PATRICK INDUSTRIES INC

Previous wording

Three and Six Months Ended June 28, 2026 Financial Overview

Current wording

Three and Nine Months Ended September 27, 2026 Financial Overview

Previous wording

Net sales to the RV industry were 39% and 42% of the Company's net sales for the three and six months ended June 28, 2026, respectively, and 46% and 47% for the three and six months ended June 29, 2025, respectively. Net sales to the RV industry decreased 15% and 11% for the three and six months ended June 28, 2026, respectively, compared to the prior year periods.

Current wording

Net sales to the RV industry were 37% and 40% of the Company's net sales for the three and nine months ended September 27, 2026, respectively, and 44% and 46% for the three and nine months ended September 28, 2025, respectively. Net sales to the RV industry decreased 15% and 12% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods.

Previous wording

According to the RV Industry Association ("RVIA"), RV wholesale unit shipments for the three months ended June 28, 2026 totaled approximately 77,600 units, a decrease of 16% compared to approximately 92,900 units for the three months ended June 29, 2025. We estimate that RV industry retail unit sales decreased 12% for the three months ended June 28, 2026 compared to the prior year period. Retail unit sales exceeded wholesale unit shipments in the three months ended June 28, 2026 as RV OEMs maintained lower production volumes.

Current wording

According to the RV Industry Association ("RVIA"), RV wholesale unit shipments for the three months ended September 27, 2026 totaled approximately 66,900 units, a decrease of 13% compared to approximately 76,500 units for the three months ended September 28, 2025. We estimate that RV industry retail unit sales decreased 14% for the three months ended September 27, 2026 compared to the prior year period. We estimate retail unit sales exceeded wholesale unit shipments in the three months ended September 27, 2026 as RV OEMs maintained lower production volumes.

Previous wording

According to the RVIA, RV wholesale unit shipments for the first six months of 2026 totaled approximately 163,600 units, a decrease of 14% from approximately 190,700 units for the first six months of 2025. While we estimate RV industry retail unit sales for the first six months of 2026 decreased by approximately 14% compared to the first six months of 2025, we estimate that wholesale unit shipments exceeded retail unit sales during the period, reflecting lower retail demand and a modest increase in dealer inventory levels.

Current wording

According to the RVIA, RV wholesale unit shipments for the first nine months of 2026 totaled approximately 230,500 units, a decrease of 14% from approximately 267,200 units for the first nine months of 2025. While we estimate RV industry retail unit sales for the first nine months of 2026 decreased by approximately 14% compared to the first nine months of 2025, we estimate that retail unit sales exceeded wholesale unit shipments during the period as RV OEMs maintained lower production volumes.

Previous wording

Net sales to the marine industry were 18% of the Company's net sales for both the three and six months ended June 28, 2026, and 15% for both the three and six months ended June 29, 2025. Net sales to the marine industry increased 22% and 18% in the three and six months ended June 28, 2026, respectively, compared to the prior year periods.

Current wording

Net sales to the marine industry were 18% of the Company's net sales for both the three and nine months ended September 27, 2026, and 15% for both the three and nine months ended September 28, 2025. Net sales to the marine industry increased 14% and 17% in the three and nine months ended September 27, 2026, 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 remained flat and decreased 2% for the three and six months ended June 28, 2026, respectively, compared to the prior year periods. We estimate that marine industry retail powerboat unit sales decreased 6% and 5% for the three and six months ended June 28, 2026, respectively, compared to the prior year periods, primarily due to the current macroeconomic environment faced by the end consumer, such as economic uncertainty and volatile oil prices.

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 increased 8% and 1% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods. We estimate that marine industry retail powerboat unit sales decreased 10% and 6% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods, primarily due to the current macroeconomic environment faced by the end consumer, such as economic uncertainty and volatile oil prices.

Previous wording

Net sales to the powersports industry were 12% and 11% of the Company's net sales for the three and six months ended June 28, 2026, respectively, and 9% for both the three and six months ended June 29, 2025. Net sales to the powersports industry increased 28% for both the three and six months ended June 28, 2026 compared to the prior year periods.

Current wording

Net sales to the powersports industry were 13% and 12% of the Company's net sales for the three and nine months ended September 27, 2026, respectively, and 10% and 9% for the three and nine months ended September 28, 2025, respectively. Net sales to the powersports industry increased 30% and 29% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods.

