Truist analyst Michael Swartz has adjusted the price target for LCI Industries (LCII, Financial), lifting it from $80 to $88 while maintaining a Hold rating on the company's shares. This revision is part of a broader assessment of RV industry stocks. Although macroeconomic conditions and tariff issues have led to tempered forecasts for fiscal year 2025, recent talks with dealers have shown notable resilience compared to earlier surveys conducted by the firm. Factors contributing to this optimism include consistent demand through May, better-than-expected unit margins, and less severe pricing for the 2026 model year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for LCI Industries Inc (LCII, Financial) is $105.25 with a high estimate of $135.00 and a low estimate of $80.00. The average target implies an upside of 24.00% from the current price of $84.88. More detailed estimate data can be found on the LCI Industries Inc (LCII) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, LCI Industries Inc's (LCII, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LCI Industries Inc (LCII, Financial) in one year is $110.25, suggesting a upside of 29.89% from the current price of $84.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LCI Industries Inc (LCII) Summary page.
LCII Key Business Developments
Release Date: May 06, 2025
- Revenue: $1 billion for Q1 2025, up 8% year-over-year.
- Operating Margin: Increased by nearly 200 basis points in Q1 2025.
- Net Income: $49 million, or $1.94 per diluted share for Q1 2025.
- Adjusted Net Income: $56 million, or $2.19 per diluted share for Q1 2025.
- Adjusted EBITDA: $111 million, a 23% increase from the prior year period.
- Cash Flow from Operations: $43 million for Q1 2025, up from a cash use of $8 million in the prior year.
- Gross Margin: 24.1% for Q1 2025, compared to 23.1% in the prior year period.
- OEM Net Sales: $824 million for Q1 2025, up 9% year-over-year.
- RV OEM Net Sales: $531 million for Q1 2025, up 15% year-over-year.
- Aftermarket Net Sales: $222 million for Q1 2025, up 6% year-over-year.
- Adjacent Industries Sales: $293 million for Q1 2025, down 2% year-over-year.
- Operating Profit Margin: 7.8% for Q1 2025, a 180 basis point improvement over the prior year period.
- Net Debt: $707 million, 1.9 times pro forma EBITDA.
- Dividend: $1.15 per share, with $29 million returned to shareholders in Q1 2025.
- Share Repurchases: $28.3 million in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LCI Industries Inc (LCII, Financial) reported over $1 billion in sales for the first quarter, marking an 8% year-over-year increase, the highest quarterly growth since June 2022.
- The company achieved a nearly 200 basis point increase in operating margin, supported by disciplined manufacturing execution and cost actions.
- LCI Industries Inc (LCII) resumed its M&A strategy with the acquisitions of Freedman Seating and Trans/Air, strengthening its position in the bus market.
- The RV OEM net sales increased by 15% year-over-year, driven by a double-digit rise in North American RV wholesale shipments.
- The company generated $43 million in operating cash flow during the quarter, a significant improvement from the prior year's cash use of $8 million.
Negative Points
- Sales in Adjacent Industries decreased by 2% due to continued softness in the marine sector as dealers focused on inventory rebalancing.
- The aftermarket segment's operating profit margin declined to 8.7% from 11.8% in the prior year period, impacted by mix and investments in capacity and distribution processes.
- Tariff uncertainties pose a potential 180 basis point margin impact for the year, with ongoing efforts required to mitigate these effects.
- Marine sales were down 15% due to inflation and high interest rates affecting retail demand, with expectations of continued softness.
- The company faces challenges from ongoing tariff risks and broader economic uncertainties that could reshape overall buying patterns.
