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LCI Industries (LCII)
NYSE:LCII
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LCI Industries (LCII) AI Stock Analysis

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LCII

LCI Industries

(NYSE:LCII)

Rating:77Outperform
Price Target:
$109.00
▲(14.74%Upside)
LCI Industries' strong financial and technical performance, solid valuation metrics, and positive earnings call insights contribute significantly to its overall score. The recent corporate events further enhance its market position and investor appeal. However, areas for improvement in profitability and certain sector risks slightly temper the outlook.
Positive Factors
Earnings
LCII reported results that meaningfully beat expectations, maintaining a Buy rating and $130 price target.
Market Expansion
The company gained share, drove innovation, and benefited from RV inventory stocking ahead of the selling season.
Negative Factors
Product Mix Pressure
LCII's results will be pressured near term from outperformance of affordable RVs and outsized tariff risk.
Tariff Concerns
Concerns persist about outsized tariff exposure and headwinds from ongoing outperformance of affordable RVs lingering longer than expected.

LCI Industries (LCII) vs. SPDR S&P 500 ETF (SPY)

LCI Industries Business Overview & Revenue Model

Company DescriptionLCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was incorporated in 1984 and is based in Elkhart, Indiana.
How the Company Makes MoneyLCI Industries generates revenue primarily through the sale of its diverse product offerings to original equipment manufacturers (OEMs) in the RV industry. The company also serves the aftermarket sector, providing replacement parts and accessories for RV owners. Significant revenue streams include the sale of chassis, axles, and other structural components, as well as interior and exterior products like furniture, windows, and doors. LCI Industries benefits from strategic partnerships and long-term relationships with key RV manufacturers, enabling it to maintain a significant market presence. The company's earnings are also influenced by trends in the RV market, consumer preferences, and economic factors affecting discretionary spending on leisure vehicles.

LCI Industries Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 22.27%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
LCI Industries showed strong growth and operational improvements in the first quarter, marked by record sales and successful acquisitions. However, challenges such as tariff uncertainties and softness in the marine sector pose potential risks to future performance.
Q1-2025 Updates
Positive Updates
Record Quarterly Sales
LCI Industries achieved over $1 billion in sales during the first quarter, marking an 8% year-over-year increase and the highest quarterly growth since June 2022.
Operating Margin Improvement
Operating margin increased by nearly 200 basis points due to disciplined manufacturing execution and cost actions.
Strong Performance in RV OEM Segment
RV OEM net sales totaled $531 million, up 15% year-over-year, driven by a double-digit rise in North American RV wholesale shipments.
Successful M&A Activities
The acquisition of Freedman Seating and Trans/Air strengthened LCI's position in the bus market, which is insulated from general economic cycles.
Aftermarket Growth
Aftermarket net sales were $222 million for the quarter, up 6% year-over-year due to higher volumes in RV and marine sectors and market share gains in automotive aftermarket.
Strong Financial Position
LCI Industries reported a strong cash and cash equivalents balance of $231 million and generated $43 million of operating cash flow during the quarter.
Negative Updates
Decline in Adjacent Industries Sales
Sales in adjacent industries decreased by 2% to $293 million, primarily due to softness in the marine sector as dealers focused on inventory rebalancing.
Tariff Uncertainty
Tariff uncertainties pose a potential 180 basis points margin impact for the year, creating challenges in pricing and supply chain strategies.
Softness in Marine Sector
Marine sales were down 15% due to the impact of inflation and high interest rates on retail demand, with expectations of continued softness.
Company Guidance
During the first quarter of fiscal year 2025, LCI Industries reported over $1 billion in sales, marking an 8% year-over-year increase, which is the highest quarterly growth since June 2022. The company aims to achieve $5 billion in revenue by 2027. Operating margins improved by nearly 200 basis points, driven by structural improvements and a 14% expansion in the wholesale environment compared to the previous year. RV OEM net sales rose 15% to $531 million due to a double-digit increase in North American RV wholesale shipments, while aftermarket net sales grew 6% to $222 million. The company made strategic acquisitions in the bus market with Freedman Seating and Trans/Air, strengthening its position in this sector. LCI also focused on supply chain efficiencies, reducing salary labor, and achieving an 85 basis point overhead and G&A reduction target for 2025. The company's balance sheet remains strong, with a net debt position at around 2x EBITDA, and it executed $28.3 million of share repurchases, maintaining a strong dividend with over a 5% yield.

