Patrick Industries (PATK) Q3 2026 Earnings Report
MX:PATK Q3 2026 EPS Results
- Actual EPS
- MXN 12.08
- Consensus EPS
- MXN 18.39
- Beat/Miss
- Missed by -MXN 6.31
- One Year Ago EPS
- MXN 19.07
MX:PATK Q3 2026 Revenue Results
- Actual Revenue
- MXN 18.42B
- Expected Revenue
- MXN 17.72B
- Beat/Miss
- Beat by +MXN 694.56M
- YoY Revenue Growth
- -0.04%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
MX:PATK Upcoming Earnings
Patrick Industries's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:PATK Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was constructive and generally positive, supported by strong marine, powersports and housing growth, improved gross margin and adjusted EBITDA, substantial liquidity, operational initiatives and a favorable 2027 margin outlook. However, the company continues to face significant RV weakness, subdued retail demand, elevated fuel and freight costs, lower year-to-date operating cash flow, restructuring and merger-related costs, and macroeconomic uncertainty.
Company Guidance
For full year 2026, Patrick estimates RV retail will be down low double digits and RV wholesale will be between 285,000 to 295,000 units; Marine retail shipments will be flat to down slightly and wholesale shipments will be up low single digits; powersports organic content will be up low double digits and full year unit shipments will be up high single digits; and manufactured housing wholesale unit shipments and total new housing starts will both be down low to mid-single digits. The company expects 2026 adjusted operating margin will be flat versus 2025, with incremental volume-based programs potentially negatively impacting margins by an additional 20 basis points versus 2025, operating cash flow of $300 million to $330 million, capital expenditures totaling between $70 million to $80 million, free cash flow between approximately $230 million to $250 million, and an effective tax rate of 24% to 25%. For 2027, Patrick expects RV and marine shipments will be flat, manufactured housing and total housing starts will both be flat to up mid-single digits, powersports organic content and full year unit shipments will be up 3% to 5%, implying high single-digit growth for its powersports business, and adjusted operating margin will be up 30 to 50 basis points; its restructuring program is expected to generate approximately $10 million in annualized savings.
- Resilient Consolidated Quarterly PerformanceThird-quarter consolidated net sales were approximately $975 million, essentially flat year-over-year, as growth in marine, powersports and housing revenue nearly offset RV revenue pressure. Adjusted EBITDA increased 3% to $116 million, adjusted EBITDA margin increased 40 basis points to 11.9%, and adjusted earnings per diluted share were $1.03.
- Organic and Strategic Growth ContributionManagement estimated the year-over-year revenue change consisted of 7% organic growth, 2% acquisition growth and negative 9% industry impact.
- Marine Revenue and Content GrowthThird-quarter marine revenue increased 14% to $171 million, outperforming an estimated 8% increase in marine industry wholesale powerboat shipments. Estimated marine content per wholesale powerboat unit increased 20% on a trailing 12-month basis to $4,942 and increased 5% year-over-year on a quarterly basis.
- Powersports Growth Led by Utility PlatformsThird-quarter powersports revenue increased 30% to $128 million, representing 13% of consolidated sales. Growth was led by resilient demand for utility-focused platforms, healthy OEM adoption of cabin closures and premium utility content, and additional content wins in premium audio platforms.
- Housing Revenue Increase and Manufactured Housing RecoveryThird-quarter housing revenue increased 4% year-over-year to $314 million, representing 32% of consolidated sales. Manufactured housing represented approximately 55% of housing revenue, and estimated manufactured housing wholesale unit shipments increased 2% in the quarter following a contraction in the first half of the year.
- Gross Margin ImprovementGross margin increased 100 basis points year-over-year to 23.6%, primarily due to the solid revenue growth delivered in marine and powersports.
- Adjusted Operating Margin ResilienceExcluding merger-related expenses, restructuring costs and other nonrecurring items, adjusted operating margin was 6.8%, flat with the prior-year period. Management attributed margin resilience to the diversification of the business model and strength in powersports and marine, particularly at the high end.
- Strong Liquidity and Reduced LeverageAvailable liquidity at the end of the third quarter was approximately $716 million, including approximately $700 million of unused revolving credit capacity and cash on hand. The company had no significant debt maturities until 2028, and its net leverage ratio was 2.9x.
- Free Cash Flow Generation and Capital ReturnsPatrick generated $203 million of free cash flow over the last 12 months. It returned $15 million to shareholders through regular quarterly dividends during the third quarter.
- Improved Third-Quarter Operating Cash FlowThird-quarter cash provided by operations was approximately $78 million, compared with approximately $9 million in the third quarter of the prior year.
- Full Solutions Strategy Gaining Initial WinsThe company is collaborating with OEM customers to engineer differentiated, plug-and-play systems focused on value-added engineering, ease of installation and solving customer challenges. Management said the initiative is still in the early innings but is already producing initial wins and opportunities to deepen customer relationships.
- Marine Solutions and Future Model-Year ProgramsPatrick showcased its brand-fronted, solutions-oriented marine portfolio at IBEX, where feedback was described as strong. The company is delivering engineered electrical and tower systems to certain marine OEMs for model year 2027, with additional programs already in the pipeline for model year 2028.
