Q4 2025 LCI Industries Earnings Call

February 18, 2026

And I'll be coordinating your call today.

Before we begin, I would like to remind you that certain statements made on today's conference call regarding LTI Industries and its operations may be considered forward that you statements under the Securities laws and involve a number of risks and uncertainties.

As a result, the company cautions you that there are a number of factors many of which are beyond the company's control which could cause actual results and events to differ materially from those described in the forward-looking statements.

These factors are discussed in the company's earnings release form 10K in another filings with the SEC, the company, disclaims, any obligation or undertaking. The update forwardly statements to reflect circumstances or events that occur. After the date of the forward-looking statements are made except as required by law.

in addition, during today's conference call management or refer to certain non-gaap or adjusted Financial measures

Reconciliations of these non-gaap Financial measures to the most directly comparable except Financial measures are available in the company's earnings release and investor presentation, which have been posted on the investor relations section of the company's website and are also available on Form 8K. Filed this morning, with the SEC on the call for management today. Our Json, lipford president, and chief executive officer, Lenny and escort Chief Financial Officer, and Kip, emmener VP of finance and treasurer.

Later in the call, we will conduct a question and answer session. How much point you can register to ask the question by pressing star 1, and you may withdraw from the question queue, by pressing star 2.

With that. It is my pleasure to turn the call over to listeners.

Thank you and welcome everyone to our Q4 2025 earnings call. We are pleased with the company's strong results as our team continues to execute effectively, delivering a 15% year-over-year Topline growth along with further margin expansion in the fourth quarter.

I leveraging our diverse competitive strengths. We capitalize on opportunities across our RV, aftermarket, Transportation marine, and housing and markets.

At the same time our alumnus focus on our operational. Efficiencies drove enhanced profitability with fourth quarter operating margin more than doubling expanding 180 basis points compared to Q4 of the prior year.

Speaker #1: LCC on the call for management today. I'm Jason Lippert, President and Chief Executive Officer. Lillian Etzkorn, Chief Financial Officer. And Kip Emenhizer, VP of Finance and Treasurer.

Speaker #1: Later in the call, we will conduct a question-and-answer session, at which point you can register to ask a question by pressing star 1. You may withdraw from the question queue by pressing star 2.

Starting with our OEM segment, net sales, increased 18% to 737 million in the fourth quarter. Our voam Revenue Rose 17% driven by market, share gains increased sales of newer products. And a favorable, mix shift toward higher content units, our other OEM and markets Transportation marine, and housing delivered, 21% year-over-year, net sales, growth to 297 million or 8% on an organic basis.

Speaker #1: With that, it is my pleasure to turn the call over to Jason Lippert.

Speaker #2: Thank you, and welcome everyone to our Q4 2025 earnings call. We are pleased with the company's strong results as our team continues to execute effectively delivering a 16% year-over-year top-line growth, along with further margin expansion in the fourth quarter.

This growth was primarily driven by market share gains and content growth in North American, utility trailer bus and Marine OEM customers.

Bus related content contributed 31 million of year-over-year, growth in the quarter, reflecting the recent acquisitions of Freedman seating and transair for which integration efforts and synergies are ahead of plan.

Speaker #2: By leveraging our diverse competitive strengths, we capitalize on opportunities across our RV, aftermarket, transportation, marine, and housing end markets. At the same time, our relentless focus on our operational efficiencies drove enhanced profitability, with fourth-quarter operating margin more than doubling expanding 180 basis points compared to Q4 of the prior year.

Looking ahead, we expect to expand market. Share across all 4 of our OEM markets.

As we move into 2026, we expect RV wholesale shipments to range between 3 and 35,000 and 350,000 units.

While we expect the boat industry to remain flat to upload single digits,

Speaker #2: Starting with our OEM segment, net sales increased 18% to $737 million in the fourth quarter. RV OEM revenue rose 17%, driven by market share gains increased sales of newer products, and a favorable mix shift toward higher content units.

despite a potential flatter industry backdrop. We have multiple growth strategies in place that we believe will drive OEM expansion in excess of overall and Market volumes.

Central to the strategy, is our Relentless focus on innovation.

Speaker #2: Our other OEM end markets—transportation, marine, and housing—delivered 21% year-over-year net sales growth to $297 million, or 8% on an organic basis. This growth was primarily driven by market share gains and content growth in North American utility trailer, bus, and marine OEM customers.

Since 2020, new products and market share, gains have driven a 67% increase in total content, these Innovations include these slide out designs chill, Cube air conditioners Advanced window designs and a lock braking systems touring coil suspensions bed lifts and bed tilt mechanisms larger and more robust Fit wheel chassis electric dimes and our new ladder system for both among others.

Speaker #2: Bus-related content contributed $31 million of year-over-year growth in the quarter, reflecting the recent acquisitions of Friedman Seating and TransAir. For which integration efforts and synergies are ahead of plan.

And many of these categories, we offer either the leading product or in fact, the only product available for their expanding our addressable Market, margins and long-term growth opportunities.

Speaker #2: Looking ahead, we expect to expand market share across all four of our OEM markets. As we move into 2026, we expect RV wholesale shipments to range between $335,000 and $350,000 units.

in the fourth quarter, our Global contents per unit, increased 11% year-over-year, reaching 5670 and representing our largest year-over-year content growth in the past 5 years,

Speaker #2: While we expect the boat industry to remain flat to up low single digits, despite a potential flatter industry backdrop, we have multiple growth strategies in place that we believe will drive OEM expansion in excess of overall end market volumes.

to highlight our Innovation momentum. Our 5. Most recently launched products are now generating an annualized Revenue run rate of approximately 20025 million.

Speaker #2: Central to the strategy is our relentless focus on innovation. Since 2020, new products and market share gains have driven a 67% increase in total content.

For example, our air conditioner unit shipments increase from 50,000 units in 2023 to more than 200,000 units. Last year, largely driven by strong consumer adoption of our chill Cube air, conditioner platform.

Speaker #2: These innovations include these slide designs, chilled tube air conditioners, advanced window designs, and a lock braking systems, touring coil suspensions, bed lift and bed tilt mechanisms, larger and more robust fifth wheel chassis, electric biminis, and our new ladder system for boats, among others.

3,500 of these patio systems this year, contributing over thousand dollars in Revenue per unit.

These examples underscore our ability to create and scale high-value Innovative content with the entire RV, customer base quickly.

Speaker #2: In many of these categories, we offer either the leading product or, in fact, the only product available, further expanding our addressable market margins and long-term growth opportunities.

At a high level lcis competitive mode. Built on our scale technology deep industry, expertise and people positions us to consistently outgrow the market.

Speaker #2: In the fourth quarter, our total content per unit increased 11% year-over-year, reaching $5,670, and representing our largest year-over-year content growth in the past five years.

Our broad product portfolio, structurally efficient operating model and strong customer relationships and enable us to rapidly scale, new product launches and seamlessly integrate. Acquired companies.

Speaker #2: To highlight our innovation momentum, our five most recently launched products are now generating an annualized revenue run rate of approximately $225 million. For example, our air conditioner unit shipments increased from $50,000 units in 2023 to more than $200,000 units last year.

Our competitive Advantage as we enforce by highly differentiated sophisticated Manufacturing Technologies that enable us to produce complex Mission critical components through flexible and increasingly automated processes.

Speaker #2: Largely driven by strong consumer adoption of our chilled tube air conditioner platform. In addition, following the launch of our patented Sun Deck in 2025, we are scheduled to build over 4,500 of these patio systems this year, contributing over $4,000 in revenue per unit.

Equally as important are, people are the best in the industry, leading in Innovation cultivating, deep customer Partnerships and sustaining the collaborative culture of the foundational to our long-term success.

The same competitive mode that drives our OEM business. Also provides significant advantages in the aftermarket where we grew, net sales, 8% year-over-year in the fourth quarter to 196 million.

Speaker #2: These examples underscore our ability to create and scale high-value innovative content with the entire RV customer base quickly. At a high level, LCI's competitive moat, built on our scale, technology, deep industry expertise, and people, positions us to consistently outgrow the market.

This continued success is directly driven by the strength of our OEM sales platform which expands content with key customers.

Operator: On the call from management today are Jason Lippert, President and Chief Executive Officer, Lillian Etzkorn, Chief Financial Officer, and Kip Emenhiser, VP of Finance and Treasurer. Later in the call, we will conduct a question and answer session, at which point you can register to ask a question by pressing star one, and you may withdraw from the question queue by pressing star two. With that, it is my pleasure to turn the call over to Jason Lippert.

Speaker #2: Our broad product portfolio, structurally efficient operating model, and strong customer relationships enable us to rapidly scale new product launches and seamlessly integrate acquired companies.

On 1 of our OEM components requires repair replacement in the field. It almost always must be replaced with our proprietary parts or fully integrated assemblies creating natural durable and high margin aftermarket revenue streams

Taking a step back. We have come a long way this 12 years ago, we had virtually no presence in the RV aftermarket.

Speaker #2: Our competitive advantage is reinforced by highly differentiated, sophisticated manufacturing technologies that enable us to produce complex, mission-critical components through flexible and increasingly automated processes.

Jason Lippert: Thank you, and welcome everyone to our Q4 2025 Earnings Call. We are pleased with the company's strong results as our team continues to execute effectively, delivering a 16% year-over-year top-line growth, along with further margin expansion in the fourth quarter. By leveraging our diverse competitive strengths, we capitalize on opportunities across our RV, aftermarket, transportation, marine, and housing end markets. At the same time, our relentless focus on our operational efficiencies drove enhanced profitability, with fourth quarter operating margin more than doubling, expanding 180 basis points compared to Q4 of the prior year. Starting with our OEM segment, net sales increased 18% to $737 million in the fourth quarter. RV OEM revenue rose 17%, driven by market share gains, increased sales of newer products, and a favorable mix shift toward higher content units.

Over the past decade we have organically built our RV aftermarket organization to approximately 400 team members with a singular focus on delivering the best. Customer experience across more than 2 million annual interactions with dealers and RV consumers who acquire our parts and services.

Speaker #2: Equally as important, our people are the best in the industry. Leading in innovation, cultivating deep customer partnerships, and sustaining the collaborative culture that is foundational to our long-term success.

Speaker #2: The same competitive moat that drives our OEM business also provides significant advantages in the aftermarket, where we grew net sales 8% year-over-year in the fourth quarter to $196 million.

The primary Catalyst for growth in our, aftermarket engine is simple. We have embedded more than 20 billion dollars of replaceable content into the RVs through our Orem Partners. Over the last decade, these RVs eventually all come into the aftermarket service and repair cycle.

Speaker #2: This continued success is directly driven by the strength of our OEM sales platform, which expands content with key customers. When one of our OEM components requires repair or replacement in the field, it almost always must be replaced with our proprietary parts or fully integrated assemblies, creating natural, durable, and high-margin aftermarket revenue streams.

At the moment, approximately 1.5 million RVs are entering the repair and replacement cycle in the next 1. To 3 years, each 1, requiring our parts and service solutions

Our components reach nearly every RV consumer because our parts are literally on almost every RV on the road.

Because we manufacture a broad portfolio of mission critical products dealers and consumers rely on us for service and replacement across virtually every major RV system.

Jason Lippert: Our other OEM end markets, transportation, marine, and housing, delivered 21% year-over-year net sales growth to $297 million, or 8% on an organic basis. This growth was primarily driven by market share gains and content growth in North American utility trailer, bus, and marine OEM customers. Bus-related content contributed $31 million of year-over-year growth in the quarter, reflecting the recent acquisitions of Freedman Seating and Transair, for which integration efforts and synergies are ahead of plan. Looking ahead, we expect to expand market share across all four of our OEM markets. As we move into 2026, we expect RV wholesale shipments to range between 335,000 and 350,000 units, while we expect the boat industry to remain flat to up low single digits.

Speaker #2: Taking a step back, we have come a long way. This 12 years ago, we had virtually no presence in the RV aftermarket. Over the past decade, we have organically built our RV aftermarket organization to approximately 400 team members, with a singular focus on delivering the best customer experience across more than 2 million annual interactions with dealers and RV consumers who acquire our parts and services.

From slide outs and leveling systems the doors and awnings jasz, and suspension systems windows, and appliances mattresses and furniture and much more.

Speaker #2: The primary catalyst for growth in our aftermarket engine is simple. We have embedded more than $20 billion of replaceable content into the RVs through our OEM partners over the last decade.

This breath positions LCI is a trusted partner throughout the entire RV ownership life cycle supporting every customer channel from dealers and Distributors to oems direct to Consumer and leading e-commerce platforms. We have a uniquely strong right to win in the aftermarket something that no other supplier is incredibly matched.

Speaker #2: These RVs eventually all come into the aftermarket service and repair cycle. At the moment, approximately 1.5 million RVs are entering the repair and replacement cycle in the next one to three years.

Speaker #2: Each one requiring our parts and service solutions. Our components reach nearly every RV consumer because our parts are literally on almost every RV on the road.

Jason Lippert: Despite a potential flatter industry backdrop, we have multiple growth strategies in place that we believe will drive OEM expansion in excess of overall end market volumes. Central to this strategy is our relentless focus on innovation. Since 2020, new products and market share gains have driven a 67% increase in total content. These innovations include new slide-out designs, Chill Cube air conditioners, advanced window designs, anti-lock braking systems, Touring Coil suspensions, bed lift and bed tilt mechanisms, larger and more robust Fifth Wheel chassis, electric biminis, and our new ladder system for boats, among others. In many of these categories, we offer either the leading product or in fact, the only product available, further expanding our addressable market margins and long-term growth opportunities.

To further accelerate service related, aftermarket, grilles and strength, and dealer relationships. We continue to invest in our service infrastructure in 2025 you, live service Personnel. Completed approximately 50,000 of our technical training courses and our online Technical Resources. Generated nearly 2 million visits as dealers and consumers increasingly rely on our service videos to resolve issues in the field.

Speaker #2: Because we manufacture a broad portfolio of mission-critical products, dealers, and consumers rely on us for service and replacement across virtually every major RV system.

These efforts are driving higher quality service outcomes and stronger deal with Partnerships. We enforcing lipid as the go-to partner and RV after Terror.

Speaker #2: From slide-outs and leveling systems to doors and awnings, chassis and suspension systems, windows and appliances, mattresses and furniture, and much more. This breadth positions LCI as a trusted partner throughout the entire RV ownership lifecycle, supporting every customer channel, from dealers and distributors to OEMs direct to consumer and leading e-commerce platforms.

In addition, we expanded our service footprint in 2025 with the opening of 3 new service facilities and the doubling of our mobile technician Workforce.

