LCI Industries reported a mixed second quarter, with lower sales but stronger profitability and earnings.
Net sales fell 13% from a year earlier to $969 million. On an adjusted basis, sales declined 4% to $1.057 billion.
Profitability improved sharply. Operating profit margin widened to 9.9% from 7.9%, a 200-basis-point increase. Net income rose 16% to $67 million, equal to 6.9% of net sales. Diluted earnings per share increased 20% to $2.75 from $2.29.
Adjusted results also improved. Adjusted net income was $66 million, and adjusted diluted EPS climbed 13% to $2.70 from $2.39. Adjusted EBITDA increased 7% to $129 million, representing 12.2% of adjusted net sales.
Product performance strengthened as well. Towable RV content per unit increased 11% to $5,831.
Cash generation remained strong. Cash flow from operations reached $346 million for the trailing 12 months ended June 30, 2026. The company returned $28 million to shareholders through dividends during the quarter and paid off the remaining balance of its 2026 convertible notes, using $92 million in cash at maturity.
Liquidity stood at $812 million at June 30, 2026, including $217 million in cash and cash equivalents and $595 million available on its revolving credit facility. The company said its top five new products are expected to contribute $270 million in annualized sales. The market has reacted to these announcements by moving the company's shares 1.83% to a price of $109.01. Check out the company's full 8-K submission here.
