Higher sales to North American marine manufacturers contributed to growth for LCI Industries during the third quarter of 2026, helping the components supplier offset weaker recreational vehicle demand.
Adjacent Industries original equipment manufacturer (OEM) sales increased 7% to $342.4 million and Aftermarket sales were up 6%, however overall net income declined to $50 million compared to $62 million in 2025.
The company attributed the increase to higher sales across transportation, marine and manufactured housing manufacturers.
The improvement contrasted with a 17% decline in RV OEM sales to $389.9 million – total OEM sales fell 7% to $732.3 million.
Across the group, consolidated sales reached $992.5 million, compared with $1,036.5 million a year earlier.
Soft recreation market
Operating margin improved to 7.6% from 7.3%, supported by cost reductions and materials sourcing measures.
“Our third-quarter results reflect continued progress in improving profitability in a soft outdoor recreation market,” said Johnny Sirpilla, interim chief executive.
Adjusted operating margin, excluding merger-related expenses and restructuring costs, increased to 8.3% from 7.3%.
Aftermarket sales grew 6% to $260.2 million, mainly through automotive aftermarket volumes.
Normalising conditions
Group net income fell to $50.1 million from $62.5 million, although adjusted net income rose to $54 million from $48.1 million.
“Our cost management and growth in adjacent industries and aftermarket sales contributed to our bottom line results and we believe leave us well-positioned as conditions normalise,” Sirpilla said.
The company expects 2026 revenue of $3.9 billion to $4 billion and an adjusted operating margin of 7.5% to 8%. October sales were estimated at approximately $341 million, down 10% year on year.
LCI’s proposed all-stock merger with Patrick Industries remains expected to close in the first half of 2027, with a special shareholder meeting scheduled for 18 November 2026.
