Patrick Industries (PATK) Q4 2025 earnings summary

Executive summary

• Net sales rose 9% year-over-year in Q4 2025 to $924 million and 6% for the year to approximately $4 billion, driven by organic growth, product innovation, and strategic acquisitions in Outdoor Enthusiast markets.

• Adjusted EBITDA increased 17% to $105 million in Q4; full-year adjusted EBITDA was $468 million.

• Free cash flow for 2025 reached $246 million, up 49% from FY 2019.

• Five acquisitions completed in 2025, including Medallion Instrumentation Systems, QES, Egis Group, LilliPad Marine, and Elkhart Composites, strengthening marine and composites platforms.

• Leadership transition with Matt Filer appointed as CFO, positioning the company for future growth.

Financial highlights

• Q4 adjusted EPS was $0.84, up 62% year-over-year; full-year adjusted EPS was $4.44, up 2%.

• Q4 adjusted operating margin expanded 110 basis points to 6.3%; full-year adjusted operating margin was 7.0%.

• Q4 adjusted EBITDA margin was 11.4%; full-year adjusted EBITDA margin was 11.8%.

• Dividend increased 17.5% and $87 million returned to shareholders via buybacks and dividends.

• Total net liquidity at year-end was $818 million; net leverage ratio improved to 2.6x.

Outlook and guidance

• FY 2026 adjusted operating margin expected to improve by 70–90 basis points from 7.0% in 2025.

• Free cash flow projected to exceed $300 million in FY 2026; CapEx estimated at $70–$80 million.

• Flat to low single-digit growth expected in RV, marine, and powersports shipments; housing shipments flat to up 5%.

• Full-year tax rate estimated at 24–25%.

• Management focused on disciplined cost structure, scalability, and strategic priorities including acquisitions, organic growth, aftermarket expansion, automation, and customer partnerships.