Previous wording

Net sales to the MH industry were 17% and 16% of the Company's net sales for the three and six months ended June 28, 2026, respectively, and 17% for both the three and six months ended June 29, 2025. Net sales to the MH industry decreased 4% and 7% for the three and six months ended June 28, 2026, respectively, compared to the prior year periods.

Current wording

Net sales to the MH industry were 18% and 17% of the Company's net sales for the three and nine months ended September 27, 2026, respectively, and 18% and 17% for the three and nine months ended September 28, 2025, respectively. Net sales to the MH industry decreased less than 1% and 5% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods.

Previous wording

According to Company estimates based on industry data from the Manufactured Housing Institute, MH industry wholesale unit shipments decreased 8% in both the three and six months ended June 28, 2026 compared to the prior year periods.

Current wording

According to Company estimates based on industry data from the Manufactured Housing Institute, MH industry wholesale unit shipments increased 2% and decreased 4% in the three and nine months ended September 27, 2026, respectively, compared to the prior year periods.

Previous wording

Net sales to the industrial market were 14% and 13% of the Company's net sales for the three and six months ended June 28, 2026, respectively, and 13% and 12% for the three and six months ended June 29, 2025, respectively. Net sales to the industrial market increased 9% and 5% for the three and six months ended June 28, 2026, respectively, compared to the prior year periods.

Current wording

Net sales to the industrial market were 14% and 13% of the Company's net sales for the three and nine months ended September 27, 2026, respectively, and 13% in both the three and nine months ended September 28, 2025. Net sales to the industrial market increased 10% and 7% for the three and nine months ended September 27, 2026, respectively, compared to the prior year periods.

Previous wording

Based on U.S. Census Bureau data, combined new housing starts decreased 1% for the second quarter of 2026 compared to the prior year period, reflecting an increase in multifamily housing starts of 8% and a decrease in single-family housing starts of 4%.

Current wording

Based on U.S. Census Bureau data, combined new housing starts decreased 4% for the third quarter of 2026 compared to the prior year period, reflecting a decrease in multifamily housing starts of 9% and a decrease in single-family housing starts of 2%.

Previous wording

For the first six months of 2026, combined new housing starts increased 1% compared to the prior year period, reflecting a decrease in single-family housing starts of 5% and an increase in multifamily housing starts of 15%. 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 nine months of 2026, combined new housing starts decreased 1% compared to the prior year period, reflecting a decrease in single-family housing starts of 4%, partially offset by an increase in multifamily housing starts of 6%. 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 decreased $5.9 million, or 1%, to $1.04 billion for the three months ended June 28, 2026 compared to $1.05 billion for the three months ended June 29, 2025. The decrease was driven by lower sales to the RV and MH markets, partially offset by increased sales to the marine, powersports and industrial markets. Sales to the RV market decreased $72.3 million, or 15%, compared to the prior year period, primarily due to a decrease in wholesale unit shipments of approximately 16%. Sales to the MH market decreased $7.3 million, or 4%, compared to the prior year period, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 8%. Sales to the marine market increased $34.9 million, or 22%, primarily attributable to incremental sales from acquisitions completed in the prior year and organic growth. Sales to the powersports market increased $26.7 million, or 28%, compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the industrial market increased $12.1 million, or 9%, compared to the prior year period, which is attributable to market share gains and product mix shifts by certain customers.

Current wording

Net Sales. Net sales decreased $0.4 million, or less than 1%, to $975.3 million for the three months ended September 27, 2026 compared to $975.6 million for the three months ended September 28, 2025. The decrease was driven by lower sales to the RV and MH markets, partially offset by increased sales to the powersports, marine, and industrial markets. Sales to the RV market decreased $63.6 million, or 15%, compared to the prior year period, primarily due to a decrease in wholesale unit shipments of approximately 13%. Sales to the MH market decreased $0.6 million, or less than 1%, compared to the prior year period. Sales to the powersports market increased $29.8 million, or 30%, compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles, as well as continued solid demand for utility-focused units compared to the prior year period. Sales to the marine market increased $20.9 million, or 14%, primarily attributable to an increase in wholesale powerboat unit shipments of 8%, incremental sales from acquisitions completed in the prior year and organic growth. Sales to the industrial market increased $13.2 million, or 10%, compared to the prior year period, which is attributable to market share gains and product mix shifts by certain customers.

