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1. Company Snapshot

1.a. Company Description

Patrick Industries, Inc.manufactures and distributes components, building products, and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, China, and Canada.Its Manufacturing segment manufactures and sells furniture, shelving, wall, countertop, and cabinet product; cabinet door, fiberglass bath fixture, and tile system; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum product; fiberglass and plastic components; RV painting; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinet; polymer-based flooring product; dash panels; and other products.


This segment also provides wrapped vinyl, paper, and hardwood profile moulding; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat covers, tower, top, and frame; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite part, marine hardware; slotwall panels, components; and other products.The company's Distribution segment distributes pre-finished wall and ceiling panel, drywall and finishing product, electronic, audio system component, appliance, marine accessories, wiring product, electrical and plumbing product, fiber reinforced polyester product; cement siding product, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring product, shower door, furniture, fireplace and surround, interior and exterior lighting product, and other products.This segment also offers transportation and logistics service.


The company was founded in 1959 and is headquartered in Elkhart, Indiana.

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1.b. Last Insights on PATK

Patrick Industries' recent performance was driven by strong Q4 earnings, with revenue up 9.2% and profitability metrics exceeding analyst expectations. The company's outperformance in RV, marine, and power sports segments, driven by content per unit and pricing growth, contributed to its success. Management guides for continued expansion in 2026, projecting operating cash flow of $380–$400 million and EBITDA of $503.8 million. Institutional investors, such as Truist Financial Corp, have increased their holdings, with a 133.6% increase in the third quarter. (Source: company's recent earnings release, Truist Financial Corp's SEC filing)

1.c. Company Highlights

2. Patrick Industries' Q4 2025 Earnings: A Resilient Performance

Patrick Industries reported a strong fourth quarter in 2025, with net sales improving 9% to $924 million, driven by solid organic growth and acquisitions. Adjusted earnings per diluted share was $0.84, beating estimates of $0.74. The company's gross margin expanded to 23% in the fourth quarter, up from 22.1% in the prior year, due to factors such as leveraging its fixed cost structure and accretive acquisitions in the aftermarket space. For the full year, net sales increased 6% to approximately $4 billion, and adjusted earnings per diluted share was $4.44.

Publication Date: Feb -08

📋 Highlights
  • Revenue Growth:: Q4 net sales rose 9% to $924M; full-year sales hit $4B, up 6%.
  • Adjusted EPS Performance:: Q4 adjusted EPS $0.84 (including $0.06 dilution); full-year adjusted EPS $4.44 (including $0.26 dilution).
  • Free Cash Flow:: 2025 free cash flow reached $246M, driven by $329M in operating cash flow and $83M in CapEx.
  • Composites Strategy:: Targeting $1.5B total addressable market (TAM), with $500M short-term potential in RV/marine industries.
  • Margin Expansion:: Q4 adjusted EBITDA margin grew 80 bps to 11.4%; full-year margin at 11.8%, with 70-90 bps improvement expected in 2026.

Segment Performance

The company's outdoor enthusiast-focused businesses more than offset a 5% decline in housing revenue for the fourth quarter. For the full year, RV revenue increased 9% to $1.8 billion, and marine revenue increased 6% to $606 million. The powersports revenue also saw a 9% increase to $384 million. The company's aftermarket business continues to support diversification and resilience, with the RecPro site adding several new SKUs, primarily on the RV side.

Cash Flow and Balance Sheet

Patrick Industries delivered free cash flow of $246 million in 2025, enabling it to reinvest in the business, pursue strategic acquisitions, and return value to shareholders. The company's balance sheet remains solid, with available liquidity of approximately $818 million at the end of the quarter. Total net leverage was 2.6 times, reflecting its continued commitment to delevering the business.

