LCI INDUSTRIES
For the period ended Sep 30, 2025. Filed Oct 30, 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.
Sep 30, 2025 · Filed Oct 30, 2025
LCII$97.81-4.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000763744-25-000126
ITEM 2. – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000763744-25-000154
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 144 previous paragraphs and 144 current paragraphs.
63 unchanged; 58 reworded; 22 added; 22 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 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 (22)
Current report
•Consolidated operating profit during the third quarter of 2025 was $75.4 million, compared to $53.9 million in the same period of 2024. Operating profit margin was 7.3 percent in the third quarter of 2025 compared to 5.9 percent in the same period of 2024. The increase was primarily due to reduced costs from materials sourcing strategies and leveraging of fixed expenses over higher North American RV sales volumes related to market share gains and increased mix of higher content fifth-wheel units.
Current report
OEM Segment - Third Quarter
Current report
5.5 percent year-over year due to market share gains, an increase in RV mix toward higher content fifth-wheel units, and sales price increases related to material costs, partially offset by shipments exceeding units produced.
Current report
•Increases in selling prices for targeted products primarily related to increased material costs, which positively impacted operating profit by $32.1 million compared to the same period in 2024.
Current report
•Reduced costs from materials sourcing strategies, which increased operating profit by $10.8 million compared to the same period in 2024.
Current report
•Higher material costs related to tariffs and higher steel, aluminum and freight costs, which negatively impacted operating profit by $30.2 million compared to the same period in 2024.
Current report
Amortization expense on intangible assets for the OEM Segment was $9.9 million in the third quarter of 2025, compared to $10.0 million in the same period of 2024. Depreciation expense on fixed assets for the OEM Segment was $12.0 million in the third quarter of 2025, compared to $13.3 million in the same period of 2024.
Current report
•Increases in selling prices primarily related to increased material costs, which positively impacted operating profit by $40.5 million compared to the same period in 2024.
Current report
•Reduced costs from materials sourcing strategies, which increased operating profit by $31.3 million compared to the same period in 2024.
Current report
•Higher material costs related to tariffs and higher freight costs, which negatively impacted operating profit by $40.5 million compared to the same period in 2024.
Current report
Amortization expense on intangible assets for the OEM Segment was $28.7 million in the first nine months of 2025, compared to $30.4 million in the same period of 2024. Depreciation expense on fixed assets for the OEM Segment was $36.5 million in the first nine months of 2025, compared to $41.0 million in the same period of 2024.
Current report
Aftermarket Segment - Third Quarter
Current report
•Higher material costs related to tariffs and higher steel, aluminum and freight costs, which negatively impacted operating profit by $9.5 million compared to the same period in 2024.
Current report
•Increases in selling prices for targeted products primarily related to increased material costs, which positively impacted operating profit by $8.9 million compared to the same period in 2024.
Current report
•Reduced costs from materials sourcing strategies, which increased operating profit by $1.8 million compared to the same period in 2024.
Current report
•Higher material costs related to tariffs and higher freight costs which negatively impacted operating profit by $14.2 million compared to the same period in 2024.
Current report
•Increases in selling prices for targeted products primarily related to increased material costs, which positively impacted operating profit by $10.4 million compared to the same period in 2024.
Current report
•Reduced costs from materials sourcing strategies, which increased operating profit by $6.2 million compared to the same period in 2024.
Current report
Amortization expense on intangible assets for the Aftermarket Segment was $11.5 million in the first nine months of 2025, compared to $11.7 million in the same period of 2024. Depreciation expense on fixed assets for the Aftermarket Segment was $13.7 million in the first nine months of 2025, compared to $12.9 million in the same period of 2024.
Current report
In September 2025, we amended the Credit Agreement (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements) to reprice the Term Loans, resulting in a quarter point reduction in the applicable margin on our Term Loan borrowings. On a go-foward basis, this reduction in effective interest rates is expected to save approximately $1.0 million in cash interest expense annually based on the outstanding Term Loan principal amount at September 30, 2025.
Current report
Gain on Sale of Real Estate
Current report
As part of our footprint optimization efforts, we sold two owned real estate locations during the third quarter of 2025 for combined net cash proceeds of $22.7 million. The sales resulted in a total net gain on the sale of real estate of $19.7 million for the three and nine months ended September 30, 2025.
Removed paragraphs (22)
Previous report
•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 report
OEM Segment - Second Quarter
Previous report
•Higher material costs, which negatively impacted operating profit by $8.0 million compared to the same period in 2024, primarily related to tariffs costs of $13.9 million and increased freight costs, partially offset by decreased costs of steel consumed.
Previous report
•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 report
•Executive separation costs, which negatively impacted operating profit by $2.6 million compared to the same period in 2024.
Previous report
•An increase in wages due to an additional holiday compared to the same period in 2024, which negatively impacted operating profit by $0.9 million.
Previous report
•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which negatively impacted operating profit by $0.6 million compared to the same period in 2024.
Previous report
•Increases in selling prices for targeted products primarily related to increasing material costs, which positively impacted operating profit by $14.3 million compared to the same period in 2024.
Previous report
Amortization expense on intangible assets for the OEM Segment was $9.6 million in the second quarter of 2025, compared to $10.2 million in the same period of 2024. Depreciation expense on fixed assets for the OEM Segment was $12.2 million in the second quarter of 2025, compared to $13.7 million in the same period of 2024.
Previous report
•Increases in selling prices for targeted products primarily related to increasing material costs, which positively impacted operating profit by $13.5 million compared to the same period in 2024.
Previous report
•Decreases in selling prices contractually tied to indices of select commodities, which negatively impacted operating profit by $5.7 million compared to the same period in 2024.
Previous report
Amortization expense on intangible assets for the OEM Segment was $18.8 million in the first six months of 2025, compared to $20.4 million in the same period of 2024. Depreciation expense on fixed assets for the OEM Segment was $24.5 million in the first six months of 2025, compared to $27.8 million in the same period of 2024.
Previous report
Aftermarket Segment - Second Quarter
Previous report
•Increases in sales mix toward lower margin products, which negatively impacted operating profit by $2.6 million compared to the same period in 2024.
Previous report
•Higher material costs, which negatively impacted operating profit by $1.9 million compared to the same period in 2024, primarily related to tariffs of $1.5 million and increased freight costs.
Previous report
•Executive separation costs, which negatively impacted operating profit by $0.4 million compared to the same period in 2024.
Previous report
•Increases in selling prices for targeted products primarily related to increasing material costs, which positively impacted operating profit by $1.7 million compared to the same period in 2024.
Previous report
•Higher material costs, which negatively impacted operating profit by $2.2 million compared to the same period in 2024, primarily related to tariffs of $1.6 million and increased freight costs.
Previous report
•Increases in selling prices for targeted products primarily related to increasing material costs, which positively impacted operating profit by $1.7 million compared to the same period in 2024.
Previous report
Amortization expense on intangible assets for the Aftermarket Segment was $7.6 million in the first six months of 2025, compared to $7.8 million in the same period of 2024. Depreciation expense on fixed assets for the Aftermarket Segment was $9.0 million in the first six months of 2025, compared to $8.8 million in the same period of 2024.
Previous report
•payments of debt issuance costs of $4.8 million,
Previous report
•net proceeds of $1.4 million from the termination of a portion of our 2026 warrants and convertible note hedge transactions.
Reworded paragraphs (58)
Previous wording
At June 30, 2025, we operated over 110 manufacturing and distribution facilities located throughout North America and Europe, supporting key industries such as recreational vehicles ("RVs"), marine products, utility trailers, transportation, and residential and commercial construction industries. Our core manufacturing competencies include:
Current wording
At September 30, 2025, we operated over 100 manufacturing and distribution facilities located throughout North America and Europe, supporting key industries such as recreational vehicles ("RVs"), marine products, utility trailers, transportation, and residential and commercial construction industries. Our core manufacturing competencies include:
Previous wording
Negative conditions in the general economy in the United States or abroad, including conditions resulting from financial and credit market fluctuations, increased inflation and interest rates, changes in economic policy, trade uncertainty, including changes in tariffs, sanctions, international treaties, and other trade restrictions, geopolitical tensions, armed conflicts, natural disasters, or global public health crises, have negatively impacted, and could continue to negatively impact, the Company’s business, liquidity, financial condition, and results of operations.