Previous wording

Net sales for the first six months of 2026 decreased $12.1 million, or 1%, to $2.04 billion compared to $2.05 billion for the first six months of 2025. The decrease was driven by lower sales to the RV and MH markets, partially offset by increased sales to the marine, powersports and industrial markets. Sales to the RV market decreased $104.7 million, or 11%, compared to the first six months of 2025, due to a decrease in RV wholesale unit shipments of 14%. Sales to the MH market decreased $25.9 million, or 7%, compared to the first six months of 2025, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 8%. Sales to the marine market increased $55.7 million, or 18%, compared to the first six months of 2025, primarily attributable to incremental sales from acquisitions completed in 2025 and organic growth. Sales to the powersports market increased $49.4 million, or 28%, compared to the first six months of 2025, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the industrial market increased $13.4 million, or 5%, compared to the first six months of 2025, primarily related to product mix shifts by certain customers.

Current wording

Net sales for the first nine months of 2026 decreased $12.5 million, or less than 1%, to $3.01 billion compared to $3.03 billion for the first nine months of 2025. The decrease was driven by lower sales to the RV and MH markets, partially offset by increased sales to the powersports, marine and industrial markets. Sales to the RV market decreased $168.2 million, or 12%, compared to the first nine months of 2025, due to a decrease in RV wholesale unit shipments of 14%. Sales to the MH market decreased $26.6 million, or 5%, compared to the first nine months of 2025, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 4%. Sales to the powersports market increased $79.2 million, or 29%, compared to the first nine months of 2025, primarily reflecting higher attachment rates on premium utility vehicles, as well as continued solid demand for utility-focused units compared to the prior year period. Sales to the marine market increased $76.6 million, or 17%, compared to the first nine months of 2025, primarily attributable to incremental sales from acquisitions completed in 2025 and organic growth. Sales to the industrial market increased $26.6 million, or 7%, compared to the first nine months of 2025, primarily related to market share gains and product mix shifts by certain customers.

Previous wording

Revenue attributable to acquisitions completed in the first six months of 2026 was $1.8 million for both the three and six months ended June 28, 2026. Revenue attributable to acquisitions completed in the first six months of 2025 were $8.9 million and $13.2 million for the three and six months ended June 29, 2025, respectively.

Current wording

Revenue attributable to acquisitions completed in the first nine months of 2026 was $2.6 million and $4.4 million for the three and nine months ended September 27, 2026, respectively. Revenue attributable to acquisitions completed in the first nine months of 2025 was $11.0 million and $24.2 million for the three and nine months ended September 28, 2025, respectively.

Previous wording

Cost of Goods Sold. Cost of goods sold decreased $2.8 million, or less than 1%, to $794.1 million for the three months ended June 28, 2026 compared to $796.9 million for the three months ended June 29, 2025. As a percentage of net sales, cost of goods sold increased 10 basis points in the three months ended June 28, 2026 to 76.2% compared to 76.1% in the prior year period.

Current wording

Cost of Goods Sold. Cost of goods sold decreased $9.3 million, or 1%, to $745.4 million for the three months ended September 27, 2026 compared to $754.7 million for the three months ended September 28, 2025. As a percentage of net sales, cost of goods sold decreased 100 basis points in the three months ended September 27, 2026 to 76.4% compared to 77.4% in the prior year period.

Previous wording

For the three months ended June 28, 2026, cost of goods sold as a percentage of net sales increased as a result of increased material and overhead costs, partially offset by continued cost reduction and automation initiatives we deployed throughout 2025 and into 2026 that had a positive impact on labor. Cost of goods sold as a percentage of net sales increased for the first six months of 2026 primarily as a result of increased overhead costs, partially offset by decreased material costs and continued cost reduction and automation initiatives we deployed throughout 2025 and into 2026 that had a positive impact on labor.

Current wording

For the three months ended September 27, 2026, cost of goods sold as a percentage of net sales decreased due to lower labor costs resulting from continued cost reduction and automation initiatives implemented throughout 2025 and into 2026, as well as lower material costs. Cost of goods sold as a percentage of net sales decreased in the third quarter of 2026 primarily as a result of decreases in labor and material costs of 90 and 30 basis points, respectively, partially offset by an increase in manufacturing overhead costs of 20 basis points.