These Investments have already resulted in a double-digit increase in service, completions improving speed convenience and customer satisfaction while allowing us to schedule and complete significantly more service projects than a year ago.

Speaker #2: We have a uniquely strong right to win in the aftermarket, something that no other supplier can credibly match. To further accelerate service-related aftermarket growth and strengthen dealer relationships, we continue to invest in our service infrastructure.

Our goal is to Simply reach more consumers seeking a better service experience, including faster, turnaround higher quality care and the opportunity to upgrade their RVs with our newest and most talked about products.

Jason Lippert: In Q4, our total content per unit increased 11% year-over-year, reaching $5,670, and representing our largest year-over-year content growth in the past 5 years. To highlight our innovation momentum, our five most recently launched products are now generating an annualized revenue run rate of approximately $225 million. For example, our air conditioner unit shipments increased from 50,000 units in 2023 to more than 200,000 units last year, partially driven by strong consumer adoption of our Chill Cube air conditioner platform. In addition, following the launch of our patented Sun Deck in 2025, we are scheduled to build over 4,500 of these patio systems this year, contributing over $4,000 in revenue per unit.

Speaker #2: In 2025, dealer service personnel completed approximately 50,000 of our technical training courses, and our online technical resources generated nearly $2 million visits. As dealers and consumers increasingly rely on our service videos to resolve issues in the field, these efforts are driving higher-quality service outcomes and stronger dealer partnerships.

This year, we are partnering with dealers to launch. The lipid, upgrade experience, a new program that enables our dealers to offer upgrades such as TCS abs and other Advanced systems not currently offered by dealers.

Several of the largest dealers in the country have already expressed strong interest in rolling this program out later this year.

Turning to our Auto aftermarket business. There have been several important developments worth highlighting.

Speaker #2: Reinforcing Lippert is the go-to partner in RV aftercare. In addition, we expanded our service footprint in 2025 with the opening of three new service facilities and the doubling of our mobile technician workforce.

As many of you are aware first Brands, which owns our largest competitor in the hitch, and towing space has experienced significant, operational challenges. As a result of a complex bankruptcy process.

Partners.

Speaker #2: These investments have already resulted in a double-digit increase in service completions, improving speed, convenience, and customer satisfaction while allowing us to schedule and complete significantly more service projects than a year ago.

Against that backdrop. We are already seeing meaningful opportunities emerge and we are in the process of capturing substantial incremental business, as a result,

Jason Lippert: These examples underscore our ability to create and scale high-value innovative content with the entire RV customer base quickly. At a high level, LCI's competitive moat, built on our scale, technology, deep industry expertise, and people, positions us to consistently outgrow the market. Our broad product portfolio, structurally efficient operating model, and strong customer relationships enable us to rapidly scale new product launches and seamlessly integrate acquired companies. Our competitive advantage is reinforced by highly differentiated, sophisticated manufacturing technologies that enable us to produce complex, mission-critical components through flexible and increasingly automated processes. Equally as important, our people are the best in the industry, leading in innovation, cultivating deep customer partnerships, and sustaining the collaborative culture that is foundational to our long-term success.

Speaker #2: Our goal is to simply reach more consumers seeking a better service experience including faster turnaround, higher quality care, and the opportunity to upgrade their RVs with our newest and most talked-about products.

Although, it is still early, we currently estimate the potential opportunity here at approximately 50 million annual rates.

We expect to share more of these development census as things progress.

Speaker #2: This year, we are partnering with dealers to launch the Lippert Upgrade Experience, a new program that enables our dealers to offer upgrades such as TCS, ABS, and other advanced systems not currently offered by dealers.

We have the existing capacity to support this incremental volume without the need for new facilities or additional shifts. In most cases allowing us to efficiently absorb the anticipated growth

Speaker #2: Several of the largest dealers in the country have already expressed strong interest in rolling this program out later this year. Turning to our auto aftermarket business, there have been several important developments worth highlighting.

We are also continuing to strengthen our Auto aftermarket infrastructure. We recently transitioned into a state-of-the-art 6000000000 square, foot Distribution Center in South Bend Indiana consolidating operations. From a couple of smaller, less efficient, distribution facilities.

Speaker #2: As many of you are aware, First Brands, which own our largest competitor in the hitch and towing space, have experienced significant operational challenges as a result of a complex bankruptcy process.

Speaker #2: As a result, both automotive OEMs and aftermarket customers are actively seeking new, stable, long-term partners. Against that backdrop, we are already seeing meaningful opportunities emerge and we are in the process of capturing substantial incremental business as a result.

In addition, we have preparing to open a new manufacturing facility and Seeking Texas later this year, which will serve as the home for our ranch hand truck accessory business. A brand that is seen growing consumer, awareness, and demand, including increased visibility through popular shows, like Yellowstone and landmen.

Jason Lippert: The same competitive moat that drives our OEM business also provides significant advantages in the aftermarket, where we grew net sales 8% year-over-year in Q4 to $196 million. This continued success is directly driven by the strength of our OEM sales platform, which expands content with key customers. When one of our OEM components requires repair or replacement in the field, it almost always must be replaced with our proprietary parts or fully integrated assemblies, creating natural, durable, and high-margin aftermarket revenue stream. Taking a step back, we have come a long way. Just 12 years ago, we had virtually no presence in the RV aftermarket.

Turning to our profitability initiatives, we delivered a full year operating margin of 6.8% and Improvement of 100 basis points. Year-over-year driven by cost improvements market, share gains and enhanced operating efficiency.

Speaker #2: Although it is still early, we currently estimate the potential opportunity here at approximately $50 million annually. We expect to share more of these developments as things progress.

Speaker #2: We have the existing capacity to support this incremental volume without the need for new facilities or additional shifts in most cases. Allowing us to efficiently absorb this anticipated growth.

Given the challenging environment that persisted in 2025. We are pleased with the result. We delivered in our excited about the goals for 2026 that position us well for continued progress.

We believe these strategies can drive an additional 70 to 120 basis points of operating margin improvement over the last year.

Speaker #2: We are also continuing to strengthen our auto aftermarket infrastructure, we recently transitioned into a state-of-the-art 600,000-square-foot distribution center in South Bend, Indiana, consolidating operations from a couple of smaller less efficient distribution facilities.

I'll also providing a clear and disciplined path toward our objective of achieving double digit operating margins.

Jason Lippert: Over the past decade, we have organically built our RV aftermarket organization to approximately 400 team members, with a singular focus on delivering the best customer experience across more than 2 million annual interactions with dealers and RV consumers who acquire our parts and services. The primary catalyst for growth in our aftermarket engine is simple. We have embedded more than $20 billion of replaceable content into the RVs through our OEM partners over the last decade. These RVs eventually all come into the aftermarket service and repair cycle. At the moment, approximately 1.5 million RVs are entering the repair and replacement cycle in the next 1 to 3 years, each one requiring our parts and service solutions. Our components reach nearly every RV consumer because our parts are literally on almost every RV on the road....

These gains will be supported by continued market. Share growth and improving product mix.

Speaker #2: In addition, we are preparing to open a new manufacturing facility and seeking Texas later this year, which will serve as the home for our ranch hand truck accessory business, a brand that has seen growing consumer awareness and demand including increased visibility through popular shows like Yellowstone and Landman.

And further reductions in overhead and GNA where we made meaningful progress in 2025.

To build on last year's progress in 2026. We planned to complete 8 to 10 facilities. Consolidations, on top of the 5 we executed last year.

Speaker #2: Turning to our profitability initiatives, we delivered a full-year operating margin of 6.8% and improvement of 100 basis points year over year driven by cost improvements, market share gains, and enhanced operating efficiencies.

We also continue to evaluate the domestic that you're a select lower margin businesses. While accelerating automation operational efficiencies and fixed cost reductions throughout the year.

I'll wrap up my remarks with an update on our balance sheet and capital allocation strategy.

Despite the challenging operating environment last year, we have made significant progress in our financial profile.

Speaker #2: Given the challenging environment that persisted in 2025, we are pleased with the results we delivered and are excited about the goals for 2026, which position us well for continued progress.

Jason Lippert: Because we manufacture a broad portfolio of mission-critical products, dealers and consumers rely on us for service and replacement across virtually every major RV system, from slide outs and leveling systems to doors and awnings, chassis and suspension systems, windows and appliances, mattresses and furniture, and much more. This breadth positions LCI as a trusted partner throughout the entire RV ownership lifecycle, supporting every customer channel, from dealers and distributors to OEMs, direct-to-consumer, and leading e-commerce platforms. We have a uniquely strong right to win in the aftermarket, something that no other supplier can credibly match. To further accelerate service-related aftermarket growth and strengthen dealer relationships, we continue to invest in our service infrastructure.

Since 2023, we've increased roic from 5.3% to 13.5% as of December, 2025 reflecting improved returns and disciplined Capital deployment.

Speaker #2: We believe these strategies can drive an additional 70 to 120 basis points of operating margin improvement over the last year. I'll also provide a clear and disciplined path toward our objective of achieving double-digit operating margins.

Speaker #2: These gains will be supported by continued market share growth and improving product mix, and further reductions in overhead and G&A will be made meaningful progress in 2025.

Speaker #2: To build on last year's progress in 2026, we plan to complete 8 to 10 facility consolidations on top of the five we executed last year.

We had a 2025 with a net debt to adjusted ebit a ratio of 1.8 times supported by strong cash domination earlier in the year, we also completed a successful refinancing that both extended and staggered. Our debt maturities further enhancing our financial flexibility. Liquidity remains robust with over 200 million in cash, and equivalents along with full availability under our revolving credit facility of 595 million.

Speaker #2: We also continue to evaluate the divestiture of select lower-margin businesses while accelerating automation, operational efficiencies, and fixed cost reductions throughout the year. I'll wrap up my remarks with an update on our balance sheet and capital allocation strategy.

As we enter 2026, we will remain disciplined in our Capital allocation with a continued focus on investing in the business, to support Innovation and ongoing product development.

Jason Lippert: In 2025, dealer service personnel completed approximately 50,000 of our technical training courses, and our online technical resources generated nearly 2 million visits, as dealers and consumers increasingly rely on our service videos to resolve issues in the field. These efforts are driving higher quality service outcomes and stronger dealer partnerships, reinforcing Lippert as the go-to partner in RV aftercare. In addition, we expanded our service footprint in 2025 with the opening of three new service facilities and the doubling of our mobile technician workforce. These investments have already resulted in a double-digit increase in service completions, improving speed, convenience, and customer satisfaction, while allowing us to schedule and complete significantly more service projects than a year ago.

Our m&a pipeline remains active and smaller tuck in Acquisitions, continue to be a core competency for LCI industry.

Completing 77 strategic Acquisitions since 2001.

Speaker #2: Despite the challenging operating environment last year, we have made significant progress in strengthening our financial profile. Since 2023, we've increased ROIC from 5.3% to 13.5% as of December 2025, reflecting improved returns and disciplined capital deployment.

We will continue to evaluate opportunities within our existing markets and expect to remain active on the m&a front.

Building on the success. We have achieved in 2025 with successful, expositions, like Freedman and transair.

Speaker #2: We had a 2025 with a net debt to adjusted EBITDA ratio of 1.8 times, supported by strong cash generation, earlier in the year we also completed a successful refinancing that both extended and staggered our debt maturities.

Returning Capital to shareholders also remains a priority as we continue to pay in attractive. Dividends currently yielding about 3% during 2025. We returned 243 million to shareholders, including 114 million in dividends and 129 million through share repurchases.

Speaker #2: Further enhancing our financial flexibility, liquidity remains robust with over $200 million in cash and equivalent, along with full availability under our revolving credit facility of $595 million.

Jason Lippert: Our goal is to simply reach more consumers seeking a better service experience, including faster turnaround, higher quality care, and the opportunity to upgrade their RVs with our newest and most talked about products. This year, we are partnering with dealers to launch the Lippert Upgrade Experience, a new program that enables our dealers to offer upgrades such as TCS, ABS, and other advanced systems not currently offered by dealers. Several of the largest dealers in the country have already expressed strong interest in rolling this program out later this year. Turning to our auto aftermarket business, there have been several important developments worth highlighting. As many of you are aware, First Brands, which owns our largest competitor in the hitch and towing space, has experienced significant operational challenges as a result of a complex bankruptcy process.

In closing, our entire team is energized by the opportunities ahead. And we are confident in our strategies to leverage many strengths to drive. Continued growth, margin expansion, and shareholder value creation.

Speaker #2: As we enter 2026, we will remain disciplined in our capital allocation, with a continued focus on investing in the business to support innovation and ongoing product development.

I've had the privilege of leading this company for more than 25 years at never been more excited about the opportunities in front of us than I am today.

We have a tested focus and highly capable team ready to execute on the plan.

Speaker #2: Our M&A pipeline remains active and smaller tuck-in acquisitions continue to be a core competency for LCI Industries. Completing 77 strategic acquisitions since 2001. We will continue to evaluate opportunities within our existing markets and expect to remain active on the M&A front, building on the success we have achieved in 2025 with successful acquisitions like Freedman and TransAir.

And I'm incredibly proud of the accomplishments of our more than 12,000 men and women at LCI, whose perseverance and commitment continue to be the driving force behind our success.

Because of their efforts. We enter 2026 and 1 of the most competitive positions in our company's 70-year history with that. I'll turn it over to Lillian. Who will walk you through our financial results in more detail?

Speaker #2: Returning capital to shareholders also remains a priority as we continue to pay an attractive dividend currently yielding about 3%. During 2025, we returned $243 million to shareholders, including $114 million in dividends and $129 million through share repurchases.

Jason Lippert: As a result, both automotive OEMs and aftermarket customers are actively seeking new, stable, long-term partners. Against that backdrop, we are already seeing meaningful opportunities emerge, and we are in the process of capturing substantial incremental business as a result. Although it is still early, we currently estimate the potential opportunity here at approximately $50 million annually. We expect to share more of these developments as things progress. We have the existing capacity to support this incremental volume without the need for new facilities or additional shifts in most cases, allowing us to efficiently absorb this anticipated growth. We are also continuing to strengthen our auto aftermarket infrastructure. We recently transitioned into a state-of-the-art 600,000 sq ft distribution center in South Bend, Indiana, consolidating operations from a couple of smaller, less efficient distribution facilities.

Speaker #2: In closing, our entire team is energized by the opportunities ahead. And we are confident in our strategy to leverage the many strengths to drive continued growth, margin expansion, and shareholder value creation.

Which the hardworking men and women of LCI, executed our strategic initiatives, demonstrating the potential of the LCI platform and we enter 2026 well positioned to generate even stronger results in the new year.