- Patrick Printing Solutions LaunchPatrick formally launched Patrick Printing Solutions at the 2026 RV Dealer Open House. Management highlighted design flexibility, enhanced durability and service potential, as well as the ability to support customization, faster prototyping and product differentiation across price points.
- Planned Expansion of Printing CapacityThe company expects to commission a second printer in mid-2027, including features that management said will further expand its value proposition. Management expects adoption to ramp up in the coming model years as OEMs integrate the capability into their design processes.
- Printing and Digital Design CapabilitiesPatrick said its printing solutions, virtual reality studio and digital design center can support speed to market, customization, faster prototyping and reduced physical inventory and prototyping requirements. Management also cited protection in certain product and printing processes and investment requirements as barriers to replication.
- Patrick 2.0 Operating InitiativePatrick launched Patrick 2.0 to capitalize on procurement synergies, structural adjustments, automation, information technology, software, AI and selected facility consolidations. Management said the initiative is independent of the merger, will not impact customers or customer service, and is intended to preserve brand identity, operating flexibility, scalability and capacity.
- Restructuring Program Expected to Generate SavingsThe restructuring program initiated during the quarter is intended to align the manufacturing footprint and workforce with current demand. Management expects it to generate approximately $10 million in annualized savings while preserving the capacity, capabilities and talent needed to serve customers as demand recovers.
- Operational Flexibility for a Potential RecoveryManagement said Patrick 2.0 is designed to maintain flexibility and scalability, including available capacity to support OEM partners if an inflection in demand occurs. The company plans to continue investing in innovation, solutions, new manufacturing processes and operating efficiencies.
- RV Channel Inventory DisciplineEstimated third-quarter RV retail unit shipments were up 14% to 88,000 units versus wholesale shipments of 66,900, implying a seasonal dealer field inventory destock of approximately 21,100 units. Estimated dealer inventory was approximately 15 to 17 weeks on hand, down from 18 to 20 weeks at the end of the second quarter and below pre-COVID averages of 26 to 30 weeks.
- Marine Channel Inventory DisciplineEstimated marine retail and wholesale powerboat shipments were 39,100 and 34,200 units, respectively, implying a seasonal dealer inventory destock of approximately 4,900 units. Estimated dealer inventory was 15 to 17 weeks on hand, down from 16 to 18 weeks in the second quarter and below pre-COVID averages of 36 to 40 weeks.
- Powersports Strategic ExecutionManagement said Sportech has delivered on the strategic rationale of its January 2024 acquisition through engineering-first collaboration with OEMs on cabin closures, integrated doors, windshields, roofs, canopies and premium audio. Utility-focused demand and the work-oriented use case were described as supporting more durable demand.
- Marine Innovation RecognitionPatrick's Egis team received an IBEX Innovation Award in the electrical systems category for its modular power distribution module, which provides stackable, busbar-linked architecture and a scalable platform for boat builders.
- Content Growth OpportunityManagement said the typical annual organic content gain across the business is approximately 2% to 3%, and that it expects to do better than that in the current environment because OEMs are focused on differentiation, value-added engineering and solutions several model years out.
- 2027 Margin and End-Market OutlookFor 2027, management expects RV and marine shipments to be flat, manufactured housing and total housing starts to be flat to up mid-single digits, and powersports organic content and full-year unit shipments to increase 3% to 5%. This implies high single-digit growth for the powersports business, while adjusted operating margin is expected to increase 30 to 50 basis points.
- M&A Pipeline ActivityManagement said activity in the M&A pipeline has picked up and that Patrick has been more aggressive over the last half of the year, or the last three quarters, in exploring potential opportunities.
- Merger Regulatory and Shareholder Process ProgressThe registration statement on Form S-4 was declared effective by the SEC on October 19, 2026, and the definitive proxy statement prospectus was mailed to shareholders. The special meetings of Patrick shareholders and LCI stockholders are scheduled for November 18, 2026.
MX:PATK Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2026 (Q4) | 15.09- | 15.86 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 18.3912.08 | 19.07 | -36.63% (-6.99) | |
| Jul 30, 2026 | 2026 (Q2) | 23.3424.17 | 28.32 | -14.67% (-4.15) | |
| Apr 30, 2026 | 2026 (Q1) | 19.6220.77 | 20.96 | -0.90% (-0.19) | |
| Feb 05, 2026 | 2025 (Q4) | 13.7515.86 | 9.82 | 61.54% (+6.04) | |
| Oct 30, 2025 | 2025 (Q3) | 17.6019.07 | 22.66 | -15.83% (-3.59) | |
| Jul 31, 2025 | 2025 (Q2) | 26.3428.32 | 27.19 | 4.17% (+1.13) | |
| May 01, 2025 | 2025 (Q1) | 18.3520.96 | 22.53 | -6.96% (-1.57) | |
| Feb 06, 2025 | 2024 (Q4) | 9.729.82 | 17.75 | -44.68% (-7.93) | |
| Oct 31, 2024 | 2024 (Q3) | 22.9622.66 | 22.79 | -0.58% (-0.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed