LCI INDUSTRIES

Previous wording

According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide wholesale shipments from the United States of travel trailer and fifth-wheel RVs, our primary RV market, increased 18 percent to 86,400 units in the first three months of 2025, compared to the same period in 2024. Retail demand for travel trailer and fifth-wheel RVs decreased 7 percent in the first three months of 2025 compared to the same period in 2024, as inflation and elevated interest rates continued to pressure consumer discretionary spending, dampening demand. Retail registration data is often revised upward in subsequent months due to reporting delays.

Current wording

According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide wholesale shipments from the United States of travel trailer and fifth-wheel RVs, our primary RV market, increased 8 percent to 167,700 units in the first six months of 2025, compared to the same period in 2024. Retail demand for travel trailer and fifth-wheel RVs decreased 3 percent to 159,500 units in the first six months of 2025 compared to the same period in 2024, as inflation and elevated interest rates continued to pressure consumer discretionary spending, dampening demand. Retail registration data is often revised upward in subsequent months due to reporting delays.

Previous wording

According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the first three months of 2025 decreased 11 percent to 9,300 units compared to the first three months of 2024. Retail demand for motorhome RVs in the first three months of 2025 decreased 5 percent to 9,300 units compared to the first three months of 2024. Retail demand has declined from post-pandemic elevated levels, primarily driven by inflation and higher interest rates impacting retail consumer discretionary spending.

Current wording

According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the first six months of 2025 decreased 3 percent to 18,700 units compared to the first six months of 2024. Retail demand for motorhome RVs in the first six months of 2025 decreased 10 percent to 19,600 units compared to the same period of 2024. Retail demand has declined from post-pandemic elevated levels, primarily driven by inflation and higher interest rates impacting retail consumer discretionary spending.

Previous wording

The U.S. RV ownership base, which reached a record 8.1 million households in 2025 (Go RVing), drives robust demand for aftermarket products. Owners seek to enhance and maintain their units, replacing components that experience normal wear and tear. This vibrant and growing market represents a key driver of our Aftermarket Segment’s performance.

Current wording

The U.S. RV ownership base, which reached a record 8.1 million households in 2025 according to the RVIA, drives robust demand for aftermarket products. Owners seek to enhance and maintain their units, replacing components that experience normal wear and tear. This vibrant and growing market represents a key driver of our Aftermarket Segment’s performance.

Previous wording

•Consolidated net sales in the first quarter of 2025 were $1,045.6 million, an increase of 8.0 percent, from $968.0 million in the same period of 2024. The increase was primarily due to higher North American RV sales driven by higher unit volume and market share gains.

Current wording

•Consolidated net sales in the second quarter of 2025 were $1,107.3 million, an increase of 5.0 percent, from $1,054.5 million in the same period of 2024. The increase was primarily due to sales from acquired businesses and higher North American RV sales driven by market share gains and an increased mix of higher content fifth-wheel units. Net sales from acquisitions completed in the twelve months ended June 30, 2025, primarily Freedman Seating and Trans/Air Manufacturing, contributed approximately $35.0 million in the second quarter of 2025.

Previous wording

•Net income for the first quarter of 2025 was $49.4 million, or $1.94 per diluted share, compared to net income of $36.5 million, or $1.44 per diluted share, for the same period of 2024.

Current wording

•Net income for the second quarter of 2025 was $57.6 million, or $2.29 per diluted share, compared to net income of $61.2 million, or $2.40 per diluted share, for the same period of 2024.

Previous wording

•Consolidated operating profit during the first quarter of 2025 was $81.3 million, compared to $57.6 million in the same period of 2024. Operating profit margin was 7.8 percent in the first quarter of 2025 compared to 6.0 percent in the same period of 2024. The increase was primarily due to higher North American RV sales volumes and decreases in material costs.

Current wording

•Consolidated operating profit during the second quarter of 2025 was $87.8 million, compared to $90.6 million in the same period of 2024. Operating profit margin was 7.9 percent in the second quarter of 2025 compared to 8.6 percent in the same period of 2024. The decrease was primarily due to executive separation costs related to the departure of our Chief Legal and Human Resources Officer and an increase in sales mix of lower margin products.