For the fourth quarter Consolidated, net sales were 933 million up 16% year-over-year.

Speaker #2: I've had the privilege of leading this company for more than 25 years and I've never been more excited about the opportunities in front of us than I am today.

Sales grew and even stronger 18%, which included 17% growth for RVs.

Speaker #2: We have attested focus and highly capable team ready to execute on the plan. And I'm incredibly proud of the accomplishments of our more than 12,000 men and women at LCI, whose perseverance and commitment continue to be the driving force behind our success.

Primarily driven by sales price increases due to higher material costs. A favorable, mix shift towards higher content, fifth wheel units and lcis ongoing market share gains

Speaker #2: Because of their efforts, we enter 2026 in one of the most competitive positions in our company's 70-year history. With that, I'll turn it over to Lillian who will walk you through our financial results in more detail.

Jason Lippert: In addition, we are preparing to open a new manufacturing facility in Seguin, Texas, later this year, which will serve as the home for our Ranch Hand truck accessory business, a brand that has seen growing consumer awareness and demand, including increased visibility through popular shows like Yellowstone and Landman. Turning to our profitability initiatives, we delivered a full-year operating margin of 6.8%, an improvement of 100 basis points year over year, driven by cost improvements, market share gains, and enhanced operating efficiencies. Given the challenging environment that persisted in 2025, we are pleased with the results we delivered and are excited about the goals for 2026 that position us well for continued progress.

We also generated 21%, Topline growth across our other OEM and markets with transportation and Marine expanding year-over-year. Partially offset by a modest decline in housing.

Speaker #2: Thank you, Jason. We ended the year on a strong note with the fourth-quarter results that included double-digit top-line growth and meaningful margin expansion.

Primary drivers included sales from acquired businesses and higher sales to North American utility trailer oems.

Speaker #2: These results cap a year of progress in which the hardworking men and women of LCI executed our strategic initiatives, demonstrating the potential of the LCI platform, and we enter 2026 well positioned to generate even stronger results in the new year.

Our content for towable RV, unit increased 11% over the prior year to 5,670 and content promoter unit was up 7% to 3,993.

Speaker #2: For the fourth quarter, consolidated net sales were $933 million, up 16% year over year. OEM net sales grew and even stronger 18%, which included 17% growth for RVs.

total RV, organic content, grew significantly up 3% year-over-year driven by the continued success of our recent product launches

Content levels also benefited from the continued strength of higher contented this wheel units.

Jason Lippert: We believe these strategies can drive an additional 70 to 120 basis points of operating margin improvement over the last year, while also providing a clear and disciplined path toward our objective of achieving double-digit operating margins. These gains will be supported by continued market share growth and improving product mix, and further reductions in overhead and G&A, where we made meaningful progress in 2025. To build on last year's progress in 2026, we plan to complete 8 to 10 facility consolidations on top of the 5 we executed last year. We also continue to evaluate the divestiture of select lower-margin businesses while accelerating automation, operational efficiencies, and fixed cost reductions throughout the year. I'll wrap up my remarks with an update on our balance sheet and capital allocation strategy.

Speaker #2: Primarily driven by sales price increases due to higher material costs, a favorable mix shift towards higher content fifth wheel units, and LCI's ongoing market share gains.

We also expanded motorhome, RV, content per unit by 7% to nearly 4,000 dollars.

Speaker #2: We also generated 21% top-line growth across our other OEM and markets. With transportation and marine, expanding year over year, partially offset by a modest decline in housing.

Turning to aftermarket our net sales expanded 8% versus the prior year quarter to 196 million primarily driven by product Innovations, and increased demand for our upgrade and Service Parts. As more units enter the upgrade and repair Cycles to which Jason referred

Speaker #2: Primary drivers included sales from acquired businesses and higher sales to North American utility trailer OEMs. Our content per towable RV unit increased 11% over the prior year, to 5,670 dollars, and content per motorized unit was up 7% to 3,993 dollars.

Our Consolidated operating profit during the fourth quarter was 35 million reflecting 180 basis, point margin expansion to 3.8%.

Jason Lippert: Despite a challenging operating environment last year, we have made significant progress in strengthening our financial profile. Since 2023, we've increased ROIC from 5.3% to 13.5% as of December 2025, reflecting improved returns and disciplined capital deployment. We ended 2025 with a net debt to adjusted EBITDA ratio of 1.8 times, supported by strong cash generation. Earlier in the year, we also completed a successful refinancing that both extended and staggered our debt maturities, further enhancing our financial flexibility. Liquidity remains robust, with over $200 million in cash and equivalents, along with full availability under our revolving credit facility of $595 million. As we enter 2026, we will remain disciplined in our capital allocation, with a continued focus on investing in the business to support innovation and ongoing product development.

Speaker #2: Towable RV organic content grew significantly, up 3% year over year, driven by the continued success of our recent product launches. Content levels also benefited from the continued strength of higher contented fifth wheel units.

Our margin growth benefited from our continued focus on driving operating efficiencies and cost reductions along with the increased North American RV. Sales, volume related to an increased sales next of higher content to fuel units and market share gains.

Partially offsetting this progress was 3.9 million of restructuring costs related to the closure of our glass operations in Ireland.

Speaker #2: We also expanded motorhome RV content per unit by 7% to nearly 4,000 dollars. Turning to aftermarket, our net sales expanded 8% versus the prior year quarter to 196 million, primarily driven by product innovations and increased demand for our upgrade and service parts as more units enter the upgrade and repair cycle to which Jason referred.

Breaking down further, our margin performance, our fourth quarter, OEM related operating profit margin was up significantly to 3.7% versus 0.3% in the same period, the prior year.

This operating profit expansion was driven by The increased selling prices for targeted products. Primarily related to increased material costs as well as reduced cost from our material sourcing strategies and better fixed costs absorption.

Speaker #2: Our consolidated operating profit during the fourth quarter was 35 million dollars. Reflecting 180 basis point margin expansion to 3.8%. Our margin growth benefited from our continued focus on driving operating efficiencies and cost reductions, along with the increased North American RV sales volume related to an increased sales mix of higher content fifth wheel units, and market share gains.

Jason Lippert: Our M&A pipeline remains active, and smaller tuck-in acquisitions continue to be a core competency for LCI Industries, completing 77 strategic acquisitions since 2001. We will continue to evaluate opportunities within our existing markets and expect to remain active on the M&A front, building on the success we have achieved in 2025 with successful acquisitions like Freedman and Trans/Air. Returning capital to shareholders also remains a priority as we continue to pay an attractive dividend, currently yielding about 3%. During 2025, we returned $243 million to shareholders, including $114 million in dividends and $129 million through share repurchases. In closing, our entire team is energized by the opportunities ahead, and we are confident in our strategy to leverage our many strengths to drive continued growth, margin expansion, and shareholder value creation.

For aftermarket, our operating profit margin was 4.3% in the fourth quarter, as compared to the 7.9% a year earlier, this operating profit margin change was primarily driven by higher material costs related to tariffs and higher steel, aluminum and freight costs.

Increases in sales mixed towards lower margin products and investments in capacity, distribution and Logistics, technology to support the growth of the aftermarket segments.

Speaker #2: Partially offsetting this progress was 3.9 million of restructuring costs related to the closure of our glass operations in Ireland. Breaking down further, our margin performance, our fourth quarter OEM related operating profit margin was up significantly to 3.7% versus 0.3% in the same period the prior year.

The margin was positively impacted by increases, in selling prices for targeted products.

Primarily related to increased material costs and reduce costs for material sourcing strategies.

Speaker #2: This operating profit expansion was driven by the increased selling prices for targeted products primarily related to increased material costs as well as reduced costs from our material sourcing strategies and better fixed cost absorption.

Turning to adjusted ebit. Do we generated robust annual growth of approximately, 53% to 70 million, reflecting a 7.5% margin or 180 basis points above the 5.7% margin, and the fourth quarter of 2024.

Speaker #2: For aftermarket, our operating profit margin was 4.3% in the fourth quarter, as compared to the 7.9% a year earlier. This operating profit margin change was primarily driven by higher material costs related to tariffs and higher steel aluminum and freight costs, increases in sales mix towards lower margin products, and investments in capacity, distribution, and logistics technology to support the growth of the aftermarket segment.

Our gaap. Net income came in at 19 million or 77 cents per diluted. Share more than doubling over the prior year. Quarters 37 cents.

Jason Lippert: I've had the privilege of leading this company for more than 25 years. I've never been more excited about the opportunities in front of us than I am today. We have a tested, focused, and highly capable team ready to execute on the plan, and I'm incredibly proud of the accomplishments of our more than 12,000 men and women at LCI, whose perseverance and commitment continue to be the driving force behind our success. Because of their efforts, we enter 2026 in one of the most competitive positions in our company's 70-year history. With that, I'll turn it over to Lillian, who will walk you through our financial results in more detail.

On an adjusted basis. Excluding restructuring costs, net of tax affect, net income of 22 million equated to 89 cents per diluted share, which also more than doubled.

Turning to the balance sheet, we continue to operate from a position of strength, ending the year with cash and cash equivalents of 223 million which was up from 166 million to start the year.

Speaker #2: The margin was positively impacted by increases in selling prices for targeted products primarily related to increased material costs and reduced costs for material sourcing strategies.

Lillian Etzkorn: Thank you, Jason. We ended the year on a strong note with the Q4 results that included double-digit top-line growth and meaningful margin expansion. These results cap a year of progress in which the hardworking men and women of LCI executed our strategic initiatives, demonstrating the potential of the LCI platform, and we enter 2026 well positioned to generate even stronger results in the new year. For the Q4, consolidated net sales were $933 million, up 16% year-over-year. OEM net sales grew an even stronger 18%, which included 17% growth for RVs, primarily driven by sales price increases due to higher material costs, a favorable mix shift towards higher content Fifth Wheel units, and LCI's ongoing market share gains.

Speaker #2: Turning to adjusted EBITDA, we generated robust annual growth of approximately 53% to $70 million, reflecting a 7.5% margin, or 180 basis points above the 5.7% margin in the fourth quarter of 2024.

Positions during the year.

As of December 31st, we had outstanding net debt of 723 million reflecting a net debt to Evita ratio of 1.8 times, which is within our targeted range.

Speaker #2: Our gap net income came in at 19 million, or 77 cents per diluted share, more than doubling over the prior year quarters' 37 cents.

Speaker #2: On an adjusted basis, excluding restructuring costs net of tax effect, net income of $22 million equated to $0.89 per diluted share, which also more than doubled.

In terms of our balanced approach to Capital, allocation, in addition to Strategic investment in the business and the pursuit of select a creative acquisition opportunities. We continue to execute on the 300 million. Share, repurchase program announced last year

Speaker #2: Turning to the balance sheet, we continue to operate from a position of strength, ending the year with cash and cash equivalents of $223 million, which was up from $166 million to start the year.

During the fourth quarter, we returned 28 million to shareholders through our quarterly dividend of $1.15 per share.

Lillian Etzkorn: We also generated 21% top-line growth across our other OEMs and markets, with transportation and marine expanding year-over-year, partially offset by a modest decline in housing. Primary drivers included sales from acquired businesses and higher sales to North American utility trailer OEMs. Our content per towable RV unit increased 11% over the prior year to $5,670, and content per motorized unit was up 7% to $3,993. Towable RV organic content grew significantly, up 3% year-over-year, driven by the continued success of our recent product launches. Content levels also benefited from the continued strength of higher content of Fifth Wheel units. We also expanded motorhome RV content per unit by 7% to nearly $4,000.

That a full year. We repurchased 129 Million worth of shares and paid 114 million in dividends.

Speaker #2: The increased benefit from cash provided by operating activities of $331 million, and also reflects $147 million of investment-related cash outlay, which included $53 million in capital expenditures, and $113 million worth of acquisitions during the year.

As the return of capital to shareholders remains a key component of our commitment to creating long-term shareholder value.

Speaker #2: As of December 31st, we had outstanding net debt of 723 million, reflecting a net debt to EBITDA ratio of 1.8 times, which is within our targeted range.

Turning to our Outlook. If Jason mentioned, we expect to see industry RV wholesale shipments of 335 to 350,000 in 2026 and we look for the Marine industry to be flat to up low single digits.

Speaker #2: In terms of our balanced approach to capital allocation, in addition to strategic investment in the business and the pursuit of select accretive acquisition opportunities, we continue to execute on the 300 million share repurchase program announced last year.

For the transportation Market, we expect the market to be flat, but we will have the benefit of increased sales from Acquisitions of Freedman seating and transair, which we completed in 2025.

We also expect that the Housing Industry growth will be in the low single digit aided by our growth of residential window products.

For the aftermarket, we are estimating, mid single-digit growth.

Speaker #2: During the fourth quarter, we returned $28 million to shareholders through our quarterly dividend of $1.15 per share. For the full year, we repurchased $129 million worth of shares and paid $114 million in dividends.

Lillian Etzkorn: Turning to aftermarket, our net sales expanded 8% versus the prior year quarter to $196 million, primarily driven by product innovations and increased demand for our upgrade and service parts as more units enter the upgrade and repair cycle to which Jason referred. Our consolidated operating profit during the fourth quarter was $35 million, reflecting 180 basis point margin expansion to 3.8%. Our margin growth benefited from our continued focus on driving operating efficiencies and cost reductions, along with the increased North American RV sales volume related to an increased sales mix of higher content fifth wheel units and market share gains. Partially offsetting this progress was $3.9 million of restructuring costs related to the closure of our glass operations in Ireland.

Supported by the significant numbers of RVs and entering the repair and replacement cycle and the next few years.

Liebert should also see lift and automotive, aftermarket sales as the result of a key competitor's bankruptcy.

Speaker #2: As the return of capital to shareholders remains a key component of our commitment to creating long-term shareholder value, turning to our outlook, as Jason mentioned, we expect to see industry RV wholesale shipments of 335,000 to 350,000 in 2026.

I would also like to note that we have started the year strong with January net sales of approximately 343 million up 4% from prior year.

Speaker #2: And we look for the marine industry to be flat to up low single digits. For the transportation market, we expect the market to be flat, but we will have the benefit of increased sales from the acquisitions of Freedman Seating and TransAir, which we completed in 2025.

With this backdrop, we expect Consolidated 2026 revenue of 4.2 to 4.3 billion and operating margin in the range of 7.5% to 8% and adjusted diluted EPS is 8.25 to 9.25.

Helping to drive the bottom line results. We plan to consolidate 8 to 10 facilities during the year, on top of the 5 that we completed in 2025.