Previous wording

Cost of goods sold decreased $7.3 million, or less than 1%, to $1.56 billion for the first six months of 2026 compared to $1.57 billion for the first six months of 2025. As a percentage of net sales, cost of goods sold increased 10 basis points for the first six months of 2026 to 76.7% compared to 76.6% for the first six months of 2025.

Current wording

Cost of goods sold decreased $16.6 million, or 1%, to $2.31 billion for the first nine months of 2026 compared to $2.33 billion for the first nine months of 2025. As a percentage of net sales, cost of goods sold decreased 30 basis points for the first nine months of 2026 to 76.6% compared to 76.9% for the first nine months of 2025.

Previous wording

Gross Profit. Gross profit decreased $3.1 million, or 1%, to $247.6 million for the three months ended June 28, 2026 compared to $250.6 million for the three months ended June 29, 2025. As a percentage of net sales, gross profit decreased 10 basis points to 23.8% for the three months ended June 28, 2026 compared to prior year period.

Current wording

Gross Profit. Gross profit increased $8.9 million, or 4%, to $229.9 million for the three months ended September 27, 2026 compared to $221.0 million for the three months ended September 28, 2025. As a percentage of net sales, gross profit increased 100 basis points to 23.6% for the three months ended September 27, 2026 compared to prior year period.

Previous wording

Gross profit decreased $4.8 million, or 1%, to $474.4 million for the first six months of 2026 compared to $479.2 million in the prior year period. As a percentage of net sales, gross profit decreased 10 basis points to 23.3% for the first six months of 2026 compared to 23.4% for the prior year period. The change in gross profit as a percentage of net sales in the second quarter and first six months of 2026 compared to the same periods in 2025 reflects the impact of the factors discussed above under "Cost of Goods Sold".

Current wording

Gross profit increased $4.1 million, or 1%, to $704.3 million for the first nine months of 2026 compared to $700.2 million in the prior year period. As a percentage of net sales, gross profit increased 30 basis points to 23.4% for the first nine months of 2026 compared to 23.1% for the prior year period. The change in gross profit as a percentage of net sales in the third quarter and first nine months of 2026 compared to the same periods in 2025 reflects the impact of the factors discussed above under "Cost of Goods Sold".

Previous wording

Warehouse and Delivery Expenses. Warehouse and delivery expenses increased $4.5 million, or 10%, to $50.6 million for the three months ended June 28, 2026 compared to $46.1 million for the three months ended June 29, 2025. As a percentage of net sales, warehouse and delivery expenses increased 50 basis points to 4.9% for the three months ended June 28, 2026 compared to 4.4% for the three months ended June 29, 2025.

Current wording

Warehouse and Delivery Expenses. Warehouse and delivery expenses increased $4.4 million, or 10%, to $48.9 million for the three months ended September 27, 2026 compared to $44.4 million for the three months ended September 28, 2025. As a percentage of net sales, warehouse and delivery expenses increased 40 basis points to 5.0% for the three months ended September 27, 2026 compared to 4.6% for the three months ended September 28, 2025.

Previous wording

Warehouse and delivery expenses increased $5.0 million, or 5%, to $95.6 million for the first six months of 2026 compared to $90.7 million for the prior year period. As a percentage of net sales, warehouse and delivery expenses increased 30 basis points to 4.7% for the first six months of 2026 compared to 4.4% for the first six months of 2025.

Current wording

Warehouse and delivery expenses increased $9.4 million, or 7%, to $144.5 million for the first nine months of 2026 compared to $135.1 million for the prior year period. As a percentage of net sales, warehouse and delivery expenses increased 30 basis points to 4.8% for the first nine months of 2026 compared to 4.5% for the first nine months of 2025.

Previous wording

The increase in warehouse and delivery expenses and increase as a percentage of net sales for the three and six months ended June 28, 2026 compared to the same periods in 2025 is primarily related to higher fuel and freight costs.

Current wording

The increase in warehouse and delivery expenses and increase as a percentage of net sales for the three and nine months ended September 27, 2026 compared to the same periods in 2025 is primarily related to higher fuel and freight costs.

