LCI Q3 Net Income Falls to $50.1M as RV Shipments Slide; Tariff Refunds and Patrick Merger Dominate 10-Q
LCII sits 32% above its 52-week low of $77.58.
Summary
LCI's Q3 sales fell 4.2% to $992.5 million and net income dropped to $50.1 million ($2.05 per share) on weaker RV shipments, with tariff refunds and $19.2 million of merger costs shaping the year. The full 10-Q lands the same day as the earnings 8-K, ahead of the November 18 Patrick merger vote.
Key Events · Earnings and Guidance · LCII
-
Q3 Sales Down 4.2% on RV Weakness
Net sales were $992.5 million versus $1,036.5 million a year earlier, driven by a 13% drop in travel trailer and fifth-wheel wholesale shipments; OEM segment sales fell 7% to $732.3 million while Aftermarket rose 6% to $260.2 million.
-
Net Income Falls to $50.1 Million
Diluted EPS was $2.05 versus $2.55 a year ago, largely because the prior-year quarter included a $19.7 million gain on sale of real estate; nine-month net income still rose to $180.2 million ($7.39 per diluted share) from $169.6 million.
-
Tariff Refunds Cut Both Ways
LCI expects $119.3 million of IEEPA tariff refunds and has received $114.6 million, booking $104.8 million as a reduction to cost of sales — but it is passing $88.8 million back to customers as a reduction to net sales, leaving a $31.2 million pass-through liability on the balance sheet.
-
Merger Costs and November 18 Vote
Merger-related expenses were $5.1 million in Q3 and $19.2 million year-to-date on the all-stock Patrick combination (1.2440 Patrick shares per LCII share, 48% pro forma ownership), which faces a DOJ Second Request and a stockholder vote on November 18, 2026.
Analysis · LCII · Manufacturing
The headline profit decline is mostly optical: sales fell 4.2% to $992.5 million and net income dropped to $50.1 million ($2.05 per diluted share) from $62.5 million ($2.55), but the year-ago quarter carried a $19.7 million real-estate gain that did not repeat. Profit quality this quarter leans on the IEEPA tariff refund: LCI has booked $104.8 million of refunds as a reduction to cost of sales year-to-date, yet is passing $88.8 million back to customers as a cut to net sales, so the net benefit is thin and the remaining recovery hinges on the government's appeal. The balance sheet, by contrast, is solid — $245.6 million of cash, $595.4 million undrawn on the revolver, all covenants met — and the $92.0 million 2026 convertible notes were retired in cash in May with no share issuance. What really swings the story is the pending all-stock merger with Patrick (1.2440 Patrick shares per LCII share, 48% pro forma ownership), which faces a DOJ Second Request and a November 18 stockholder vote, with Monomoy's rejected $101 cash bid still hanging over the process.
How filings like this one have moved
In the 30 days to Nov 5, 2026, 33.3% of the 2367 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was +0.01%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LCII was trading at $102.78 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $77.58 to $159.66. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.