PATRICK INDUSTRIES INC
For the period ended Jun 29, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Aug 7, 2025
PATK$78.79-5.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-08.
0000076605-25-000122
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-08-07.
0000076605-25-000175
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 96 current paragraphs.
36 unchanged; 33 reworded; 25 added; 9 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Second Quarter and First Six Months 2025 Financial Overview
Current report
Second Quarter and Six Months Ended June 29, 2025 Compared to 2024
Current report
Net sales in the first six months of 2025 increased $100.9 million, or 5%, to $2.05 billion from $1.95 billion in the first six months of 2024. Net sales in the first six months of 2025 increased due to increased sales to the RV, MH and industrial markets, partially offset by decreased sales to the powersports and marine markets. Sales to the RV market increased $87.4 million, or 10%, compared to the first six months of 2024, due to Company's acquisition of RecPro in the third quarter of 2024, industry volume growth and market share gain. Sales to the MH market increased $24.9 million, or 8%, compared to the first six months of 2024, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 5%. Sales to the industrial market increased $5.1 million, or 2%, compared to the first six months of 2024, primarily related to product mix shifts by certain customers. Sales to the powersports market decreased $9.2 million, or 5%, compared to the first six months of 2024, primarily related to lower OEM production volumes in alignment with retail demand. Sales to the marine market decreased $7.5 million, or 2%, compared to the first six months of 2024, primarily attributable to a decrease in estimated wholesale unit shipments of 7% compared to the first six months of 2024.
Current report
Cost of Goods Sold. Cost of goods sold increased $11.6 million, or 1%, to $796.9 million in the second quarter of 2025 compared to $785.3 million in the second quarter of 2024. As a percentage of net sales, cost of goods sold decreased 110 basis points in the second quarter of 2025 to 76.1% compared to 77.2% in the second quarter of 2024.
Current report
Cost of goods sold as a percentage of net sales decreased in the second quarter of 2025 primarily as a result of acquisitions completed in 2024 and 2025 which had a positive impact on material costs and labor, partially offset by increased manufacturing overhead costs resulting from different cost profiles of acquired businesses. The decrease in costs of goods sold as a percentage of net sales in the second quarter of 2025 primarily reflected decreases in materials and labor costs of 90 and 40 basis points, respectively, partially offset by increased manufacturing overhead costs of 20 basis points.
Current report
Cost of goods sold increased $57.8 million, or 4%, to $1.6 billion in the first six months of 2025 from $1.51 billion in the first six months of 2024. As a percentage of net sales, cost of goods sold decreased 100 basis points in the first six months of 2025 to 76.6% compared to 77.6% in the first six months of 2024.
Current report
Cost of goods sold as a percentage of net sales decreased in the first six months of 2025 primarily as a result of continued cost reduction and automation initiatives we deployed throughout 2024 and into 2025 that had a positive impact on material and labor costs. The decrease in cost of goods sold as a percentage of net sales in the first six months of 2025 primarily reflected a 50 basis point decrease in material costs and a 50 basis point decrease in labor costs. In general, the Company's cost of goods sold percentage can be impacted from quarter-to-quarter by demand changes in certain market sectors that can result in fluctuating costs of certain raw materials and commodity-based components that are utilized in production.
Current report
Warehouse and delivery expenses increased $14.5 million, or 19%, to $90.7 million in the first six months of 2025 compared to $76.2 million in the prior year period. As a percentage of net sales, warehouse and delivery expenses increased 50 basis points to 4.4% in the first six months of 2025 compared to 3.9% in the first six months of 2024.
Current report
As a percentage of net sales, SG&A expenses increased 70 basis points to 8.9% in the second quarter of 2025 compared to 8.2% in the second quarter of 2024. The increase in SG&A expenses as a percentage of net sales in the second quarter of 2025 is primarily attributable to increased wages and selling expenses as a percentage of net sales, partially offset by decreased incentive compensation as a percentage of net sales.
Current report
SG&A expenses increased $18.3 million, or 11%, to $187.1 million in the first six months of 2025 compared to $168.8 million in the prior year period. The increase in SG&A expenses in the first six months of 2025 compared to 2024 is primarily attributable to increased wages, insurance expenses, technology expenses, loss on sale of assets, and selling expenses, partially offset by decreased incentive compensation expenses.
Current report
As a percentage of net sales, SG&A expenses increased 40 basis points to 9.1% in the first six months of 2025 compared to 8.7% in the prior year period. The increase in SG&A expenses as a percentage of net sales in the first six months of 2025 is primarily attributable to increased wages, insurance expenses, technology expenses, loss on sale of assets, and selling expenses, partially offset by decreased professional fees and incentive compensation expenses.
Current report
Amortization of Intangible Assets. Amortization of intangible assets increased $0.4 million, or 1%, to $24.6 million in the second quarter of 2025 compared to $24.3 million in the prior year quarter. Amortization of intangible assets increased $2.0 million, or 4%, to $49.1 million in the first six months of 2025 compared to $47.1 million in the prior year period. The increases in the second quarter and first six months of 2025 compared to the comparable prior year periods primarily reflect the impact of the RecPro acquisition as well as other acquisitions completed in 2025 and 2024.
