Industry Overview - The U.S. automotive OEM industry is currently facing a challenging environment with vehicle sales expected to moderate in 2026 due to high interest rates, elevated car prices, and tighter household budgets impacting affordability [1] Company Highlights Modine Manufacturing Co. (MOD) - Modine reported third-quarter fiscal 2026 adjusted earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $0.99 per share, with quarterly revenues of $805 million surpassing estimates by 5.90% [4] - The company is experiencing strong growth driven by increasing data center demand, expanding margins, and disciplined portfolio transformation, with management expecting 50-70% annual growth in the data center business over the next two fiscal years [5][6] - Modine's Climate Solutions segment is showing margin expansion, with expectations of segment margins in the 20-21% range for the fourth quarter and a fiscal 2027 margin target of 20-23% [7] - The company is advancing its portfolio transformation through a Reverse Morris Trust, which will position it as a pure-play diversified Climate Solutions company, with the deal expected to close in the fourth quarter of calendar year 2026 [8] - Modine has an expected revenue growth rate of 21.3% and an earnings growth rate of 49.9% for the next year ending March 2027, with the Zacks Consensus Estimate for next year's earnings improving by 0.6% in the last seven days [9] Atmus Filtration Technologies Inc. (ATMU) - Atmus reported fourth-quarter 2025 earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.57 per share, with revenues of $446.6 million exceeding estimates by 5.75% [12] - The company has an expected revenue growth rate of 13% and an earnings growth rate of 7.3% for the current year, with the Zacks Consensus Estimate for current year's earnings improving by 4.6% in the last seven days [12] LCI Industries (LCII) - LCI Industries posted fourth-quarter 2025 earnings of $0.89 per share, surpassing the Zacks Consensus Estimate of $0.69 per share, with quarterly revenues of $932.7 million exceeding estimates by 1.59% [14] - The company has an expected revenue growth rate of 3.5% and an earnings growth rate of 17.8% for the current year, with the Zacks Consensus Estimate for current year's earnings improving by 7.2% in the last seven days [15]

LCI (LCII) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a changing earnin ...

Core Viewpoint - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation. Group 1: Investment Philosophy - The investment approach is centered on generating great returns by identifying mispriced securities [1] - The methodology is flexible, not confined to traditional value, dividend, or growth investing, but considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment experience spans across US, Canadian, and European markets, indicating a broad geographical focus [1]

Etzkorn noted the quarter included $3.9 million of restructuring costs tied to the closure of the company’s glass operations in Ireland.Operating profitability improved as well. Etzkorn said consolidated operating profit was $35 million , with operating margin expanding 180 basis points to 3.8% . GAAP net income was $19 million , or $0.77 per diluted share , more than doubling versus the prior-year quarter’s $0.37 per diluted share. On an adjusted basis excluding restructuring costs (net of tax), net income ...

