olivLaw · US equity research
Patrick Industries, Inc. PATK
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
Patrick Industries supplies components for the RV, marine, powersports, manufactured housing and industrial markets, operating through Manufacturing and Distribution segments. In fiscal 2025 it reported net sales of 3.95 bn USD, and in the second quarter of 2026 it signed a merger agreement with LCI Industries while RV demand weakened.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Patrick Industries, Inc. (PATK) stock was 84.68 USD (+4.03% on the day), with market capitalisation 2.7 bn USD, P/E 20.1 on diluted EPS of 4.22 USD over the last 12 months, dividend yield 2.24%, beta 0.93, 52-week range 63.31–145.75 USD. Latest reported quarter (Q2 2026): revenue of 1.0 bn USD (−0.6% YoY), net income of 43.4 m USD (+33.9% YoY), diluted EPS 1.28 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.8
- overbought (≥ 70)
- Bollinger (20, 2)
- 57.93 – 83.00
- above the upper band · %B 1.07 · band width 35.6%
- SMA 50 / 200
- 72.23 / 94.93
- mixed trend
- MACD (12, 26, 9)
- 2.86 / 0.74
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +27.2% | −1.1% | +28.3 pp | — |
| 3 months | −3.3% | −0.5% | −2.8 pp | — |
| 6 months | −11.7% | +4.4% | −16.1 pp | — |
| Year to date | −21.9% | +12.3% | −34.2 pp | — |
| 1 year | −19.3% | +13.5% | −32.8 pp | −10.2% |
| 3 years | +56.2% | +76.4% | −20.2 pp | −3.9% |
| 5 years | +58.8% | +63.7% | −4.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 28 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 919.4 m | 846.1 m | 1.0 bn | 1.0 bn | 975.6 m | 924.2 m | 997.2 m | 1.0 bn |
| Cost of revenue | 706.9 m | 658.9 m | 774.8 m | 796.9 m | 754.7 m | 711.5 m | 770.3 m | 794.1 m |
| Gross profit | 212.5 m | 187.2 m | 228.6 m | 250.6 m | 221.0 m | 212.7 m | 226.9 m | 247.6 m |
| SG&A | 75.8 m | 81.1 m | 93.9 m | 93.2 m | 86.0 m | 88.4 m | 93.1 m | 96.2 m |
| Operating income | 74.4 m | 39.6 m | 65.6 m | 86.7 m | 66.3 m | 57.4 m | 64.7 m | 77.0 m |
| Depreciation & amortisation | 42.2 m | 42.5 m | 42.6 m | 42.6 m | 42.0 m | 43.0 m | 42.8 m | 43.0 m |
| Pre-tax income | 54.4 m | 20.6 m | 46.5 m | 43.4 m | 47.8 m | 39.3 m | 46.3 m | 58.1 m |
| Income tax | 13.5 m | 6.0 m | 8.2 m | 11.0 m | 12.5 m | 10.3 m | 6.9 m | 14.6 m |
| Net income | 40.9 m | 14.6 m | 38.2 m | 32.4 m | 35.3 m | 29.1 m | 39.5 m | 43.4 m |
| Diluted EPS | 1.20 | 0.42 ≈ | 1.11 | 0.96 | 1.01 | 0.83 ≈ | 1.10 | 1.28 |
| Operating cash flow | 51.5 m ≈ | 102.7 m | 40.1 m | 149.4 m ≈ | 9.1 m ≈ | 130.8 m | -14.0 m | 82.9 m ≈ |
| Capex | 17.9 m ≈ | 25.4 m | 20.2 m | 18.3 m ≈ | 26.3 m ≈ | 18.2 m | 18.9 m | 17.6 m ≈ |
| Dividends paid | 12.0 m ≈ | 13.1 m | 13.9 m | 13.1 m ≈ | 13.0 m ≈ | 15.3 m | 16.3 m | 14.9 m ≈ |
| Share repurchases | 0 ≈ | 4.7 m | 8.5 m | 23.5 m ≈ | 0 ≈ | 0 | 14.7 m | 91.4 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 79 percentile of its own 39-quarter history (min 2.0, median 10.6, max 29.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.3 bn | 2.3 bn | 2.5 bn | 4.1 bn | 4.9 bn | 3.5 bn | 3.7 bn | 4.0 bn |
| Revenue YoY | +38.4% | +3.3% | +6.4% | +64.0% | +19.7% | −29.0% | +7.1% | +6.3% |
| Net income | 119.8 m | 89.6 m | 97.1 m | 224.9 m | 328.2 m | 142.9 m | 138.4 m | 135.1 m |
| Net income YoY | +39.8% | −25.3% | +8.4% | +131.7% | +45.9% | −56.5% | −3.1% | −2.4% |
| Diluted EPS | 4.93 | 3.85 | 4.20 | 9.63 | 8.99 | 4.33 | 4.11 | 3.90 |
| Diluted EPS YoY | +41.7% | −21.9% | +9.1% | +129.3% | −6.6% | −51.8% | −5.1% | −5.1% |
| net % | 5.3% | 3.8% | 3.9% | 5.5% | 6.7% | 4.1% | 3.7% | 3.4% |
| Free cash flow | 165.5 m | 164.7 m | 128.1 m | 187.3 m | 331.9 m | 349.7 m | 251.2 m | 246.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 26.4 m USD
- Financial debt
- 1.3 bn USD
- Net debt
- 1.3 bn USD
- Equity
- 1.2 bn USD
- Total assets
- 3.1 bn USD
- Debt / equity
- 1.09x
- Current ratio
- 2.51x
- ROE
- 11.7%
- ROA
- 4.4%
- FCF margin
