LCI Industries Q4 revenue growth beats estimates on N.America RV sales

Overview

• Component supplier's Q4 revenue rose 16%, beating analyst expectations

• Adjusted EPS for Q4 more than doubled compared to previous year

• Company expanded transportation market presence with key acquisitions

Outlook

• Company expects 2026 revenue of $4.2 bln to $4.3 bln

• LCI Industries projects 2026 operating profit margin of 7.5% to 8.0%

• Company anticipates 2026 adjusted EPS of $8.25 to $9.25

Result Drivers

• RV OEM GROWTH - Net sales increased 16% driven by organic growth in RV OEM, higher material costs, and strong North American RV sales

• OPERATING MARGIN EXPANSION - Operating profit margin expanded 180 bps to 3.8%, benefitting from reduced material costs and increased sales volume

• AFTERMARKET GROWTH - Aftermarket net sales rose 8% due to product innovations and increased demand for upgrade and service parts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

• Wall Street's median 12-month price target for LCI Industries is $127.00, about 17.6% below its February 17 closing price of $154.11

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw6mTFWFa

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