Previous wording

•In the first quarter of 2025, we returned $57.6 million to shareholders through a quarterly dividend of $1.15 per share, aggregating $29.4 million, and $28.3 million in share repurchases.

Current wording

•In the second quarter of 2025, we returned $67.1 million to shareholders through a quarterly dividend of $1.15 per share, aggregating $29.0 million, and $38.1 million in share repurchases.

Previous wording

Net sales of the OEM Segment in the first quarter of 2025 increased by $65.2 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the three months ended March 31:

Current wording

Net sales of the OEM Segment in the second quarter of 2025 increased by $43.4 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the three months ended June 30:

Previous wording

Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, and acquisitions. For the twelve months ended March 31, 2025, travel trailer and fifth-wheel RV content increased year-over year due primarily to market share gains, partially offset by a shift in RV unit mix toward lower content single axle travel trailers.

Current wording

Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, changes in unit mix and acquisitions. For the twelve months ended June 30, 2025, travel trailer and fifth-wheel RV content remained largely consistent year-over year, which included market share gains mostly offset by shipments exceeding units produced and an increase in RV unit mix toward lower content single axle travel trailers.

Previous wording

•Decreases in selling prices, which negatively impacted operating profit by $1.7 million related to prices contractually tied to indices of select commodities and by $1.1 million related to decreases for targeted products compared to the same period in 2024.

Current wording

•Decreases in selling prices contractually tied to indices of select commodities, which negatively impacted operating profit by $3.9 million compared to the same period in 2024.

Previous wording

•Increases in production labor efficiencies, which positively impacted operating profit by $2.7 million compared to the same period in 2024.

Current wording

•Increases in production labor efficiencies, which positively impacted operating profit by $2.5 million compared to the same period in 2024.

Previous wording

Our increase in net sales to RV OEMs during the first quarter of 2025 was primarily driven by an 18 percent increase in North American travel trailer and fifth-wheel wholesale shipments and market share gains, partially offset by a 11 percent decrease in motorhome wholesale shipments. The increase in North American travel trailer and fifth-wheel wholesale shipments was primarily due to retail dealers restocking inventories for the 2025 selling season compared to inventory reduction efforts during 2024.

Current wording

Our increase in net sales to RV OEMs during the first six months of 2025 was primarily driven by an 8 percent increase in North American travel trailer and fifth-wheel wholesale shipments, market share gains, an increase in RV mix toward higher content fifth-wheel units and sales price increases, partially offset by volume decreases in the European RV market.

Previous wording

Our decrease in net sales to OEMs in Adjacent Industries during the first quarter of 2025 was primarily due to lower sales to North American marine and powersports OEMs, partially offset by higher sales to utility trailer OEMs. The decrease in sales to North American marine and powersports OEMs was driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumer demand.

Current wording

Our increase in net sales to OEMs in Adjacent Industries during the first six months of 2025 was primarily due to sales from acquired businesses and higher sales to North American utility trailer OEMs, partially offset by lower sales to North American powersports and marine OEMs driven by higher current dealer inventory levels, inflation, and elevated interest rates impacting retail consumer demand.

Previous wording

Operating profit of the OEM Segment was $62.0 million in the first quarter of 2025, an increase of $29.1 million compared to the same period of 2024. The operating profit margin of the OEM Segment increased to 7.5 percent in the first quarter of 2025, compared to 4.3 percent for the same period of 2024, and was positively impacted by:

Current wording

Operating profit of the OEM Segment was $113.7 million in the first six months of 2025, an increase of $30.3 million compared to the same period of 2024. The operating profit margin of the OEM Segment increased to 6.8 percent in the first six months of 2025, compared to 5.4 percent for the same period in 2024, and was positively impacted by:

Previous wording

•The impact of fixed costs spread over increased sales, which increased operating profit by $8.6 million related to fixed production overhead costs and $7.8 million related to fixed selling, general, and administrative costs.

Current wording

•The impact of fixed costs spread over increased sales, which increased operating profit by $7.7 million related to fixed selling, general, and administrative costs and $6.9 million related to fixed production overhead costs.