Current report
For the first six months of 2025, operating income increased $8.3 million, or 6%, to $152.3 million from $144.0 million in the first six months of 2024. Operating income as a percentage of net sales remained flat at 7.4% in the first six months of 2025 compared to the first six months of 2024. The increase in operating income is primarily attributable to increased net sales and the items discussed above.
Current report
Other Expenses. Other expenses were $24.4 million in both the second quarter and first six months of 2025 compared to zero in the prior year periods. Other expenses in the second quarter and first six months of 2025 reflects expenses related to a legal settlement.
Current report
Income Taxes. Income tax expense decreased $5.5 million in the second quarter of 2025 to $11.0 million compared to $16.5 million in the prior year quarter. Income tax expense decreased $1.4 million in the first six months of 2025 to $19.2 million compared to $20.6 million in the prior year period. The effective tax rate was 25.3% and 21.4% in the second quarter and first six months of 2025, respectively, and 25.6% and 19.9% in the second quarter and first six months of 2024, respectively.
Current report
The decrease in income tax expense in the second quarter and the first six months of 2025 compared to the same periods in 2024 is primarily related to decrease in income before taxes.
Current report
Second Quarter and Six Months Ended June 29, 2025 Compared to 2024
Current report
Manufacturing segment sales in the first six months of 2025 compared to the same prior year period increased due to increased sales to the RV, MH, and industrial markets, partially offset by decreased sales to the powersports and marine markets. Sales to the RV market increased 13% compared to the first six months of 2024, primarily attributable to an increase in estimated wholesale units shipments of 7% and market share gains compared to the first six months of 2024. Sales to the MH market increased 7% compared to the first six months of 2024, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 5% and market share gains. Sales to the industrial market increased 1% compared to the first six months of 2024. Sales to the powersports market decreased 6% compared to the first six months of 2024, primarily related to lower OEM production volumes in alignment with retail demand. Sales to the marine market decreased 3% compared to the first six months of 2024, primarily attributable to a decrease in estimated wholesale unit shipments of 7%, partially offset by acquisitions completed in 2024 and 2025.
Current report
Gross Profit. Manufacturing segment gross profit increased $0.5 million, or less than 1%, to $179.3 million in the second quarter of 2025 compared to $178.7 million in the second quarter of 2024. Gross profit as a percentage of sales was 23.1% in the second quarter of 2025 and flat compared to the prior year quarter.
Current report
Operating Income. Operating income decreased $5.6 million, or 5%, to $103.1 million in the second quarter of 2025 compared to $108.8 million in the prior year quarter. As a percentage of sales, operating income decreased 70 basis points to 13.3% in the second quarter of 2025 compared to 14.0% in the same period in 2024. The decrease in operating income and operating income as a percentage of sales is primarily related to the items discussed above combined with an increase in operating expenses and operating expenses as a percentage of sales.
Current report
Operating income increased $5.0 million, or 3%, to $201.2 million in the first six months of 2025 compared to $196.2 million in the prior year period. As a percentage of sales, operating income decreased 10 basis points to 13.1% in the first six months of 2025 compared to 13.2% in the same period in 2024. The increase in operating income is primarily attributable to increased sales, partially offset by an increase in operating expenses. The decrease in operating income as a percentage of sales is primarily related to the items discussed above combined with an increase in operating expenses.
Current report
Distribution segment sales in the second quarter of 2025 compared to the second quarter of 2024 increased due to increased sales to the RV, MH, powersports, and industrial markets, partially offset by decreased sales to the marine market. Sales to the RV market increased 5% compared to the prior year quarter, primarily attributable to market share gains and acquisitions completed in 2024. Sales to the MH market increased 4% compared to the prior year quarter, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 3%. Sales to the powersports market increased $1.2 million, or 33%, compared to the prior year quarter, primarily attributable to market share gains and acquisitions completed in 2024. Sales to the industrial market increased $0.7 million, or 7%, compared to the prior year quarter. Sales to the marine market decreased $0.2 million, or 2%, compared to the prior year quarter.
Current report
Distribution segment gross profit increased $25.7 million, or 24%, to $133.9 million in the first six months of 2025 compared to $108.2 million in the first six months of 2024. As a percentage of sales, gross profit increased 370 basis points to 25.2% in the first six months of 2025 compared to 21.5% in the prior year period. The increase in gross profit as a percentage of sales in the first six months of 2025 compared to 2024 is attributable to decreased material and labor costs as a percentage of sales.
Current report
Operating Income. Operating income increased $2.3 million, or 7%, to $32.4 million in the second quarter of 2025 compared to $30.2 million in the prior year quarter. As a percentage of sales, operating income increased 30 basis points to 11.7% in the second quarter of 2025 compared to 11.4% in the same period in 2024. The increase in operating income and operating income as a percentage of sales is primarily related to the items discussed above, partially offset by an increase in operating expenses and operating expense as a percentage of sales.
