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LCI Industries (LCII)
NYSE:LCII
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LCI Industries (LCII) AI Stock Analysis

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LCII

LCI Industries

(NYSE:LCII)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
$116.00
▲(12.09% Upside)
LCI Industries' strong earnings call performance and solid financial foundation are the primary drivers of its stock score. The company's effective cost management and innovation initiatives have bolstered its market position. However, technical indicators suggest overbought conditions, and material cost challenges pose risks. The valuation is reasonable, supported by a healthy dividend yield.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective execution of the company's diversification strategy, supporting long-term business expansion.
Innovation and Product Development
Continued investment in innovation strengthens competitive advantages and supports sustained growth by enhancing product offerings and market relevance.
Financial Flexibility
Improved financial flexibility through refinancing reduces interest expenses, enhancing the company's ability to invest in growth opportunities and manage economic fluctuations.
Negative Factors
Material Cost Challenges
Rising material costs due to tariffs can pressure profit margins, impacting long-term profitability and necessitating strategic cost management to maintain financial health.
Automotive Aftermarket Challenges
Decreased volumes in the automotive aftermarket segment highlight potential demand issues, which could affect revenue stability in this business area.
EBIT Margin Decline
A decline in EBIT margin suggests increased operational costs or pricing pressures, which could challenge the company's ability to sustain profitability in the long term.

LCI Industries (LCII) vs. SPDR S&P 500 ETF (SPY)

LCI Industries Business Overview & Revenue Model

Company DescriptionLCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was incorporated in 1984 and is based in Elkhart, Indiana.
How the Company Makes MoneyLCI Industries generates revenue primarily through the sale of its engineered components to manufacturers in the RV, marine, and manufactured housing sectors. The company has a diverse revenue model that includes direct sales to original equipment manufacturers (OEMs) and aftermarket sales to dealers and retailers. Key revenue streams come from the production of axles, chassis, and other essential components that are integral to the construction of RVs and trailers. Additionally, LCI has established significant partnerships with major RV manufacturers, enhancing its market position and ensuring a steady demand for its products. The company also benefits from ongoing trends in outdoor recreation and travel, which drive sales in the RV industry, contributing to its overall earnings.

LCI Industries Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for LCI Industries, with notable growth in sales, margins, and adjacent markets. The company's focus on innovation and effective cost management contributed positively. However, challenges related to material costs and tariffs were present, particularly affecting the aftermarket segment.
Q3-2025 Updates
Positive Updates
Sales Growth and Margin Improvement
LCI Industries reported a 13% increase in sales, exceeding $1 billion, with operating margins improving by 140 basis points to 7.3% year-over-year.
Innovation and Product Development
Annualized run rate for top five product innovations reached $225 million, more than doubling from $100 million two quarters ago.
Strong Adjacent Market Performance
Net sales in adjacent businesses increased 22% year-over-year, driven by acquisitions and growth in building products, utility trailer, transportation, and marine markets.
Aftermarket Growth
The aftermarket segment saw a 7% increase in net sales year-over-year, driven by strong OEM content and innovations like the Furrion air conditioners.
Effective Cost Management
The company achieved significant cost savings through facility consolidations and disciplined capital allocation, with five consolidations in 2025 expected to generate more than $5 million in annualized savings.
Improved Financial Flexibility
LCI Industries refinanced its term loan facility, lowering interest by 25 basis points and reducing annual interest expense by approximately $1 million.
Negative Updates
Tariff Impact and Material Costs
Higher material costs related to tariffs and increased prices for steel, aluminum, and freight affected margins, particularly in the aftermarket segment.
Challenges in Automotive Aftermarket
Lower volumes within the automotive aftermarket segment were noted, attributed to lower retail volumes and increased material costs.
Company Guidance
During the LCI Industries Third Quarter 2025 Earnings Call, the company provided significant guidance and metrics highlighting their strong performance and future outlook. Notably, sales grew by 13% to over $1 billion, with operating margins improving by 140 basis points year-over-year to 7.3%. The company's RV OEM net sales saw an 11% increase to approximately $470 million, and their total content per unit rose 6% year-over-year to $5,431. LCI Industries also completed three facility consolidations in 2025, expecting more than $5 million in annualized savings, with two more consolidations planned by year-end. In terms of future projections, the company anticipates North American RV wholesale shipments to reach between 340,000 to 350,000 units for the year and expects operating margins to improve to 7% to 8% in 2026. Additionally, LCI Industries highlighted a substantial increase in their top five product innovations, reaching a $225 million annualized run rate, and projected aftermarket growth fueled by 1 million RVs entering the service cycle over the next few years.