Speaker #2: We also expect that the housing industry growth will be in the low single digit, aided by our growth of residential window products. For the aftermarket, we are estimating net single digit growth supported by the significant numbers of RVs entering the repair and replacement cycle in the next few years.

While also continuing to focus on additional efficiency initiatives.

Lillian Etzkorn: Breaking down further our margin performance, our Q4 OEM-related operating profit margin was up significantly to 3.7% versus 0.3% in the same period the prior year. This operating profit expansion was driven by the increased selling prices for targeted products, primarily related to increased material costs, as well as reduced costs from our material sourcing strategies and better fixed cost absorption. For aftermarket, our operating profit margin was 4.3% in the Q4, as compared to 7.9% a year earlier. This operating profit margin change was primarily driven by higher material costs related to tariffs and higher steel, aluminum, and freight costs, increases in sales mix towards lower margin products, and investments in capacity, distribution, and logistics technology to support the growth of the aftermarket segment.

In addition we expect our continued penetration of newer and markets to support margin expansion and we will also continue to seek the vesture opportunities related to lower margins non-core products.

Speaker #2: Lippert should also see a lift in automotive aftermarket sales as the result of a key competitor's bankruptcy. I would also like to note that we have started the year strong, with January net sales of approximately $343 million, up 4% from the prior year.

For Capital allocation in the New Year. We expect 60 to 80 million dollars of capital expenditures. Mainly for business investment and Innovation. We also look to return additional Capital to shareholders through both our dividend and opportunistic, share repurchases, while maintaining our Target leverage ratio of 1 and a half to 2 times, net debt to Evita.

Speaker #2: With this backdrop, we expect consolidated 2026 revenue of 4.2 to 4.3 billion, and operating margin in the range of 7.5% to 8%, and adjusted diluted EPS of $8.25 to $9.25.

Speaker #2: Helping to drive the bottom line results, we plan to consolidate 8 to 10 facilities during the year, on top of the five that we completed in 2025.

In summary while we ended 2025 on a strong, note or even more excited about the opportunities ahead for LCI and our determined to create additional long-term shareholder values through adherence, to our strategic initiative with the focus on Diversified growth opportunities, and discipline cost management. And now operator. If you could, please open the lines, we'd be happy to take questions.

Lillian Etzkorn: The margin was positively impacted by increases in selling prices for targeted products, primarily related to increased material costs and reduced costs for material sourcing strategies. Turning to Adjusted EBITDA, we generated robust annual growth of approximately 53% to $70 million, reflecting a 7.5% margin or 180 basis points above the 5.7% margin in Q4 2024. Our GAAP net income came in at $19 million, or $0.77 per diluted share, more than doubling over the prior year quarter's $0.37. On an adjusted basis, excluding restructuring costs, net of tax effect, net income of $22 million equated to $0.89 per diluted share, which also more than doubled.

Speaker #2: While also continuing to focus on additional efficiency initiatives, in addition, we expect our continued penetration of newer end markets to support margin expansion and we will also continue to seek divestiture opportunities related to lower margins non-core products.

Thank you Lillian to ask a question. Please press star. Followed by 1 on your telephone keypad now.

If you change your mind, please press star followed by 2.

When preparing to ask your question, please, ensure your device is unmuted locally.

Speaker #2: For capital allocation in the new year, we expect 60 to 80 million dollars of capital expenditures, mainly for business investment and innovation, we also look to return additional capital to shareholders through both our dividend and opportunistic share repurchases, while maintaining our target leverage ratio of 1.5 to 2 times net debt to EBITDA.

The first question today comes from Brett, Jordan of Jeffrey's your line is now open. Please go ahead.

Hey, good morning guys. This is Patrick Buckley off for Brett. Thanks for taking our questions.

Uh, focusing on the, the 2026 Outlook. Uh, you know, I guess how sensitive is that range to potential rate cuts to to do 3 or 4 rate, Cuts Drive the high end or potentially, uh, higher or I guess what other um, metrics, you know, drive that, that range there.

Speaker #2: In summary, while we ended 2025 on a strong note, we're even more excited about the opportunities ahead for LCI, and we're determined to create additional long-term shareholder value through adherence to our strategic initiatives, with a focus on diversified growth opportunities and disciplined cost management.

I would just say, you know, we're not,

Lillian Etzkorn: Turning to the balance sheet, we continue to operate from a position of strength, ending the year with cash and cash equivalents of $223 million, which was up from $166 million to start the year. The increase benefited from cash provided by operating activities of $331 million and also reflects $147 million of investment-related cash outlay, which included $53 million in capital expenditures and $113 million worth of acquisitions during the year. As of December 31, we had outstanding net debt of $723 million, reflecting a net debt to EBITDA ratio of 1.8 times, which is within our targeted range.

Speaker #2: And now, operator, if you could please open the lines, we'd be happy to take questions.

Factoring the rate cuts into the into the range. I think it's kind of steady state as we are right now. Uh, certainly if we get some rate cuts, that would be that would be helpful. I mean, a lot of our a lot of our growth that we're planning on the top line is going to be predicated on market, share gains and and some of the other things we've talked about in the call. So is that helpful?

Speaker #1: Thank you, Lillian. To ask a question, please press star, followed by 1 on your telephone keypad now. If you change your mind, please press star, followed by 2.

Speaker #1: When preparing to ask your question, please ensure your device is unmuted locally. The first question today comes from Brett Jordan of Jefferies. Your line is now open.

Where do you expect to settle in during a more normal cycle?

Speaker #1: Please go ahead.

Speaker #3: Hey, good morning, guys. This is Patrick Buckley on for Brett. Thanks for taking our questions. Focusing on the 2026 outlook, I guess, how sensitive is that range to potential rate cuts to do three or four rate cuts drive the high end or potentially higher?

Lillian Etzkorn: In terms of our balanced approach to capital allocation, in addition to strategic investment in the business and the pursuit of select accretive acquisition opportunities, we continue to execute on the $300 million share repurchase program announced last year. During Q4, we returned $28 million to shareholders through our quarterly dividend of $1.15 per share. For the full year, we repurchased $129 million worth of shares and paid $114 million in dividends, as the return of capital to shareholders remains a key component of our commitment to creating long-term shareholder value. Turning to our outlook, as Jason mentioned, we expect to see industry RV wholesale shipments of 335,000 to 350,000 in 2026, and we look to the marine industry to be flat to up low single digits.

Speaker #3: Or I guess, what other metrics drive that range there?

Speaker #4: I would just say, we're not factoring the rate cuts into the range. I think it's kind of steady state as we are right now.

Speaker #4: Certainly, if we get some rate cuts, that would be helpful. I mean, a lot of our growth that we're planning on the top line is going to be predicated on market share gains and some of the other things we've talked about in the call.

Speaker #4: So is that helpful?

Speaker #3: Yeah, yeah. Thank you. And I guess staying on the 2026 guide here, can you help us bridge the difference between 2026 and what may be a potential "normal" run rate looks like?

Yeah, I think, you know, when you look at the the past Cycles, um, I mean we're kind of it is, as I say to a lot of people, we, you know, we went up to such a, a Monster High that when we came down to, you know, half of the 600 down to 300, you know, the things broke into a lot of pieces. So I think we're going to be picking those pieces up for a while it's been 3 years. I think it's going to be, you know, a slow coming out of the cycle. So you know, obviously if you look at our our forecast for 2026 with units, you know, it it a midpoint of, you know, 345 or 344 whatever the midpoint is of our range. It's, you know, we feel like we're coming up slow and um, you know, we'll pick up more momentum next year as we get through more of this. Um, but I think you know, we, we would say that the midpoint is probably 375 to 415 somewhere in that range in terms of what is more normalized for the for the near-term. Um, but you know, as we've said on past calls over the years and we feel like this is a

Speaker #3: I guess, between the COVID highs and the post-COVID lows, where do you expect to settle in during a more normal cycle?

500,000 plus industry, but we got to get healthy before we get back to that.

Speaker #4: Yeah, I think when you look at the past cycles, I mean, we're kind of, as I say to a lot of people, we went up to such a monster high that when we came down to half of the $600, down to $300, things broke into a lot of pieces.

Great. That's all for us. Thanks, guys.

Thanks.

Lillian Etzkorn: For the transportation market, we expect the market to be flat, but we will have the benefit of increased sales from the acquisitions of Freedman Seating and Transair, which we completed in 2025. We also expect that the housing industry growth will be in the low single digits, aided by our growth of residential window products. For the aftermarket, we are estimating mid-single-digit growth, supported by the significant numbers of RVs entering the repair and replacement cycle in the next few years. Lippert should also see lift in automotive aftermarket sales as the result of a key competitor's bankruptcy. I would also like to note that we have started the year strong, with January net sales of approximately $343 million, up 4% from prior year.

Thank you. The next question comes from Scott stamber of Ross Capital. Your line is now open. Please go ahead.

Uh, good morning and thanks for taking my questions as well.

Speaker #4: So I think we're going to be picking those pieces up for a while. It's been three years. I think it's going to be a slow coming out of the cycle.

Speaker #4: So obviously, if you look at our forecast for 2026 with units, at a midpoint of 345 or 344, whatever the midpoint is of our range, it's we feel like we're coming off slow.

Speaker #4: And we'll pick up more momentum next year as we get through more of this. But I think we would say that the midpoint is probably 375 to 415, somewhere in that range in terms of what is more normalized for the near term.

Um, Jason just wanted to um, you know, early in the year, we're hearing of, uh, you know, trade-off activity mix shift towards higher price units. And obviously, we're seeing that in your results already. Um, what do you hearing through your various touch points? Um, at retail, um, just trying to get a sense if that narrative is continuing as we enter the selling season,

Yeah, yeah, yeah. I think, you know,

Lillian Etzkorn: With this backdrop, we expect consolidated 2026 revenue of $4.2 to 4.3 billion, an operating margin in the range of 7.5% to 8%, an adjusted diluted EPS of $8.25 to $9.25. Hoping to drive the bottom line results, we plan to consolidate 8 to 10 facilities during the year on top of the 5 that we completed in 2025, while also continuing to focus on additional efficiency initiatives. In addition, we expect our continued penetration of newer end markets to support margin expansion, and we will also continue to seek divestiture opportunities related to lower-margin, non-core products. For capital allocation in the new year, we expect $60 to 80 million of capital expenditures, mainly for business investment and innovation.

Speaker #4: But as we've said on past calls over the years, we feel like this is a $500 million-plus industry, but we've got to get healthy before we get back to that.

Speaker #3: Great. That's all for us. Thanks, guys.

Speaker #4: Thanks.

Speaker #1: Thank you. The next question comes from Scott Stamber of Ross Capital. Your line is now open. Please go ahead.

Speaker #3: Good morning and thanks for taking my questions as well. Jason, just wanted to early in the year, we're hearing of tradeup activity, makeshift towards higher price units, and obviously, we're seeing that in your results already.

There's a lot going on out there on the retail side of things that would say that they're, you know, I've I've been and sat with and talked to a handful of the larger dealers lately. Um, the larger dealers seem to be doing decent, um, but I think that there's a lot of small and mid-size dealers that are that are struggling. I think everybody's struggling on the margins side. Um, but I think, you know, everybody's being very disciplined. We had some whether, you know, I heard that Camping World had uh, as as well as some other stores had, you know, 45 to 60 stores that were down for a couple days because of weather. So, you know, we have that kind of thing going on this time of year, but um, I think the big guys are are doing, okay? This the sum of the smaller guys in mid-size guys are struggling, um, and I think that's what, you know, gets us to our

Speaker #3: What do you hearing through your various touch points at retail? Just trying to get a sense if that narrative is continuing as we enter the selling season.

Our forecasts of that, you know, 335 to 350 it just feels like things are are moving slowly. In in um hopefully we get some you know, some stronger retail numbers as we get get into the the selling season this year.

Lillian Etzkorn: We also look to return additional capital to shareholders through both our dividends and opportunistic share repurchases while maintaining our target leverage ratio of 1.5 to 2 times net debt to EBITDA. In summary, while we ended 2025 on a strong note, we're even more excited about the opportunities ahead for LCI and are determined to create additional long-term shareholder value through adherence to our strategic initiatives, with a focus on diversified growth opportunities and disciplined cost management. Now, operator, if you could please open the lines, we'd be happy to take questions.

Speaker #4: Yeah, yeah. I think there’s a lot going on out there on the retail side of things. I would say that I’ve been and sat with and talked to a handful of the larger dealers lately.

Speaker #4: The larger dealers seem to be doing decent. But I think that there's a lot of small and mid-sized dealers that are struggling. I think everybody's struggling on the margin side.

Got it. And then, um, looking at the aftermarket you called, out the RV side, I guess doing better. Uh, and that was, if you look at the profit for aftermarket as well, looks like it was a little bit lower. Maybe just talked about on the aftermarket RV versus the the automotive side. Maybe talk about driven brands.

um, you know, yeah, I think that you know, some of

Oh, go ahead. I'm sorry. Go ahead finish up. Yeah, go ahead. Sorry.

Speaker #4: But I think everybody's being very disciplined. We had some weather I'd heard that Camping World had as well as some other stores had 45 to 60 stores that were down for a couple of days because of weather.

Speaker #4: So we have that kind of thing going on this time of year. But I think the big guys are doing okay. Some of the smaller guys and mid-sized guys are struggling.

Operator: Thank you, Lillian. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. The first question today comes from Brett Jordan of Jefferies. Your line is now open. Please go ahead.

Speaker #4: And I think that's what gets us to our forecast of that 335 to 350. It just feels like things are moving slowly in. Hopefully, we get some stronger retail numbers as we get into the selling season this year.

I was just going to say that, um, you know, some of the headwinds on the, the aftermarket side related to the pricing on the auto aftermarket side. So, you know, we have pricing Cycles, that's typically January and April. Um, so when you look at look look at fourth quarter, some of our numbers on the, on the profitability side, were held up a little bit there, but all those, you know, all those increases due to, you know, the tariffs and all the other related inflation that we had last year, will come, you know, in the next couple quarters.

Bret Jordan: Hey, good morning, guys. This is Patrick Buckley on for Brett. Thanks for taking our questions. Focusing on the 2026 outlook, you know, I guess how sensitive is that range to potential rate cuts? Do 3 or 4 rate cuts drive the high end or potentially higher? Or I guess what other metrics, you know, drive that range there?

Speaker #3: Got it. And then, looking at the aftermarket, you called out the RV side, I guess, doing better. And if you look at the profit for aftermarket as well, it looked like it was a little bit lower.