Current report
Operating income increased $3.5 million, or 7%, to $57.4 million in the first six of 2025 compared to $53.9 million in the prior year period. As a percentage of sales, operating income increased 10 basis points to 10.8% in the first six months of 2025 compared to 10.7% in the same period in 2024. The increase in operating income and operating income as a percentage of sales is primarily related to the items discussed above, partially offset by an increase in operating expenses and operating expense as a percentage of sales.
Removed paragraphs (9)
Previous report
First Quarter 2025 Financial Overview
Previous report
First Quarter Ended March 30, 2025 Compared to First Quarter Ended March 31, 2024
Previous report
Goods Sold. Cost of goods sold increased $46.2 million, or 6%, to $774.8 million in the first quarter of 2025 compared to $728.6 million in the first quarter of 2024. As a percentage of net sales, cost of goods sold decreased 90 basis points in the first quarter of 2025 to 77.2% compared to 78.1% in the first quarter of 2024. The decrease in cost of goods sold as a percentage of net sales in the first quarter of 2025 primarily reflected a 60 basis point decrease in labor as a percentage of net sales, 20 basis point decrease in material as a percentage of net sales and 10 basis point decrease in overhead as a percentage of net sales.
Previous report
Amortization of Intangible Assets. Amortization of intangible assets increased $1.7 million, or 7%, to $24.5 million in the first quarter of 2025 compared to $22.8 million in the prior year quarter, primarily reflecting the impact of the acquisitions completed in 2024.
Previous report
Income Taxes. Income tax expense increased $4.0 million in the first quarter of 2025 to $8.2 million compared to $4.2 million in the prior year quarter.
Previous report
The effective tax rate was 17.7% in the first quarter of 2025 and 10.6% in the first quarter of 2024. The increase in income tax expense in the first quarter of 2025 compared to the same period in 2024 is primarily related to decreased excess tax benefits on share-based compensation and an increase in income before taxes.
Previous report
First Quarter Ended March 30, 2025 Compared to 2024
Previous report
Operating Income. Operating income increased $10.7 million, or 12%, to $98.1 million in the first quarter of 2025 compared to $87.5 million in the prior year quarter. The overall increase in operating income in the first quarter of 2025 primarily reflects the items discussed above.
Previous report
Operating Income. Operating income increased $1.3 million, or 5%, to $25.0 million in the first quarter of 2025 compared to $23.7 million in the prior year quarter. The increase in operating income in the first quarter of 2025 primary reflects the impact of the items discussed above.
Reworded paragraphs (33)
Previous wording
The RV industry is our primary market and comprised 48% and 45% of the Company's net sales in the first quarter ended March 30, 2025 and March 31, 2024, respectively. Net sales to the RV industry in the first quarter of 2025 increased 14% compared to the prior year period.
Current wording
The RV industry is our primary market and comprised 46% and 47% of the Company's net sales in the second quarter and six months ended June 29, 2025, respectively, and 44% in both the second quarter and six months ended June 30, 2024. Net sales to the RV industry in the second quarter and six months ended June 29, 2025 increased 7% and 10%, respectively, compared to the prior year periods.
Previous wording
According to the RV Industry Association ("RVIA"), RV wholesale unit shipments in the first quarter of 2025 totaled approximately 97,800 units, an increase of 14% from approximately 85,900 units in the first quarter of 2024. While we estimate RV industry retail unit sales in the first quarter of 2025 decreased by approximately 7% compared to the first quarter of 2024, we estimate that wholesale unit shipments exceeded industry retail unit sales in the first quarter of 2025 as RV OEMs increased production volumes in anticipation of higher retail demand later in the year.
Current wording
RV wholesale unit shipments for the first six months of 2025 totaled approximately 190,700 units, an increase of 7% from approximately 178,600 units in the first six months of 2024. While we estimate RV industry retail unit sales in the first six months of 2025 decreased by approximately 4% compared to the first six months of 2024, we estimate that wholesale unit shipments exceeded retail unit sales in the first six months of 2025 as RV OEMs increased production volumes in the first quarter of 2025 in anticipation of higher retail demand later in the year.
Previous wording
Net sales to the marine industry comprised approximately 15% and 17% of the Company's net sales in the first quarter ended March 30, 2025 and March 31, 2024, respectively. Net sales to the marine industry decreased 4% compared to the prior year period.
Current wording
Net sales to the marine industry comprised 15% of the Company's net sales in both the second quarter and six months ended June 29, 2025 and 16% in both the second quarter and six months ended June 30, 2024. Net sales to the marine industry in the second quarter and six months ended June 29, 2025 decreased 1% and 2%, respectively, compared to the prior year periods.
Previous wording
Our marine revenue is generally correlated to marine industry wholesale powerboat unit shipments. According to Company estimates based on data published by the National Marine Manufacturers Association ("NMMA"), wholesale powerboat unit shipments decreased 10% in the first quarter of 2025, compared to the prior year period.
