05
0.01
0.06
Acquisition related transaction costs,
net of tax
—
—
—
0.11
Legal settlement, net of tax
—
—
0.53
—
Loss on extinguishment of debt, net of
tax
—
0.05
—
0.06
Adjusted diluted earnings per common
share
$ 0.84
$ 0.52
$ 4.44
$ 4.34
(1) Reflects a legal settlement which was included as "Other expenses" for the year ended December 31, 2025.
SOURCE Patrick Industries, Inc.