Um but but all in all, like we said, our aftermarket side of our business is doing well, we got new products, new market share. Uh we're continuing to gain Steam on the RV side and then, as we said, we've got some really big opportunities on the automotive aftermarket side with a with a bankruptcy of announcement of first Brands and what they're going through a lot of pieces to pick up there for us.

Speaker #3: Maybe just talk about on the aftermarket RV versus the automotive side. Maybe talk about driven brands.

Got it. And then uh just last question on guidance, Cadence.

Jason Lippert: I would just say, you know, we're not factoring the rate cuts into the, into the range. I think it's kind of steady state as we are right now. Certainly, if we get some rate cuts, that would be, that would be helpful. I mean, a lot of our, a lot of our growth that we're planning on the top line is gonna be predicated on market share gains and, and some of the other things we've talked about on the call. So is that helpful?

Thing we should know about modeling, down to the bottom line for the first quarter.

Speaker #4: Yeah, I think that some of oh, go ahead.

Speaker #3: I'm sorry. Go ahead. No, you're good. Yeah, go ahead. Sorry.

yeah, so Scott, if you think about the first quarter, I think January is pretty indicative of

Speaker #4: I was just going to say that some of the headwinds on the aftermarket side are related to pricing on the auto aftermarket side. So we have pricing cycles.

Bret Jordan: Yeah, yeah. Thank you. And I guess staying on the 2026 guide here, can you help us bridge the difference between 2026 and what maybe a potential quote-unquote normal run rate looks like, I guess between the COVID highs and the post-COVID lows? You know, where do you expect to settle in during a more normal cycle?

Speaker #4: That's typically January and April. So, when you look at fourth quarter, some of our numbers on the profitability side were held up a little bit there.

Speaker #4: But all those increases due to the tariffs, and all the other related inflation that we had last year, will come in the next couple of quarters.

Uh, operating margin will will step into that as we go through the year.

That helpful, gotcha.

Speaker #4: But all in all, like we said, our aftermarket side of our business is doing well. We’ve got new products, new market share, and we’re continuing to gain steam on the RV side.

Jason Lippert: Yeah, I think, you know, when you look at the past cycles, I mean, we're kind of... It is, as I say to a lot of people, we, you know, we went up to such a monster high that when we came down to, you know, half of the 600 down to 300, you know, the things broke into a lot of pieces. So I think we're gonna be picking those pieces up for a while. It's been 3 years. I think it's gonna be, you know, slow coming out of the cycle.

Yeah, very helpful. Thank you so much.

Speaker #4: And then, as we said, we've got some really big opportunities on the automotive aftermarket side with a bankruptcy of announcement of first brands and what they're going through.

Thank you. The next question comes from. Daniel Moore of CJs Securities. Your line is now, open. Please go back.

Speaker #4: A lot of pieces to pick up there for us.

Speaker #3: Got it. And then, just last question on guidance and cadence—anything we should know about modeling down to the bottom line for the first quarter?

Jason Lippert: So, you know, obviously, if you look at our forecast for 2026 with units, you know, at a midpoint of 345 or 344, whatever the midpoint is of our range, it's, you know, we feel like we're coming out slow and, you know, we'll pick up more momentum next year as we get through more of this. But I think, you know, we would say that the midpoint is probably 375 to 415, somewhere in that range, in terms of what is more normalized for the near term. But, you know, as we've said on past calls over the years, and we feel like this is a 500,000 plus industry, but we got to get healthy before we get back to that.

Thank you. Good morning, Jason morning Lillian. Um good morning maybe go back to the first question a little bit um guidance you know kind of low to mid single digit growth for 26. Just talk about puts and takes um 1 you know kind of price versus volume.

Speaker #5: Yeah. So Scott, as you think about the first quarter, I think January is pretty indicative of what we're thinking that we're going to see from a year-over-year perspective.

Speaker #5: So we've started off with an improvement over last year, but it is only 4%. I think we're expecting that that's going to trend fairly consistently as we look at the quarter.

To expectations for Content gains. And then, you know how much revenue um is? Are you contemplating being, uh, kind of coming out of the bucket either deemphasized or discontinued? Um, either from consolidating facilities or kind of shedding low Mortgage in business?

Speaker #5: And when we think about the margin cadence going through the year, we're not going to start at the 7.5 to 8% operating margin. We'll step into that as we go through the year.

Speaker #5: Is that helpful?

Speaker #3: Gotcha. Yeah, very helpful. Thank you so much.

[Analyst] (CJS Securities): Great. That's all for us. Thanks, guys.

Bret Jordan: Great. That's all for us. Thanks, guys.

Jason Lippert: Thanks.

We're looking at, you know, that potential range going into this year, you know, from an organic growth perspective. You know, we've talked before around that 3%, organic growth. I'd expect that we continue to see that as we move through 2026.

um,

Operator: Thank you. The next question comes from Scott Stember of Roth Capital. Your line is now open. Please go ahead.

Speaker #1: Thank you. The next question comes from Daniel Moore of EJS Securities. Your line is now open. Please go ahead.

Scott Stember: Good morning, and thanks for taking my questions as well.

Speaker #6: Thank you. Good morning, Jason. Good morning, Lillian.

Speaker #4: Good morning.

Jason Lippert: Yes, Scott.

Speaker #6: Maybe go back to the first question a little bit. Guidance kind of low to mid-single-digit growth for '26. Just talk about puts and takes.

Scott Stember: Jason, just wanted to, you know, early in the year, we're hearing of, you know, trade up activity, mix shift towards higher priced units, and obviously, we're seeing that in your results already. What are you hearing through your various touch points, at retail? Just trying to get a sense if that narrative is continuing as we enter the selling season.

Speaker #6: One, kind of price versus volume. Two, expectations for content gains. And then how much revenue is are you contemplating being kind of coming out of the bucket, either de-emphasized or discontinued either from consolidating facilities or kind of shedding low-margin business?

Excuse me, probably less. So from a pricing perspective and more. So from that market share expansion, um, I think we've shared previously in the third quarter, call that we're looking at maybe 75 million of potential Devastators of that lower margin product. So that could be 1 of the the takes from the growth um and then you know, modest expansion across the markets, you know flat to modest expansion is is we highlighted in the prepared remarks. So definitely put some takes

Jason Lippert: Yeah. Yeah, I think, you know, there's a lot going on out there on the retail side of things. I would say that there, you know. I've been and sat with and talked to a handful of the larger dealers lately. The larger dealers seem to be doing decent, but I think that there's a lot of small and mid-sized dealers that are struggling. I think everybody's struggling on the margin side. But I think, you know, everybody's being very disciplined. We had some weather. You know, I'd heard that Camping World had, as well as some other stores had, you know, 45 to 60 stores that were down for a couple of days because of weather. So, you know, we have that kind of thing going on this time of year.

Speaker #5: Yeah, good morning, Dan. Definitely a lot of puts and takes as we're looking at that potential range going into this year. From an organic growth perspective, we've talked before around that 3% organic growth.

Speaker #5: I'd expect that we'd continue to see that as we move through 2026. Excuse me. Probably less so from a pricing perspective and more so from that market share expansion.

Speaker #5: I think we shared previously in the third quarter call that we're looking at maybe $75 million of potential divestitures of that lower-margin product. So that's going to be one of the takes.

Jason Lippert: But I think the big guys are doing okay. Some of the smaller guys and mid-sized guys are struggling. And I think that's what, you know, gets us to our forecast of that, you know, 335 to 350. It just feels like things are moving slowly and hopefully we get some, you know, some stronger retail numbers as we get into the selling season this year.

Speaker #5: From the growth. And then modest expansion across the markets, flat to modest expansion as we highlighted in the prepared remarks. So definitely puts and takes.

Um, but feeling good as we're starting the year and then I would just add that, you know, our our expectation is continued continued, content growth. Obviously we had a nice content growth year this past year, but you know I look at you know, last year was a tough Market. We you know, we grew 380 million dollars in that market, some through m&a and and through organic growth and market share gains. Um, you know, we we expanded our margin during that time, we can salvage the facilities, uh, to the tune of 5 facilities, which helped and we've got that momentum carrying on into this year, you know, with another 8 to 10 facilities. Well, we, we, again, expect a little bit of growth, flat to a little bit of growth and all of our markets, maybe a little bit more in aftermarket given some of the things going on there. But I think when you look at, you know, the the growth that we had last year, um, significant growth and a really tough market, and we're continuing that this year, we've even some more um, more ability to to improve our cost structure. I think it's a, it's a really, really good position.

We're entering 26.

Speaker #5: But feeling good as we're starting the year.

Speaker #6: And then I would just add that our expectation is continued content growth. Obviously, we had a nice content growth year this past year. But I look at last year as a tough market.

Scott Stember: Got it. And then, looking at the aftermarket, you called out the RV side, I guess, doing better, and that was. If you look at the profit for aftermarket as well, it looked like it was a little bit lower. Maybe just talk about on the aftermarket RV versus the automotive side, maybe talk about European brands, you know, bankruptcy a bit more.

Speaker #6: We grew 380 million dollars in that market, some through M&A and through organic growth and market share gains. We expanded our margin during that time.

In really helpful, um, maybe just following up on the last question. Looking at q1, you know, the full year guide implies 70 to 120 bits of operating margin expansion. Um, I think last year was around 7%, uh, or 7.8%. If I'm not mistaken adjusted operating income. Um, you know, just how are we thinking about kind of year-over-year growth? Uh, it it as far as, uh, you know, op op margin for the first quarter, given weather and some of the other issues.

Jason Lippert: Yeah, I think that, you know, some of - Oh, go ahead.

Speaker #6: We consolidated facilities to the tune of five facilities, which helped. And we've got that momentum carrying on into this year with another 8 to 10 facilities while we, again, expect a little bit of growth, flat to a little bit of growth in all of our markets, maybe a little bit more in aftermarket given some of the things going on there.

Scott Stember: I'm sorry. Go ahead.

Jason Lippert: Finish up.

Yeah, I'd say probably less of a year-over-year growth from an operating margin perspective.

Scott Stember: Got it. Yeah, go ahead. Sorry.

Jason Lippert: I was just going to say that, you know, some of the headwinds on the aftermarket side related to the pricing on the auto aftermarket side. So, you know, we have pricing cycles that's typically January and April. So when you look at fourth quarter, some of our numbers on the profitability side were held up a little bit there, but all those, you know, all those increases due to, you know, the tariffs and all the other related inflation that we had last year will come, you know, in the next couple of quarters. But all in all, like we said, our aftermarket side of our business is doing well. We've got new products, new market share. We're continuing to gain steam on the RV side.

Um more as we get um into the latter part of the year to get us to that 7 and a half to 8. Uh, 8% margins. Um,

Speaker #6: But I think when you look at the growth that we had last year, significant growth in a really tough market, and we're continuing that this year with even some more ability to improve our cost structure, I think it's a really good position.

Yeah, so I mean I think first quarter is going to look very similar to the operating margins that you saw in in the first couple quarters of last year.

Speaker #6: We're entering '26 in. Really helpful. Maybe just following up on the last question. Looking at Q1, the full-year guide implies 70 to 120 bips of operating margin expansion.

Jason Lippert: Then, as we said, we've got some really big opportunities on the automotive aftermarket side with the bankruptcy announcement of First Brands and what they're going through. A lot of pieces to pick up there for us.

Speaker #6: I think last year was around 7% or 7.8%, if I'm not mistaken, adjusted operating income. Just how are we thinking about kind of year-over-year growth as far as op margin for the first quarter, given weather and some of the other issues?

Very helpful. Um, and then um, just going back to, you know, kind of the aftermarket opportunity. You you talked about, you know, a million and a half units coming into the age of repair in the next 1 to 3 years. Um, how do you think about kind of that aftermarket business you gave color for this year? How do you think about that ramping? Um, you know, as over over the next 2 to 3 years and and what are your kind of near-term and longer term? Operating margin goals, in that business. Thanks again for caller.

Scott Stember: Got it. And then, just last question on guidance cadence. Anything we should know about modeling down to the bottom line for the first quarter?

Speaker #5: Yeah. I'd say probably less of a year-over-year growth from an operating perspective. More as we get into the latter part of the year to get us to that 7.5 to 8% margin.

Lillian Etzkorn: Yeah. So, Scott, if you think about the Q1, I think January is pretty indicative of what we're thinking that we're going to see from a year-over-year perspective. So, you know, we started off with an improvement over last year, but it is only 4%. I think we're expecting that that's going to trend fairly consistently as we look at the quarter. And when we think about the margin cadence going through the year, we're not going to start at, you know, the 7.5% to 8% operating margin. We'll step into that as we go through the year. Is that helpful?

Yeah, I think I think when it comes to those, those units coming into the repair and replacement cycle, again, a lot of those, a lot of those parts on those units that come in to repair and replacement are proprietary. They, they need to use our parts.

Speaker #5: Yeah. So, I mean, I think first quarter is going to look very similar to the operating margins that you saw in the first couple of quarters of last year.

Speaker #6: Very helpful. And then just going back to kind of the aftermarket opportunity, you talked about a million and a half units coming into the age of repair in the next one to three years.

Scott Stember: Gotcha. Yeah, very helpful. Thank you so much.

Speaker #6: How do you think about that kind of aftermarket business? You gave color for this year. How do you think about that ramping over the next two to three years?

Operator: Thank you. The next question comes from Daniel Moore of EJS Securities. Your line is now open. Please go ahead.

Speaker #6: And what are your kind of near-term and longer-term operating margin goals in that business? Thanks again for the color.

[Analyst] (CJS Securities): Thank you. Good morning, Jason. Morning, Lillian.

Daniel Moore: Thank you. Good morning, Jason. Morning, Lillian.

Jason Lippert: Morning.

[Analyst] (CJS Securities): Maybe go back to the first question a little bit. Guidance, you know, kind of low to mid single digit growth for 2026. Just talk about puts and takes, one, you know, kind of price versus volume, two, expectations for content gains, and then, you know, how much revenue are you contemplating being, kind of coming out of the bucket, either de-emphasized or discontinued, either from consolidating facilities or kind of shedding low margin business?

Daniel Moore: Maybe go back to the first question a little bit. Guidance, you know, kind of low to mid single digit growth for 2026. Just talk about puts and takes, one, you know, kind of price versus volume, two, expectations for content gains, and then, you know, how much revenue are you contemplating being, kind of coming out of the bucket, either de-emphasized or discontinued, either from consolidating facilities or kind of shedding low margin business?

Speaker #4: Yeah. I think when it comes to those units coming into the repair and replacement cycle, again, a lot of those a lot of those parts on those units that come into repair and replacement are proprietary.

Speaker #4: They need to use our parts. So all we know is we're getting closer and closer to when those units start to really flow into the dealers for service.