Current wording
Our marine revenue is generally correlated to marine industry wholesale powerboat unit shipments. According to Company estimates based on data published by the National Marine Manufacturers Association ("NMMA"), wholesale powerboat unit shipments decreased 5% and 7% in the second quarter and first six months of 2025, compared to the prior year periods.
Previous wording
We estimate that marine industry retail powerboat unit sales decreased 5% in the first quarter of 2025 compared to the prior year period, primarily due to the current macroeconomic environment faced by the end consumer, such as economic uncertainty and elevated interest rates.
Current wording
We estimate that marine industry retail powerboat unit sales decreased 12% and 10% in the second quarter and first six months of 2025 compared to the prior year periods, primarily due to the current macroeconomic environment faced by the end consumer, such as economic uncertainty and elevated interest rates.
Previous wording
Through acquisitions completed in recent years, the Company entered the powersports end market. Powersports is a category of motorsports which includes vehicles such as motorcycles, all-terrain vehicles ("ATVs"), side-by-sides, snowmobiles, scooters, golf carts and other personal transportation vehicles, and other related categories. Our powersports business is primarily focused on the utility and premium segments of the side-by-side market, which have been outperforming the more discretionary recreational segment. We also participate in the motorcycle and golf cart segments of the market. OEMs and dealers are actively managing field inventory levels to align with retail demand and in an effort to update units held in dealer inventories.
Current wording
Through acquisitions completed in recent years, the Company entered the powersports end market. Powersports is a category of motorsports which includes vehicles such as motorcycles, all-terrain vehicles ("ATVs"), side-by-sides, snowmobiles, scooters, golf carts and other personal transportation vehicles, and other related categories. Our powersports business is primarily focused on the utility and premium segments of the side-by-side market, which have been outperforming the more discretionary recreational segment. We also participate in the motorcycle and golf cart segments of the market. OEMs and dealers are actively managing field inventory levels to align dealer inventories with retail demand.
Previous wording
Net sales to the powersports industry comprised 8% and 9% of the Company's net sales in the first quarter ended March 30, 2025 and March 31, 2024, respectively. Net sales to the powersports industry in the first quarter of 2025 decreased 2% compared to the prior year period.
Current wording
Net sales to the powersports industry comprised 9% of the Company's net sales in both the second quarter and six months ended June 29, 2025 and 10% in both the second quarter and six months ended June 30, 2024. Net sales to the powersports industry in the second quarter and six months ended June 29, 2025 decreased 7% and 5%, respectively, compared to the prior year periods.
Previous wording
Net sales to the MH industry comprised 17% and 16% of the Company's net sales in the first quarter ended March 30, 2025 and March 31, 2024, respectively. Net sales to the MH industry in the first quarter ended March 30, 2025 increased 11% compared to the prior year period. According to Company estimates based on industry data from the Manufactured Housing Institute, MH industry wholesale unit shipments increased 6% in the first quarter of 2025 compared to the prior year period, primarily driven by OEMs increasing production in first quarter of 2025 in anticipation of an increase in demand.
Current wording
Net sales to the MH industry comprised 17% of the Company's net sales in both the second quarter and six months ended June 29, 2025 and 17% in both the second quarter and six months ended June 30, 2024. Net sales to the MH industry in the second quarter and six months ended June 29, 2025 increased 4% and 8% respectively, compared to the prior year periods. According to Company estimates based on industry data from the Manufactured Housing Institute, MH industry wholesale unit shipments increased 3% and 5% in the second quarter and first six months of 2025 compared to the prior year periods, primarily driven by OEMs increasing production in the first half of 2025 in anticipation of an increase in demand.
Previous wording
Net sales to the industrial market comprised 12% and 13% of the Company's net sales in the first quarter ended March 30, 2025 and March 31, 2024, respectively. Net sales to the industrial market in the first quarter ended March 30, 2025 increased 2% compared to the prior year period. Overall, our revenues in these markets are focused on residential and multifamily housing, hospitality, high-rise housing and office, commercial construction and institutional furniture markets. We estimate that, in general, approximately 75% to 85% of our industrial business is directly tied to the residential housing market, with the remaining 15% to 25% tied to the non-residential and commercial markets.
Current wording
Net sales to the industrial market comprised 13% and 12% of the Company's net sales in the second quarter and six months ended June 29, 2025, respectively, and 13% in both the second quarter and six months ended June 30, 2024. Net sales to the industrial market in both the second quarter and six months ended June 29, 2025 increased 2% compared to the prior year periods. Overall, our revenues in these markets are focused on residential and multifamily housing, hospitality, high-rise housing and office, commercial construction and institutional furniture markets. We estimate that, in general, approximately 80% to 90% of our industrial business is directly tied to the residential housing market, with the remaining 10% to 20% tied to the non-residential and commercial markets.
Previous wording
According to the U.S. Census Bureau, combined new housing starts decreased 2% in the first quarter of 2025 compared to the prior year quarter, reflecting a decrease in single-family housing starts of 6%, partially offset by an increase in multifamily housing starts of 11%. Our industrial products are generally among the last components installed in new unit construction and as such our related sales typically trail new housing starts by four to six months.