LCI Industries Financial Statement Overview

Summary
LCI Industries shows stable revenue growth and strong cash flow generation. However, profitability margins indicate room for improvement, particularly in net profit margins. The company's leverage management is effective, and cash flow ratios are healthy.
Income Statement
72
Positive
LCI Industries has shown stable revenue figures with a slight increase in TTM compared to the previous year. The gross profit margin remains strong at approximately 23.8%, indicating efficient cost control. However, the net profit margin of around 4.1% suggests room for improvement in cost management and profitability. EBIT and EBITDA margins stand at 6.3% and 7.9%, respectively, indicating moderate operational efficiency.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is approximately 0.86, reflecting a balanced approach to leverage. Return on Equity (ROE) is around 11.4%, demonstrating decent profitability relative to equity. The equity ratio stands at about 44.1%, indicating a healthy balance between debt and equity financing.
Cash Flow
75
Positive
LCI Industries exhibits strong cash flow performance with a notable operating cash flow to net income ratio of approximately 2.7, indicating robust cash generation capabilities. Free cash flow growth is positive, reflecting effective capital expenditure management. The free cash flow to net income ratio of around 2.4 underscores strong free cash conversion.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.74B3.78B5.21B4.47B2.80B
Gross Profit879.72M776.19M1.27B1.04B706.09M
EBITDA343.93M255.20M682.24M510.73M320.91M
Net Income142.87M64.19M394.97M287.74M158.44M
Balance Sheet
Total Assets2.89B2.96B3.25B3.29B2.30B
Cash, Cash Equivalents and Short-Term Investments165.76M66.16M47.50M62.90M51.82M
Total Debt995.85M1.11B1.38B1.48B846.39M
Total Liabilities1.51B1.60B1.87B2.20B1.39B
Stockholders Equity1.39B1.36B1.38B1.09B908.33M
Cash Flow
Free Cash Flow327.95M465.02M471.87M-210.11M174.05M
Operating Cash Flow370.28M527.23M602.51M-111.57M231.40M
Investing Cash Flow-61.10M-83.75M-241.79M-281.22M-232.30M
Financing Cash Flow-208.22M-426.18M-374.87M404.56M14.05M

LCI Industries Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price95.00
Price Trends
50DMA
93.12
Positive
100DMA
88.22
Positive
200DMA
97.72
Negative
Market Momentum
MACD
1.19
Positive
RSI
46.60
Neutral
STOCH
19.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCII, the sentiment is Neutral. The current price of 95 is below the 20-day moving average (MA) of 98.30, above the 50-day MA of 93.12, and below the 200-day MA of 97.72, indicating a neutral trend. The MACD of 1.19 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LCII.

LCI Industries Risk Analysis

LCI Industries disclosed 39 risk factors in its most recent earnings report. LCI Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LCI Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.40B15.5511.44%4.74%1.04%65.90%
74
Outperform
$4.84B21.845.42%2.19%-6.41%-15.85%
62
Neutral
$3.81B92.202.85%2.92%-11.58%-87.27%
60
Neutral
$2.97B69.60-8.54%5.36%-16.63%-132.70%
60
Neutral
$639.25M-1.68%-27.18%84.33%
57
Neutral
HK$25.05B3.81-1.95%5.91%-0.11%-67.17%
51
Neutral
$833.07M-1.35%4.72%-9.32%-120.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCII
LCI Industries
94.43
-7.51
-7.37%
BC
Brunswick
58.29
-17.07
-22.65%
PII
Polaris
49.62
-25.47
-33.92%
THO
Thor Industries
91.31
-6.42
-6.57%
WGO
Winnebago Industries
28.84
-26.21
-47.61%
MBUU
Malibu Boats
32.43
-3.03
-8.54%