Previous wording

Selling, General and Administrative ("SG&A") Expenses. SG&A expenses increased $3.0 million, or 3%, to $96.2 million for the three months ended June 28, 2026 compared to $93.2 million for the three months ended June 29, 2025. The increase in SG&A expenses for the three months ended June 28, 2026 compared to the prior year period is primarily related to increased professional fees, wages, technology expenses, incentive compensation and selling expenses, partially offset by increased gain on sale of assets and decreased insurance expenses.

Current wording

Selling, General and Administrative ("SG&A") Expenses. SG&A expenses increased $21.9 million, or 25%, to $107.9 million for the three months ended September 27, 2026 compared to $86.0 million for the three months ended September 28, 2025. The increase in SG&A expenses for the three months ended September 27, 2026 compared to the prior year period is primarily related to increased professional fees, which include $14.6 million of merger-related costs, incentive compensation, restructuring costs, and insurance expenses.

Previous wording

As a percentage of net sales, SG&A expenses increased 30 basis points to 9.2% for the three months ended June 28, 2026 compared to 8.9% in the prior year period. The increase in SG&A expenses as a percentage of net sales for the three months ended June 28, 2026 is primarily attributable to increased professional fees and technology expenses.

Current wording

As a percentage of net sales, SG&A expenses increased 230 basis points to 11.1% for the three months ended September 27, 2026 compared to 8.8% in the prior year period. The increase in SG&A expenses as a percentage of net sales for the three months ended September 27, 2026 is primarily attributable to increased professional fees, incentive compensation, restructuring costs, and insurance expenses.

Previous wording

As a percentage of net sales, SG&A expenses increased 20 basis points to 9.3% for the first six months of 2026 compared to 9.1% in the prior year period. The increase in SG&A expenses as a percentage of net sales for the first six months of 2026 is primarily attributable to increased professional fees and incentive compensation, partially offset by decreased insurance related costs and an increased gain on sale of fixed assets.

Current wording

As a percentage of net sales, SG&A expenses increased 90 basis points to 9.9% for the first nine months of 2026 compared to 9.0% in the prior year period. The increase in SG&A expenses as a percentage of net sales for the first nine months of 2026 is primarily attributable to increased professional fees, incentive compensation, technology expenses and restructuring costs.

Previous wording

Amortization of Intangible Assets. Amortization of intangible assets decreased $0.9 million, or 4%, to $23.7 million for the three months ended June 28, 2026 compared to $24.6 million for the three months ended June 29, 2025. Amortization of intangible assets decreased $1.4 million, or 3%, to $47.8 million for the first six months of 2026 compared to $49.1 million in the prior year period. The decrease in amortization of intangible assets for the three and six months ended June 28, 2026 compared to the prior year periods primarily reflects certain intangible assets that were fully amortized in the prior year.

Current wording

Amortization of Intangible Assets. Amortization of intangible assets decreased $0.9 million, or 4%, to $23.3 million for the three months ended September 27, 2026 compared to $24.2 million for the three months ended September 28, 2025. Amortization of intangible assets decreased $2.3 million, or 3%, to $71.0 million for the first nine months of 2026 compared to $73.3 million in the prior year period. The decrease in amortization of intangible assets for the three and nine months ended September 27, 2026 compared to the prior year periods primarily reflects certain intangible assets that were fully amortized in the prior year.

Previous wording

Operating income decreased $10.5 million to $141.8 million for the first six months of 2026 compared to $152.3 million in the prior year period. Operating income as a percentage of net sales decreased to 7.0% for the first six months of 2026 compared to 7.4% for the first six months of 2025. The decrease in operating income and operating income as a percentage of net sales is primarily attributable to the items discussed above.

Current wording

Operating income decreased $27.0 million to $191.6 million for the first nine months of 2026 compared to $218.6 million in the prior year period. Operating income as a percentage of net sales decreased to 6.4% for the first nine months of 2026 compared to 7.2% for the first nine months of 2025. The decrease in operating income and operating income as a percentage of net sales is primarily attributable to the items discussed above.

Previous wording

Interest Expense, Net. Interest expense increased $0.1 million, or 1%, to $19.0 million for the three months ended June 28, 2026 compared to $18.9 million for the three months ended June 29, 2025. Interest expense decreased $0.6 million, or 2%, to $37.4 million for the first six months of 2026 compared to $38.0 million for the first six months of 2025.

