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• Revenue: $1 billion for Q1 2025, up 8% year-over-year.

• Operating Margin: Increased by nearly 200 basis points in Q1 2025.

• Net Income: $49 million, or $1.94 per diluted share for Q1 2025.

• Adjusted Net Income: $56 million, or $2.19 per diluted share for Q1 2025.

• Adjusted EBITDA: $111 million, a 23% increase from the prior year period.

• Cash Flow from Operations: $43 million for Q1 2025, up from a cash use of $8 million in the prior year.

• Gross Margin: 24.1% for Q1 2025, compared to 23.1% in the prior year period.

• OEM Net Sales: $824 million for Q1 2025, up 9% year-over-year.

• RV OEM Net Sales: $531 million for Q1 2025, up 15% year-over-year.

• Aftermarket Net Sales: $222 million for Q1 2025, up 6% year-over-year.

• Adjacent Industries Sales: $293 million for Q1 2025, down 2% year-over-year.

• Operating Profit Margin: 7.8% for Q1 2025, a 180 basis point improvement over the prior year period.

• Net Debt: $707 million, 1.9 times pro forma EBITDA.

• Dividend: $1.15 per share, with $29 million returned to shareholders in Q1 2025.

• Share Repurchases: $28.3 million in Q1 2025.

• Warning! GuruFocus has detected 5 Warning Signs with LCII.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• LCI Industries Inc (NYSE:LCII) reported over $1 billion in sales for the first quarter, marking an 8% year-over-year increase, the highest quarterly growth since June 2022.

• The company achieved a nearly 200 basis point increase in operating margin, supported by disciplined manufacturing execution and cost actions.

• LCI Industries Inc (NYSE:LCII) resumed its M&A strategy with the acquisitions of Freedman Seating and Trans/Air, strengthening its position in the bus market.

• The RV OEM net sales increased by 15% year-over-year, driven by a double-digit rise in North American RV wholesale shipments.

• The company generated $43 million in operating cash flow during the quarter, a significant improvement from the prior year's cash use of $8 million.

Negative Points

• Sales in Adjacent Industries decreased by 2% due to continued softness in the marine sector as dealers focused on inventory rebalancing.

• The aftermarket segment's operating profit margin declined to 8.7% from 11.8% in the prior year period, impacted by mix and investments in capacity and distribution processes.

• Tariff uncertainties pose a potential 180 basis point margin impact for the year, with ongoing efforts required to mitigate these effects.

• Marine sales were down 15% due to inflation and high interest rates affecting retail demand, with expectations of continued softness.

• The company faces challenges from ongoing tariff risks and broader economic uncertainties that could reshape overall buying patterns.