Core Insights - The company experienced a 15% year-over-year growth in revenue and a doubling of operating margins, driven by operational efficiencies and market share gains across OEM segments [1] Revenue Growth - The RV OEM segment benefited from a favorable mix shift towards higher-content units and successful scaling of new product launches, such as the Chill Cube air conditioner [1] - An 11% increase in content per unit was attributed to a strong focus on innovation, with five recently launched products achieving an annualized revenue run rate of $225,000,000 [1] Aftermarket Business - The aftermarket business is positioned as a durable revenue stream, supported by embedding over $20,000,000,000 of proprietary, replaceable content into the existing RV fleet over the past decade [1] Operational Improvements - Operational improvements were enhanced by the consolidation of five facilities in 2025, leading to a 100 basis point year-over-year improvement in full-year operating margins [1] Strategic Positioning - The company's strategic positioning in the automotive aftermarket has been strengthened due to a major competitor's bankruptcy, creating an estimated $50,000,000 annual revenue opportunity [1]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales increase of 16% year-over-year, reaching $933 million in Q4 2025 [24] - OEM net sales grew by 18%, with RV sales increasing by 17%, primarily due to market share gains and a favorable product mix [24][25] - The operating profit margin improved by 180 basis points to 3.8%, driven by operational efficiencies and increased sales volume [26][27] - Adjusted EBITDA grew approximately 53% to $70 million, reflecting a margin of 7.5% [28] Business Line Data and Key Metrics Changes - The OEM segment's net sales increased by 18% to $737 million, with significant growth in RV OEM revenue [5][24] - Other OEM markets, including transportation and marine, saw a 21% year-over-year growth, while housing experienced a modest decline [25] - Aftermarket net sales expanded by 8% to $196 million, driven by product innovations and increased demand for upgrade and service parts [26][11] Market Data and Key Metrics Changes - The company expects RV wholesale shipments to range between 335,000 and 350,000 units in 2026, with the marine industry anticipated to remain flat to low single digits [7][31] - The transportation market is expected to be flat, but growth is anticipated from acquisitions made in 2025 [31] Company Strategy and Development Direction - The company aims to expand market share across all OEM markets and focuses on innovation to drive growth, having achieved a 67% increase in total content since 2020 [8][10] - The company plans to consolidate 8-10 facilities in 2026, building on the five consolidations completed in 2025, to improve operational efficiencies [19][32] - The company is actively pursuing M&A opportunities, having completed 77 strategic acquisitions since 2001, and aims to continue returning capital to shareholders [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position entering 2026, citing a strong team and competitive advantages [23] - The company anticipates continued growth in the aftermarket segment due to a significant number of RVs entering the repair cycle [12][31] - Management noted that while the industry outlook is cautious, they expect gradual recovery and improved retail numbers as the year progresses [76][88] Other Important Information - The company ended 2025 with a net debt to Adjusted EBITDA ratio of 1.8 times and maintained robust liquidity with over $200 million in cash [20][29] - The company returned $243 million to shareholders in 2025, including dividends and share repurchases [21][30] Q&A Session Summary Question: Sensitivity of 2026 outlook to potential rate cuts - Management indicated that the 2026 revenue range does not factor in potential rate cuts, focusing instead on market share gains [35] Question: Bridging the difference between 2026 and a normal run rate - Management noted that the industry is recovering slowly and expects a normalized range of 375,000 to 415,000 units in the near term [36][38] Question: Retail activity and dealer performance - Management observed that larger dealers are performing decently, while smaller and mid-sized dealers are struggling, impacting overall market dynamics [45][46] Question: Aftermarket performance and profitability - Management acknowledged headwinds in the automotive aftermarket due to pricing cycles but remains optimistic about growth opportunities [52][53] Question: First quarter outlook and margin expectations - Management expects first-quarter performance to be similar to the previous year, with gradual improvement in margins throughout the year [64][65]

LCI Industries (NYSE:LCII) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsDaniel Moore - Partner and Director of ResearchJason Lippert - President and CEOKevin Condon - Vice President and Senior Equity Research AssociateLillian Etzkorn - CFOConference Call ParticipantsBrandon Roll`e - Managing Director and Senior Equity Research AnalystBret Jordan - Managing Director and Senior Equity Research AnalystJoe Altobello - Managing Director and Senior Equity Research AnalystMike Albanese - ...

LCI Industries (NYSE:LCII) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker4Hello, everyone, and thank you for joining us today for the LCI Industries Fourth Quarter 2025 Earnings Call. My name is Lucy, and I'll be coordinating your call today. Before we begin, I would like to remind you that certain statements made on today's conference call regarding LCI Industries and its operations may be considered forward-looking statements under the securities laws and involve a number of risks and uncerta ...

Core Viewpoint - LCI (LCII) reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing significant growth from $0.37 per share a year ago, indicating a strong performance in the recreational vehicle parts sector [1] Financial Performance - The company achieved revenues of $932.7 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.59% and up from $803.14 million year-over-year, demonstrating consistent revenue growth [2] - Over the last four quarters, LCI has consistently exceeded consensus EPS estimates, indicating strong operational performance [2] Stock Performance - LCI shares have increased approximately 27% since the beginning of the year, contrasting with the S&P 500's flat performance, suggesting strong investor confidence [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.28 on revenues of $1.08 billion, while for the current fiscal year, the estimate is $8.20 on revenues of $4.25 billion, reflecting positive growth expectations [7] Industry Context - The Automotive - Original Equipment industry, to which LCI belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, Commercial Vehicle Group (CVGI), is expected to report a quarterly loss of $0.15 per share, indicating challenges within the sector [9]

INVESTOR PRESENTATION | February 2026 Celebrating 70 years of making recreation and transportation better. NYSE: LCII 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 leg ...