LCI Industries Financial Statement Overview

Summary
LCI Industries demonstrates a stable financial position with improving leverage and consistent revenue growth. However, profitability margins remain a concern, and cash flow generation has seen a decline. The company is well-positioned in terms of equity and has shown resilience in managing its debt levels.
Income Statement
75
Positive
LCI Industries shows a moderate revenue growth rate of 1.38% in the TTM, recovering from a decline in previous years. The gross profit margin remains stable at around 23.5%, indicating consistent cost management. However, the net profit margin is relatively low at 3.93%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are also modest, reflecting operational challenges.
Balance Sheet
80
Positive
The company's debt-to-equity ratio has improved significantly to 0.19 in the TTM, indicating a strong reduction in leverage and improved financial stability. Return on equity is healthy at 10.96%, showing effective use of shareholder funds. The equity ratio stands at 43.63%, suggesting a solid equity base relative to assets.
Cash Flow
70
Positive
Free cash flow has decreased by 21.36% in the TTM, highlighting potential cash flow challenges. The operating cash flow to net income ratio is 0.70, indicating a decent conversion of income to cash. The free cash flow to net income ratio is strong at 0.87, showing effective cash generation relative to profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.99B3.74B3.78B5.21B4.47B2.80B
Gross Profit943.79M879.72M776.19M1.27B1.04B706.09M
EBITDA342.20M343.93M255.20M682.24M510.73M320.91M
Net Income179.11M142.87M64.19M394.97M287.74M158.44M
Balance Sheet
Total Assets3.17B2.89B2.96B3.25B3.29B2.30B
Cash, Cash Equivalents and Short-Term Investments199.72M165.76M66.16M47.50M62.90M51.82M
Total Debt255.37M995.85M1.11B1.38B1.48B846.39M
Total Liabilities1.81B1.51B1.60B1.87B2.20B1.39B
Stockholders Equity1.36B1.39B1.36B1.38B1.09B908.33M
Cash Flow
Free Cash Flow309.69M327.95M465.02M471.87M-210.11M174.05M
Operating Cash Flow358.70M370.28M527.23M602.51M-111.57M231.40M
Investing Cash Flow-132.17M-61.10M-83.75M-241.79M-281.22M-232.30M
Financing Cash Flow-187.25M-208.22M-426.18M-374.87M404.56M14.05M

LCI Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price103.49
Price Trends
50DMA
96.28
Positive
100DMA
95.86
Positive
200DMA
92.80
Positive
Market Momentum
MACD
0.45
Negative
RSI
71.79
Negative
STOCH
80.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCII, the sentiment is Positive. The current price of 103.49 is above the 20-day moving average (MA) of 90.14, above the 50-day MA of 96.28, and above the 200-day MA of 92.80, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 71.79 is Negative, neither overbought nor oversold. The STOCH value of 80.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCII.

LCI Industries Risk Analysis

LCI Industries disclosed 40 risk factors in its most recent earnings report. LCI Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LCI Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$2.50B17.2412.89%4.44%5.74%39.40%
$3.28B13.977.19%2.64%-24.81%-60.65%
$1.06B41.532.06%3.63%-5.90%119.79%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$3.72B-12.15%4.04%-9.39%-173.86%
$5.49B21.556.19%1.94%-4.62%-2.29%
$4.30B-18.25-12.31%2.63%-4.78%-189.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCII
LCI Industries
103.49
-3.22
-3.02%
BC
Brunswick
66.11
-12.35
-15.74%
HOG
Harley-Davidson
26.98
-4.04
-13.02%
PII
Polaris
66.10
-1.03
-1.53%
THO
Thor Industries
104.35
1.73
1.69%
WGO
Winnebago Industries
37.71
-16.37
-30.27%

LCI Industries Corporate Events

LCI Industries Reports Strong Q3 Growth Amid Challenges
Nov 1, 2025

In a robust earnings call, LCI Industries showcased a strong quarter marked by significant growth in sales, margins, and expansion into adjacent markets. The company emphasized its commitment to innovation and effective cost management, which played a crucial role in its positive performance. However, challenges such as rising material costs and tariffs, particularly impacting the aftermarket segment, were acknowledged.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
LCI Industries Reports Strong Q3 2025 Sales Growth
Positive
Oct 31, 2025

In its third quarter of 2025, LCI Industries reported a 13% increase in sales, surpassing $1 billion, driven by strong performance in its RV and adjacent businesses. The company achieved a 7.3% operating margin, reflecting disciplined cost management and productivity initiatives. LCI’s strategic acquisitions and innovations, such as the Furrion Chill Cube Air Conditioner and anti-lock braking systems, have significantly contributed to its growth. The company also expanded its market presence through acquisitions like Bigfoot Leveling and Moss Supply, enhancing its offerings in hydraulic leveling systems and residential windows. Additionally, LCI’s aftermarket segment saw a 7% increase in net sales, supported by a robust OEM content strategy and investments in service infrastructure.