Previous wording

Net sales of the Aftermarket Segment in the first quarter of 2025 increased by $12.3 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the three months ended March 31:

Current wording

Net sales of the Aftermarket Segment in the second quarter of 2025 increased by $9.3 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the three months ended June 30:

Previous wording

Our net sales of the Aftermarket Segment for the first quarter of 2025 increased compared to the same period in 2024, primarily driven by higher volumes within the RV and marine aftermarkets and market share gains in the automotive aftermarket.

Current wording

Our net sales of the Aftermarket Segment for the second quarter of 2025 increased compared to the same period in 2024, primarily driven by product innovations and the expanding Camping World relationship within the RV aftermarket, partially offset by lower volumes within the automotive aftermarket.

Previous wording

Operating profit of the Aftermarket Segment was $19.3 million in the first quarter of 2025, a decrease of $5.4 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 8.7 percent in the first quarter of 2025, compared to 11.8 percent in the same period in 2024, and was negatively impacted by:

Current wording

Operating profit of the Aftermarket Segment was $36.1 million in the second quarter of 2025, a decrease of $3.9 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 13.5 percent in the second quarter of 2025, compared to 15.5 percent in the same period in 2024, and was negatively impacted by:

Previous wording

•Investments in distribution and logistics technology to support continued growth in the aftermarket segment negatively impacted operating profit by $0.5 million compared to the same period of 2024.

Current wording

•Investments in capacity, distribution and logistics technology to support continued growth in the aftermarket segment, which negatively impacted operating profit by $1.3 million compared to the same period of 2024.

Previous wording

•Decreases in automotive aftermarket production volumes due to uncertainty in retail volumes for the remainder of the year reduced utilization of fixed production overhead costs, which negatively impacted operating profit by $0.9 million compared to the same period in 2024.

Current wording

•Decreases in automotive aftermarket production volumes due to uncertainty in retail volumes for the remainder of the year, which led to reduced utilization of fixed production overhead costs, negatively impacting operating profit by $1.0 million compared to the same period in 2024.

Previous wording

Interest expense, net was $6.0 million for the three months ended March 31, 2025, compared to $9.3 million in the same period of 2024. The decrease in net interest expense was primarily due to net repayments on the revolving credit facility of $52.5 million in 2024 and repayments of $19.3 million in the three months ended March 31, 2025, principal prepayments on our previous term loan in 2024, and interest income of $1.3 million earned on investments in money market mutual funds for the three months ended March 31, 2025, partially offset by interest on the 2030 Convertible Notes and higher interest rates on our adjustable rate debt including the term loans and revolving credit facility. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.

Current wording

Interest expense, net was $15.7 million for the six months ended June 30, 2025, compared to $17.3 million in the same period of 2024. The decrease in net interest expense was primarily due to net repayments on the revolving credit facility of $52.5 million in 2024 and repayments of $19.3 million in the first quarter of 2025, principal prepayments on our previous term loan in 2024, and interest income of $3.6 million earned on investments in money market mutual funds for the six months ended June 30, 2025, compared to $0.9 million in the same period of 2024. The decrease was partially offset by interest on the

Previous wording

In the three months ended March 31, 2025, we recorded an $8.1 million loss on extinguishment of debt, consisting of $6.2 million in connection with the repurchase of a portion of our 2026 Convertible Notes and $1.9 million related to the repayment of our previous term loan.

Current wording

In the six months ended June 30, 2025, we recorded an $8.1 million loss on extinguishment of debt, consisting of $6.2 million in connection with the repurchase of a portion of our 2026 Convertible Notes and $1.9 million related to the repayment of our previous term loan.

Previous wording

The effective tax rate for the three months ended March 31, 2025 and 2024 was 26.5 percent and 24.3 percent, respectively. The effective tax rate for the three months ended March 31, 2025 differed from the Federal statutory rate primarily due to state taxes, foreign taxes, and non-deductible expenses, partially offset by Federal and Indiana research and development credits. The increase in the effective tax rate for the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to discrete tax expense related to tax deficiencies on stock-based compensation and a decrease in cash surrender value of company owned life insurance policies.

Current wording

The effective tax rate for the six months ended June 30, 2025 and 2024 was 26.4 percent and 25.4 percent, respectively. The effective tax rate for the six months ended June 30, 2025 differed from the Federal statutory rate primarily due to state taxes, foreign taxes, and non-deductible expenses, partially offset by Federal and Indiana research and development credits. The increase in the effective tax rate for the six months ended June 30, 2025 as compared to the same period in 2024 was primarily due to an increase in non-deductible executive compensation and discrete tax expense related to tax deficiencies on stock-based compensation.

