Strategic Reshoring and Footprint Optimization with $30 Million Cost Savings in 2025
Management highlighted ongoing footprint restructuring projects, including eliminating six rooftops, with a total savings of approximately $30 million reflected in 2025 accounts.
Timing of benefits realization is complex, with most savings expected to materialize in 2026 and 2027.
CapEx is expected to increase in Q3 to support these projects, with a full run rate anticipated by 2027.
Adjacent Industries sales rose 10% to $336 million, primarily due to acquisitions of Freedman Seating and Trans/Air, partially offset by softness in the marine market.
Adjusted EBITDA was $121 million or 11% of net sales.
Aftermarket net sales increased 4% to $268 million, driven by product innovation and expanded partnerships, notably with Camping World.
GAAP net income was $58 million or $2.29 per diluted share, adjusted net income was $60 million or $2.39 per diluted share.
Gross margin declined to 24.4% from 25.3% due to executive separation costs and product mix changes.
LCI Industries reported second quarter 2025 net sales of $1.1 billion, a 5% increase year-over-year, driven by organic growth and acquisitions.
OEM segment operating margin was 6.2%, improving 10 basis points excluding separation expenses; Aftermarket margin was 13.5%, down from 15.5% due to mix and investments.
Operating cash flow for the first half of 2025 was $155 million, with $192 million cash on hand and net debt approximately 2x EBITDA.
Operating profit was $88 million or 7.9%, a 70 basis point contraction year-over-year; excluding separation costs, operating margin was nearly flat.
RV OEM net sales were $503 million, up 3% year-over-year, supported by market share gains and higher content in fifth-wheel units despite a shift toward lower content single-axle travel trailers.
Adjusted EBITDA was $3.9 million, an improvement of $6.6 million year-over-year, reflecting strong operating leverage.
CapEx was $6.9 million, primarily software-related, with expected quarterly CapEx of approximately $7 million for the remainder of 2025.
Cash and cash equivalents and marketable securities totaled $226 million at quarter end, down $5 million from Q1 due to CapEx investments.
Completed convertible debt refinancing with $250 million of new 0.75% convertible notes due 2030, improving terms and reducing dilution risk.
Gross profit was $65.2 million with a record gross margin of 40.1%, marketplace gross margin reached 35.4%, up 190 basis points year-over-year.
Marketplace revenue was $148 million, up 26% year-over-year, while supplier services revenue was $14.3 million, declining slightly.
Q2 2025 revenue increased 23% year-over-year to $163 million, driven by strong marketplace growth.
U.S. segment adjusted EBITDA was $6.9 million with a 5.1% margin, improving $6.6 million year-over-year; International segment loss was $2.9 million, flat year-over-year.
Dafinchi