LCI Industries (LCII) Q4 2025 earnings summary

Executive summary

• Achieved 16% year-over-year consolidated net sales growth in Q4 2025, with OEM net sales up 18% and aftermarket up 8%; net income nearly doubled to $19 million, and operating margin expanded 180 basis points to 3.8%.

• Full year 2025 net sales reached $4.1 billion, up 10% year-over-year, with operating margin at 6.8% (up 100 bps) and net income up 32% to $188 million.

• Innovation, new product launches, and strategic acquisitions (including Freedman Seating, Trans/Air, Bigfoot Hydraulic Systems, Moss Supply Company, and RVibrake) drove content per unit growth and market share gains across RV, transportation, marine, and housing markets.

• Integration of recent acquisitions ahead of plan, contributing to transportation and bus segment growth.

• Continued cost management, facility consolidations, and investments in service infrastructure supported margin expansion and aftermarket growth.

Financial highlights

• Q4 2025 consolidated net sales: $933 million (+16% YoY); net income: $19 million (+96% YoY); adjusted net income: $22 million (+138% YoY); adjusted EBITDA: $70 million (+53% YoY, 7.5% margin).

• Full year 2025 net sales: $4.1 billion (+10% YoY); net income: $188 million (+32% YoY); adjusted net income: $185 million (+33% YoY); adjusted EBITDA: $408 million (+19% YoY, 10% margin).

• Cash and equivalents at year-end: $223 million; net debt to adjusted EBITDA: 1.8x.

• Cash flows from operations: $331 million; free cash flow: $278 million.

• $243 million returned to shareholders in 2025 via dividends and share repurchases.

Outlook and guidance

• 2026 revenue expected at $4.2–$4.3 billion, with operating margin of 7.5%–8% and adjusted diluted EPS of $8.25–$9.25.

• January 2026 net sales expected at $343 million, up 4% year-over-year.

• RV wholesale shipments forecasted at 335,000–350,000 units; marine and transportation markets expected flat to up slightly; housing and aftermarket segments projected to grow low to mid single digits.

• Aftermarket projected to grow mid-single digits, benefiting from competitor bankruptcy.

• 8–10 facility consolidations planned for 2026, with $60–$80 million in capital expenditures.