Current wording
Negative conditions in the general economy in the United States or abroad, including conditions resulting from financial and credit market fluctuations, elevated inflation and interest rates, changes in economic policy, trade uncertainty, including changes in tariffs, sanctions, international treaties, and other trade restrictions, geopolitical tensions, armed conflicts, natural disasters, or global public health crises, have negatively impacted, and could continue to negatively impact, the Company’s business, liquidity, financial condition, and results of operations.
Previous wording
We were able to fully mitigate the impact of tariffs in the second quarter of 2025 through a combination of materials sourcing strategies and targeted sales price increases.
Current wording
We were able to fully mitigate the impact of tariffs in the third quarter of 2025 through a combination of materials sourcing strategies and targeted sales price increases.
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 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.
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 4 percent to 233,500 units in the first nine months of 2025, compared to the same period in 2024. Retail demand for travel trailer and fifth-wheel RVs of 252,200 units in the first nine months of 2025 was consistent with retail demand of 252,300 units in the same period in 2024. 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 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.
Current wording
According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the first nine months of 2025 increased 3 percent to 27,600 units compared to the first nine months of 2024. Retail demand for motorhome RVs in the first nine months of 2025 decreased 7 percent to 29,700 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
•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.
Current wording
•Consolidated net sales in the third quarter of 2025 were $1,036.5 million, an increase of 13.2 percent, from $915.5 million in the same period of 2024. The increase was primarily due to sales price increases related to material costs, 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 September 30, 2025, primarily Freedman Seating and Trans/Air Manufacturing, contributed approximately $41.9 million in the third quarter of 2025.
Previous 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.
Current wording
•Net income for the third quarter of 2025 was $62.5 million, or $2.55 per diluted share, compared to net income of $35.6 million, or $1.39 per diluted share, for the same period of 2024. Net income for the third quarter of 2025 includes the gain on sale of real estate of $19.7 million, from the sale of two facilities as part of our footprint optimization efforts.
Previous wording
•Tariff mitigation strategy of diversifying supply chain, with help from vendors and other sourcing strategies, enabled us to minimize the impact of pricing to our customers as well as support profitability.
Current wording
•Tariff mitigation strategy of diversifying our supply chain, with help from vendors and other sourcing strategies, enabled us to minimize the impact of pricing to our customers as well as support profitability.
Previous 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.
Current wording
•In the third quarter of 2025, we returned an aggregate of $90.0 million to shareholders, including through share repurchases of $62.2 million and a quarterly dividend of $1.15 per share, aggregating $27.8 million.
Previous 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:
Current wording
Net sales of the OEM Segment in the third quarter of 2025 increased by $105.6 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the three months ended September 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, 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.
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 September 30, 2025, travel trailer and fifth-wheel RV content increased
Previous wording
Our increase in net sales to RV OEMs during the second quarter of 2025 was primarily driven by 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.
Current wording
Our increase in net sales to RV OEMs during the third quarter of 2025 was primarily driven by sales price increases related to materials costs, an increase in RV sales mix toward higher content fifth-wheel units, market share gains and an increase in North American motorhome RV unit shipments, partially offset by volume decreases in the European RV market.
Previous wording
Our increase in net sales to OEMs in Adjacent Industries during the second quarter of 2025 was primarily due to sales from acquired businesses.
Current wording
Our increase in net sales to OEMs in Adjacent Industries during the third quarter of 2025 was primarily due to sales from acquired businesses and higher sales to North American utility trailer and marine OEMs.
