Patrick Industries (PATK) investor relations material

Strategic vision and growth

• Focus on end market diversification, expanding marine and powersports portfolios, and investing in aftermarket platforms like RecPro.

• Emphasis on organic growth through product and process innovation, technology investments, and strategic acquisitions.

• Belief that end markets are at or near cyclical lows, with lean channel inventories positioning for recovery.

• Full solutions model and highly engineered products drive recurring value creation.

Financial performance and outlook

• Q1 2026 TTM net sales reached $3.9B, with RV (44%), housing (30%), marine (16%), and powersports (10%) as key segments.

• Gross margin improved from 18.1% in 2019 to 23.1% in Q1 2026; adjusted operating margin rose to 7.0%.

• Adjusted diluted EPS increased 72% from $2.57 in 2019 to $4.43 in Q1 2026.

• Free cash flow for Q1 2026 TTM was $194M, with average free cash flow conversion of 141% since 2021.

• FY 2026 outlook projects operating cash flows of $370M–$390M and free cash flow of ~$300M.

Capital allocation and structure

• Approximately 80% of capital deployed toward strategic growth initiatives, including acquisitions and organic investments.

• $734M in liquidity and net leverage of 2.8x as of March 29, 2026.

• No debt maturities until 2028, with a balanced capital structure and laddered maturities.

• $138M remains under current share repurchase authorization; consistent annual dividend increases since 2019.