Patrick Industries Reports 3% Net Sales Increase to $1.05 Billion in Q2 2025

Patrick Industries, Inc. reported its financial results for the second quarter and first six months of 2025, revealing a net sales increase of 3% to $1.05 billion compared to $1.02 billion in the same period of 2024. For the first half of 2025, net sales rose 5% to $2.05 billion from $1.95 billion year-over-year. The company's gross profit also saw an increase, reaching $250.6 million in the second quarter, up 8% from $231.3 million, while gross profit for the first six months increased by 10% to $479.2 million. However, net income for the second quarter decreased by 32% to $32.4 million, and for the first half, it fell 15% to $70.7 million, primarily due to increased operating expenses and a legal settlement.

The company experienced notable changes in its operational metrics. Cost of goods sold (COGS) increased by 1% in the second quarter to $796.9 million, with COGS as a percentage of net sales decreasing to 76.1% from 77.2% in the prior year. This reduction was attributed to acquisitions that positively impacted material costs, despite rising manufacturing overhead. Operating expenses rose significantly, with warehouse and delivery costs increasing by 19% and selling, general, and administrative expenses up by 12%. The company also reported other expenses of $24.4 million related to a legal settlement, which contributed to the decline in net income.

Strategically, Patrick Industries completed two acquisitions in the first half of 2025, contributing $8.9 million to net sales in the second quarter and $13.2 million in the first six months. These acquisitions are part of the company's ongoing strategy to enhance its market position and expand its product offerings. The company’s focus on the recreational vehicle (RV) market, which accounted for 46% of net sales in the second quarter, was bolstered by a 7% increase in sales attributed to market share gains and the impact of the RecPro acquisition. However, sales to the powersports and marine markets saw declines, reflecting broader market conditions.

In terms of operational indicators, Patrick Industries reported a slight increase in its employee headcount, reflecting its growth strategy. The company maintained a strong liquidity position with cash and cash equivalents of $22 million and $813 million available under its credit facility as of June 29, 2025. Looking ahead, Patrick Industries anticipates continued growth in the RV and manufactured housing markets, although it remains cautious about potential economic headwinds that could impact consumer demand. The company is committed to leveraging its acquisitions and operational efficiencies to drive future profitability.