Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when LCII files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsLCI Industries reports Q2 margin expansion despite 4% revenue decline, cuts full-year guidance
Filed August 7, 2026 · Period ending August 5, 2026 · ~1 min read
Key Changes
-
high
Q2 revenue fell 4% to $1.1B (OEM down 10%, Aftermarket up 11%), but adjusted operating margin expanded 110 bps to 9.3% and adjusted EPS rose 13% to $2.70 on cost discipline and efficiency gains.
Exhibit 99.1 view on EDGAR → -
high
Full-year RV shipment forecast cut to 280K–300K units (from 315K–330K) and revenue guidance lowered to $3.9B–$4.1B, but operating margin target held at 7.5%–8.0% on self-help initiatives; adjusted EPS now $8.25–$8.75.
Exhibit 99.1 view on EDGAR → -
high
Content per towable unit rose 11% to $5,831 driven by product innovations generating $270M in annual revenue; expects $140M additional annualized revenue from 2027 model-year placements.
Exhibit 99.1 view on EDGAR → -
medium
Will return ~$90M in IEEPA tariff refunds directly to customers with minimal P&L impact, fulfilling commitment to mitigate tariff-related price increases and supporting customer relationships.
Exhibit 99.1 view on EDGAR → -
medium
Net debt to adjusted EBITDA improved to 1.5x from 1.8x at year-start after May convertible note payoff; total liquidity of $812M and maintained $1.15 quarterly dividend (4.3% yield).
Exhibit 99.1 view on EDGAR →
Summary
LCI Industries delivered Q2 2026 results that demonstrate operational resilience in a weakening RV market. Revenue declined 4% to $1.1 billion as OEM sales fell 10%, but the company expanded adjusted operating margin by 110 basis points to 9.3% and grew adjusted EPS 13% to $2.70 through disciplined cost management and efficiency gains.
Content per towable unit rose 11% to $5,831, driven by product innovations now generating over $270 million in annual revenue, with another $140 million expected from 2027 model-year placements. The company will return nearly $90 million in IEEPA tariff refunds to customers, reinforcing its commitment to support the industry through cost pressures.
The company lowered full-year RV shipment expectations to 280,000–300,000 units (from 315,000–330,000) and revenue guidance to $3.9–$4.1 billion, reflecting weaker industry demand. Despite the volume headwinds, LCI held its operating margin target at 7.5%–8.0% based on self-help initiatives, resulting in adjusted EPS guidance of $8.25–$8.75. The balance sheet remains strong with net debt to EBITDA of 1.5 times and total liquidity of $812 million, providing flexibility for the pending Patrick Industries merger. The maintained dividend of $1.15 per share (4.3% yield) signals confidence in cash generation despite the softer outlook.
Section-by-Section Diff
Event · Exhibit 99.1
LCI Industries reported Q2 2026 results with 4% revenue decline offset by margin expansion, announced ~$90M tariff refunds to customers, and lowered full-year guidance.
Added in current filing · view on EDGAR →
For the second quarter of 2026 and speaking on an adjusted basis, our consolidated net sales were down 4% to $1.1 billion. OEM net sales declined 10%, while Aftermarket net sales grew 11%. ... Our consolidated operating profit of $99 million on an adjusted basis was up 8% over the prior year and reflects a 9.3% adjusted operating profit margin, which is up 110 basis points. ... Our adjusted EBITDA grew 7% year-over-year, coming in at $129 million and reflecting a margin of 12.2%, up from 11% a year earlier. GAAP net income increased 16% to $67 million, with diluted GAAP EPS of $2.75, up significant from the prior-year period of $2.29. On an adjusted basis, diluted EPS of $2.70 was up from $2.39, which is a 13% year-over-year increase.
LCI Industries delivered Q2 2026 consolidated net sales of $1.1 billion, down 4% year-over-year, with OEM sales declining 10% and Aftermarket sales growing 11%. Despite the revenue decline, adjusted operating profit rose 8% to $99 million (9.3% margin, up 110 basis points), adjusted EBITDA grew 7% to $129 million (12.2% margin), and adjusted diluted EPS increased 13% to $2.70. The margin expansion reflects disciplined cost management, operational efficiencies, and increased product content per unit, demonstrating the company's ability to improve profitability in a challenging demand environment.