Current wording

Interest Expense, Net. Interest expense increased $0.4 million, or 2%, to $18.8 million for the three months ended September 27, 2026 compared to $18.5 million for the three months ended September 28, 2025. Interest expense decreased $0.2 million, or less than 1%, to $56.2 million for the first nine months of 2026 compared to $56.4 million for the first nine months of 2025.

Previous wording

Other Expenses. Other expenses were zero for the three and six months ended June 28, 2026. Other expenses were $24.4 million for the three and six months ended June 29, 2025, reflecting expenses related to a legal settlement.

Current wording

Other Expenses. Other expenses were $24.4 million for the nine months ended September 28, 2025, reflecting expenses related to a legal settlement.

Previous wording

Income Taxes. Income tax expense increased $3.6 million for the three months ended June 28, 2026, to $14.6 million, compared to $11.0 million for the three months ended June 29, 2025. Income tax expense increased $2.3 million for the first six months of 2026 to $21.5 million compared to $19.2 million in the prior year period. The effective tax rate was 25.2% and 20.6% in the three and six months ended June 28, 2026, respectively, and 25.3% and 21.4% in the three and six months ended June 29, 2025, respectively.

Current wording

Income Taxes. Income tax expense decreased $2.6 million for the three months ended September 27, 2026, to $10.0 million, compared to $12.5 million for the three months ended September 28, 2025. Income tax expense decreased $0.3 million for the first nine months of 2026 to $31.4 million compared to $31.8 million in the prior year period. The effective tax rate was 32.1% and 23.2% in the three and nine months ended September 27, 2026, respectively, and 26.2% and 23.1% in the three and nine months ended September 28, 2025, respectively.

Previous wording

The increase in income tax expense for the three and six months ended June 28, 2026 compared to the three and six months ended June 29, 2025 primarily reflects higher income before tax, partially offset by higher excess tax benefits related to share-based compensation.

Current wording

The decrease in income tax expense for the three and nine months ended September 27, 2026 compared to the three and nine months ended September 28, 2025 is primarily attributable to decreased income before income taxes.

Previous wording

Sales. Manufacturing segment sales increased $30.4 million, or 4%, to $806.9 million for the three months ended June 28, 2026 compared to $776.5 million for the three months ended June 29, 2025. For the first six months of 2026, sales increased $55.9 million, or 4%, to $1.59 billion compared to $1.53 billion in the prior year period. The manufacturing segment accounted for approximately 77% and 74% of the Company’s sales for the three months ended June 28, 2026 and June 29, 2025, respectively, and approximately 77% and 74% of the Company’s sales for the six months ended June 28, 2026 and June 29, 2025, respectively.

Current wording

Sales. Manufacturing segment sales increased $32.2 million, or 4%, to $755.0 million for the three months ended September 27, 2026 compared to $722.8 million for the three months ended September 28, 2025. For the first nine months of 2026, sales increased $88.1 million, or 4%, to $2.34 billion compared to $2.25 billion in the prior year period. The manufacturing segment accounted for approximately 77% and 74% of the Company’s sales for the three months ended September 27, 2026 and September 28, 2025, respectively, and approximately 77% and 74% of the Company’s sales for the nine months ended September 27, 2026 and September 28, 2025, respectively.

Previous wording

Manufacturing segment sales increased for the three months ended June 28, 2026 due to higher sales to the marine, powersports and industrial markets, partially offset by decreased sales to the RV and MH markets. Sales to the marine market increased $34.4 million, or 24%, compared to the prior year period, attributable to incremental sales from acquisitions completed in the prior year and organic growth. Sales to the powersports market increased $25.4 million, or 28%, compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the industrial market increased $12.4 million, or 10%, compared to the prior year period due to market share gains and product mix shifts by certain customers. Sales to the RV market decreased $40.2 million, or 12%, compared to the prior year period, primarily due to a decrease in estimated RV industry wholesale unit shipments of approximately 16%. Sales to the MH market decreased $1.1 million, or 1%, compared to the prior year period.

