LCI Industries (Lippert) net sales decreased 13% to $969 million in the second quarter of 2026 due to softer recreation industry demand, however the company’s profit margin increased 2% to nearly 10%.
The company’s net income increased 16% to $67 million or 6.9% of net sales, with adjusted EBITDA increasing 7% to $129 million, 12.2% of adjusted net sales.
Consolidated net sales decreased 12.5% to $968.7 million in the period, down from $1,107.3 million for the same period in 2025.
Excluding the $88.8 million negative impact of IEEPA tariff refunds expected to be passed through to customers, adjusted net sales decreased 4.5% to $1,057.5 million.
Operating profit
In the OEM segment, Lippert’s net sales decreased $164.8 million to $674.8 million in the second quarter of 2026, compared to $839.6 million in the same period of 2025.
Operating profit for the OEM Segment was $44.1 million in the period.
In the Aftermarket segment, net sales increased 10% to $293.9 million for the period, compared to $267.7 million in the same period of 2025, with operating profit in the segment reaching $51.9 million, or 17.7% of net sales, compared to $36.1 million, or 13.5% of net sales, in the same period of 2025.
The company expects July 2026 sales to be down 4% on the previous year, with revenue in 2026 between $3.9 billion to $4.1 billion, reduced to reflect softened market conditions.
LCI Industries says it will continue to introduce new products and innovations, with its top five new products expected to contribute $270 million to annualised sales.
The company will also continue to implement operational efficiencies and cost reduction actions.
Dynamic markets
“Our disciplined cost management execution and increased product content per unit has fundamentally strengthened our earnings power and position us to generate higher returns throughout the cycle,” said Johnny Sirpilla, interim chief executive officer.
“I am energised by the opportunities ahead and appreciate the value LCI delivers to its customers across the many dynamic markets we serve.”
And he added that the proposed merger with Patrick Industries will create a broader, more innovative product platform, while expanding the companies’ market.
The merger will also bring about further cost-efficiencies in bringing products to market.
