Components manufacturer Patrick Industries yesterday announced its second quarter financial results.
Quarterly net sales increased 3% year-over-year to $1.05 billion, driven largely by growth in the RV segment. Operating income increased 2% to $87 million, while operating margin was 8.3%, essentially flat compared to the year-ago quarter.
Adjusted EBITDA increased 4% to $135 million, and adjusted EBITDA margin increased 10 basis points to 12.9%. Cash flow, on a year-to-date basis, grew to $189 million compared with $173 million in the same period last year. Free cash flow on a trailing 12-month basis was $262 million.
“Our performance and results, which included net sales and adjusted earnings per share growth, reflect our team’s disciplined execution in what remains a very dynamic business environment,” CEO Andy Nemeth said in a statement. “We continued to focus heavily in the quarter on expanding our innovative, solutions-based offerings and capabilities through our prototyping and Advanced Product Group, along with our investments in the aftermarket through RecPro.”
Marine segment revenues decreased 1% to $156 million during the quarter, driven by decreased wholesale powerboat unit shipments, which fell 5%. The company reported that its content per wholesale powerboat unit increased 2% to $4,012.
“We are optimistic that the resilience in the equity markets and added clarity related to tariffs following the uncertainty we experienced in April will help improve consumer sentiment as the year progresses,” Nemeth added. “With the bulk of the retail selling season behind us in our outdoor-enthusiast markets, our expectation for lower wholesale shipments in the second half of the year compared to the first half remains relatively unchanged.”
