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Sep 30
LCI Q3 2025 Earnings Report
LCI Industries reported strong third quarter 2025 financial results, with significant revenue growth and margin expansion.
Key Takeaways
LCI Industries delivered a robust third quarter in 2025, with net sales increasing by 13% to $1.0 billion, driven by organic growth in RV OEM and Aftermarket segments. The company achieved a 75% increase in net income to $62 million and a 35% rise in adjusted net income to $48 million, demonstrating sustained margin expansion and effective operational optimization.
Net sales increased by 13% to $1.0365 billion, primarily due to organic growth in RV OEM and Aftermarket segments.
Net income surged by 75% to $62.5 million, or $2.55 per diluted share, compared to the prior year.
Adjusted net income grew by 35% to $48.1 million, or $1.97 per diluted share, excluding specific one-time items.
Operating profit margin expanded by 140 basis points to 7.3%, driven by reduced material costs and increased North American RV sales volume.
LCI
LCI
LCI Revenue by Segment
Revenue by Segment
Travel Trailers & Fifth-Wheels Revenue
CapyFin.comMotorhomes Revenue
CapyFin.comAdjacent Industries OEMs Revenue
CapyFin.comAftermarket Segment Revenue
CapyFin.com Forward Guidance
LCI Industries anticipates continued growth and margin improvement, with projected October 2025 net sales up 15% and an 85 basis point operating profit margin improvement for full-year 2025. The company also provided initial 2026 operating profit margin guidance and North American RV wholesale shipment forecasts.
Positive Outlook
- October 2025 net sales projected at approximately $380 million, up 15% from prior year.
- On track to deliver an 85 basis point operating profit margin improvement for full-year 2025.
- Targeting 2026 operating profit margin of 7.0% to 8.0%.
- 2026 North American RV wholesale shipments projected between 345,000 and 360,000 units.
- Continued facility optimization efforts with two additional planned consolidations by year-end 2025, targeting 8-10 for 2026.
Challenges Ahead
- Exploring divestiture opportunities of approximately $75 million of revenues that are dilutive to the business in 2026.
- Current market and economic conditions, along with existing tariffs, may impact future performance.
- September 2025 retail sales data for RVs includes an estimate and may be revised.
- The company faces ongoing challenges from higher material costs related to tariffs and increased steel, aluminum, and freight costs.
- Lower production volumes in the automotive aftermarket in response to lower retail volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income