Previous wording
Operating profit of the OEM Segment was $51.7 million in the second quarter of 2025, an increase of $1.1 million compared to the same period of 2024. The operating profit margin of the OEM Segment decreased to 6.2 percent in the second quarter of 2025, compared to 6.4 percent for the same period of 2024, and was negatively impacted by:
Current wording
Operating profit of the OEM Segment was $43.6 million in the third quarter of 2025, an increase of $21.7 million compared to the same period of 2024. The operating profit margin of the OEM Segment increased to 5.5 percent in the third quarter of 2025, compared to 3.2 percent for the same period of 2024, and was positively impacted by:
Previous 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.
Current wording
•The impact of fixed costs spread over increased sales, which increased operating profit by $3.8 million related to fixed production overhead costs and $3.6 million related to fixed selling, general, and administrative costs.
Previous wording
•Increases in production labor efficiencies, which positively impacted operating profit by $2.5 million compared to the same period in 2024.
Current wording
•Increases in production labor efficiencies, which positively impacted operating profit by $2.7 million compared to the same period in 2024.
Previous wording
Net sales of the OEM Segment in the first six months of 2025 increased by $108.7 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the six months ended June 30:
Current wording
Net sales of the OEM Segment in the first nine months of 2025 increased by $214.2 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the nine months ended September 30:
Previous wording
According to the RVIA, industry-wide wholesale unit shipments for the six months ended June 30 were:
Current wording
According to the RVIA, industry-wide wholesale unit shipments for the nine months ended September 30 were:
Previous 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.
Current wording
Our increase in net sales to RV OEMs during the first nine months of 2025 was primarily driven by a 4.3 percent increase in North American wholesale shipments, sales price increases related to materials costs, an increase in RV sales mix toward higher content fifth-wheel units and market share gains, partially offset by volume decreases in the European RV market.
Previous 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.
Current wording
Our increase in net sales to OEMs in Adjacent Industries during the first nine months of 2025 was primarily due to sales from acquired businesses and higher sales to North American utility trailer OEMs.
Previous 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:
Current wording
Operating profit of the OEM Segment was $157.2 million in the first nine months of 2025, an increase of $52.0 million compared to the same period of 2024. The operating profit margin of the OEM Segment increased to 6.4 percent in the first nine months of 2025, compared to 4.7 percent for the same period in 2024, and was positively impacted by:
Previous wording
•Increases in production labor efficiencies, which positively impacted operating profit by $5.9 million compared to the same period in 2024.
Current wording
•Increases in production labor efficiencies, which positively impacted operating profit by $10.1 million compared to the same period in 2024.
Previous wording
•Changes in product sales mix toward lower margin products, which negatively impacted operating profit by $1.4 million compared to the same period in 2024.
Current wording
•Changes in product sales mix toward lower margin products, which negatively impacted operating profit by $4.4 million compared to the same period in 2024.
Previous 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:
Current wording
Net sales of the Aftermarket Segment in the third quarter of 2025 increased by $15.4 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the three months ended September 30:
Previous 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.
Current wording
Our net sales of the Aftermarket Segment for the third quarter of 2025 increased compared to the same period in 2024, primarily driven by product innovations, increased demand for our upgrade and service parts as more units enter the upgrade and repair cycle, 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 $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:
Current wording
Operating profit of the Aftermarket Segment was $31.9 million in the third quarter of 2025, a decrease of $0.2 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 12.9 percent in the third quarter of 2025, compared to 13.9 percent in the same period in 2024, and was negatively impacted by:
Previous 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.
Current wording
•Decreases in automotive aftermarket production volumes in response to lower retail volumes, which led to reduced utilization of fixed production overhead costs, negatively impacting operating profit by $1.4 million compared to the same period in 2024.
Previous wording
Amortization expense on intangible assets for the Aftermarket Segment was $3.9 million in the second quarter of 2025, compared to $4.0 million in the same period of 2024. Depreciation expense on fixed assets for the Aftermarket Segment was $4.7 million in the second quarter of 2025, compared to $4.2 million in the same period of 2024.