Current wording

Manufacturing segment sales increased for the three months ended September 27, 2026 due to higher sales to the powersports, marine, industrial and MH markets, partially offset by decreased sales to the RV market. Sales to the powersports market increased $28.5 million, or 30%, compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles, as well as continued solid demand for utility-focused units compared to the prior year period. Sales to the marine market increased $19.0 million, or 13%, compared to the prior year period, attributable to incremental sales from acquisitions completed in the prior year and organic growth. Sales to the industrial market increased $12.5 million, or 11%, compared to the prior year period due to market share gains and product mix shifts by certain customers. Sales to the MH market increased $7.5 million, or 10%, compared to the prior year period, primarily due to market share gains and an increase in estimated MH industry wholesale unit shipments of approximately 2%. Sales to the RV market decreased $34.6 million, or 12%, compared to the prior year period, primarily due to a decrease in estimated RV industry wholesale unit shipments of approximately 13%.

Previous wording

Manufacturing segment sales increased for the first six months of 2026 compared to the same prior year period due to increased sales to the marine, powersports, and industrial markets, partially offset by decreased sales to the RV and MH markets. Sales to the marine market increased $55.5 million, or 20%, compared to the prior year period, primarily attributable to incremental sales from acquisitions completed in the prior year and organic growth. Sales to the powersports market increased $46.7 million, or 28% compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the industrial market increased $14.5 million, or 6%, compared to the prior year period, primarily due to market share gains and product mix shifts of certain customers. Sales to the RV market decreased $54.4 million, or 8%, compared to the prior year period, primarily attributable to a decrease in estimated wholesale unit shipments of 14%, partially offset by market share gains. Sales to the MH market decreased $6.1 million, or 4%, compared to the prior year period, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 8%, partially offset by market share gains.

Current wording

Manufacturing segment sales increased for the first nine months of 2026 compared to the same prior year period due to increased sales to the powersports, marine, industrial and MH markets, partially offset by decreased sales to the RV market. Sales to the powersports market increased $75.2 million, or 29% compared to the prior year period, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the marine market increased $74.5 million, or 18%, compared to the prior year period, primarily attributable to incremental sales from acquisitions completed in the prior year and organic growth. Sales to the industrial market increased $27.0 million, or 8%, compared to the prior year period, primarily due to market share gains and product mix shifts of certain customers. Sales to the MH market increased $1.4 million, or 1%, compared to the prior year period. Sales to the RV market decreased $88.9 million, or 9%, compared to the prior year period, primarily attributable to a decrease in estimated wholesale unit shipments of 14%, partially offset by market share gains.

Previous wording

Manufacturing segment gross profit increased $5.7 million, or 2%, to $354.4 million in the first six months of 2026 compared to $348.7 million in the first six months of 2025. As a percentage of sales, gross profit decreased 50 basis points to 22.3% in the first six months of 2026 compared to 22.8% in the prior year period. The decrease in gross profit as a percentage of sales in the first six months of 2026 compared to the same period in 2025 is attributable to increased labor and overhead costs as a percentage of sales, partially offset by decreased material costs as a percentage of sales.

Current wording

Manufacturing segment gross profit increased $16.7 million, or 3%, to $524.2 million in the first nine months of 2026 compared to $507.5 million in the first nine months of 2025. As a percentage of sales, gross profit decreased 10 basis points to 22.4% in the first nine months of 2026 compared to 22.5% in the prior year period. The decrease in gross profit as a percentage of sales in the first nine months of 2026 compared to the same period in 2025 is attributable to increased labor and overhead costs as a percentage of sales, partially offset by decreased material costs as a percentage of sales.

Previous wording

Sales. Distribution segment sales decreased $36.7 million, or 13%, to $240.8 million for the three months ended June 28, 2026 compared to $277.5 million for the three months ended June 29, 2025. For the first six months of 2026, sales decreased $68.3 million, or 13%, to $463.3 million compared to $531.6 million in the prior year period. The distribution segment accounted for approximately 23% and 26% of the Company’s sales for the three months ended June 28, 2026 and June 29, 2025, respectively, and approximately 23% and 26% of the Company’s sales for the six months ended June 28, 2026 and June 29, 2025, respectively.

Current wording

Sales. Distribution segment sales decreased $33.8 million, or 13%, to $225.2 million for the three months ended September 27, 2026 compared to $259.0 million for the three months ended September 28, 2025. For the first nine months of 2026, sales decreased $102.1 million, or 13%, to $688.5 million compared to $790.6 million in the prior year period. The distribution segment accounted for approximately 23% and 26% of the Company’s sales for the three months ended September 27, 2026 and September 28, 2025, respectively, and approximately 23% and 26% of the Company’s sales for the nine months ended September 27, 2026 and September 28, 2025, respectively.

