Patrick Industries Inc
NASDAQ:PATK
Patrick Industries Inc
Patrick Industries Inc., with origins rooted in the heart of the Midwest, is a testament to the enduring spirit of American manufacturing and distribution. Founded in 1959, the company has meticulously fashioned its niche in the lifestyle materials sector, largely serving the RV, marine, manufactured housing, and industrial markets. Picture a spider weaving an intricate web; Patrick Industries has broadened its reach through a combination of organic growth and strategic acquisitions, creating a robust interconnected network of brands and products. This network allows the company to supply essential components—from decorative vinyl and hardwood products to furniture and lighting solutions—that transform the raw essence of these industries into consumer-ready splendor.
At the core, Patrick Industries functions like a knowledgeable curator, keenly aware of the pulse and flow of industry demand. Their business model thrives on understanding the nuanced requirements of various sectors, whether it's creating the perfect countertop for an RV or crafting elegant cabinetry for a leisure yacht. By operating manufacturing facilities complemented by an adept distribution arm, Patrick Industries orchestrates a symphony of logistics and production, ensuring their tailored products reach customers swiftly and efficiently. Through their vertically integrated operations, the company not only solidifies its market presence but continually enhances its ability to generate revenue and remain a frontrunner in supplying high-demand, specialized components that are key to modern leisure lifestyle experiences.
Patrick Industries Inc., with origins rooted in the heart of the Midwest, is a testament to the enduring spirit of American manufacturing and distribution. Founded in 1959, the company has meticulously fashioned its niche in the lifestyle materials sector, largely serving the RV, marine, manufactured housing, and industrial markets. Picture a spider weaving an intricate web; Patrick Industries has broadened its reach through a combination of organic growth and strategic acquisitions, creating a robust interconnected network of brands and products. This network allows the company to supply essential components—from decorative vinyl and hardwood products to furniture and lighting solutions—that transform the raw essence of these industries into consumer-ready splendor.
At the core, Patrick Industries functions like a knowledgeable curator, keenly aware of the pulse and flow of industry demand. Their business model thrives on understanding the nuanced requirements of various sectors, whether it's creating the perfect countertop for an RV or crafting elegant cabinetry for a leisure yacht. By operating manufacturing facilities complemented by an adept distribution arm, Patrick Industries orchestrates a symphony of logistics and production, ensuring their tailored products reach customers swiftly and efficiently. Through their vertically integrated operations, the company not only solidifies its market presence but continually enhances its ability to generate revenue and remain a frontrunner in supplying high-demand, specialized components that are key to modern leisure lifestyle experiences.
Revenue Growth: Patrick Industries reported Q4 net sales up 9% to $924 million, with full-year sales rising 6% to about $4 billion, driven by organic growth and acquisitions.
Margin Expansion: Q4 gross margin improved to 23% from 22.1% last year, with adjusted operating margin up 110 bps to 6.3%; management expects a further 70–90 bps improvement in 2026.
EPS and Profitability: Q4 GAAP EPS jumped 98% to $0.83; full-year adjusted EPS rose 2% to $4.44.
Strong Free Cash Flow: The company generated $246 million in free cash flow for 2025, supporting M&A, share repurchases, and a 17.5% dividend increase.
Market Trends: RV, marine, and powersports segments outperformed their industries due to higher content per unit, new product innovation, and lean inventories.
Aftermarket Expansion: Aftermarket sales grew about 30% year-over-year, now representing 10% of total revenue, aided by acquisitions like RecPro.
2026 Outlook: Management forecasts operating cash flow of $380–400 million, flat to low-single digit growth in most end markets, and continued margin gains.