Outlook and Valuation

For 2026, the company estimates its end markets will see flat to low single-digit growth, with adjusted operating margin expected to improve by 70 to 90 basis points. Analysts estimate revenue growth at 6.0% next year. With a current P/E Ratio of 33.78 and EV/EBITDA of 14.94, the market is pricing in a certain level of growth and profitability. The company's ROIC of 7.55% and ROE of 11.65% indicate a reasonable return on capital, considering its net debt to EBITDA ratio of 3.83.

Growth Initiatives

The company is optimistic about its composites strategy, with a total addressable market of about $1.5 billion, and $500 million attainable in the short term. Jeff Rodino mentioned that getting products onto the RecPro e-commerce site is just the first step, and the company expects to see a better gauge on pull-through within 6-12 months after adding new products. The incremental marketing spend to drive this initiative is not expected to be significant.

3. NewsRoom

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Patrick Industries, Inc. (NASDAQ:PATK) Receives Average Rating of “Moderate Buy” from Brokerages

Feb -14

Source: defenseworld.net

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Truist Financial Corp Acquires 9,616 Shares of Patrick Industries, Inc. $PATK

Feb -08

Source: defenseworld.net

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Patrick Industries' Surge Removes Doubts About Its Valuation

Feb -06

Source: seekingalpha.com

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Patrick Industries (NASDAQ:PATK) Hits New 12-Month High on Strong Earnings

Feb -06

Source: defenseworld.net

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Patrick Industries, Inc. (PATK) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Patrick Industries (PATK) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -05

Source: zacks.com

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Patrick Industries (PATK) Beats Q4 Earnings and Revenue Estimates

Feb -05

Source: zacks.com

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Patrick Industries, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results and Declares Quarterly Cash Dividend

Feb -05

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.51%)

6. Segments

Manufacturing

Expected Growth: 7%

Patrick Industries, Inc.'s 7% growth in manufacturing is driven by increasing demand for recreational vehicles, strategic acquisitions, and expansion into adjacent markets. Additionally, the company's focus on operational efficiency, cost savings initiatives, and investments in technology have contributed to its growth momentum.

Distribution

Expected Growth: 9%

Patrick Industries, Inc.'s 9% distribution growth is driven by increasing demand for recreational vehicles and manufactured housing, coupled with strategic acquisitions and expansion into adjacent markets. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to its growth momentum.

7. Detailed Products

Manufactured Housing

Patrick Industries, Inc. provides a wide range of manufactured housing products, including floor plan designs, interior and exterior finishes, and construction materials.

Recreational Vehicles

The company offers a variety of recreational vehicle products, including travel trailers, fifth-wheel trailers, and motorhomes, designed for outdoor enthusiasts.

Industrial and Commercial Products

Patrick Industries, Inc. provides industrial and commercial products, including shelving, storage solutions, and material handling systems, designed for warehouses, distribution centers, and manufacturing facilities.

Leisure and Travel Products

The company offers a range of leisure and travel products, including furniture, appliances, and accessories, designed for the RV, marine, and outdoor industries.

8. Patrick Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Patrick Industries, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the market, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.69%
Debt Cost 7.64%
Equity Weight 49.31%
Equity Cost 12.56%
WACC 10.07%
Leverage 102.80%

11. Quality Control: Patrick Industries, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dillard's

A-Score: 6.9/10

Value: 5.2

Growth: 6.9

Quality: 7.1

Yield: 9.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
H&R Block

A-Score: 6.3/10

Value: 7.8

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Patrick Industries

A-Score: 5.2/10

Value: 4.0

Growth: 4.8

Quality: 3.9

Yield: 4.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Tempur Sealy

A-Score: 4.4/10

Value: 1.8

Growth: 4.8

Quality: 5.6

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Whirlpool

A-Score: 4.3/10

Value: 5.9

Growth: 1.8

Quality: 1.8

Yield: 10.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Mohawk

A-Score: 4.1/10

Value: 7.4

Growth: 3.7

Quality: 4.6

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

143.1$

Current Price

143.1$

Potential

-0.00%

Expected Cash-Flows