Speaker #4: So we've seen a little bit of that over the last couple of years, but we expect it to grow. Like I said, there's a lot of units out there that need that we'll need to come back into the repair and replacement cycle.

We just have a lot of opportunity on just share gains through, you know, the first Brands issue, um, lots of pitch and towing and electrical business that's just going to be sitting out there, uh, alphabet. And and we're, you know, we're likely candidate there for that business. Um, just because there's really, there's really only been 2 strong players in that market over the last decade. And it's a, it's a high barrier to entry is business. I mean, you've got to have, you know, significant engineering and design built up to cover Automobiles and and trucks that that go back, 30 years to for fit and finish on the the hitch and and towing aspects. Um, and then obviously, when we we get to a situation like this, we've got a little bit more margin opportunity and controlled than what we would have. Uh what we would if there were, you know, were more players. So um I I think our aftermarket margins will stay pretty steady. Um, you know, little, I don't know if you have any other color there. Yeah, the only other thing I would add to that. Dan is

Lillian Etzkorn: Yeah. Good morning, Dan. Definitely a lot of puts and takes as we're looking at, you know, that potential range going into this year. You know, from an organic growth perspective, you know, we've talked before around that 3% organic growth. I'd expect that we continue to see that as we move through 2025. Excuse me, probably less so from a pricing perspective and more so from that market share expansion. I think we shared previously in the Q3 call that we're looking at maybe $75 million of potential divestitures of that lower margin product. So that's going to be one of the takes from the growth. And then, you know, modest expansion across the markets, you know, flat to modest expansion as we highlighted in the prepared remarks.

Speaker #4: And again, on the aftermarket side for automotive, we just have a lot of opportunity on just share gains through the first brand issue. Lots of pitch and towing and electrical business that's just going to be sitting out there out for bid.

Speaker #4: And we're likely a candidate there for that business just because there's really only been two strong players in that market over the last decade.

Speaker #4: And it's a high barrier to entry business. I mean, you've got to have significant engineering and design built up to cover automobiles and trucks that go back 30 years for fit and finish on the hitch and towing aspects.

Is keep in mind, we have been doing Investments investment into the aftermarket business really, to support the future expansion. So the the margins have been pressured from that. And in the near term, you're going to still see some of that pressure as we're investing in in the facility in Texas, as we're continuing to support the investment into the distribution aspects for aftermarket, but I think the longer term, you know, clearly we expect, you know, nice solid returns with the aftermarket business, just a little bit of near-term.

Term. Continuous Headway headwinds.

Perfect. I'll Circle back to any follow-ups. Thanks.

Thank you.

The next question comes from Joe Alto of Raymond James. Your line is now open. Please go ahead.

Speaker #4: And then, obviously, when we get into a situation like this, we've got a little bit more margin opportunity and control than what we would have what we would have there were more players.

Lillian Etzkorn: So definitely puts and takes, but feeling good as we're starting the year.

Jason Lippert: I would just add that, you know, our expectation of continued, continued content growth, obviously, we had a nice content growth year this past year. You know, I'd look at last year was a tough market. We, you know, we grew $380 million in that market, some through M&A, and through organic growth and market share gains. You know, we expanded our margin during that time. We consolidated facilities to the tune of five facilities, which helped. We've got that momentum carrying on into this year, you know, with another eight to 10 facilities. Well, we, again, expect a little bit of growth—flat to a little bit of growth in all of our markets, maybe a little bit more in aftermarket, given some of the things going on there.

Speaker #4: So I think our aftermarket margins will stay pretty steady. Lillian, I don't know if you have any other color there.

Speaker #5: Yeah. The only other thing I would add to that, Dan, is keep in mind we have been doing investment into the aftermarket business really to support the future expansion.

Thanks. Hey guys, good morning. Um, I guess, first question for you Jason, you know, your industry outlook for wholesale shipments, on the RV side is a little bit softer than what we talked about in late October. I'm just curious what you've seen over the last, you know, 3 and a half months or so that that makes you a little bit less sanguine on the industry this year.

Speaker #5: So the margins have been pressured from that. And in the near term, you're going to still see some of that pressure as we're investing in the facility in Texas, as we're continuing to support the investment into the distribution aspect for aftermarket.

Speaker #5: But I think longer term, clearly, we expect nice solid returns with the aftermarket business, just a little bit of near-term continued headwinds.

Jason Lippert: But I think when you look at, you know, the growth that we had last year, significant growth in a really tough market, and we're continuing that this year with even some more ability to improve our cost structure. I think it's a really, really good position we're entering 2026 in.

Yeah, like I said, I think there's there's just still a lot of pieces to pick up. There's still a lot of probably the biggest answer to your question there. She says, there's a lot of mid and small-sized dealers still out there. Um, a lot of those dealers are going through, uh, you know, the question of do they want to stick around? Do they want to sell to somebody bigger? Um, I think the, the bigger guys have have put the brakes on a little bit on in terms of acquisition of of some of these smaller dealerships. Um, so it just feels like there's a little bit of a log Jam up there until some of that gets sorted out.

Speaker #6: Perfect. I'll circle back with any follow-ups. Thanks.

Speaker #5: Thank you.

Speaker #1: The next question comes from Joe Altibello of Raymond James. Your line is now open. Please go ahead.

[Analyst] (CJS Securities): Really helpful. Maybe just following up on the last question, looking at Q1, you know, the full year guide implies 70 to 120 basis points of operating margin expansion. I think last year was around 7%, or 7.8%, if I'm not mistaken, the adjusted operating income. You know, just how are we thinking about kind of year-over-year growth, you know, op margin for the first quarter, given weather and some of the other issues?

Daniel Moore: Really helpful. Maybe just following up on the last question, looking at Q1, you know, the full year guide implies 70 to 120 basis points of operating margin expansion. I think last year was around 7%, or 7.8%, if I'm not mistaken, the adjusted operating income. You know, just how are we thinking about kind of year-over-year growth, you know, op margin for the first quarter, given weather and some of the other issues?

Speaker #7: Thanks. Hey, guys. Good morning. I guess the first question for you, Jason. Your industry outlook for wholesale shipments on the RV side is a little bit softer than what we talked about in late October.

Um, but, you know, we're taking a conservative approach. I mean, again, we we feel that the industry can be a lot better. Um, some of it, we just need some of the, the macro factors to, you know, come back and improve a little bit, um, but all in all, um, you know, we're, we're certainly coming off the bottom, we dropped a 300, went to 315 to 3,

Speaker #7: I'm just curious what you've seen over the last three and a half months or so that makes you a little bit less sanguine on the industry this year.

35 to 342 this year. So you know we're already seeing, you know, the the beginning portion of coming off the cycle. It's just a matter of how quickly it's going to ramp up and that depends on retail and you know, the overall uh dealer environment out there.

Speaker #4: Yeah, like I said, I think there's just still a lot of pieces to pick up. There's still a lot of—probably the biggest answer to your question there is just there's a lot of mid and small-sized dealers still out there.

Lillian Etzkorn: Yeah, I'd say probably less of a year-over-year growth from an operating margin perspective. More as we get into the latter part of the year to get us to that 7.5 to 8% margin. Yeah. So, I mean, I think Q1 is gonna look very similar to the operating margins that you saw in Q1 and Q2 of last year.

Speaker #4: A lot of those dealers are going through the question of do they want to stick around? Do they want to sell to somebody bigger?

Got it helpful. And maybe just in terms of the first quarter Outlook, I think you mentioned, um, you know, similar to what you saw in January, call it plus 4%. It's obviously a slow down from from 4 Q Plus 16% is, is that just a tougher compared or you're seeing other Dynamics playing out here, early in the first quarter?

Speaker #4: I think the bigger guys have put the brakes on a little bit in terms of acquisition of some of these smaller dealerships. So it just feels like there's a little bit of a log jam up there until some of that gets sorted out.

I think it's just a lot of dealer and oh yeah I'm disciplined at this point in time. Uh, I mean they're they're being as good as I've ever seen in terms of just, you know,

Speaker #4: But we're taking a conservative approach. I mean, again, we feel that the industry can be a lot better. Some of it is we just need some of the macro factors to come back and improve a little bit.

[Analyst] (CJS Securities): Very helpful. And then, just going back to, you know, kind of the aftermarket opportunity. You talked about, you know, 1.5 million units coming into the age of repair in the next 1 to 3 years.

Daniel Moore: Very helpful. And then, just going back to, you know, kind of the aftermarket opportunity. You talked about, you know, 1.5 million units coming into the age of repair in the next 1 to 3 years.

Speaker #4: But all in all, we're certainly coming off the bottom. We dropped to 300, went to 315 to 335 at 342 this year. So we're already seeing the beginning portion of coming off the cycle.

Jason Lippert: Mm-hmm.

[Analyst] (CJS Securities): How do you think about kind of that aftermarket business? You gave color for this year. How do you think about that ramping, you know, as over the next two to three years? And what are your kind of near-term and longer-term operating margin goals in that business? Thanks again for the color.

Daniel Moore: How do you think about kind of that aftermarket business? You gave color for this year. How do you think about that ramping, you know, as over the next two to three years? And what are your kind of near-term and longer-term operating margin goals in that business? Thanks again for the color.

Speaker #4: It's just a matter of how quickly it's going to ramp up. And that depends on retail and the overall dealer environment out there.

Pumping the brakes and making sure that we're not getting ahead of ourselves and putting inventory out there. That's just going to sit. So you know, a dealer is an oems are are ordering and building the right inventory. I feel better than I've ever seen. Um, and I think they're just waiting for, you know, waiting for the retail numbers to pop up. Shows have been good, tra traffics have been traffic, has been decent. Uh, there's there's no signs out there uh, that would Point otherwise that that it would be going the other way. So we do think it's, you know we should be you know up a little bit this year. Um but those are the those are some of the, the early indicators.

Jason Lippert: Yeah, I think when it comes to those units coming into the repair and replacement cycle, again, a lot of those parts on those units that come into repair and replacement are proprietary. They need to use our parts. So, you know, we all know is we're getting closer and closer to when those units start to really flow into the dealers for service. So, you know, we've seen a little bit of that over the last couple of years, but we expect it to grow. Like I said, there's a lot of units out there that will need to come back into the repair and replacement cycle.

Got it. Okay, thank you.

Speaker #7: Got it. Helpful. Maybe just in terms of the first quarter outlook, I think you mentioned similar to what you saw in January, call it plus 4%.

Yep.

Speaker #7: It's obviously a slowdown from Q4, plus 16%. Is that just a tougher compare, or are you seeing other dynamics playing out here early in the first quarter?

Thank you. The next question comes from Tristan Thomas Martin of BMO your line is now open. Please go ahead.

Hey, good morning.

Morning. Um,

Speaker #4: I think it's just a lot of dealer and, "Oh, yeah, I'm disciplined at this point in time." I mean, they're being as good as I've ever seen in terms of just pumping the brakes and making sure that we're not getting ahead of ourselves and putting inventory out there that's just going to sit.

Works out. Well, I want to follow up on on Joe's questions. Um so up a little bit of retail for the RV industry over here. Is that right?

Jason Lippert: And again, on the aftermarket side, for automotive, we just have a lot of opportunity on just share gains through, you know, the First Brands issue. Lots of hitch and towing electrical business that's just gonna be sitting out there, out for bid, and, you know, we're the likely candidate there for that business. Just because there's really only been two strong players in that market over the last decade, and it's a high barrier to entry business. I mean, you've got to have, you know, significant engineering design built up to cover automobiles and trucks that go back 30 years, for fit and finish on the hitch and towing aspects.

Speaker #4: So dealers and OEMs are ordering and building the right inventory, I feel, better than I've ever seen. And I think they're just waiting for the retail numbers to pop up.

Some of it's just going to depend on, you know, how the macro factors play out over the next the next months.

You know.

Speaker #4: Shows have been good. Traffic's have been decent. There's no signs out there that would point otherwise that it would be going the other way.

Okay. Um you know the Tariff environment not being here, this year will help significantly uh you know because pricing is a little bit more consistent. We can rely upon at the moment where we're at with things. So,

Speaker #4: So we do think it's we should be up a little bit this year. But those are the those are some of the early indicators.

Okay. Um and then just kind of on on the change your shipment. I'll I'll look I just want to summarize to make sure I'm understanding it correctly.

Speaker #7: Got it. Okay. Thank you.

But it just sounds like the dealers are just continuing to be maybe a little bit more hesitant than you thought to take on new inventory.

Speaker #4: Yep.

Speaker #1: Thank you. The next question comes from Tristan Thomas-Martin of BMO. Your line is now open. Please go ahead.

Jason Lippert: And then obviously, when we get to a situation like this, we've got a little bit more margin, opportunity, and control than what we would have if there were, you know, more players. So, I think our aftermarket margins will stay pretty steady. You know, Lillian, I don't know if you have any other color there.

Speaker #8: Hey, good morning.

Speaker #7: Good morning.

Speaker #8: Works out well. I want to follow up on Joe's questions. So up a little bit at retail for the RV industry year over year.

Speaker #8: Is that right?

Lillian Etzkorn: Yeah, the only other thing I would add to that, Dan, is, keep in mind, we have been doing investment into the aftermarket business, really to support this future expansion. So the margins have been pressured from that, and in the near term, you're gonna still see some of that pressure as we're investing in the facility in Texas, as we're continuing to support the investment into the distribution aspects for aftermarket. But I think, you know, longer term, you know, clearly we expect, you know, nice, solid returns with the aftermarket business. Just a little bit of near-term, continued headwinds.

Speaker #4: I think retail and wholesale stay pretty aligned this year. We'd love to see retail up again. I think some of it's just going to depend on how the macro factors play out over the next months.

I think they're just being, I just think they're being cautious right now. And again, we had some, you know, we had some significant other. I mean we always have weather in the North during this time of year. But you know, the weather was kind of spread out all over the place. Um, again, you know, some of the numbers I heard from some of the bigger dealers where they had multiple days of shutdowns and, you know, 50 to 60 stores across the country. Some of them, I mean, that's a, that's a big that's a, I mean, nobody can go in and buy RVs when you know, that many dealerships ships are shut down. So I think that, that that played a little bit of a role. Um, but ultimately, you know, we still feel optimistic that this year can be better than last year.

Speaker #8: Okay.

Speaker #4: The tariff environment not being here this year will help significantly because pricing's a little bit more consistent. We can rely upon at the moment where we're at with things, so.

Speaker #8: Okay. And then just kind of on the change to your shipment outlook, I just want to summarize to make sure I'm understanding it correctly.

