UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-13646 LCI INDUSTRIES (Exact name of registrant as specified in its charter) Delaware 13-32 ...

LCI Industries (LCII) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Company Participants Lillian Etzkorn - Executive VP & CFOJason Lippert - CEO, President & DirectorDaniel Moore - Partner - Director of ResearchMichael Swartz - Director - Equity ResearchJack Weisenberger - Equity Research AssociateBret Jordan - Managing Director Conference Call Participants Joseph Altobello - Equity Research AnalystCraig Kennison - Director of Research Operations & Senior Research AnalystTristan Thomas-Martin - Leisure Ana ...

LCI (LCII) came out with quarterly earnings of $2.19 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 41.29%. A quarter ago, it was expected that this recreational vehicle parts supplier would post earnings of $0.28 per share when it actually produced earnings of $0.37, delivering a surprise of 32.14%.Over the last four quarte ...

LCI Industries (LCII) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Hello, everyone, and thank you for joining the LCI Industries First Quarter twenty twenty five Conference Call. My name is Lucy, and I will be coordinating your call today. I will now hand over to your host, Lillian Etsgaun, CFO of LCI to begin. Please go ahead. Speaker1 Good morning, everyone, and welcome to the LCI Industries first quarter twenty twenty five conference call. I am joined on the call today with Jason Lippert, Pres ...

Forward-Looking Statements This presentation contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this presentation that are not historical facts are "forward-looking ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Lillian D. Etzkorn, CFO Phone: (574) 535-1125 E Mail: LCII@lci1.com LCI INDUSTRIES REPORTS FIRST QUARTER FINANCIAL RESULTS Operational flexibility, strategic diversification, and ef ective cost management drove profitable growth First Quarter 2025 Highlights Elkhart, Indiana - May 6, 2025 - LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported first quarter 2025 results. "We delivered ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights LCI Industries (LCII) as a strong value stock opportunity based on its financial metrics and Zacks Rank system [2][4][6]. Company Analysis - LCI Industries (LCII) currently has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for undervaluation [4]. - The stock has a P/E ratio of 11.69, significantly lower than the industry average P/E of 17.44, suggesting it may be undervalued [4]. - LCII's Forward P/E has fluctuated between 10.75 and 19.38 over the past year, with a median of 16.14, indicating variability in market perception [4]. - The company has a P/B ratio of 1.49, which is favorable compared to the industry average P/B of 3.04, further supporting the notion of undervaluation [5]. - Over the past year, LCII's P/B ratio has ranged from 1.37 to 2.27, with a median of 2.01, reflecting its relative market value [5]. - Overall, the combination of these metrics suggests that LCII is likely undervalued and presents an attractive investment opportunity based on its earnings outlook [6].

LCI (LCII) shares soared 8.9% in the last trading session to close at $81.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.9% loss over the past four weeks.LCI stock surged amid a broader market rebound following the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. The move came in response to steep market declines and growing fears that tariff increases could push the econom ...