Current wording
For the first six months of 2025, combined new housing starts decreased 1% compared to the prior year period, reflecting a decrease in single-family housing starts of 7%, partially offset by an increase in multifamily housing starts of 17%. Our industrial products are generally among the last components installed in new unit construction and as such our related sales typically trail new housing starts by four to six months.
Previous wording
Net Sales. Net sales in the first quarter of 2025 increased $69.9 million, or 7%, to $1.00 billion compared to $933.5 million in the first quarter of 2024. Net sales in the first quarter of 2025 increased due to increased sales to the RV, MH and industrial markets, partially offset by decreased sales to the marine and powersports markets. Sales to the RV market increased $57.9 million, or 14%, compared to the prior year quarter, primarily due to an increase in estimated wholesale shipments of approximately 14%. Sales to the MH market increased $17.1 million, or 11%, compared to the prior year quarter, primarily due to an increase in estimated wholesale MH industry unit shipments of approximately 6%. Sales to the industrial market increased $2.9 million, or 2%, compared to the prior year quarter, which is attributable to product mix shifts by certain customers. Sales to the marine market decreased $6.3 million, or 4%, primarily attributable to a decrease in estimated powerboat wholesale units of 10% compared to the prior year quarter. Sales to the powersports market decreased $1.7 million, or 2%, compared to the prior year quarter.
Current wording
Net Sales. Net sales in the second quarter of 2025 increased $30.9 million, or 3%, to $1.05 billion compared to $1.02 billion in the second quarter of 2024. Net sales in the second quarter of 2025 increased due to increased sales to the RV, MH and industrial markets, partially offset by decreased sales to the powersports and marine markets. Sales to the RV market increased $29.5 million, or 7%, compared to the prior year quarter, primarily attributable to the Company's acquisition of ICON Direct LLC, doing business as RecPro ("RecPro") in the third quarter of 2024. Sales to the MH market increased $7.8 million, or 4%, compared to the prior year quarter, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 3%. Sales to the industrial market increased $2.2 million, or 2%, compared to the prior year quarter, which is attributable to market share gains and product mix shifts by certain customers. Sales to the powersports market decreased $7.5 million, or 7%, compared to the prior year quarter, primarily related to lower OEM production volumes in alignment with retail demand. Sales to the marine market decreased $1.2 million, or 1%, primarily attributable to a decrease in estimated powerboat wholesale unit shipments of 5% compared to the prior year quarter.
Previous wording
Revenue in the first quarter of 2025 attributable to acquisitions completed in the first quarter of 2025 was $4.3 million. Revenue in the first quarter of 2024 attributable to acquisitions completed in the first three months of 2024 was $58.1 million.
Current wording
Revenue attributable to acquisitions completed in the first six months of 2025 was $8.9 million and $13.2 million in the second quarter and first six months of 2025, respectively. Revenue attributable to acquisitions completed in the first six months of 2024 was $79.6 million and $137.7 million in the second quarter and first six months of 2024, respectively.
Previous wording
Gross Profit. Gross profit increased $23.7 million, or 12%, to $228.6 million in the first quarter of 2025 compared to $204.9 million in the prior year period. As a percentage of net sales, gross profit increased 90 basis points to 22.8% in the first quarter of 2025 compared to 21.9% in the prior year period.
Current wording
Gross Profit. Gross profit increased $19.3 million, or 8%, to $250.6 million in the second quarter of 2025 compared to $231.3 million in the prior year period. As a percentage of net sales, gross profit increased 110 basis points to 23.9% in the second quarter of 2025 compared to 22.8% in the prior year period.
Previous wording
The increase in gross profit as a percentage of net sales in the first quarter of 2025 compared to the same period in 2024 reflects the impact of the factors discussed above under "Cost of Goods Sold".
Current wording
Gross profit increased $43.1 million, or 10%, to $479.2 million in the first six months of 2025 compared to $436.1 million in the prior year period. As a percentage of net sales, gross profit increased 100 basis points to 23.4% in the first six months of 2025 compared to 22.4% in the prior year period. The increase in gross profit as a percentage of net sales in the second quarter and first six of 2025 compared to the same periods in 2024 reflects the impact of the factors discussed above under "Cost of Goods Sold".
Previous wording
Warehouse and Delivery Expenses. Warehouse and delivery expenses increased $7.1 million, or 19%, to $44.6 million in the first quarter of 2025 compared to $37.4 million in the first quarter of 2024. As a percentage of net sales, warehouse and delivery expenses increased 40 basis points to 4.4% in first quarter of 2025 compared to 4.0% the first quarter of 2024.
Current wording
Warehouse and Delivery Expenses. Warehouse and delivery expenses increased $7.3 million, or 19%, to $46.1 million in the second quarter of 2025 compared to $38.7 million in the second quarter of 2024. As a percentage of net sales, warehouse and delivery expenses increased 60 basis points to 4.4% in second quarter of 2025 compared to 3.8% the second quarter of 2024.
