LCI Industries, parent company of Lippert, reported on October 30, 2025, that third-quarter net sales rose 13% year-over-year to $1.04 billion, reflecting stronger performance in its OEM and aftermarket segments.
The results mark continued improvement for the RV supplier amid a gradual recovery in recreational vehicle production and aftermarket demand.
For the quarter ended September 30, 2025, the company posted net income of $62.5 million, or $2.55 per diluted share, up 75% from $35.6 million, or $1.39 per share, in the prior-year period.
Adjusted net income rose 35% to $48.1 million ($1.97 per diluted share), while adjusted EBITDA increased 24% to $105.9 million, representing 10.2% of net sales.
Operating profit improved to $75.4 million (7.3% of net sales) from $53.9 million (5.9%) a year earlier, which the company attributed to material cost management and higher North American RV volumes.
Chief Executive Officer Jason Lippert said the company’s diversification strategy and productivity initiatives are “positioning the company for strong performance as the industry begins to recover from this prolonged cycle.”
Segment Performance
OEM net sales climbed 15% to $790 million, supported by price increases tied to material costs, acquisitions, and growth in higher-content fifth-wheel and motorhome units.
The adjacent industries division grew 22%, led by North American utility trailer and marine OEM sales. OEM segment operating profit more than doubled to $43.6 million, or 5.5% of sales, compared with 3.2% in 2024.
Aftermarket revenue advanced 7% to $246.5 million, helped by product innovation, expanded relationships with service partners, and steady demand for upgrade parts.
Operating profit for the segment held steady at $31.9 million (12.9% margin). The company cited higher input costs and continued investment in logistics and technology as factors affecting margin performance.
Financial Position
As of September 30, 2025, cash and cash equivalents totaled $199.7 million, up from $165.8 million at year-end 2024.
LCI Industries reported $947.8 million in long-term debt, including current maturities, and $595.2 million in available borrowing capacity. During the first nine months of the year, the company used $128.6 million for share repurchases, $103 million for acquisitions, $86.2 million for dividends, and $38.1 million for capital expenditures.
The company recorded a $19.7 million gain from the sale of two real estate properties during the quarter. Its effective tax rate rose slightly to 25.6% from 24.8% the previous year due to fewer federal tax credits.
Outlook
For October 2025, LCI projected net sales of about $380 million, a 15% year-over-year increase.
The company expects an 85-basis-point improvement in operating profit margin for the full year, targeting 7.0% to 8.0% for 2026.
It also reaffirmed expectations for 2025 North American RV wholesale shipments of 340,000 to 350,000 units.
What It Means for RV Manufacturers and Suppliers
For RV manufacturers, the results indicate a rebound in component demand that could be tied to higher fifth-wheel and motorhome production.
LCI’s pricing adjustments and material sourcing strategies suggest greater cost stability in the supply chain heading into 2026.
For suppliers, the company’s ongoing facility consolidations and focus on operational efficiency signal opportunities for tighter integration and production alignment.
LCI also noted continued investment in innovation, with its five leading new products projected to reach an annualized $225 million in sales, highlighting potential collaboration areas in advanced component technologies.