Previous wording

As of March 31, 2025, we had $231.2 million in cash and cash equivalents, and $595.3 million of availability under our revolving credit facility under the Credit Agreement (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements). We also have the ability to request an increase to the revolving and/or incremental term loan facilities by up to an additional $370.0 million in the aggregate upon approval of the lenders providing any such increase and the satisfaction of certain other conditions. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.

Current wording

As of June 30, 2025, we had $191.9 million in cash and cash equivalents, and $595.3 million of availability under our revolving credit facility under the Credit Agreement (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements). We also have the ability to request an increase to the revolving and/or incremental term loan facilities by up to an additional $371.0 million in the aggregate upon approval of the lenders providing any such increase and the satisfaction of certain other conditions. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.

Previous wording

The Condensed Consolidated Statements of Cash Flows reflect the following for the three months ended March 31:

Current wording

The Condensed Consolidated Statements of Cash Flows reflect the following for the six months ended June 30:

Previous wording

Net cash flows provided by operating activities were $42.7 million in the first three months of 2025, compared to $7.7 million used in the first three months of 2024. The increase in net cash flows provided by operating activities was primarily due to the net change in assets and liabilities, net of acquired businesses, as it used $30.9 million less cash in the first three months of 2025 compared to the same period in 2024, and an increase in net income of $12.9 million. The primary use of cash in net assets was the increase of $149.6 million in accounts receivable due to seasonally higher sales in the first three months of 2025.

Current wording

Net cash flows provided by operating activities were $154.9 million in the first six months of 2025, compared to $185.3 million in the first six months of 2024. The decrease in net cash flows provided by operating activities was primarily due to the net change in assets and liabilities, net of acquired businesses, as it used $48.8 million more cash in the first six months of 2025 compared to the same period in 2024, partially offset by an increase in net income of $9.4 million. The primary use of cash in net assets was the increase of $168.0 million in accounts receivable due to seasonally higher sales in the first six months of 2025.

Previous wording

Depreciation and amortization was $29.5 million in the first three months of 2025, and is expected to be approximately $115 to $125 million for the full year 2025. Non-cash stock-based compensation expense in the first three months of 2025 was $4.9 million. Non-cash stock-based compensation expense is expected to be approximately $18 to $23 million for the full year 2025.

Current wording

Depreciation and amortization was $59.9 million in the first six months of 2025, and is expected to be approximately $115 to $125 million for the full year 2025. Non-cash stock-based compensation expense in the first six months of 2025 was $10.9 million. Non-cash stock-based compensation expense is expected to be approximately $18 to $23 million for the full year 2025.

Previous wording

Cash flows used in investing activities of $42.0 million in the first three months of 2025 were primarily comprised of $29.6 million for the acquisition of a business and $9.0 million for capital expenditures. Cash flows used in investing activities of $8.4 million in the first three months of 2024 were primarily comprised of $8.6 million for capital expenditures.

Current wording

Cash flows used in investing activities of $123.4 million in the first six months of 2025 were primarily comprised of $98.2 million for the acquisitions of businesses and $21.8 million for capital expenditures. Cash flows used in investing activities of $40.7 million in the first six months of 2024 were primarily comprised of $21.3 million for capital expenditures and $20.0 million for the acquisition of a business.

Previous wording

Capital expenditures and acquisitions of businesses in the first three months of 2025 were funded by cash on hand and borrowings under our Credit Agreement. Capital expenditures and any acquisitions in the remainder of fiscal year 2025 are expected to be funded primarily from cash generated from operations, as well as periodic borrowings under our revolving credit facility.

Current wording

Capital expenditures and acquisitions of businesses in the first six months of 2025 were funded by cash on hand and borrowings under our revolving credit facility. Capital expenditures and any acquisitions in the remainder of fiscal year 2025 are expected to be funded primarily from cash generated from operations, as well as periodic borrowings under our revolving credit facility.