Previous wording
The increase in warehouse and delivery expenses in the first quarter of 2025 compared to the same period in 2024 is primarily attributable to the increase in sales. The increase in warehouse and delivery expenses as a percentage of net sales in the first quarter of 2025 compared to the same period in 2024 is primarily related to higher freight costs.
Current wording
The increase in warehouse and delivery expenses in the second quarter and first six months of 2025 compared to the same periods in 2024 is primarily attributable to the increase in sales, and the increase as a percentage of net sales is primarily related to higher freight costs.
Previous wording
Selling, General and Administrative ("SG&A") Expenses. SG&A expenses increased $8.7 million, or 10%, to $93.9 million in the first quarter of 2025 compared to $85.2 million in the prior year quarter. The increase in SG&A expenses in the first quarter of 2025 compared to the prior year quarter is primarily related to increased wages, technology expenses, loss on sale of fixed assets, and insurance expenses, partially offset by decreased professional fees. In the first quarter of 2025, SG&A expenses as a percentage of net sales increased 30 basis points to 9.4% compared to 9.1% in the first quarter of 2024.
Current wording
Selling, General and Administrative ("SG&A") Expenses. SG&A expenses increased $9.6 million, or 12%, to $93.2 million in the second quarter of 2025 compared to $83.6 million in the prior year quarter. The increase in SG&A expenses in the second quarter of 2025 compared to the prior year quarter is primarily related to increased wages, selling expenses, insurance expenses, and technology expenses, partially offset by decreased incentive compensation.
Previous wording
Operating Income. Operating income increased $6.3 million, or 10%, to $65.6 million in the first quarter of 2025 compared to $59.3 million in the first quarter of 2024. As a percentage of net sales, operating income increased 10 basis points to 6.5% in the first quarter of 2025 compared to 6.4% in the same period in 2024. The increase in operating income is primarily attributable to increased net sales and the items discussed above. The increase to operating income as a percentage of net sales is primarily attributable to the items discussed above.
Current wording
Operating Income. Operating income increased $2.0 million, or 2%, to $86.7 million in the second quarter of 2025 compared to $84.7 million in the second quarter of 2024. As a percentage of net sales, operating income remained flat at 8.3% the second quarter of 2025 compared to the second quarter of 2024. The increase in operating income is primarily attributable to increased net sales and the items discussed above.
Previous wording
Interest Expense, Net. Interest expense decreased $1.0 million, or 5%, to $19.1 million in the first quarter of 2025 compared to $20.1 million in the prior year quarter. The decrease primarily reflects a lower average interest rate on our outstanding debt compared to the prior year quarter.
Current wording
Interest Expense, Net. Interest expense decreased $1.5 million, or 7%, to $18.9 million in the second quarter of 2025 compared to $20.3 million in the prior year quarter. Interest expense decreased $2.5 million, or 6%, to $38.0 million in the first six months of 2025 compared to $40.4 million in the first six months of 2024. The decrease primarily reflects a lower average interest rate on our outstanding debt compared to the prior year periods.
Previous wording
Sales. Manufacturing segment sales increased $40.0 million, or 6%, to $754.5 million in the first quarter of 2025 compared to $714.5 million in the prior year quarter. The manufacturing segment accounted for approximately 75% of the Company’s sales for both the first quarter of 2025 and 2024.
Current wording
Sales. Manufacturing segment sales increased $2.3 million, or less than 1%, to $776.5 million in the second quarter of 2025 compared to $774.2 million in the prior year quarter. For the first six months of 2025, sales increased $42.3 million, or 3%, to $1.53 billion compared to $1.49 billion in the prior year period. The manufacturing segment accounted for approximately 74% of the Company’s sales for both the second quarter of 2025 and 2024, and 74% and 75% of the Company's sales for the first six months of 2025 and 2024, respectively.
Previous wording
Manufacturing segment sales in the first quarter of 2025 compared to the prior year quarter increased due to increased sales to the RV, MH, and industrial markets, partially offset by decreased sales to the marine and powersports markets. Sales to the RV market increased 19%, primarily attributable to an increase in estimated wholesale units of 14% compared to the prior year quarter. Sales to the MH market increased 10% compared to the prior year quarter, primarily due to an increase in estimated wholesale MH industry unit shipments of approximately 6%. Sales to the industrial market increased 1% compared to the prior year quarter. Sales to the marine market decreased 5%, primarily attributable to a decrease in estimated powerboat wholesale unit shipments of 10% compared to the prior year quarter. Sales to the powersports market decreased 3% compared to the prior year quarter.
Current wording
Manufacturing segment sales in the second quarter of 2025 compared to the prior year quarter increased due to increased sales to the RV, MH and industrial markets, partially offset by decreased sales to the powersports and marine markets. Sales to the RV market increased 7%, primarily attributable to market share gains. Sales to the MH market increased 5% compared to the prior year quarter, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 3% and market share gains. Sales to the industrial market increased 1% compared to the prior year quarter. Sales to the powersports market decreased 9% compared to the prior year quarter, primarily related to lower OEM production volumes in alignment with retail demand. Sales to the marine market decreased 1%, primarily attributable to a decrease in estimated powerboat wholesale unit shipments of 5% compared to the prior year quarter.