- 6.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.5 bn | 4.1 bn | 4.9 bn | 3.5 bn | 3.7 bn | 4.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 2.0 bn | 3.3 bn | 3.8 bn | 2.7 bn | 2.9 bn | 3.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 459.0 m | 801.2 m | 1.1 bn | 782.2 m | 835.9 m | 912.9 m | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 146.4 m | 253.5 m | 327.5 m | 299.4 m | 325.8 m | 361.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 173.4 m | 351.7 m | 496.2 m | 260.2 m | 258.0 m | 276.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 73.3 m | 104.8 m | 130.8 m | 144.5 m | 166.5 m | 170.2 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 246.6 m ≈ | 456.5 m ≈ | 626.9 m ≈ | 404.7 m ≈ | 424.6 m ≈ | 446.2 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Pre-tax income | 130.4 m | 293.8 m | 435.4 m | 191.3 m | 178.6 m | 177.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 33.3 m | 68.9 m | 107.2 m | 48.4 m | 40.2 m | 42.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 97.1 m | 224.9 m | 328.2 m | 142.9 m | 138.4 m | 135.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 4.20 | 9.63 | 8.99 | 4.33 | 4.11 | 3.90 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 23.1 m | 23.4 m | 36.7 m | 33.0 m | 33.7 m | 34.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividend per share | 1.03 | 1.17 | 1.44 | 1.90 | — | — | SEC (XBRL)· 29 Feb 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 44.8 m | 122.8 m | 22.8 m | 11.4 m | 33.6 m | 26.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 132.5 m | 172.4 m | 172.9 m | 163.8 m | 178.2 m | 185.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 312.8 m | 614.4 m | 667.8 m | 510.1 m | 551.6 m | 595.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 528.1 m | 974.1 m | 909.9 m | 734.6 m | 822.6 m | 873.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 251.5 m | 319.5 m | 350.6 m | 353.6 m | 384.9 m | 408.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 395.8 m | 551.4 m | 629.3 m | 637.4 m | 797.2 m | 840.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 456.3 m | 640.5 m | 720.2 m | 651.2 m | 802.9 m | 742.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 1.8 bn | 2.7 bn | 2.8 bn | 2.6 bn | 3.0 bn | 3.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 105.8 m | 203.5 m | 142.9 m | 140.5 m | 187.9 m | 192.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 7.5 m | 7.5 m | 7.5 m | 7.5 m | 6.3 m | 6.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 810.9 m | 1.3 bn | 1.3 bn | 1.0 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 227.4 m | 432.8 m | 367.2 m | 308.5 m | 353.6 m | 348.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 1.2 bn | 1.9 bn | 1.8 bn | 1.5 bn | 1.9 bn | 1.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 559.4 m | 767.6 m † | 955.2 m † | 1.0 bn † | 1.1 bn † | 1.2 bn † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 160.2 m | 252.1 m | 411.7 m | 408.7 m | 326.8 m | 329.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 32.1 m | 64.8 m | 79.9 m | 59.0 m | 75.7 m | 82.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 128.1 m ≈ | 187.3 m ≈ | 331.9 m ≈ | 349.7 m ≈ | 251.2 m ≈ | 246.5 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -337.9 m | -574.7 m | -321.5 m | -86.5 m | -512.8 m | -206.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 83.1 m | 400.7 m | -190.3 m | -333.6 m | 208.2 m | -130.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividends paid | 23.6 m | 27.0 m | 32.9 m | 42.1 m | 50.2 m | 55.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 23.1 m | 48.9 m | 77.1 m | 18.8 m | 4.7 m | 32.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation38
- Returns92
- Quality58
- Balance sheet33
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.97 – 90.49 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA38.64 – 90.49 (Mid 58.33)15 companies used · median multiple 7.5x · quartiles 6.0x – 9.8xALV, APTV, ATMU, BWA, CAAS, CPS, DCH, DORM, GNTX, LCII, LEA, MOD, PHIN, SMP, THRM
