Patrick Industries reported marine revenue of US$171 million for the third quarter of 2026, up 14% year on year and outpacing an estimated 8% increase in wholesale powerboat industry shipments.
Marine accounted for 18% of the US component supplier’s quarterly revenue. Estimated component sales per wholesale powerboat, measured on a trailing 12-month basis, rose 20% to US$4,942 compared with a year earlier and increased 1% from the second quarter.
Patrick attributed the marine growth to higher content per boat and increased estimated industry shipments. President Jeff Rodino said demand at the upper end of the market and new products had supported the business.
“In Marine, our team has been successful in gaining content through new product and solution innovation, while benefitting from relative strength at the premium end of the market,” he said.
Consumer confidence
Rodino cautioned that high interest rates, elevated fuel costs and inflation continued to weaken consumer confidence. Patrick also introduced direct-to-panel printing for composite, wood and other materials during the quarter.
Across the group, sales were broadly unchanged at US$975 million for the quarter ended 27 September, compared with US$976 million a year earlier. Growth in marine, powersports and housing nearly offset a 15% decline in recreational vehicle revenue.
“Our team drove revenue growth in our Marine, Powersports, and Housing businesses, delivering consolidated net sales in line with the prior year, despite lower revenue in our RV business resulting from a decline in RV industry wholesale unit shipments,” said chief executive Andy Nemeth.
Operating margin
Reported operating income fell to US$50 million from US$66 million, while net income declined to US$21 million from US$35 million. Excluding merger-related expenses, restructuring costs and other non-recurring items, adjusted operating margin remained at 6.8%. Adjusted EBITDA rose 3% to US$116 million.
Operating cash flow for the first nine months fell to US$147 million from US$199 million, reflecting working-capital investment in composite products and inventory. Quarterly capital expenditure totalled US$19 million. Available liquidity was US$716 million, with debt of approximately US$1.4 billion.
Patrick’s proposed all-share merger with fellow component supplier LCI Industries remains pending with Patrick shareholders scheduled to vote at a special meeting on 18 November.
