Executive Summary

Q4 2024 net sales rose 8% year over year to $846M; GAAP diluted EPS fell to $0.42, and adjusted diluted EPS was $0.52 as margins compressed from higher amortization (acquisitions) and a deliberate decision to retain production capacity ahead of the selling season .
Segment mix: RV +1% to $358M (42% of sales), Housing +12% to $288M (35%), Powersports +228% to $78M (9%), Marine −17% to $122M (14%), reflecting acquisitions (Sportech) and housing strength against marine destocking .
Balance sheet/liquidity strengthened: $500M 6.375% senior notes (2032), credit facility expanded/extended; available liquidity ~$804M and total net leverage 2.7x; Board declared a $0.40 quarterly dividend payable March 3, 2025 (dividend increased 9% in Nov; 3-for-2 split in Dec) .
FY 2025 outlook: operating margin +70–90 bps vs 2024 adjusted, operating cash flow $390–$410M, capex $75–$85M, FCF ≥$305M; RV wholesale ~350K (retail flat), Marine wholesale +5–10%, Powersports organic content up mid-single digits, MH wholesale up 10–15%—positioning margin expansion and cash generation as potential stock catalysts .

What Went Well and What Went Wrong

What Went Well

Housing strength and mix resilience: Q4 Housing revenue +12% with MH shipments +15% and MH content per unit up 4% to $6,604, underscoring affordable housing demand .
Powersports platform expansion: Q4 Powersports revenue +228% to $78M, driven primarily by the Sportech acquisition, with management highlighting strong utility segment resilience and premium feature attachment .
Capital structure improved: opportunistic refinancing (redeemed $300M 7.50% 2027 notes using proceeds from $500M 2032 notes) and expanded revolver enhanced liquidity and lowered average fixed-rate debt costs; available liquidity ~$804M .

Management quotes:

“We... bolstered our liquidity and financial flexibility by expanding and extending our credit facility and by refinancing a portion of our debt, which extended our maturity horizon and reduced the average interest rate of our fixed rate debt” — CEO Andy Nemeth .
“We believe there are promising trends occurring in our RV market as the industry prepares for the upcoming selling season” — Jeff Rodino, President–RV .

What Went Wrong

Margin compression and profit decline: Operating income fell 31% YoY to $39.6M; GAAP operating margin declined 260 bps to 4.7% on higher amortization and retained capacity; adjusted operating margin 5.2% .
Marine headwinds: Q4 Marine revenue −17%, with estimated wholesale powerboat shipments −20% and dealer inventory still below historical norms (23–25 weeks), constraining throughput .
EPS dilution and EBITDA pressure: Q4 adjusted EBITDA fell to $89.4M (10.6% margin) vs $100.1M (12.8%) last year; convertible notes/warrants added ~$0.02 dilution in Q4 .

Financial Results

Sequential trend (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$1,016.6	$919.4	$846.1
Operating Income ($USD Millions)	$84.7	$74.4	$39.6
Operating Margin %	8.3%	8.1%	4.7%
Diluted EPS ($USD)	$2.16	$1.80	$0.42
Adjusted EBITDA ($USD Millions)	$130.1	$121.2	$89.4
Adjusted EBITDA Margin %	12.8%	13.2%	10.6%

Year-over-year comparison

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$781.2	$846.1
Net Income ($USD Millions)	$30.8	$14.6
Diluted EPS ($USD)	$0.94	$0.42
Operating Margin %	7.3%	4.7%
Adjusted Operating Margin %	7.3%	5.2%
Adjusted Diluted EPS ($USD)	$0.94	$0.52
Adjusted EBITDA Margin %	12.8%	10.6%

Segment breakdown (Q4 2024)

Segment	Revenue ($USD Millions)	% of Q4 Sales	YoY Change
RV	$358	42%	+1%
Marine	$122	14%	−17%
Powersports	$78	9%	+228%
Housing (MH + Industrial)	$288	35%	+12%

KPIs (Q4 2024)

KPI	Q4 2024
RV wholesale shipments (units)	77,300
RV retail registrations (units)	63,600
RV content per wholesale unit ($USD)	$4,870
Marine wholesale powerboat shipments (units)	31,300
Marine retail powerboat shipments (units)	18,600
Marine content per unit ($USD)	$3,967
MH wholesale shipments (units)	25,900
MH content per unit ($USD)	$6,604
Dealer inventory weeks on hand (Marine)	23–25 weeks
Dealer inventory weeks on hand (RV)	17–19 weeks

Non-GAAP adjustments: Q4 reported operating margin 4.7% included 0.2% inventory step-up and 0.3% loss on extinguishment; adjusted operating margin 5.2%. Q4 adjusted EPS $0.52 includes ~$0.02 dilution from convert/warrants .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating Margin vs 2024 adjusted	FY 2025	Unchanged	+70–90 bps	Maintained
Operating Cash Flow ($M)	FY 2025	Unchanged	$390–$410	Maintained
Capital Expenditures ($M)	FY 2025	Unchanged	$75–$85	Maintained
Free Cash Flow ($M)	FY 2025	Unchanged	≥$305	Maintained
Tax Rate	FY 2025	N/A	24–25%	New disclosure
RV Wholesale Shipments	FY 2025	Unchanged	~350K units; retail flat	Maintained
Marine Wholesale Shipments	FY 2025	Unchanged	+5% to +10%; retail flat	Maintained
Powersports Organic Content	FY 2025	Unchanged	Up mid-single digits; shipments −10%	Maintained
MH Wholesale Shipments	FY 2025	Up 5%–10%	Up 10%–15%	Raised
Housing Starts (U.S.)	FY 2025	Unchanged	Flat to +5%	Maintained
Quarterly Cash Dividend	Q1 2025	Increased by 9% in Nov; split in Dec	$0.40 declared; payable Mar 3, 2025	Raised/Declared