- Peers: P/E48.27 – 83.18 (Mid 63.50)19 companies used · median multiple 15.1x · quartiles 11.5x – 19.7xADNT, ALSN, ALV, APTV, ATMU, BWA, CAAS, DAN, DORM, GNTX, GTX, HLLY, LCII, LEA, MGA, PHIN, SMP, STRT, VC
- Dividend discount (DDM)24.97 – 33.58 (Mid 28.64)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 8.3% | 43 (vs peers) | 11% |
| Net margin · Quality | 3.7% | 62 (vs peers) | 7% |
| FCF conversion · Quality | 86.8% | 81 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -6.8% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -24.3% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 3.2x | 7 (vs peers) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 20.1x | 33 (vs peers) | 11% |
| EV/EBITDA · Valuation | 9.4x | 27 (vs peers) | 11% |
| FCF yield · Valuation | 4.7% | 59 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 6.1% | 87 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 46.6% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet33/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality58/100 · 3/3 factors with a value
- Returns92/100 · 2/2 factors with a value
- Valuation38/100 · 3/3 factors with a value
Memo
PATRICK INDUSTRIES INC (PATK). Latest full fiscal year: 2025; data up to 2026-06-28.
Figures computed from the financial statements: revenue 4.0 bn USD in 2025; YoY growth 6.3%; net margin 3.7%; ROE 13.0%; net debt/EBITDA 3.2x.
The estimated value range is 38.64–83.18 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 58.33 USD, the price of 84.68 USD leaves a potential of -31.1% (value / price − 1) and a margin of safety of -45.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 86.8%
- Current ratio: 2.7x
- Shareholder yield (distributions): 6.1%
- Payout ratio (FCF): 46.6%
What contradicts it
- Revenue CAGR 3Y: -6.8%
- EPS CAGR 3Y: -24.3%
- Net debt / EBITDA: 3.2x
- EV/EBITDA: 9.4x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +17% / +50% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +20% / +167% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −19% / +56% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −13% / −32% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 3.8% | +22.4% | +22% / +28% |
| AEVAAeva Technologies, Inc. | 661.5 m | — | — | -150.1% | +99.4% | −15% / +240% |
| CPSCooper-Standard Holdings Inc. | 391.6 m | — | — | -2.0% | +0.4% | −29% / +24% |
| HLLYHolley Inc. | 351.6 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 2.9% | +2.5% | −14% / +201% |
1- and 3-year price returns: for PATK from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 49.24 Total return -42% · Per year -42% | 87.50 Total return 3% · Per year 3% | 132.40 Total return 56% · Per year 56% |
| 3 years | 39.10 Total return -54% · Per year -23% | 78.97 Total return -7% · Per year -2% | 132.40 Total return 56% · Per year 16% |
| 5 years | 31.05 Total return -63% · Per year -18% | 71.27 Total return -16% · Per year -3% | 132.40 Total return 56% · Per year 9% |
- Exit P/E± 19.74
- Net margin± 13.82
- Annual revenue growth± 12.48
- Annual dilution± 1.16
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).
In brief
Patrick Industries supplies components for the RV, marine, powersports, manufactured housing and industrial markets, operating through Manufacturing and Distribution segments. In fiscal 2025 it reported net sales of 3.95 bn USD, and in the second quarter of 2026 it signed a merger agreement with LCI Industries while RV demand weakened.
SWOT
Strengths
- Diversification across several end markets has let the company offset weakness in RV with growth in marine, powersports and industrial 3. A nationwide manufacturing and distribution network reduces in-transit delivery time and cost 1.
- The company has kept content per unit growing, which suggests a solid position with OEM customers 3.
- The acquisition strategy has added brands and capabilities in relevant end markets alongside the core manufacturing base 1.