Previous wording

Distribution segment sales decreased for the three months ended June 28, 2026 compared to the prior year period due to lower sales to the RV, MH and industrial markets, partially offset by increased sales to the powersports and marine markets. Sales to the RV market decreased $32.1 million, or 22%, compared to the prior year period, primarily attributable to a decrease in estimated RV industry wholesale unit shipments of approximately 16% and product mix shifts by certain customers. Sales to the MH market decreased $6.2 million, or 6%, compared to the prior year period, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 8%. Sales to the industrial market decreased $0.2 million, or 2%, compared to the prior year period. Sales to the powersports market increased $1.2 million, or 27%, compared to the prior year period. Sales to the marine market increased $0.5 million, or 4%, compared to the prior year period.

Current wording

Distribution segment sales decreased for the three months ended September 27, 2026 compared to the prior year period due to lower sales to the RV and MH markets, partially offset by increased sales to the marine, powersports, and industrial markets. Sales to the RV market decreased $29.0 million, or 22%, compared to the prior year period, primarily attributable to a decrease in estimated RV industry wholesale unit shipments of approximately 13% and product mix shifts by certain customers. Sales to the MH market decreased $8.1 million, or 8%, compared to the prior year period, primarily due to product mix shifts by certain customers, partially offset by an increase in estimated MH industry wholesale unit shipments of approximately 2%. Sales to the marine market increased $1.8 million, or 19%, compared to the prior year period. Sales to the powersports market increased $1.3 million, or 34%, compared to the prior year period. Sales to the industrial market increased $0.7 million, or 7%, compared to the prior year period.

Previous wording

Distribution segment sales decreased for the first six months of 2026 compared to the first six months of 2025 due to lower sales to the RV, MH and industrial markets, partially offset by increased sales to the powersports and marine markets. Sales to the RV market decreased $50.3 million, or 18%, compared to the first six months of 2025, due to a decrease in estimated RV industry wholesale unit shipments of approximately 14% and product mix shifts by certain customers. Sales to the MH market decreased $19.9 million, or 10%, compared to the first six months of 2025, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 8%. Sales to the industrial market decreased $1.0 million, or 5%, compared to the first six months of 2025. Sales to the powersports market increased $2.6 million, or 31%, compared to the first six months of 2025, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the marine market increased $0.2 million, or 1%, compared to the first six months of 2025.

Current wording

Distribution segment sales decreased for the first nine months of 2026 compared to the first nine months of 2025 due to lower sales to the RV, MH and industrial markets, partially offset by increased sales to the powersports and marine markets. Sales to the RV market decreased $79.3 million, or 19%, compared to the first nine months of 2025, due to a decrease in estimated RV industry wholesale unit shipments of approximately 14% and product mix shifts by certain customers. Sales to the MH market decreased $28.0 million, or 9%, compared to the first nine months of 2025, primarily due to a decrease in estimated MH industry wholesale unit shipments of approximately 4%. Sales to the industrial market decreased $0.4 million, or 1%, compared to the first nine months of 2025. Sales to the powersports market increased $3.9 million, or 32%, compared to the first nine months of 2025, primarily reflecting higher attachment rates on premium utility vehicles compared to the prior year period. Sales to the marine market increased $2.0 million, or 7%, compared to the first nine months of 2025.

Previous wording

The Company's primary sources of liquidity are cash flows from operations, available cash reserves and borrowing capacity available under the 2024 Credit Facility, as discussed in Note 8 "Debt" of the Notes to Condensed Consolidated Financial Statements. Our liquidity as of June 28, 2026 consisted of cash and cash equivalents of $29.2 million and $661.4 million of availability under the 2024 Credit Facility, net of $8.6 million of outstanding letters of credit.

Current wording

The Company's primary sources of liquidity are cash flows from operations, available cash reserves and borrowing capacity available under the 2024 Credit Facility, as discussed in Note 8 "Debt" of the Notes to Condensed Consolidated Financial Statements. Our liquidity as of September 27, 2026 consisted of cash and cash equivalents of $16.0 million and $700.4 million of availability under the 2024 Credit Facility, net of $8.6 million of outstanding letters of credit.