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Inventory discipline & dealer destocking	Marine −30% revenue; OEMs maintaining strict schedules ; Marine −21% revenue; continued discipline	RV restocking for selling season; marine dealer weeks on hand still low (23–25); RV weeks 17–19	Improving setup for restock
Product mix (smaller units) & content	RV CPU −2% TTM; mix to affordable units	RV CPU down 1% YoY; sequential flat; mix still skewed smaller	Mix pressure persists
Aftermarket (RecPro) integration	Acquisition closed; aftermarket expansion	>60 Patrick products added to RecPro site; marine integration starting	Positive execution
Tariffs/macro	Tariff risks noted in cautionary statements	10% of COGS exposure across China/Mexico/Canada; no tariff impact in guide; mitigation via sourcing/VAVE	Managed risk
Capital structure & liquidity	Planned refinancing post Q3	$500M 2032 notes issued; revolver expanded; liquidity ~$804M; next major maturity 2028	Strengthened

Management Commentary

Strategy and positioning: “We have sized and scaled our business and are prepared for a recovery... meaningfully expanded our presence in the powersports space... materially enhanced our aftermarket... strengthened our financial foundation by proactively completing a debt refinancing” — CEO Andy Nemeth .
End-market read-through: “We believe there are promising trends... RV tends to be the first... we will closely monitor the impact of interest rates and consumer confidence” — Jeff Rodino .
Outlook confidence: “We remain nimble... invested in inventory... retaining key talent... optimistic about our end markets... earnings power... strong balance sheet and cash flow” — CEO Andy Nemeth .

Q&A Highlights

Growth drivers breakdown: Q4 +8% sales growth driven by acquisitions (+11%), organic +2% (pricing −2%, content/share +3.5%), with industry mix −4% .
Margin outlook: FY25 operating margin expansion (+70–90 bps) is primarily volume-driven with limited overhead additions .
Near-term cadence: Q1 revenue and margins expected up vs Q4, with larger margin uplift in Q2–Q3 seasonally .
Tariff exposure and mitigation: ~10% of COGS across China/Mexico/Canada; alternative sourcing and customer/supplier partnerships to mitigate; no tariff costs baked into FY25 guide .
RV mix: Mix remains similar Q4→Q1 (smaller units); potential shift back toward mid/high-end in 2H as retail normalizes .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of request due to data limits. As a result, comparisons vs consensus cannot be provided. Values would be retrieved from S&P Global if available.

Metric	Q4 2024 Consensus	Note
Primary EPS Consensus Mean	N/A	S&P Global data unavailable
Revenue Consensus Mean	N/A	S&P Global data unavailable
EBITDA Consensus Mean	N/A	S&P Global data unavailable

Key Takeaways for Investors

Margin reset but scalable model: Q4 margin compression reflects amortization and strategic capacity retention; management guides to +70–90 bps operating margin expansion in FY25 on volume leverage .
Cash generation in focus: FY25 operating cash flow $390–$410M and FCF ≥$305M with capex $75–$85M; deleveraging remains a priority alongside selective M&A and buybacks/dividends .
Liquidity and maturities de-risked: $804M available liquidity; next major debt maturity 2028 after issuing $500M 2032 notes and expanding the revolver .
RV restock/setup: Lean dealer inventories (17–19 weeks) and early retail show strength support RV restocking into the selling season, with mix potentially improving later in 2025 .
Marine remains cautious: Dealer weeks on hand below norms (23–25); wholesale expected +5–10% in 2025 but retail flat—monitor inflection before meaningful inventory rebuild .
Aftermarket flywheel: RecPro integration (>60 SKUs added) expands DTC/aftermarket reach across RV and Marine, supporting content growth and resilience .
Tariff headline risk manageable: ~10% COGS exposure; mitigations (sourcing/VAVE) in place and no tariff costs in FY25 guide—track policy updates for margin implications .

Appendix: Additional Data Points

Q4 income statement and balance sheet details (net sales $846.1M; gross profit $187.2M; operating income $39.6M; net income $14.6M; cash $33.6M; total debt ~$1.33B; equity $1.13B) .
FY 2024 results: net sales $3.716B (+7%), adjusted EBITDA $451.7M (+6%), adjusted diluted EPS $4.34 (includes ~$0.10 dilution from convert/warrants), FCF $251.2M .
Dividend declared: $0.40 per share payable March 3, 2025; November 2024 dividend increase of 9% and 3-for-2 stock split executed in December 2024 .

PATRICK INDUSTRIES INC (PATK)·Q4 2024 Earnings Summary