Previous wording
Manufacturing segment sales in the first quarter of 2025 attributable to acquisitions completed in the first quarter of 2025 were $4.3 million. Manufacturing segment sales in the first quarter of 2024 attributable to acquisitions completed in the first quarter of 2024 were $58.1 million.
Current wording
Manufacturing segment sales attributable to acquisitions completed in the first six months of 2025 were $8.9 million and $13.2 million in the second quarter and first six months of 2025, respectively. Manufacturing segment sales attributable to acquisitions completed in the first six months of 2024 were $79.6 million and $137.7 million in the second quarter and first six months of 2024, respectively.
Previous wording
Gross Profit. Manufacturing segment gross profit increased $12.7 million, or 8%, to $169.4 million in the first quarter of 2025 compared to $156.7 million in the first quarter of 2024. As a percentage of sales, gross profit increased 60 basis points to 22.5% in the first quarter of 2025 compared to 21.9% in the prior year quarter. The increase in gross profit as a percentage of sales in the first quarter of 2025 compared to the same quarter in 2024 is attributable to decreased labor and manufacturing costs as a percentage of sales, partially offset by increased material costs as a percentage of sales.
Current wording
Manufacturing segment gross profit increased $13.8 million, or 4%, to $348.7 million in the first six months of 2025 compared to $334.9 million in the first six months of 2024. As a percentage of sales, gross profit increased 30 basis points to 22.8% in the first six months of 2025 compared to 22.5% in the prior year period. The increase in gross profit as a percentage of sales in the first six months of 2025 compared to the same period in 2024 is attributable to decreased labor costs as a percentage of sales, partially offset by increased material costs as a percentage of sales.
Previous wording
Sales. Distribution segment sales increased $15.6 million, or 7%, to $254.1 million in the first quarter of 2025 compared to $238.5 million in the prior year quarter. This segment accounted for approximately 25% of the Company’s sales for both the first quarter of 2025 and 2024.
Current wording
Sales. Distribution segment sales increased $12.3 million, or 5%, to $277.5 million in the second quarter of 2025 compared to $265.2 million in the prior year quarter. For the first six months of 2025, sales increased $27.8 million, or 6%, to $531.6 million compared to $503.7 million in the prior year period. The distribution segment accounted for approximately 26% of the Company’s sales for both the second quarter of 2025 and 2024, and 26% and 25% of the Company's sales for the first six months of 2025 and 2024, respectively.
Previous wording
Distribution segment sales in the first quarter of 2025 compared to the first quarter of 2024 increased due to increased sales to each of our markets. Sales to the MH market increased 12% compared to the prior year quarter, primarily due to an increase in estimated wholesale MH industry unit shipments of approximately 6%. Sales to the RV market increased 3% compared to the prior year quarter. Sales to the industrial market increased 17% compared to the prior year quarter. Sales to the marine market increased 4% compared to the prior year quarter, primarily attributable to product mix shifts by certain customers. Sales to the powersports market increased 37% compared to the prior year quarter, primarily attributable to product mix shifts by certain customers.
Current wording
Distribution segment sales in the first six months of 2025 compared to the first six months of 2024 increased due to increased sales in each of our markets. Sales to the MH market increased 8% compared to the first six months of 2024, primarily due to an increase in estimated MH industry wholesale unit shipments of approximately 5%. Sales to the RV market increased 4% compared to the first six months of 2024, due to industry wholesale unit shipment growth. Sales to the powersports market increased $2.2 million, or 35%, compared to the first six months of 2024, primarily attributable to market share gains and acquisitions completed in 2024. Sales to the industrial market increased $2.0 million, or 11%, compared to the first six months of 2024. Sales to the marine market increased 1% compared to the first six months of 2024.
Previous wording
Gross Profit. Distribution segment gross profit increased $11.6 million, or 23%, to $61.7 million in the first quarter of 2025 compared to $50.1 million in the first quarter of 2024. As a percentage of sales, gross profit increased 330 basis points to 24.3% in the first quarter of 2025 compared to 21.0% in the prior year quarter. The increase in gross profit as a percentage of sales in the first quarter of 2025 compared to the same quarter in 2024 is attributable to decreased labor and material costs as a percentage of sales.
Current wording
Gross Profit. Distribution segment gross profit increased $14.0 million, or 24%, to $72.2 million in the second quarter of 2025 compared to $58.1 million in the second quarter of 2024. As a percentage of sales, gross profit increased 410 basis points to 26.0% in the second quarter of 2025 compared to 21.9% in the prior year quarter. The increase in gross profit as a percentage of sales in the second quarter of 2025 compared to the same quarter in 2024 is attributable to decreased material and labor costs as a percentage of sales.
Previous wording
The Company's primary sources of liquidity are cash flows from operation, available cash reserves and borrowing capacity available under the revolving credit and term loan facility (the “2024 Credit Facility”), as discussed in Note 8 "Debt" of the Notes to Condensed Consolidated Financial Statements. Our liquidity as of March 30, 2025 consisted of cash and cash equivalents of $86.6 million and $658.0 million of availability under the 2024 Credit Facility, net of $7.0 million of outstanding letters of credit.