Weaknesses
- Dependence on the RV market and on two large customers in that segment exposes the company to concentrated shocks when shipments decline 1.
- Operating cash flow fell sharply in the first half of 2026 as inventories rose, reducing trailing twelve-month free cash flow 3.
- A high debt load limits financial flexibility during periods of weak demand 3.
Opportunities
- If discretionary demand recovers, low dealer inventories could trigger significant restocking orders 1.
- If the merger with LCI Industries completes, the combination could create a broader component platform for OEMs 2.
- Growth in affordable and multifamily housing demand could support the MH and industrial segments 1.
Risks
- Customer concentrationhigh
Two RV customers together accounted for a large share of consolidated sales, and losing either could materially affect results, since there are no long-term agreements 1.
- LCI Industries mergerhigh
The transaction depends on shareholder and regulatory approvals, and integration costs or a possible termination fee could affect results if the deal does not close 2.
- Raw material cost volatilitymedium
Fluctuating prices for materials, energy and transport could weigh on margins, especially if increases cannot be fully passed on to customers 1.
- Inventory buildupmedium
Higher purchase commitments and inventories could lead to write-downs if demand stays below expectations, hurting gross margins 13.
- Customer financing conditionslow
Restricted financing for buyers of RVs, boats and manufactured homes could reduce customer production and demand for the company's products 1.
Investment thesis
What would need to be true (bull case)
- Diversification across end markets has shown that growth in marine, powersports and industrial can partly offset the RV decline, and content per unit has risen 3.
- If dealer inventories remain below historical norms, restocking when retail demand returns could bring a fast pickup in orders 1.
- If the LCI Industries merger completes, the combination could expand the product portfolio and the ability to serve OEMs 2.
What would break the thesis
- Declining RV and marine shipments and weaker operating cash flow could persist if discretionary spending stays soft 13.
- Concentration on two large customers and elevated debt could limit the company's flexibility in a difficult period 13.
- Execution risk and deal costs from the merger could reduce the benefits expected by shareholders 2.
What to watch
- Status of shareholder and regulatory approvals for the LCI Industries merger2026
- RV wholesale shipments and dealer inventory trendsQ3 2026
- Operating cash flow and inventory levelsQ3 2026
- Pace of content per unit growth in marine and RVnext 10-Q
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).
The business
Patrick Industries is a component solutions provider for the recreational vehicle (RV), marine, powersports, manufactured housing (MH) and industrial markets, operating through a network of about 191 manufacturing plants and 50 warehouse and distribution facilities in 25 states 1. It runs two reportable segments, Manufacturing and Distribution, which accounted for 74% and 26% of consolidated net sales in 2025 1. Its capital allocation strategy focuses on growth through acquisitions, infrastructure investment and returning capital to shareholders 1.
Segments
Market context
The RV market is the company's largest, representing 45% of consolidated net sales in 2025, up from 44% in 2024 1. In the second quarter of 2026, RV industry wholesale unit shipments fell 16% year over year and Patrick's RV revenue fell 15% 23. Marine and powersports revenue grew 22% and 28% in the same period, partly offsetting the RV decline 3.
Trends
- Cyclicality and discretionary consumer demandheadwind
Demand for RVs, boats and powersports depends on consumer confidence, disposable income and financing availability, so an economic slowdown could reduce sales 12. The company notes that consumer confidence and credit conditions directly influence demand.
- Low RV dealer inventoriestailwind
The company's analysis suggests dealer inventories are below historical norms and will need to be replenished when retail demand recovers, which could support later production 1.
- Rising content per unit in marine and powersportstailwind
Estimated marine content per unit grew 22% over the trailing twelve months, and powersports attachment rates increased, supporting sales even as industry volumes declined 3.
- Raw material costs and trade tariffsmixed
Prices of lauan, aluminum and resins are volatile, and evolving trade policies and tariffs could make sourcing from abroad more costly, with potential effects on margins 1.
Competitive position
The RV, marine, powersports, MH and industrial markets are highly competitive among manufacturers and component suppliers 1. Barriers to entry are generally low at regional level, but competing nationally would require substantial capital commitments 1. Competition centers on price, product features, delivery and customer service 1.
- Thor IndustriesTHO
RV manufacturer named in the source as part of the RV market concentration, together with Forest River and Winnebago 1.
- Winnebago IndustriesWGO
RV manufacturer named alongside Thor Industries and Forest River in the market concentration discussion 1.
- Clayton Homes
One of the leading manufactured home producers named in the source, relevant to the MH segment 1.