Right. And then just kind of 1 more question. Can you give me a remind everybody? But the kind of typical RV trade-up cycle is from consumer standpoint and then maybe it could it be maybe a little bit quicker this time. Just because there's been a lot of really cheap smaller kind of low content. RVs that have been sold in the last couple years like

[Analyst] (CJS Securities): Perfect. I'll circle back with any follow-ups. Thanks.

Daniel Moore: Perfect. I'll circle back with any follow-ups. Thanks.

Speaker #8: So, it just sounds like dealers are continuing to be maybe a little bit more hesitant than you thought to take on new inventory?

Lillian Etzkorn: Thank you.

Operator: The next question comes from Joe Altobello of Raymond James. Your line is now open. Please go ahead.

Speaker #4: I think they're just being I just think they're being cautious right now. And again, we had some we had some significant weather. I mean, we always have weather in the north during this time of year, but the weather was kind of spread out all over the place.

Joseph Altobello: Thanks. Hey, guys. Good morning. I guess first question for you, Jason. You know, your industry outlook for wholesale shipments on the RV side is a little bit softer than what we talked about in late October. I'm just curious what you've seen over the last, you know, three and a half months or so that makes you a little bit less sanguine on the industry this year.

Yeah. Yeah, I think I think to your, to your point on the, on the more entry level stuff, especially the single axle product, you know, you're going to see quicker trade Cycles than you would on a, you know, a bigger motor motor home, or or larger Fit wheel. You know, we typically say that the trade in cycle 3 to 5 years,

Speaker #4: Again, some of the numbers I heard from some of the bigger dealers, where they had multiple days of shutdowns and 50 to 60 stores across the country—some of them.

Um, and a lot of that just will depend on the buyer and the type of unit that they have. So

um, you know, obviously you built a the industry built, a lot of those single axle trailers over the last

Speaker #4: I mean, that's a big I mean, nobody can go in and buy RVs when that many dealerships are shut down. So I think that that's played a little bit of a role.

Jason Lippert: Yeah, like I said, I think there's just still a lot of pieces to pick up. There's still a lot of, probably the biggest answer to your question there is just there's a lot of mid and small-sized dealers still out there. A lot of those dealers are going through, you know, the question of, do they want to stick around? Do they want to sell to somebody bigger? I think the bigger guys have put the brakes on a little bit, in terms of acquisition of some of these smaller dealerships. So it just feels like there's a little bit of a log jam up there until some of that gets sorted out. But, you know, we're taking a conservative approach. I mean, again, we feel that the industry can be a lot better.

You know, 5 years. So, you know, we we think that'll bode well for the industry as people start to think about, you know, continuing camping and you know, a bigger unit.

Speaker #4: But ultimately, we still feel optimistic that this year can be better than last year.

But we've seen some of that Improvement already with some of our content gains in the last few months. So

Yep, great. Thank you.

Speaker #8: Okay, and then just kind of one more question. Can you maybe remind everybody what the typical RV trade-up cycle is from a consumer standpoint?

Thanks Tristan.

Speaker #8: And then, maybe, could it be a little bit quicker this time, just because there's been a lot of really cheap, smaller, kind of low-content RVs that have been sold in the last couple of years?

The next question comes from Brandon role of loop capital. Your line is now open. Please go ahead.

Speaker #4: Yeah. Yeah. I think to your point, on the more entry-level stuff, especially the single-axle product, you're going to see quicker trade cycles than you would on a bigger motorhome or larger fifth wheel.

Jason Lippert: Some of it is we just need some of the, the macro factors to, you know, come back and improve a little bit. But all in all, you know, we're, we're certainly coming off the bottom. We dropped to $300, went to $315, to $335, to $342 this year. So, you know, we're already seeing, you know, the, the beginning portion of coming off the cycle. It's just a matter of how quickly it's gonna ramp up, and that depends on retail and, you know, the overall dealer environment out there.

Speaker #4: We typically say that the trade-in cycle is three to five years, and a lot of that just will depend on the buyer and the type of unit that they have.

Speaker #4: So, obviously, the industry built a lot of those single-axle trailers over the last five years. So, we think that'll bode well for the industry as people start to think about continuing camping and a bigger unit.

Good morning. Thank you for taking my questions. Uh, just first on affordability. Could you just talk about uh maybe affordability in the RV industry entering 2026 versus uh, maybe where we were last year and how that might overall uh have an impact on uh the industry's recovery. I think this is the first year pricing has started to come back up again but you know rate Relief really hasn't um been significant at least uh on the consumer side. So any comments there uh and how that might impact your uh pricing thank you.

Joseph Altobello: ... Got it. Helpful. And maybe just in terms of the first quarter outlook, I think you mentioned, you know, similar to what you saw in January, call it +4%. It's obviously a slowdown from Q4 +16%. Is that just a tougher compare, or are you seeing other dynamics playing out here early in the first quarter?

Speaker #4: But we've seen some of that improvement already with some of our content gains in the last few months, so.

Speaker #8: Okay. Great. Thank you.

Speaker #4: Thanks, Tristan.

Jason Lippert: I think it's just a lot of dealer and OEM discipline at this point in time. I mean, they're, they're being as good as I've ever seen in terms of just, you know, pumping the brakes and making sure that we're not getting ahead of ourselves and putting inventory out there that's just gonna sit. So, you know, dealers and OEMs are, are ordering and building the right inventory, I feel, better than I've ever seen. And I think they're just waiting for, you know, waiting for the retail numbers to pop up. Shows have been good, traffic has been decent. There's, there's no signs out there, that would point otherwise, that, that it would be going the other way. So we do think it's, you know, we should be, you know, up a little bit this year.

Speaker #1: The next question comes from Brandon Arole of Loop Capital. Your line is now open. Please go ahead.

Speaker #8: Good morning. Thank you for taking my questions. Just first, on affordability, could you just talk about maybe affordability in the RV industry entering 2026 versus maybe where we were last year and how that might overall have an impact on the industry's recovery?

Yeah, I think you know there's a lot of there's always a lot of pricing discussions going on. There's I think there's 2 big factors that usually weigh into how asps are going to and in any given year. And I think that the oems right now are are really focused on driving, those asps down through, you know, a lot of content realignment. Um, so there's there's been a lot of that going on since model change, uh, to try to stay focused on on bringing prices down. Uh, the only the only negative we have right now is just aluminum costs in general, are up. Um, so that's that's kind of a headwind for the industry. But, you know, is it a is it a near the the fiber 7 year? Hi there, so, um, but that'll come back down right now. It's a little bit of a headwind. There's a lot of aluminum and a lot of these RVs that are built. Um but you know we're working with

Speaker #8: I think this is the first year pricing has started to come back up again, but rate relief really hasn't been significant, at least on the consumer side.

Speaker #8: So any comments there? And how that might impact your pricing? Thank you.

Speaker #4: Yeah. I think there's a lot of there's always a lot of pricing discussions going on. I think there's two big factors that usually weigh into how ASPs are going to end in any given year.

Jason Lippert: But those are some of the early indicators.

Joseph Altobello: Got it. Okay, thank you.

Speaker #4: And I think that the OEMs right now are really focused on driving those ASPs down through a lot of content realignment. So there's been a lot of that going on since model change.

Jason Lippert: Yep.

Operator: Thank you. The next question comes from Tristan Thomas Martin of BMO. Your line is now open. Please go ahead.

Tristan Thomas-Martin: Hey, good morning.

Speaker #4: We try to stay focused on bringing prices down. The only negative we have right now is just aluminum costs in general are up, so that's kind of a headwind for the industry.

Jason Lippert: Morning.

Tristan Thomas-Martin: First, well, I wanna follow up on, on Joe's questions. So up a little bit at retail for the RV industry year-over-year, is that right?

Speaker #4: But it's at a near the 5 or 7-year high there. So but that'll come back down. Right now, it's a little bit of a headwind.

Jason Lippert: I think retail and wholesale pretty stay pretty aligned this year. We'd love to see retail up again. I think some of it's just gonna depend on, you know, how the macro factors play out over the next months, you know?

I think RVs and and and better shade.

Okay, great. Thank you.

Speaker #4: There's a lot of aluminum in a lot of these RVs that are built. But we're working with our customers like we always do on good, better, best philosophies.

Sure.

Tristan Thomas-Martin: Okay, um-

Jason Lippert: Tariff, so tariff, you know, the tariff environment not being here this year will help significantly, you know, because pricing's a little bit more consistent. We can rely upon, at the moment, where we're at with things, so.

Thank you. The next question comes from Kevin Condon of bed. Your line is now open. Please go ahead.

Speaker #4: And maybe a good is good enough, instead of them buying a 'best' type of product or a 'better' type of product component for their RV, to help bring pricing into better alignment for the consumer.

Tristan Thomas-Martin: Okay. And then just kind of on, on the change here, Jim, and, like, I just wanna summarize to make sure I'm understanding it correctly. So it just sounds like dealers are just continuing to be maybe a little bit more hesitant than you thought to take on new inventory?

Speaker #4: And then you've got the third lever, which is a lot of OEM discounting and dealers discounting to try to move product and keep product moving so it doesn't get stale out there.

Hi, good morning everyone. This is Kevin I'm for Craig at beard um was hoping to understand and unpack the margin guide a bit better uh just thinking the 70 to 120 basis points of improvement, wondering if you could uh comment on a rank order, some of the largest drivers of that, you know, being operating leverage on the top line growth.

Speaker #4: And I think that our industry does a better job than most industries. It managing those factors you look at the boat industry and they're kind of strapped by engine prices.

Jason Lippert: I think they're just being cautious right now. I just think they're being cautious right now. And again, you know, we had some significant weather. I mean, we always have weather in the north during this time of year, but, you know, the weather was kind of spread out all over the place. Again, you know, some of the numbers I heard from some of the bigger dealers, where they had multiple days of shutdowns and, you know, 50 to 60 stores across the country, some of them. I mean, that's a big. I mean, nobody can go in and buy RVs when, you know, that many dealerships are shut down. So I think that's played a little bit of a role. But ultimately, you know, we still feel optimistic that this year can be better than last year.

Do you expect favorable? Mix impact? You know, maybe the net incremental impact of tariffs, just how you're thinking about some of those buckets contributing to that. Um, 7 to 120 basis points, increase

well, I I'll

Speaker #4: The engine prices really haven't come down much since COVID, and boat prices are really high. There's not a lot the boat manufacturers can do because it's the largest ticket item for components that they buy for the boat.

I'll, I'll start on that Lily and chime in after, but I think, you know, 1 of the biggest things that I mentioned earlier, that we've got going for us, is just some of the consolidation efforts we have

Speaker #4: So I think RVs and in better shape.

Speaker #8: Okay. Great. Thank you.

Speaker #4: Sure.

And and restructuring, we have that we we we started early last year on um you know if you look at last year like I said we we we increased 380 million dollars and in in our Top Line um you know through our Acquisitions I think we acquired a thousand team members.

Speaker #1: Thank you. The next question comes from Kevin Condon of BED. Your line is now open. Please go ahead.

Tristan Thomas-Martin: Okay. And then just kind of one more question. Can you maybe remind everybody what the kind of typical RV trade-up cycle is from a consumer standpoint? And then maybe, could it be maybe a little bit quicker this time, just because there's been a lot of really cheap, smaller, kind of low-content RVs that have been sold in the last couple of years? Thanks.

Speaker #9: Hi, good morning, everyone. This is Kevin. I'm in for Craig at BED. I was hoping to understand and unpack the margin guide a bit better.

Speaker #9: Just thinking about the 70 to 120 basis points of improvement, I was wondering if you could comment on, or rank order, some of the largest drivers of that being operating leverage on the top-line growth.

Jason Lippert: Yeah. Yeah, I think to your point, on the more entry-level stuff, especially the single-axle product, you know, you're gonna see quicker trade cycles than you would on a bigger motor home or larger fifth wheel. We typically say that the trade-in cycle is 3 to 5 years, and a lot of that just will depend on the buyer and the type of unit that they have. You know, obviously, you built a, the industry built a lot of those single-axle trailers over the last 5 years. You know, we think that'll bode well for the industry as people start to think about continuing camping and a bigger unit.

We ended the year uh 400 team members up over the beginning of last year. So when you consider that, we grew 400 million dollars added a thousand team members and ended only 400 from where we started. I think that shows, you know, the, the power of some of the consolidation efforts that we're making um, around GNA and overhead. So that would probably be 1 of the bigger levers and obviously that continues.

Speaker #9: Do you expect favorable mix impact maybe the net incremental impact of tariffs? Just how you're thinking about some of those buckets contributing to that 70 to 120 basis points increase.

You know, ingested dramatic as fashion is last year because we're we're going to double, you know, we're going to nearly double the amount of consolidation, we're doing this year that we did last year.

for that Jason and

Um, Kevin building on that so.

Speaker #4: Yeah. Well, I'll start on that, Lillian, chime in after. But I think one of the biggest things that I mentioned earlier that we've got going for us is just some of the consolidation efforts we have and restructuring we have that we started early last year on.

Clearly, the consolidations are going to continue to benefit us when we think about, you know, kind of the range that we have out there part of what's still to be.

Speaker #4: If you look at last year, like I said, we increased $380 million in our top line. Through our acquisitions, I think we acquired 1,000 team members.

Jason Lippert: But we've seen some of that improvement already with some of our content gains in the last few months, so.

Speaker #4: We ended the year 400 team members up over the beginning of last year. So, when you consider that we grew $400 million, added 1,000 team members, and ended only 400 from where we started, I think that shows the power of some of the consolidation efforts that we're making.

Tristan Thomas-Martin: Yeah, great. Thank you.

Jason Lippert: Thanks, Tristan.

Operator: The next question comes from Brandon Rolle of Loop Capital. Your line is now open. Please go ahead.

Brandon Rollé: Good morning. Thank you for taking my questions. Just first, on affordability, could you just talk about maybe affordability in the RV industry entering 2026 versus maybe where we were last year, and how that might overall have an impact on the industry's recovery? I think this is the first year pricing has started to come back up again, but, you know, rate relief really hasn't been significant, at least on the consumer side. So any comments there, and how that might impact your pricing? Thank you.

Speaker #4: Around G&A and overhead. So that would probably be one of the bigger levers. And obviously, that continues in just a dramatic fashion as last year because we're going to double we're going to nearly double the amount of consolidations we're doing this year that we did last year.

Determined you know as as we go through the calendar is the timing of those consolidations um of those incremental 8 to 10. So we have the full year benefit of the 5 that we can consolidate last year which will benefit us throughout the year and then as we Cadence in the 8 to 10, which will not all happen. Obviously February 1st or March 1st until Cadence over the full year. That will also Drive efficiencies for 2026. Um additionally as we have um the incremental Revenue coming in you know we've typically guided and will continue to guide that incremental margins roughly 25% um our face, Our Fair assumptions as you're modeling so there's a benefit there.