Current wording
The Company's primary sources of liquidity are cash flows from operation, available cash reserves and borrowing capacity available under the revolving credit and term loan facility (the “2024 Credit Facility”), as discussed in Note 8 "Debt" of the Notes to Condensed Consolidated Financial Statements. Our liquidity as of June 29, 2025 consisted of cash and cash equivalents of $22.0 million and $813.0 million of availability under the 2024 Credit Facility, net of $7.0 million of outstanding letters of credit.
Previous wording
In the first three months of 2025, the Company utilized available borrowing capacity under the Revolver due 2029 and cash on hand to fund two acquisitions, as discussed in Note 5 "Acquisitions" of the Notes to Condensed Consolidated Financial Statements.
Current wording
In the first six months of 2025, the Company utilized available borrowing capacity under the Revolver due 2029 and cash on hand to fund two acquisitions, as discussed in Note 5 "Acquisitions" of the Notes to Condensed Consolidated Financial Statements.
Previous wording
In addition, as of March 30, 2025, the Company's consolidated total net leverage ratio (12-month period) was 2.74. While this ratio is not a covenant under the 2024 Credit Agreement, it is used in determining the applicable borrowing margin under the 2024 Credit Agreement.
Current wording
In addition, as of June 29, 2025, the Company's consolidated total net leverage ratio (12-month period) was 2.65. While this ratio is not a covenant under the 2024 Credit Agreement, it is used in determining the applicable borrowing margin under the 2024 Credit Agreement.
Previous wording
Net cash provided by operating activities increased $4.9 million, or 14%, to $40.1 million in the first three months of 2025 compared to $35.2 million in the first three months of 2024. The increase in operating cash flows is primarily attributable to a $5.0 million decrease in operating assets and liabilities, net of business acquisitions, as a use of cash, increased net income, depreciation and amortization, and losses on sale of property plant and equipment of $3.1 million, $2.3 million and $2.0 million, respectively, partially offset by decreased deferred income taxes of $5.7 million compared to the first three months of 2024.
Current wording
Net cash provided by operating activities increased $16.8 million, or 10%, to $189.5 million in the first six months of 2025 compared to $172.7 million in the first six months of 2024. The increase in operating cash flows is primarily attributable to a $27.7 million source of cash from operating assets and liabilities, net of business acquisitions compared to a $3.3 million use of cash in the prior year period, partially offset by a $12.3 million decrease in net income and a $7.8 million decrease in deferred income taxes compared to the first six months of 2024.
Previous wording
Investing Activities: Net cash used in investing activities decreased $304.6 million to $66.1 million in the first three months of 2025 compared to $370.7 million in the first three months of 2024 due to a decrease in cash used in business acquisitions, which were $47.6 million in the three months of 2025 compared to $329.6 million in the first three months of 2024, primarily due to the acquisition of Sportech in January 2024.
Current wording
Investing Activities: Net cash used in investing activities decreased $300.2 million to $86.6 million in the first six months of 2025 compared to $386.8 million in the first six months of 2024 due to a decrease in cash used in business acquisitions, which were $48.1 million in the first six months of 2025 compared to $330.7 million in the first six months of 2024, primarily due to the acquisition of Sportech in January 2024.
Previous wording
Financing Activities: Net cash provided by financing activities was $79.0 million in the first three months of 2025 compared to $341.7 million in the first three months of 2024, primarily due to a decrease in net borrowings under our revolving credit facility of $265 million, to $110.0 million in the first three months of 2025 from $375.0 million in the first three months of 2024.
Current wording
Financing Activities: Net cash used in financing activities was $114.4 million in the first six months of 2025 compared to $246.7 million of net cash provided by financing activities in the first six months of 2024, primarily due to an increase in net repayments under our revolving credit facility of $45.0 million in the first six months of 2025 compared to net borrowings of $295.0 million in the first six months of 2024.
Previous wording
See Note 1, “Basis of Presentation and Significant Accounting Policies” to the accompanying Condensed Consolidated Financial Statements in Item 1.
Current wording
See Note 1, “Basis of Presentation and Significant Accounting Policies” to the accompanying Condensed Consolidated Financial Statements.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
According to the RV Industry Association ("RVIA"), RV wholesale unit shipments in the second quarter of 2025 totaled approximately 92,900 units, or flat compared to approximately 92,700 units in the second quarter of 2024. While we estimate RV industry retail unit sales in the second quarter of 2025 decreased by approximately 3% compared to the second quarter of 2024, we estimate that retail unit sales exceeded wholesale unit shipments in the second quarter of 2025 as RV OEMs maintained lower production volumes.
Current report — wording carried from elsewhere
According to the U.S. Census Bureau, combined new housing starts decreased 1% in the second quarter of 2025 compared to the prior year quarter, reflecting a decrease in single-family housing starts of 8%, partially offset by an increase in multifamily housing starts of 23%.