Added in current filing · view on EDGAR →
As part of our commitment to helping customers navigate the impact of rising prices, our finance and procurement teams move quickly to identify, document, and file eligible claims early in the IEEPA tariff refund process. Their efforts will enable us to return nearly $90 million in tariff refunds directly to our customers, providing meaningful support to their businesses and to the broader industry. ... While these refunds have a minimal impact on our P&L, given their pass-through nature, they represent something more important. We made a commitment to our customers that we would work diligently to mitigate the impact of tariff-related price increases wherever possible, and we have honored that commitment.
LCI Industries will return nearly $90 million in IEEPA tariff refunds directly to customers, having managed the claims process internally rather than using third-party recovery firms. The refunds have minimal P&L impact due to their pass-through nature but demonstrate the company's commitment to supporting customers through tariff-related cost pressures. This action strengthens customer relationships and provides meaningful financial relief to the broader outdoor recreation industry.
Added in current filing · view on EDGAR →
For the full year, we now look for RV industry wholesale shipments to be in the range of 280,000 to 300,000 units, relative to our prior range of 315,000 to 330,000 units. We expect full-year adjusted revenue of $3.9 to $4.1 billion. And given the success of our self-help initiatives, we still anticipate an adjusted operating profit margin in the range of 7.5% to 8%. ... The resulting outlook range for adjusted EPS is now $8.25 to $8.75. We also continue to expect full-year CapEx in the range of $55 to $65 million.
LCI Industries lowered its full-year 2026 RV industry wholesale shipment forecast to 280,000–300,000 units (from 315,000–330,000 units) and adjusted revenue guidance to $3.9–$4.1 billion. Despite the weaker volume outlook, the company maintained its adjusted operating profit margin target of 7.5%–8.0% due to successful self-help initiatives, resulting in adjusted EPS guidance of $8.25–$8.75. The maintained margin guidance despite lower revenue demonstrates the effectiveness of cost reduction and operational efficiency programs. Note: these figures were previously disclosed in the company's Aug 5, 2026 8-K.
Added in current filing · view on EDGAR →
Despite the reduced mix of fifth-wheel units, we saw an 11% year-over-year increase to $5,831 of content per unit. This was supported by strong adoption of recent product launches that are now generating more than $270 million in normalized annual revenues. Content per motorized unit increased 2% to $3,852. We expect approximately $140 million of additional annualized revenue from new product placements during the 2027 model change.
LCI Industries achieved an 11% year-over-year increase in content per towable unit to $5,831 and a 2% increase in content per motorized unit to $3,852, driven by strong adoption of recent product innovations now generating over $270 million in annual revenues. The company expects approximately $140 million of additional annualized revenue from new product placements during the 2027 model year change. These content gains demonstrate the company's ability to grow revenue per unit through innovation despite challenging industry volumes.
Added in current filing · view on EDGAR →
We continue to operate from a position of strength with cash and cash equivalents of $217 million as of June 30, plus $595 million of availability under revolver, bringing total liquidity to $812 million. Following the payoff of our 2026 convertible notes in May, our outstanding net debt balance was $636 million at the end of the quarter, and our net debt to adjusted EBITDA ratio stood at just 1.5 times, significantly improved from 1.8 times at the start of the year and at the conservative end of our targeted range of 1.5 to 2 times. ... During the second quarter, our capital expenditures were $19 million. We also paid $28 million in dividends during the second quarter, maintaining our payout of $1.15 per share, which represented a yield of 4.3% as of the end of the quarter.
LCI Industries ended Q2 2026 with total liquidity of $812 million (cash of $217 million plus $595 million revolver availability) and net debt of $636 million. The net debt to adjusted EBITDA ratio improved to 1.5 times from 1.8 times at year-start, following the May payoff of 2026 convertible notes. The company maintained its quarterly dividend of $1.15 per share (4.3% yield) and invested $19 million in capital expenditures. The strong balance sheet and conservative leverage provide financial flexibility for the pending Patrick Industries merger and ongoing operations.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Aug 10, 2026 · How we verify