Patrick Industries, Inc. reported financial results for the third quarter ended September 27, 2026, revealing consolidated net sales that matched the prior year, though operating margins narrowed. Net sales for the third quarter were $975 million, compared to $976 million in the third quarter of 2025. The company noted that growth in its Marine (+14%), Powersports (+30%), and Housing (+4%) segments nearly offset a 15% decrease in revenue from its RV business.
Despite the flat revenue, operating performance weakened. Operating income fell to $50 million from $66 million in the prior year, resulting in an operating margin of 5.1% compared to 6.8% in the third quarter of 2025. Adjusted operating margin, which excludes merger-related expenses and restructuring costs, remained flat at 6.8%. Net income for the quarter was $21 million, or $0.64 per diluted share, down from $35 million, or $1.01 per share, in the prior year.
Revenue by market sector showed mixed results. The RV segment, which accounts for 37% of revenue, saw sales drop to $362 million, driven by a 13% decrease in industry wholesale unit shipments. Conversely, the Marine segment grew to $171 million, outperforming industry unit shipment estimates, while the Powersports segment increased to $128 million, supported by higher attachment rates for cab enclosures.
On the balance sheet, Patrick reported total debt of approximately $1.4 billion, resulting in a total net leverage ratio of 2.9x. The company had available liquidity of $716 million at the end of the quarter. During the period, the company returned $15 million to shareholders via regular quarterly dividends and did not repurchase shares due to restrictions related to its pending merger with LCI Industries. The merger agreement was signed on June 30, 2026, and the company's registration statement was declared effective by the SEC on October 19, 2026.
