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Patrick Industries
(NASDAQ:PATK)
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Rating:56Neutral
Price Target:
$87.00
▲(2.96% Upside)
Action:Reiterated
Date:07/31/26
PATK scores in the mid-range primarily due to a cyclical financial downshift (margin compression and revenue decline) and elevated leverage, partially offset by still-positive cash generation and a cautiously optimistic outlook/FCF targets from management. The technical picture is a notable detractor, with the stock trading below key moving averages, while valuation and dividend yield are moderately supportive.
Positive Factors
Segment diversification and content gains
Patrick’s revenue mix has meaningfully shifted toward faster-growing segments. Durable double-digit Marine and Powersports growth, plus stable Housing content gains, reduce reliance on cyclical RV volumes and support recurring OEM content wins, improving revenue resilience and through-cycle cash generation.
Negative Factors
Elevated leverage
Leverage near 3.0x materially constrains financial flexibility during cyclical downturns. Higher net debt limits the firm’s ability to absorb prolonged volume weakness, fund bolt-on M&A, or sustain aggressive buybacks without sacrificing liquidity or raising refinancing risk if headwinds persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Segment diversification and content gains
Patrick’s revenue mix has meaningfully shifted toward faster-growing segments. Durable double-digit Marine and Powersports growth, plus stable Housing content gains, reduce reliance on cyclical RV volumes and support recurring OEM content wins, improving revenue resilience and through-cycle cash generation.
Read all positive factors
Patrick Industries Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Highlights each segment’s profit after operating costs, showing which units are truly contributing to the company’s bottom line and where cost structure or scale advantages are improving or dragging performance.
Highlights each segment’s profit after operating costs, showing which units are truly contributing to the company’s bottom line and where cost structure or scale advantages are improving or dragging performance.
Data provided by:
The Fly
The FlyPatrick Industries (PATK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.72B
Dividend Yield2.19%
Average Volume (3M)778.94K
Price to Earnings (P/E)18.1
Beta (1Y)0.92
Revenue Growth3.20%
EPS Growth18.00%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)4.56
Shares Outstanding32,897,865
10 Day Avg. Volume600,473
30 Day Avg. Volume778,942
Financial Highlights & Ratios
PEG Ratio-12.31
Price to Book (P/B)2.97
Price to Sales (P/S)0.89
P/FCF Ratio14.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$104.00Price Target Upside23.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.34
Revenue Forecast (FY)$3.89B
Patrick Industries Business Overview & Revenue Model
Company Description
Patrick Industries, Inc. serves as a primary provider of essential components, construction products, and various materials to key sectors such as the recreational vehicle (RV), marine, manufactured housing, and industrial markets. The company's o...
How the Company Makes Money
Patrick Industries primarily makes money by selling manufactured components, materials, and integrated product solutions to OEM customers across its end markets, with revenue recognized from the shipment/delivery of those products. Its core revenu...
Patrick Industries Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook. Company-level results show resilience driven by strategic diversification: strong double-digit growth in Marine (+22%) and Powersports (+28%), modest Housing growth (+2%), technology and AI investments, a sizable M&A synergy opportunity (~$150M), and solid liquidity ($691M). Counterbalancing these positives are meaningful RV end-market weakness (RV revenue -15%, wholesale shipments -16%), a significant decline in H1 operating cash flow (from $189M to $69M), elevated inventory/working capital, modest margin deterioration (adjusted operating margin down ~80 bps YoY) and near-term margin risk (~20 bps) from affordability programs. Overall, the positives around diversification, technology, M&A and balance-sheet flexibility outweigh the near-term operational and cash-flow headwinds but management emphasizes caution and discipline.Positive Updates
Stable Consolidated Revenue and Organic Growth
Second-quarter net sales of $1.04 billion, down less than 1% year-over-year, with estimated organic growth contributing ~7% during the quarter and trailing 12-month net sales of approximately $3.9 billion.
Negative Updates
RV Volume and Revenue Contraction
RV revenue declined 15% YoY to $407 million; RV industry wholesale unit shipments fell 16% in the quarter (≈15,300 fewer units). Management now expects full-year RV retail to be down low double digits and wholesale 285k–300k units in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Consolidated Revenue and Organic Growth
Second-quarter net sales of $1.04 billion, down less than 1% year-over-year, with estimated organic growth contributing ~7% during the quarter and trailing 12-month net sales of approximately $3.9 billion.