Financial Performance - Consolidated net sales for 2024 were $3.7 billion, a decrease of 1% from $3.8 billion in 2023, primarily due to decreased production levels in the North American marine and utility trailer markets[27]. - Net income for 2024 was $142.9 million, or $5.60 per diluted share, compared to $64.2 million, or $2.52 per diluted share, in 2023[28]. - Operating profit for 2024 was $218.2 million, up from $123.4 million in 2023, resulting in an operating profit margin of 5.8% compared to 3.3% in the previous year[190]. - The effective tax rate for 2024 was 24.5%, higher than the previous year, primarily due to tax adjustments[193]. - Net interest expense decreased to $28.9 million in 2024 from $40.4 million in 2023, primarily due to net repayments on the revolving credit facility and principal payments on the Term Loan[197]. - Net cash flows provided by operating activities were $370.3 million in 2024, down from $527.2 million in 2023, primarily due to a smaller decrease in inventory levels[203]. Segment Performance - The OEM Segment contributed 76% of consolidated net sales, with RV OEM sales totaling $1.7 billion, representing 61% of OEM Segment net sales[22]. - The Aftermarket Segment accounted for 24% of consolidated net sales, with net sales totaling $880.8 million in 2024, driven by U.S. RV ownership reaching an estimated 8.1 million households[25]. - OEM Segment net sales decreased by 1% to $2.86 billion in 2024, with travel trailers and fifth-wheels sales increasing by 11% to $1.51 billion, while motorhomes decreased by 13% to $233.1 million[191]. - Aftermarket Segment net sales for 2024 were $880.8 million, consistent with $881.1 million in 2023, showing no significant change[195]. - Operating profit for the Aftermarket Segment increased to $111.2 million in 2024, up from $106.1 million in 2023, with an operating profit margin of 12.6% compared to 12.0%[196]. Acquisitions and Investments - The company completed one acquisition in 2024 for $20 million, with the acquired company generating approximately $28 million in net sales for the preceding twelve months[30]. - Capital expenditures for 2024 were $42 million, including $6 million for capacity investments and $3 million for automation[36]. - Cash flows used in investing activities were $61.1 million in 2024, including $42.3 million for capital expenditures and $20.0 million for a business acquisition[206]. - Future capital expenditures for 2025 are estimated to be between $50 million and $70 million, primarily funded by cash generated from operations[207]. Workforce and Community Engagement - As of December 31, 2024, the company had approximately 11,500 full-time team members, with 10,100 in North America and 1,400 internationally[51]. - The retention percentage for team members in North America for the year ended December 31, 2024, was 71 percent, consistent with the prior year[54]. - In 2024, team members logged approximately 160,000 volunteer hours, with 87 percent participation, an increase from 85 percent in 2023[56]. - The company donated more than $1.2 million in 2024 to support community needs, focusing on children and families, educational programs, and community health[56]. Safety and Compliance - The Total Recordable Incident Rate (TRIR) in North America decreased from 4.29 in 2023 to 3.13 in 2024, indicating improved safety performance[61]. - The company is currently operating in compliance with applicable laws and regulations, with no material effect on operations or financial condition anticipated[50]. - Compliance with numerous international, federal, state, and local regulations is critical, as failure to comply could result in significant financial penalties and operational disruptions[115]. - The company faces potential liabilities from product recalls and compliance with safety regulations, which could adversely impact its reputation and financial condition[116]. Risks and Challenges - The company experienced lower marine, utility trailer, and motorhome OEM volumes in 2024 due to inflation and elevated interest rates impacting consumer discretionary spending[74]. - The company is exposed to risks from natural disasters and climate change, which could disrupt supply chains and negatively affect operations[100]. - A tight labor market has led to difficulties in obtaining skilled labor, potentially increasing production costs and impacting operational results[95]. - The company faces challenges in integrating acquired businesses, which could divert management attention and affect operational efficiency[106]. - Changes in consumer preferences and the inability to innovate could adversely affect sales, emphasizing the need for timely product development[92]. Financial Obligations and Debt - Financing through debt may increase leverage, making the company more vulnerable to economic downturns and limiting future financing options[135]. - The company faces significant cash flow challenges in servicing its substantial debt, which may require asset sales or restructuring if cash flow is insufficient[136]. - Debt agreements impose covenants that could restrict operations and acquisitions, with potential adverse impacts on business and financial condition if not complied with[137]. - An increase in interest rates could raise borrowing costs, adversely affecting financial condition and cash flows, as current borrowings are tied to variable rates[139]. Cybersecurity and IT Risks - The company relies heavily on its information technology systems for managing business data, supply chain, and financial results, indicating potential risks if these systems fail[111]. - Cyber-attacks are increasing in frequency and sophistication, posing significant risks to the company's information systems and overall operations[113]. - The cybersecurity risk management program is aligned with the company's business strategy, with no material incidents reported in the last three fiscal years[152]. Market Position and Strategy - The company aims to maintain market leadership in the North American RV market while expanding into adjacent industries through innovation and operational excellence[24]. - The company has expanded into adjacent industries and international markets, which may strain resources and carry risks of failure due to limited brand recognition[102]. - Two key customers represented 34% of consolidated net sales in 2024, indicating a significant reliance on these customers for revenue[85].

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2024 were $803 million, a decrease of 4% from Q4 2023 [49] - Full year net sales were $3.7 billion, down 1% year-over-year [58] - EBITDA in Q4 was $46 million, a 29% increase compared to the prior year period [56] - Operating profit margin for the full year increased to 5.8%, up from 3.3% in 2023 [58] Business Line Data and Key Metrics Changes - RV OEM net sales for Q4 2024 were $621.6 million, down 6% from the same period in 2023 [50] - Aftermarket net sales for Q4 2024 were $181.6 million, an increase of 1% year-over-year [53] - Sales to RV OEMs increased 7% to $1.7 billion for the full year, driven by a 13% increase in wholesale shipments of travel trailers and fifth-wheel units [57] - Sales to adjacent markets decreased 13% to $1.1 billion in 2024, primarily due to lower sales to North American marine and utility trailer OEMs [58] Market Data and Key Metrics Changes - January RV sales were up 17% year-over-year, indicating a positive trend in the RV market [31] - Marine sales were down 15% due to inflation and high interest rates impacting retail demand [53] - The company anticipates wholesale shipments in 2025 to be between 335,000 to 350,000 units, which could add over $100 million to RV OEM sales [31] Company Strategy and Development Direction - The company aims to reach an organic target of $5 billion in total revenue by 2027 [7] - Focus on expanding market leadership through innovation and strategic acquisitions [24][44] - Plans to improve operational leverage and optimize overhead costs to support profitability and long-term value creation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing improved RV orders and dealer profits [12][14] - The company is confident in mitigating potential impacts from tariffs and expects to see a reasonable margin uplift in 2025 [91][100] - Management highlighted the importance of maintaining a strong workplace culture to drive results [45] Other Important Information - The company reduced net debt below 2x EBITDA, creating cash flow from operations of $370 million [10] - A dividend increase of 10% to $1.15 per share was announced, reflecting confidence in business resilience [44] - The company has invested over $50 million in glass processing technology to maintain leadership in glass and window products [30] Q&A Session Summary Question: What is the outlook for steel and aluminum tariffs? - Management has not included tariffs in their plan but estimates a 50 basis point impact, which they believe can be mitigated through pricing strategies [70][75] Question: What is the expected trend for single axle trailer mix? - Management anticipates that the single axle trailer mix will normalize after Q2 2025, as dealer inventories have been adequately managed [78] Question: How is the retail outlook for the year? - Management remains cautiously optimistic, expecting to be at the mid- to high end of the retail spectrum, influenced by various market factors [107] Question: What is the current status of the partnership with Camping World? - The company plans to upfit approximately 100 additional Camping World stores, enhancing product visibility and sales [110] Question: What is the impact of pricing mix on towable content? - The pricing mix impact was minimal, with the single axle trailer mix being the primary factor affecting content numbers [121]