The most recent analyst rating on (LCII) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

LCI Industries Reports Strong Q3 2025 Growth
Oct 31, 2025

LCI Industries, through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets, known for its innovative culture and advanced manufacturing capabilities.

Financial Disclosures
LCI Industries to Release Q3 2025 Financial Results
Neutral
Oct 14, 2025

LCI Industries announced it will release its third quarter 2025 financial results on October 30, 2025, before the market opens. A conference call and webcast will follow to discuss the results, featuring a Q&A session with institutional investors and analysts, highlighting the company’s engagement with its stakeholders.

The most recent analyst rating on (LCII) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and StrategyM&A Transactions
LCI Industries Acquires Leveltron to Expand Offerings
Positive
Oct 14, 2025

On October 13, 2025, LCI Industries announced that its subsidiary, Lippert Components Manufacturing, Inc., acquired the business assets of Leveltron, LLC, the provider of Bigfoot Hydraulic Systems. This acquisition is set to enhance Lippert’s product offerings in the RV and utility trailer markets, with plans to expand Bigfoot’s aftermarket footprint through Lippert’s extensive distribution and dealer networks.

The most recent analyst rating on (LCII) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and Strategy
LCI Industries Highlights Strategic Focus in September 2025
Positive
Sep 19, 2025

LCI Industries‘ investor presentation in September 2025 highlighted the company’s strategic focus on innovation, operational efficiency, and market expansion. The company aims for significant growth with a target of $5 billion in organic revenue by 2027, driven by investments in R&D and a strong focus on aftermarket services. LCI Industries plans to capitalize on recovery in the RV and marine sectors, improve operational efficiencies, and introduce new products to gain market share. The company also emphasized its competitive advantages, including its scale, expertise, and ability to rapidly scale production, which are expected to fuel profitable growth and enhance shareholder returns.

The most recent analyst rating on (LCII) stock is a Buy with a $114.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Dividends
LCI Industries Declares Quarterly Cash Dividend
Positive
Aug 15, 2025

On August 15, 2025, LCI Industries announced that its Board of Directors approved a regular quarterly cash dividend of $1.15 per share of common stock. This dividend is payable on September 12, 2025, to stockholders of record as of August 29, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
LCI Industries Highlights Strategic Focus in Investor Presentation
Positive
Aug 12, 2025

In its recent investor presentation, LCI Industries highlighted its strategic focus on innovation and operational efficiency to drive long-term growth. The company reported a 34% growth in net sales from 2020 to 2024 and aims to achieve $5 billion in organic revenue by 2027. LCI Industries plans to capitalize on recovering markets, particularly in the RV and marine sectors, and continue expanding its product offerings and market share through acquisitions and enhanced customer service. The company is also targeting improvements in operating margins and cost structures to sustain its competitive edge.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
LCI Industries Reports Strong Q2 2025 Results
Positive
Aug 7, 2025

LCI Industries reported strong second quarter 2025 results with $1.1 billion in sales, marking a 5% year-over-year increase despite challenges in RV retail demand due to elevated interest rates. The company’s growth was driven by market share gains in key product categories and successful acquisitions, which bolstered its position in the bus market. LCI’s strategic initiatives, including supply chain diversification and facility optimization, contributed to improved margins and resilience against macroeconomic pressures. The company also highlighted the success of its product innovations and aftermarket sales, which are expected to support long-term growth.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

LCI Industries Reports Resilient Q2 2025 Results
Aug 6, 2025

LCI Industries is a prominent supplier of engineered components to the recreation and transportation markets, recognized for its innovative culture and advanced manufacturing capabilities. The company recently reported its second quarter 2025 financial results, highlighting a 5% increase in net sales to $1.1 billion and a net income of $58 million. Despite a slight decrease in net income compared to the previous year, LCI Industries demonstrated resilience through strategic initiatives such as cost savings and effective tariff mitigation. Key financial metrics revealed a slight contraction in adjusted EBITDA and operating profit margins, attributed to executive separation costs and changes in product mix. However, the company’s acquisition of Freedman Seating Company and strong liquidity position underscore its strategic growth efforts. Looking ahead, LCI Industries remains committed to reaching its $5 billion organic revenue target by 2027, with a focus on efficiency and flexibility to sustain profitability amidst market challenges.

LCI Industries’ Earnings Call: Resilience Amid Challenges
Aug 6, 2025

LCI Industries’ recent earnings call conveyed a sense of resilience and strategic foresight. The company demonstrated its ability to navigate macroeconomic challenges in the RV and marine markets through strategic acquisitions and effective tariff mitigation. Despite these pressures, LCI Industries reported sales growth and maintained strong financials, indicating a positive outlook for the future.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 01, 2025