Read all positive updates
Company Guidance
Guidance for 2026: Patrick now expects RV retail down low double digits with RV wholesale of 285,000–300,000 units; Marine retail flat to down slightly and Marine wholesale up low single digits; Powersports full‑year unit shipments and organic content up low single digits (implying mid‑to‑high single‑digit growth for the segment); Housing (MH) wholesale shipments and total new housing starts down low‑to‑mid single digits. The company expects 2026 adjusted operating margin to be roughly flat versus 2025, though incremental volume‑based affordability programs could subtract ~20 basis points; operating cash flow $320–$350 million, capital expenditures $70–$80 million (implying roughly $250 million free cash flow) and an effective tax rate of 24–25%. At quarter end net leverage was 3.0x with available liquidity of about $691 million (≈ $661 million unused revolver); in Q2 Patrick returned ≈ $106 million to shareholders ($91M repurchases, $15M dividends), repurchasing ~980,000 shares and leaving roughly $62 million available under the repurchase authorization prior to merger restrictions.Patrick Industries Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.94B | 3.95B | 3.72B | 3.47B | 4.88B | 4.08B |
| Gross Profit | 908.07M | 912.86M | 835.89M | 782.23M | 1.06B | 801.19M |
| EBITDA | 435.97M | 421.78M | 424.58M | 404.74M | 626.93M | 456.52M |
| Net Income | 147.28M | 135.06M | 138.40M | 142.90M | 328.20M | 224.91M |
Balance Sheet | ||||||
| Total Assets | 3.21B | 3.08B | 3.02B | 2.67B | 2.78B | 2.65B |
| Cash, Cash Equivalents and Short-Term Investments | 29.16M | 26.43M | 33.56M | 11.41M | 22.85M | 122.85M |
| Total Debt | 1.65B | 1.64B | 1.52B | 1.21B | 1.45B | 1.45B |
| Total Liabilities | 2.08B | 1.89B | 1.89B | 1.63B | 1.83B | 1.88B |
| Stockholders Equity | 1.13B | 1.18B | 1.13B | 1.05B | 955.17M | 767.56M |
Cash Flow | ||||||
| Free Cash Flow | 94.89M | 241.91M | 251.16M | 349.69M | 331.55M | 187.33M |
| Operating Cash Flow | 194.85M | 329.41M | 326.84M | 408.67M | 411.74M | 252.13M |
| Investing Cash Flow | -190.02M | -206.49M | -512.85M | -86.55M | -321.47M | -574.73M |
| Financing Cash Flow | 13.40M | -130.06M | 208.16M | -333.56M | -190.27M | 400.69M |
Patrick Industries Technical Analysis
Neutral
84.50
Price Trends
87.04
Negative
94.70
Negative
105.27
Negative
Market Momentum
-0.41
Negative
50.62
Neutral
66.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Neutral. The current price of 84.5 is below the 20-day moving average (MA) of 85.54, below the 50-day MA of 87.04, and below the 200-day MA of 105.27, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATK.
Patrick Industries Risk Analysis
Patrick Industries disclosed 35 risk factors in its most recent earnings report. Patrick 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
Patrick Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.50B | 16.26 | 5.52% | ― | 4.62% | 0.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $2.72B | 18.10 | 12.61% | 2.14% | 3.20% | 18.00% | |
56 Neutral | $1.53B | 17.06 | 6.94% | 3.40% | 4.68% | ― | |
56 Neutral | $1.34B | 6.05 | 23.12% | 1.79% | -8.33% | ― | |
51 Neutral | $1.69B | -412.50 | -6.44% | ― | -1.11% | -101.88% | |
49 Neutral | $2.43B | 12.67 | 5.83% | 11.94% | -3.60% | 1945.71% |
* Consumer Cyclical Sector Average
PATK
Patrick Industries
86.51
-12.74
-12.83%
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LEG
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9.79%
WHR
Whirlpool
43.00
-37.78
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MBC
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9.00
-2.91
-24.43%
Patrick Industries Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Patrick Industries Announces Merger Agreement With LCI Industries
Positive
Jul 30, 2026
For the second quarter ended June 28, 2026, Patrick Industries reported net sales of $1.04 billion, down less than 1% year on year, as strong growth in Marine, Powersports and Housing largely offset a 15% revenue decline in the RV segment amid a 1...
Business Operations and StrategyM&A Transactions
Patrick Industries Announces All-Stock Merger with LCI Industries
Positive
Jun 30, 2026
On June 30, 2026, Patrick Industries and LCI Industries agreed to an all-stock merger that will combine the two Elkhart-based component suppliers into a single, Nasdaq-listed company serving outdoor enthusiast, housing, transportation and other ma...
Executive/Board ChangesDividendsShareholder Meetings
Patrick Industries Shareholders Reaffirm Leadership and Dividend Program
Positive
May 18, 2026
Patrick Industries, Inc. held its Annual Meeting of Shareholders on May 14, 2026, with 95.06% of eligible shares represented, and shareholders elected nine directors to serve until the 2027 meeting. Investors also ratified the appointment of Deloi...
Business Operations and StrategyM&A Transactions
Patrick Industries Ends Merger Talks, Reaffirms Independent Growth Strategy
Neutral
May 7, 2026
On May 4, 2026, Patrick Industries announced that it and LCI Industries had ended talks over a potential merger of equals, after failing to agree on certain key terms despite consensus on leadership and strategic direction for a combined entity. T...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Patrick Industries Reports Flat Q1 Results Amid Merger Talks
Neutral
Apr 30, 2026
Patrick Industries reported first-quarter 2026 results on April 30, 2026, with net sales essentially flat at $997 million versus a year earlier, as 14% marine and 28% powersports growth offset softer RV and housing demand. Operating income held at...
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.