Current wording
Amortization expense on intangible assets for the Aftermarket Segment was $3.9 million in the third quarter of 2025, consistent with the same period of 2024. Depreciation expense on fixed assets for the Aftermarket Segment was $4.7 million in the third quarter of 2025, compared to $4.1 million in the same period of 2024.
Previous wording
Net sales of the Aftermarket Segment in the first six months of 2025 increased by $21.6 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the six months ended June 30:
Current wording
Net sales of the Aftermarket Segment in the first nine months of 2025 increased by $37.0 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the nine months ended September 30:
Previous wording
Net sales of the Aftermarket Segment increased during the first six months of 2025, primarily driven by product innovations and the expanding Camping World relationship within the RV aftermarket.
Current wording
Net sales of the Aftermarket Segment increased during the first nine months of 2025, 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 $55.5 million in the first six months of 2025, a decrease of $9.4 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 11.3 percent in the first six months of 2025, compared to 13.8 percent in the same period in 2024, and was negatively impacted by:
Current wording
Operating profit of the Aftermarket Segment was $87.3 million in the first nine months of 2025, a decrease of $9.5 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 11.9 percent in the first nine months of 2025, compared to 13.9 percent in the same period in 2024, and was negatively impacted by:
Previous wording
•Investments in capacity, distribution and logistics technology to support continued growth in the aftermarket segment, which negatively impacted operating profit by $2.1 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 $3.2 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, which led to reduced utilization of fixed production overhead costs, negatively impacting operating profit by $1.9 million compared to the same period in 2024.
Current wording
•Decreases in automotive aftermarket production volumes in response to lower retail volumes, which led to reduced utilization of fixed production overhead costs, negatively impacting operating profit by $2.9 million compared to the same period in 2024.
Previous wording
•Increase in customer promotions and rebates, which negatively impacted operating profit by $1.1 million compared to the same period in 2024.
Current wording
•Increases in customer promotions and rebates, which negatively impacted operating profit by $1.1 million compared to the same period in 2024.
Previous 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
Current wording
Interest expense, net was $26.0 million for the nine months ended September 30, 2025, compared to $23.8 million in the same period of 2024. The increase in net interest expense was primarily due to interest on the 2030 Convertible Notes and higher interest rates on our adjustable rate debt, including the Term Loans (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements) and revolving credit facility. The increase was partially offset by reduced borrowings outstanding on the revolving credit facility and interest income of $5.3 million earned on investments in money market mutual funds for the nine months ended September 30, 2025, compared to $2.8 million in the same period of 2024.
Previous wording
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
See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.
Previous 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.
Current wording
In the nine months ended September 30, 2025, we recorded an $8.9 million loss on extinguishment of debt, consisting of $6.2 million in connection with the repurchase of a portion of our 2026 Convertible Notes, $1.9 million related to the repayment of our previous term loan, and $0.8 million related to the repricing amendment for our Term Loans.
Previous 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.
Current wording
The effective tax rate for the nine months ended September 30, 2025 and 2024 was 26.1 percent and 25.2 percent, respectively. The effective tax rate for the nine months ended September 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 nine months ended September 30, 2025 as compared to the same period in 2024 was primarily due to discrete tax expenses related to tax deficiencies on stock-based compensation.
Previous wording
On July 4, 2025, the "One Big Beautiful Bill Act" (the "Act") was enacted in the U.S. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.
Current wording
On July 4, 2025, the "One Big Beautiful Bill Act" (the "Act") was enacted in the U.S. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. While we expect certain provisions of the Act to change the timing of cash tax payments in the current year and future periods, we do not expect the legislation to have a material impact on our consolidated financial statements.
Previous 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.
Current wording
As of September 30, 2025, we had $199.7 million in cash and cash equivalents, and $595.2 million of availability under our revolving credit facility under the Credit Agreement. 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.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•The impact of fixed costs spread over increased sales, which increased operating profit by $10.1 million related to fixed production overhead costs and $9.0 million related to fixed selling, general, and administrative costs.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Changes in product sales mix toward lower margin products, which negatively impacted operating profit by $3.6 million compared to the same period in 2024.