Patrick Industries, Inc. (NASDAQ:PATK) reported financial results for the third quarter and nine months ended September 27, 2026, disclosing net sales of $975 million, diluted EPS of $0.64, and key details on its pending all-stock merger with LCI Industries.

Key Highlights

  • Net sales of $975 million in Q3 2026, compared to $976 million in Q3 2025, according to the filing.
  • Diluted EPS of $0.64 on net income of $21 million; adjusted diluted EPS was $1.03, compared to $1.01 in the prior-year period.
  • Adjusted EBITDA increased 3% to $116 million, with adjusted EBITDA margin expanding 40 basis points to 11.9%.
  • Powersports revenue rose 30% and Marine revenue rose 14%, while RV revenue declined 15% amid a 13% drop in industry wholesale unit shipments.
  • Available liquidity was approximately $716 million and total net leverage ratio was 2.9x at the end of Q3 2026.
  • Merger registration statement declared effective by the SEC on October 19, 2026; a special shareholder meeting is scheduled for November 18, 2026.
  • $15 million returned to shareholders through regular quarterly dividends in Q3 2026; no share repurchases due to merger agreement restrictions.

Patrick Industries Q3 2026 Results: Segment Performance and Pending LCI Merger

Patrick Industries reported Q3 2026 net sales of $975 million, essentially flat with the $976 million recorded in Q3 2025, according to the filing. The company attributed this stability to revenue growth across its Marine, Powersports, and Housing segments that nearly offset a 15% decline in RV revenue. Powersports revenue reached $128 million, up 30%, driven by increased attachment rates for Sportech cab enclosure solutions and continued demand for utility-focused units. Marine revenue was $171 million, up 14%, outperforming an estimated 8% increase in wholesale powerboat industry unit shipments. Housing revenue of $314 million grew 4%, while RV revenue of $362 million fell amid soft wholesale unit shipments.

Operating income was $50 million in Q3 2026, compared to $66 million in Q3 2025, and operating margin was 5.1% versus 6.8% in the prior-year period, the filing disclosed. Excluding merger-related expenses, restructuring costs, and other non-recurring items, adjusted operating margin was 6.8%, flat compared to the third quarter of 2025. Net income was $21 million, or $0.64 per diluted share, compared to $35 million, or $1.01 per diluted share in Q3 2025. The company noted that both reported and adjusted diluted EPS include approximately $0.03 of dilution from convertible notes and related warrants, compared to $0.07 in the prior-year period.

On the balance sheet and cash flow, the filing reported that cash provided by operating activities for the first nine months of 2026 was $147 million, versus $199 million in the same period last year. Free cash flow on a trailing twelve-month basis was $203 million. Total debt at quarter end was approximately $1.4 billion. Regarding the pending merger with LCI Industries, which was announced June 30, 2026, the filing stated that the Form S-4 registration statement was declared effective by the SEC on October 19, 2026, and that a special shareholder meeting is set for November 18, 2026. The company also noted it did not repurchase shares during the quarter due to restrictions related to the merger agreement, and that $62 million of unused capacity remained under its current share repurchase authorization.

What Was Disclosed

Patrick Industries filed its Q3 2026 earnings disclosure covering the quarter and nine months ended September 27, 2026, reporting net sales, segment revenue breakdowns, operating and adjusted profitability metrics, cash flow figures, balance sheet data, and the status of its pending all-stock merger with LCI Industries.