Oct 29, 2026 earnings call — Patrick 2.0 and product innovation
Reported consolidated net sales of approximately $975 million and adjusted EBITDA margin rose 40 basis points to 11.9%.
Revenue $1.0B (est $0.9B) · EPS $1.03 (est $0.97)
Key quotes
"We expect to incur certain nonrecurring restructuring charges in the fourth quarter related to Patrick 2.0 that will provide recurring long-term savings and efficiencies while enhancing our customer service profile to better serve our customer partners."
"We showcased our industry-leading new capabilities to a number of customers and media representatives who saw firsthand the design flexibility and enhanced durability and service potential of the printed product."
"Available liquidity at the end of the third quarter was approximately $716 million, comprised of approximately $700 million of unused capacity on our revolving credit facility and cash on hand."
Analyst Q&A 6
Fuel impact on fleet and content growth
Q (Scott Stember · ROTH Capital): He asked how rising diesel affects the transport fleet and margins and whether fuel is baked into next year's forecast. He also asked about current dealer demand and what standalone content growth Patrick expects for next year.
A: Jeff said diesel volatility hit the transport business and they are passing some costs while working with customers. He said the current run rate is baked into the 2027 forecast and they expect continued high fuel prices. He also said dealers and OEMs are keeping inventory tight, demand is disciplined, and content gains could exceed the typical 2% to 3% annual organic increase this year.
"So I would tell you the consistent run rate with where we're at today is baked into our current forecast for 2027." — Jeffrey Rodino (PRESIDENT)
Marine growth drivers and capacity plans
Q (Dan Moore · CJS): He asked how much of marine's growth was organic versus tuck-ins and how much price helped offset raw material inflation. He also asked what drove powersports' revised organic content growth and how Patrick 2.0 affects capacity for a recovery.
A: Matt said, at the company level, organic content growth was 7%, with a little less than half of that from price and 2% coming from acquisitions, and they do not break this down by end market. Jeff added marine growth is mostly organic with some M&A, powersports gains come from both higher attachment rates and growing audio share, and Patrick 2.0 is meant to keep flexibility and scalability using strong cash flows and liquidity.
"It's a combination, too, Daniel Moore, of organic and strategic." — Jeffrey Rodino (PRESIDENT)
Margin drivers and OEM reaction to merger
Q (Joseph Altobello · Raymond James): He asked whether pricing will drive the 30 to 50 basis points margin improvement next year given flat units. He also asked if RV OEMs are reacting to the proposed merger with LCI by diversifying supply or vertically integrating.
A: Andy said margin resilience comes from the diversification of their businesses, not from assuming pricing will drive expansion; they assume nearly neutral pricing. On the merger question, Andy said they welcome competition, expect OEMs to have choices, and plan to keep demonstrating value whether Patrick is standalone or combined with LCI.
"What's driving our margin stability and resilience today is the diversification of our business model." — Andy L. Nemeth (CEO)
Retail inflection timing, mix, and tariffs
Q (Tristan Thomas-Martin · BMO): He asked what dealers would view as a retail inflection and how long they would wait to restart orders. He also asked how industry mix might change next year and whether the company expects tariff refunds and how they would flow through.
A: Jeff said dealers and OEMs will watch the early selling season and trade shows and nobody is ready to call an inflection now; they will match inventory to retail when they see a turn. On mix, Jeff said it's hard to tell now and they expect consistent mix conditions with private label still present. Andy said they have received some tariff refunds, the team mitigated tariffs by timing procurement and not passing costs until they hit inventory, and overall the impact is neutral.
"But I would tell you, upfront, the team just did a fabulous job of really, really working with their suppliers to mitigate as much as possible and not pass anything along until it actually hit our inventory." — Andy L. Nemeth (CEO)
RV and marine outlook; M&A pipeline
Q (Noah Zatzkin · KeyBanc): He asked for the company's view on the RV and marine end markets and how confident they are in stability. He also asked for any update on the company's pipeline and M&A opportunities.
A: Andy said the market feels like a stalemate with headwinds keeping payment buyers sidelined while cash and higher-end buyers buy, and he expects status quo until something changes. He also said M&A activity has picked up, they have been more aggressive in the last three quarters, and he is enthusiastic about the pipeline.
"I guess, Noah, I'd tell you, I think it feels like we're just in a stalemate right now." — Andy L. Nemeth (CEO)
Patrick 2.0 independence and printing benefits
Q (Craig Kennison · Baird): He asked how much Patrick 2.0 depends on the merger. He also asked for an example of Patrick Printing Solutions savings and how hard it would be for competitors to copy.
A: Andy said Patrick 2.0 does not depend on the merger; it is independent but will benefit a combined company and is being implemented now to keep flexibility and scalability. Jeff said the printing solution saves cost up front by avoiding large prototype runs, allows on-the-fly design changes, and can duplicate exact panels later; they will add another machine in 2027 to scale capacity. Andy added there are protections and a high investment barrier, so replication is not easy.
"We can make adjustments on the fly and we can change between panels, color variations." — Jeffrey Rodino (PRESIDENT)