LCI Industries Corporate Events

Financial Disclosures
LCI Industries to Announce Q2 2025 Financial Results
Neutral
Jul 22, 2025

On July 22, 2025, LCI Industries announced it will release its second quarter 2025 financial results on August 5, 2025, before the market opens. A conference call and webcast will be held the same day to discuss the results, featuring a Q&A session with institutional investors and analysts. This event is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and Strategy
LCI Industries to Attend CJS Securities Conference
Neutral
Jun 30, 2025

LCI Industries announced its participation in the CJS Securities 25th Annual Summer Conference on July 10, 2025, where key executives will present and engage with institutional investors and analysts. This event highlights LCI’s proactive engagement with stakeholders and may influence its market positioning and investor relations.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Executive/Board Changes
LCI Industries Announces Executive VP Resignation
Neutral
Jun 9, 2025

On June 6, 2025, Andrew J. Namenye, Executive Vice President, Chief Legal and HR Officer, and Corporate Secretary of LCI Industries, announced his voluntary resignation, effective by July 31, 2025. A Separation Agreement was established, ensuring Mr. Namenye’s salary and benefits remain unchanged until his departure, with severance compensation and benefits outlined, including a substantial financial package and accelerated stock vesting, highlighting the company’s structured approach to executive transitions.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and Strategy
LCI Industries to Attend June 2025 Investor Conferences
Neutral
May 28, 2025

LCI Industries announced its participation in three investor conferences in June 2025, including the Stifel 2025 Boston Cross Sector 1×1 Conference, Baird 2025 Global Consumer, Technology & Services Conference, and Wells Fargo 2025 Industrials & Materials Conference. The company aims to engage with institutional investors and analysts through presentations, fireside chats, and one-on-one meetings, potentially impacting its industry positioning and stakeholder relations.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
LCI Industries Targets $5 Billion Revenue by 2027
Positive
May 20, 2025

LCI Industries reported significant progress in 2024, achieving a 34% growth in net sales from 2020 to 2024 and a strong free cash flow conversion rate. The company is poised for continued growth, targeting $5 billion in organic revenue by 2027, driven by innovation, operational improvements, and expanding market presence.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Stock BuybackDividends
LCI Industries Announces Dividend and Stock Buyback Plan
Positive
May 15, 2025

On May 15, 2025, LCI Industries announced a quarterly cash dividend of $1.15 per share and a new $300 million stock repurchase program over the next three years. This move reflects the company’s commitment to strategic capital deployment to enhance shareholder value, supported by strong operating cash flows and financial flexibility.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Executive/Board Changes
David Reed Retires from LCI Industries Board
Neutral
May 15, 2025

On May 15, 2025, David Reed retired from the Board of Directors of LCI Industries after 22 years of service. His retirement was not due to any disagreements with the company. Reed, who has had a distinguished career at Ernst & Young LLP and other organizations, contributed significantly to LCI Industries’ growth and transformation, serving on various committees. His departure marks the end of an era of steady leadership and governance that has been instrumental in shaping the company.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Shareholder Meetings
LCI Industries Holds Annual Stockholders Meeting
Neutral
May 15, 2025

On May 15, 2025, LCI Industries held its Annual Meeting of Stockholders, where 23,304,218 shares were represented out of the total 25,236,482 outstanding shares. During the meeting, ten directors were elected to serve until the next annual meeting, the compensation of executive officers was approved in a non-binding advisory vote, and KPMG LLP was ratified as the independent auditor for the year ending December 31, 2025.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
LCI Industries Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025

LCI Industries reported strong financial results for the first quarter of 2025, achieving over $1 billion in sales, marking an 8% year-over-year increase. The company attributed this growth to its diverse market presence, strategic acquisitions, and operational efficiencies, including facility consolidations and supply chain improvements. LCI Industries also highlighted significant market share gains in its top product categories and continued expansion in the RV and marine aftermarkets, supported by partnerships and innovative products. The company remains optimistic about future growth, projecting increased wholesale shipments and continued content expansion in its offerings.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025