Q2 2026 Patrick Industries Inc Earnings Call Transcript
Key Points
- Revenue growth in marine (+22%), powersports (+28%), and housing (+2%) end markets helped offset a 15% decline in RV revenue, demonstrating the resilience of Patrick Industries Inc (PATK)'s strategic diversification.
- Trailing 12-month net sales are up nearly 70% and adjusted EPS is up more than 60% compared to 2019, despite RV and marine wholesale unit shipments being off more than 20%.
- Estimated organic growth contributed 7% during the quarter, driven by content gains and new business wins across multiple end markets.
- The company is launching a new advanced digital printing technology for the RV industry, which is expected to improve design flexibility, manufacturing efficiency, and quality.
- Patrick Industries Inc (PATK) repurchased approximately $91 million of its shares during the quarter, reflecting confidence in its long-term value creation and strong cash flows.
- RV revenue declined 15% year-over-year, heavily impacted by a 16% reduction in RV industry wholesale unit shipments due to softer-than-expected retail demand.
- Adjusted operating margin decreased to 7.5% from 8.3% in the prior year period, reflecting the impact of lower RV volumes and higher fuel prices.
- The company expects to implement incremental volume-based programs in the second half of 2026 to address affordability, which may negatively impact margins by an additional 20 basis points.
- Cash provided by operations for the first six months of 2026 was $69 million, down significantly from $189 million in the same period last year, due to working capital investments and elevated inventory levels.
- Net leverage increased to 3.0 times in the second quarter due to increased stock repurchases and inventory investments, though the company expects to bring leverage down in the coming quarters.
Good morning, ladies and gentlemen, and welcome to Patrick Industries' second quarter 2026 earnings conference call. My name is Rob, and I'll be your operator for today's call. This time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note that this conference is being recorded.
And I'll now turn the call over to Mr. Steve O'Hara, Vice President of Investor Relations. Mr. O'Hara, you may begin.
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Good morning, everyone, and welcome to our call this morning. I'm joined on the call today by Andy Nemeth, CEO Jeff Rodino, President and Matt Filer, CFO. Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws.
The company undertakes no obligation to publicly update any forward-looking
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