Speaker #10: Yeah. Thanks for that, Jason. And Kevin, building on that, so clearly, the consolidations are going to continue to benefit us. When we think about kind of the range that we have out there, part of what's still to be determined as we go through the calendar is the timing of those consolidations.

Jason Lippert: Yeah, I think, you know, there's a lot of-- there's always a lot of pricing discussions going on. There's-- I think there's two big factors that usually weigh into how ASPs are gonna end in any given year, and I think that the OEMs right now are really focused on driving those ASPs down through, you know, a lot of content realignment. So there's been a lot of that going on since model change, to try to stay focused on bringing prices down. The only negative we have right now is just aluminum costs in general are up. So that's kind of a headwind for the industry, but, you know, it's at a near the five- or seven-year high there. But that'll come back down.

And really as Jason was saying we'll continue to drive overall operating efficiency. So you know, as as we're able to get more volume and more units through our manufacturing facilities, you have better efficiencies just in your fixed cost absorption as well. So it really is a multitude of factors there that contribute to us being able to deliver that margin expansion and frankly continuing us on that progression towards the double-digit margin which is what we've been talking about uh, reaching. So continued study progress towards that goal.

Speaker #10: Of those incremental 8 to 10. So we have the full-year benefit of the 5 that we consolidated last year, which will benefit us throughout the year.

Speaker #10: And then, as we cadence in the 8 to 10, which will not all happen, obviously, February 1st or March 1st. It'll cadence over the full year.

Speaker #10: That will also drive efficiencies for 2026. Additionally, as we have the incremental revenue coming in, we've typically guided and we continue to guide that incremental margins, roughly 25%, are fair assumptions as you're modeling.

I'm understood. Thanks. And then on the um, I think in the past you've disclosed a single axle mix of shipments uh was that a metric that you offered for Q4 and I just wonder your expectations for 2026 if if that's still a Tailwind. Um,

For the full year outlook.

Speaker #10: So there's a benefit there. And really, as Jason was saying, we'll continue to drive overall operating efficiencies. So as we're able to get more volume and more units through our manufacturing facilities, you have better efficiencies just in your fixed cost absorption as well.

Jason Lippert: Right now, it's a little bit of a headwind. There's a lot of aluminum in a lot of these RVs that are built. But, you know, we're working with our customers like we always do, on good, better, best philosophies. And, you know, maybe a good is good enough instead of them buying a best type of product or a better type of product, component for their RV to help bring pricing into, you know, better alignment for the consumer. And then you've got, you know, you've got the third lever, which is a lot of OEM discounting and dealers discounting to try to move product and keep product moving so it doesn't get stale out there. And I think that our industry does a better job than-...

Speaker #10: So it really is a multitude of factors there that contribute to us being able to deliver that margin expansion. And frankly, continuing us on that progression towards the double-digit margin which is what we've been talking about reaching.

Yeah, so for the fourth quarter, um we did we are providing it. It's in the um the presentation back from the very back of the appendix but the fourth quarter came in at about 21%. So, a little bit up from the third quarter so I think we're kind of bouncing around that 19 to 21%. Um, you know, fifth wheels were definitely still strong as as we reported. Um, I think it's yet to be determined for the full year for 2026 but that 19 to 21% feels kind of like an ambient level at this point. Yeah. And just to give you a little bit more color just for January. For example, uh, single axles were a little down

Speaker #10: So continued steady progress towards that goal.

Over last year, January, fifth wheels were up a little bit. So that's, you know, we're we're seeing that content move the right way for us and uh, we'll see how the rest of the year goes. That's just, you know, just a 1-month look. But

Speaker #9: Understood. Thanks. And then on the I think in the past, you've disclosed a single axle mix of shipments. Was that a metric that you offered for Q4?

Gotcha. Thanks so much for taking my question.

Jason Lippert: than most industries at managing those factors. You look at the boat industry and, you know, they're kind of strapped by engine prices. The engine prices really haven't come down much since COVID, and boat prices are really high, and there's not a lot the boat manufacturers can do because it's the largest ticket item for components that they buy for the boat. So I think RVs in better shape.

Yeah, thanks. Thank you.

Speaker #9: And I just wonder your expectations for 2026 if that's still a tailwind for the full-year outlook.

As a reminder to ask a question. Please press star. Followed by 1 on your telephone keypad now.

Speaker #10: Yeah. So for the fourth quarter, we are providing it. It's in the presentation deck from the very back of the appendix. But the fourth quarter came in at about 21%.

The next question comes from Mike Albanese of Benchmark. Your line is now open. Please go ahead.

Speaker #10: So a little bit up from the third quarter. So I think we're kind of bouncing around that 19 to 21 percent. Fifth wheels were definitely still strong as we reported.

Scott Stember: Okay, great. Thank you.

Brandon Rollé: Okay, great. Thank you.

Jason Lippert: Sure.

Operator: Thank you. The next question comes from Kevin Condon of Baird. Your line is now open. Please go ahead.

Speaker #10: I think it's yet to be determined for the full year for 2026. But that 19 to 21 percent feels kind of like an ambient level at this point.

Craig Kennison: Hi, good morning, everyone. This is Kevin. I'm for Craig at Baird. Was hoping to understand and unpack the margin guide a bit better. Just thinking the 70 to 120 basis points of improvement, wondering if you could comment on or rank order some of the largest drivers of that, you know, being operating leverage on the top-line growth. Do you expect favorable mix impact? You know, maybe the net incremental impact of tariffs, just how you're thinking about some of those buckets contributing to that, 70 to 120 basis points increase.

A quick follow-up on, uh, really the last question. If you could just comment again on RV, you know, product mix expectations. Obviously, some momentum in the fifth wheels here, I mean, do you see that more as, you know, dealers kind of right, sizing or or, or level setting inventory? Or, you know, is this more consumer-driven, you know, momentum, that, uh, you know, could continue,

Speaker #4: Yeah. And just to give you a little bit more color, just for January for example, single axles were a little down over last year, January.

well, I mean, we we we hope that the the um

Speaker #4: Fifth wheels were up a little bit. So that's we're seeing that content move the right way for us. And we'll see how the rest of the year goes.

Speaker #4: That's just a one-month look. But.

Speaker #9: Gotcha. Thanks so much for taking my question.

Speaker #4: Yeah. Thanks.

Speaker #10: Thank you.

Speaker #1: As a reminder to ask a question, please press star followed by one on your telephone keypad now. The next question comes from Mike Albanese of Benchmark.

Jason Lippert: Yeah, well, I'll start and let Lillian chime in after. But I think, you know, one of the biggest things, and I mentioned it earlier, that we've got going for us is just some of the consolidation efforts we have and restructuring we have that we started early last year on. You know, if you look at last year, like I said, we increased $380 million in our top line. You know, through our acquisitions, I think we acquired 1,000 team members. We ended the year 400 team members up over the beginning of last year.

Speaker #1: Your line is now open. Please go ahead.

Speaker #8: Yeah. Hey, good morning, guys. Thanks for taking my question. Just kind of a quick follow-up on really the last question. If you could just comment again on RV product mix expectations.

Speaker #8: Obviously, some momentum in the fifth wheels here. I mean, do you see that more as dealers kind of rightsizing or level-setting inventory? Or is this more consumer-driven momentum that could continue?

That mix right sizes. Back more toward not just fifth wheels but you know, higher contented trailers. Um, it's just healthier for the industry. And again we put it so much of that single axle product into the industry over the last 5 years. That, you know, eventually that that part of the market will get saturated, then people will start trading up in that mixed shift, will will happen. Hopefully a little bit more dramatically, but like I said, all I can tell you is January right now and, and kind of what we see, you know, in the the very, very near term which, you know, we've seen single axles drop a little bit over last year, same period. Uh but we'll increase a little bit over last year. Same period in January. Um, talk at the shows. Uh, the, the the high-end buyer is is there and you know, not not as impacted as some of the, you know, entry-level entry-level buyers.

A little bit more willing to to spend money. Um, so you know, that's that's where we're at right now.

Okay, thanks guys.

Jason Lippert: When you consider that we grew $400 million, added 1,000 team members, and ended only 400 from where we started, I think that shows, you know, the power of some of the consolidation efforts that we're making, you know, around G&A and overhead. That would probably be one of the bigger levers, and obviously, that continues, you know, in just as dramatic a fashion as last year because we're, we're gonna double, you know, we're gonna nearly double the amount of consolidations we're doing this year than we did last year.

Speaker #4: Well, I mean, we hope that the mix rightsizes back more toward not just fifth wheels, but higher contented trailers, it's just healthier for the industry.

Thank you, we have no further questions at this time, so I'd like to hand back to Jason for closing remarks.

Speaker #4: And again, we put so much of that single-axle product into the industry over the last five years that eventually that part of the market will get saturated, and then people will start trading up, and that mix shift will happen hopefully a little bit more dramatically.

Lillian Etzkorn: Yeah, thanks for that, Jason. And, Kevin, building on that, so clearly the consolidations are gonna continue to benefit us. When we think about, you know, kind of the range that we have out there, part of what's still to be determined, you know, as we go through the calendar, is the timing of those consolidations, of those incremental 8 to 10. So we have the full year benefit of the 5 that we consolidated last year, which will benefit us throughout the year. And then as we cadence in the 8 to 10, which will not all happen, obviously, 1 February or 1 March, it'll cadence over the full year, that will also drive efficiencies for 2026.

Speaker #4: But like I said, all I can tell you is January right now and kind of what we see in the very, very near term, which we've seen single axles drop a little bit over last year, same period.

Speaker #4: Fifth wheels increase a little bit. Over last year, same period in January. Talk at the shows that the high-end buyer is there and not as impacted as some of the entry-level buyers.

Yeah, again, thanks everybody for joining the call and again, against a really, tough backdrop, our performance. We feel has been very, very strong. Uh, we've got lots of good things uh, happening this year again. Even if the industry is flat to a little bit up, uh, we feel like we'll perform similar to last year and continue to, to make some of these consolidation efforts, pay off on the bottom line. So, thanks for joining the call. We'll talk to you next quarter. Thanks.

Cool, thank you all for joining. You may now disconnect your line.

Speaker #4: A little bit more willing to spend money. So that's where we're at right now.

Speaker #8: Okay. Thanks, guys.

Lillian Etzkorn: Additionally, as we have the incremental revenue coming in, you know, we've typically guided and will continue to guide that incremental margins, roughly 25%, are fair assumptions as you're modeling, so there's a benefit there. And really, as Jason was saying, we'll continue to drive overall operating efficiencies. So, you know, as we're able to get more volume and more units through our manufacturing facilities, you have better efficiencies just in your fixed cost absorption as well. So it really is a multitude of factors there that contribute to us being able to deliver that margin expansion and frankly, continuing us on that progression towards the double-digit margin, which is what we've been talking about reaching. So continued steady progress towards that goal.

Speaker #1: Thank you. We have no further questions at this time. So I'd like to hand back to Jason for closing remarks.

Speaker #4: Yeah, again, thanks, everybody, for joining the call. And again, against a really tough backdrop, our performance, we feel, has been very, very strong. We've got lots of good things happening this year.

Speaker #4: Again, even if the industry's flat to a little bit up, we feel like we'll perform similar to last year and continue to make some of these consolidation efforts pay off on the bottom line.

Speaker #4: So, thanks for joining the call. We'll talk to you next quarter. Thanks.

Craig Kennison: Understood. Thanks. And then on the, I think in the past, you've disclosed a single axle mix of shipments. Was that a metric that you offered for Q4? And I just wonder your expectations for 2026, if that's still a tailwind, for the full year outlook.

Lillian Etzkorn: Yeah. So for Q4, we are providing it. It's in the presentation deck in the very back of the appendix. But Q4 came in at about 21%, so a little bit up from Q3. So I think we're kind of bouncing around that 19% to 21%. You know, Fifth Wheels were definitely still strong as we reported. I think it's yet to be determined for the full year for 2026, but that 19% to 21% feels kind of like an ambient level at this point.

Jason Lippert: Yeah, yeah, and just to give you a little bit more color, just for January, for example, Single Axles were a little down over last year, January. Fifth Wheels were up a little bit. So that's, you know, we're, we're seeing that content move the right way for us, and, we'll see how the rest of the year goes. That's just, you know, just a one-month look, but...

Craig Kennison: Gotcha. Thanks so much for taking my question.

Jason Lippert: Yeah, thanks.

Lillian Etzkorn: Thank you.

Operator: As a reminder, to ask a question, please press star followed by one on your telephone keypad now. The next question comes from Mike Albanese of Benchmark. Your line is now open. Please go ahead.

Michael Albanese: Yeah. Hey, good morning, guys. Thanks for taking my question. Just kind of a quick follow-up on really the last question. If you could just comment again on RV, you know, product mix expectations. Obviously, some momentum in the Fifth Wheels here. I mean, do you see that more as, you know, dealers kind of right-sizing or level-setting inventory? Or, you know, is this more consumer-driven, you know, momentum that, you know, could continue?

Jason Lippert: Well, I mean, we hope that the mix right sizes back more toward not just fifth wheels, but, you know, higher content of trailers. It's just healthier for the industry. And again, we've put so much of that single axle product into the industry over the last five years that, you know, eventually that part of the market will get saturated, then people will start trading up, and that mix shift will happen hopefully a little bit more dramatically. But like I said, all I can tell you is January right now and kind of what we see, you know, in the very, very near term, which, you know, we've seen single axles drop a little bit over last year, same period. Fifth wheels increase a little bit over last year, same period in January.

Jason Lippert: Talk of the shows, the high-end buyer is there and, you know, not as impacted as some of the, you know, entry-level buyers. A little bit more willing to spend money. So, you know, that's where we're at right now.

Michael Albanese: Okay. Thanks, guys.

Operator: Thank you. We have no further questions at this time, so I'd like to hand it back to Jason for closing remarks.

Jason Lippert: Yeah, again, thanks, everybody, for joining the call. And again, against a really tough backdrop, our performance, we feel, has been very, very strong. We've got lots of good things happening this year. Again, even if the industry's flat to a little bit up, we feel like we'll perform similar to last year and continue to make some of these consolidation efforts pay off on the bottom line. So thanks for joining the call. We'll talk to you next quarter. Thanks.

Operator: This concludes today's call. Thank you all for joining. You may now disconnect your line.

Q4 2025 LCI Industries Earnings Call

Request a DemoDemo

LCII

LCI Industries

Earnings