Patrick Industries Reports 7% Revenue Growth to $1.003 Billion in Q1 2025

Patrick Industries, Inc. reported a strong financial performance for the first quarter of 2025, with net sales reaching $1.003 billion, a 7% increase from $933.5 million in the same period last year. The company's gross profit also rose by 12% to $228.6 million, resulting in a gross margin of 22.8%, up from 21.9% in the prior year. Operating income increased by 10% to $65.6 million, while net income grew by 9% to $38.2 million, translating to basic earnings per share of $1.17, compared to $1.08 in the first quarter of 2024.

The increase in revenue was primarily driven by a 14% rise in sales to the recreational vehicle (RV) market, which accounted for 48% of total sales. Sales to the manufactured housing (MH) market also increased by 11%, while the industrial market saw a 2% uptick. However, sales to the marine and powersports markets declined by 4% and 2%, respectively. The company attributed the overall sales growth to increased wholesale shipments in the RV and MH sectors, despite a challenging macroeconomic environment affecting consumer demand in other markets.

In terms of strategic developments, Patrick Industries completed two acquisitions in the first quarter of 2025, contributing $4.3 million to net sales. This follows a more substantial acquisition activity in the previous year, where the company completed four acquisitions that generated $58.1 million in revenue during the same quarter. The company continues to focus on expanding its market share and product offerings through strategic acquisitions, which are expected to enhance operational efficiencies and drive future growth.

Operationally, Patrick Industries reported a total employee headcount of 5,200 as of March 30, 2025, reflecting a slight increase from the previous year. The company also maintained a strong liquidity position, with cash and cash equivalents of $86.6 million and $658 million available under its credit facility. The company’s total assets increased to $3.187 billion, up from $3.021 billion at the end of 2024, driven by growth in trade receivables and goodwill from acquisitions.

Looking ahead, Patrick Industries remains optimistic about its growth prospects, particularly in the RV and MH markets, which are expected to benefit from increased production volumes. The company anticipates that its strategic acquisitions will continue to bolster its market position and drive revenue growth. However, it also acknowledges potential challenges from economic uncertainties and fluctuating consumer demand in certain sectors. The company is committed to monitoring market conditions and adjusting its strategies accordingly to sustain its growth trajectory.