Previous wording

Cash flows provided by financing activities of $66.9 million in the first three months of 2025 were primarily comprised of the following:

Current wording

Cash flows used in financing activities of $4.1 million in the first six months of 2025 were primarily comprised of the following:

Previous wording

•debt repayments of $299.4 million under our revolving credit facility, term loan, and other borrowings,

Current wording

•debt repayments of $300.8 million under our revolving credit facility, term loan, and other borrowings,

Previous wording

•payments for the repurchase of common stock of $28.3 million,

Current wording

•payments for the repurchase of common stock of $66.3 million,

Previous wording

•payments of quarterly dividends of $29.4 million,

Current wording

•payments of quarterly dividends of $58.4 million,

Previous wording

•cash outflows of $4.8 million related to vesting of stock-based awards, net of shares tendered for payment of taxes, and

Current wording

•cash outflows of $4.9 million related to vesting of stock-based awards, net of shares tendered for payment of taxes, and

Previous wording

•payments of debt issuance costs of $3.1 million.

Current wording

•payments of debt issuance costs of $4.8 million,

Previous wording

Cash flows used in financing activities of $26.4 million in the first three months of 2024 were primarily comprised of payments of quarterly dividends of $26.7 million and cash outflows of $9.0 million related to vesting of stock-based awards, net of shares tendered for payment of taxes, partially offset by $9.3 million in net borrowings under our revolving credit facility.

Current wording

Cash flows used in financing activities of $79.1 million in the first six months of 2024 were primarily comprised of payments of quarterly dividends of $53.5 million, net debt repayments of $16.5 million under our revolving credit facility, term loan, and other borrowings, and cash outflows of $9.1 million related to vesting of stock-based awards, net of shares tendered for payment of taxes.

Previous wording

In May 2022, our Board of Directors authorized a stock repurchase program for the purchase of up to $200.0 million of our common stock over a three-year period ending on May 19, 2025. Under this stock repurchase program, we purchased 308,898 shares at a weighted average price of $91.47 per share during the three months ended March 31, 2025, using approximately $28.3 million of the net proceeds from the offering of the 2030 Convertible Notes. No shares were repurchased during the three months ended March 31, 2024. As of March 31, 2025, there was $147.6 million remaining under the stock repurchase program.

Current wording

In May 2022, our Board of Directors authorized a stock repurchase program (the "2022 Share Repurchase Program") for the purchase of up to $200.0 million of our common stock over a three-year period, which ended on May 19, 2025. Under this stock repurchase program, we purchased 308,898 shares at a weighted average price of $91.47 per share, totaling $28.4 million including excise tax during March 2025, using approximately $28.3 million of the net proceeds from the offering of the 2030 Convertible Notes. Following such repurchase, no additional shares were purchased under the 2022 Share Repurchase Program prior to its expiration on May 19, 2025. No shares were repurchased during the six months ended June 30, 2024.

Previous wording

The prices of key raw materials, consisting primarily of steel and aluminum, and components used by us which are made from these raw materials, are influenced by demand and other factors specific to these commodities, including tariffs for materials sourced internationally. While the prices of steel and aluminum consumed in certain of our manufactured components in the first three months of 2025 were favorable as compared to the first three months of 2024, commodity prices for steel and aluminum generally have been increasing, including during the first three months of 2025, and are expected remain elevated through the remainder of 2025. However, prices of these commodities have historically been volatile and there can be no assurances of future prices. Please see "Results of Operations" above for additional information regarding the impact of raw material costs on our results of operations for the first three months of 2025.

Current wording

The prices of key raw materials, consisting primarily of steel and aluminum, and components used by us which are made from these raw materials, are influenced by demand and other factors specific to these commodities, including tariffs for materials sourced internationally. The prices for steel consumed in certain of our manufactured components were lower and the prices for aluminum consumed in certain of our manufactured components were higher during the first six months of 2025 compared to the same period of 2024. While the prices for steel consumed in certain of our manufactured components were lower year-over-year, commodity prices for both steel and aluminum generally have been increasing during the first six months of 2025, and are expected to remain elevated through the remainder of 2025. However, prices of these commodities have historically been volatile and there can be no assurances of future prices. Please see "Results of Operations" above for additional information regarding the impact of raw material costs on our results of operations for the first six months of 2025.