- Cavco Industries
Manufactured home producer named in the source among the top three in the MH market 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Patrick Stewart embodied the value of aging actorsThe Japan Times · 04 Nov 2026 · EN
- Bernie și Giovanna au nevoie de o familie. Câinii jurnalistului Patrick André de Hillerin, decedat în urmă cu o lună, au rămas în casa din JurilovcaAdevărul · 03 Nov 2026 · RO
- Patrick Stewart taught us what good men do with powerHacker News · 01 Nov 2026 · EN
- Dincolo de „ultima frontieră”. NASA îi aduce un omagiu lui Patrick Stewart printr-o fotografie cosmică în care galaxiile desenează silueta navei EnterpriseAdevărul · 31 Oct 2026 · RO
- Monștrii de pe rețelele sociale: Invocarea ”turbo-cancerului” așa-zis provenit din vaccinarea anti-Covid drept cauză a morții sau suferinței unor persoane publice. Cazurile Patrick André de Hillerin, Brîndușa Armanca, Liliana Ruse, Viorel Pătrana, Ionela Năstase și Bonnie TylerG4Media · 31 Oct 2026 · RO
- Earl Grey pentru Picard, English Breakfast pentru Patrick StewartContributors.ro · 31 Oct 2026 · RO
- Show HN: To Honor Sir Patrick Stewart, Enjoy the TNG Episode Guessing GameHacker News · 30 Oct 2026 · EN
- Patrick Stewart, Legendary Star Trek and X-Men Actor, Dies at 86Greek Reporter (GR, EN) · 30 Oct 2026 · EN
- VIDEO. Formula 1 nu l-a uitat! Gestul incredibil făcut de Sir Patrick Stewart în 2017. Puțini acceptaseră nebunia lui Ricciardo - GOLAZO.roSurge — Google News · 30 Oct 2026 · RO
- Patrick Stewart az űrben lett világsztár, a legnagyobb csatákat viszont önmagával vívtaTelex English (HU) · 30 Oct 2026 · EN
- Through Captain Jean-Luc Picard, Patrick Stewart taught us the measure of a manHacker News · 30 Oct 2026 · EN
- „Istoria nu va uita numele Căpitanului Picard”. Omagiul adus de NASA lui Sir Patrick Stewart: 3 galaxii iau forma USS EnterpriseAntena 3 CNN · 30 Oct 2026 · RO
- „Istoria nu va uita numele Căpitanului Picard”. Omagiul adus de NASA actorului Sir Patrick Stewart: 3 galaxii iau forma USS Enterprise - Antena 3Antena 3 CNN · 30 Oct 2026 · RO
- „Istoria nu va uita numele Căpitanului Picard”. Omagiul adus de NASA actorului Sir Patrick Stewart: 3 galaxii iau forma USS Enterprise - Antena 3Antena 3 CNN · 30 Oct 2026 · RO
- Cauza morţii lui Patrick Stewart: actorul suferea de o boală de mai mulţi ani - Observator NewsSurge — Google News · 30 Oct 2026 · RO
- A murit Patrick Stewart. Ce spunea actorul din „Star Trek” despre Italia și experiența de… - MediafaxMediafax · 30 Oct 2026 · RO
- Video - „Mi-au cerut să vin cu o perucă.” Sir Patrick Stewart, despre începuturile rolului Picard. Chelia, trăsătura personajului - Stirile ProTVSurge — Google News · 30 Oct 2026 · RO
- Video - „Mi-au cerut să vin cu o perucă.” Sir Patrick Stewart, despre începuturile rolului Picard. Chelia, trăsătura personajului - Stirile ProTVSurge — Google News · 30 Oct 2026 · RO
- Teatrele din Regatul Unit își vor stinge luminile în memoria 'gigantului actoriei' Patrick Stewart - AgerpresAgerpres · 30 Oct 2026 · RO
- Teatrele din Regatul Unit își vor stinge luminile în memoria 'gigantului actoriei' Patrick Stewart - AgerpresAgerpres · 30 Oct 2026 · RO
SEC filings
- Current report29 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report13 Oct 2026Other events · Financial statements and exhibits
- Current report10 Sept 2026Other events · Financial statements and exhibits
- Current report10 Aug 2026Other events · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report30 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report30 Jun 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Current report18 May 2026Shareholder vote · Other events · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report07 May 2026Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Patrick Industries, Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / Patrick Industries, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Patrick Industries, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.