LCI Industries, a supplier of engineered components for the recreation and transportation markets, reported a 5% year-over-year increase in second-quarter net sales, reaching $1.1 billion. The company attributed the growth to market share gains, cost savings measures, and a successful tariff mitigation strategy.
Net income for the quarter was $57.6 million, or $2.29 per diluted share, compared with $61.2 million, or $2.40 per diluted share, in the same period last year.
Adjusted net income, which excludes executive separation costs, was $60.1 million, or $2.39 per diluted share, down 2% from last year.
Adjusted EBITDA totaled $121.3 million, representing 11% of net sales, compared with $122.6 million in the second quarter of 2024. The company’s operating profit margin was 7.9%, down from 8.6% a year earlier..
According to a press release, President and Chief Executive Officer Jason Lippert said the company’s “innovative portfolio and competitive moat” helped drive the results.
“We delivered strong second quarter results, led by our innovative portfolio and competitive moat which together fueled share gains across key categories and generated 5% sales growth with 2% organic content growth,” Lippert said.
He added that the company’s acquisition strategy was active during the quarter, highlighted by the purchase of Freedman Seating Company. The acquisition is expected to strengthen LCI’s position in the bus and specialty vehicle markets.
“Our proven M&A playbook was reignited in the quarter as we completed the Freedman Seating acquisition, while also returning $67 million of cash to shareholders through dividend and share repurchases,” Lippert said. He noted that liquidity remained strong, supported by cash reserves and access to the company’s revolving credit facility.
For the quarter, LCI paid $29 million in dividends, or $1.15 per share, and repurchased $38 million in shares.
An additional $62 million in repurchases occurred in July and August. Year-to-date through Aug. 1, the company returned $187 million to shareholders through dividends and repurchases.
Cash flows from operations also totaled $340 million for the 12 months ended June 30. The company ended the quarter with $192 million in cash and cash equivalents and $595 million in availability under its revolving credit facility.
The OEM segment’s net sales rose $43.4 million, driven by sales from acquisitions and higher North American RV sales, including a greater mix of higher-content fifth-wheel units.
Ryan Smith, LCI’s group president for North America, credited operational discipline and innovation as key drivers. “Our deep-rooted culture of innovation, commitment to service, and relentless focus on quality remains central to how we execute and are key to delivering results through 2025 and beyond,” Smith said.