On this page of StockholderLetter.com we present the latest annual shareholder letter from PATRICK INDUSTRIES INC — ticker symbol PATK. Reading current and past PATK letters to shareholders can bring important insights into the investment thesis.

 •  3/30/2026 Letter Continued (Full PDF)
 •  4/10/2023 PATK Stockholder Letter
 •  4/1/2024 PATK Stockholder Letter
 •  4/1/2025 PATK Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  PATK Benford's Law Stock Score = 70

PATK Shareholder/Stockholder Letter Transcript:

2025
Annual Report

Selected Financial Data
As of or for the Year Ended December 31,
($ in thousands except per share amounts)
2025
2024
$3,950,773
$3,715,683
$3,468,045
Gross profit
912,860
835,890
782,233
Warehouse & delivery expenses
177,969
155,821
143,921
Selling, general & administrative expenses
361,588
325,754
299,418
Operating income
275,989
258,040
260,200
Net income
135,056
138,401
142,897
3.90
4.11
4.33
3,076,174
3,020,954
2,562,448
1,300,889
1,332,188
1,038,125
1,184,297
1,128,366
1,045,337
329,414
326,841
408,672
1.67
1.50
1.27
Net sales
Diluted net income per common share
Total assets
Total debt
Shareholders    equity
Net cash provided by operating activities
Cash dividends paid per common share
2023
Investor Information
Net Sales ($ millions)
Net Income ($ millions)
Diluted Net Income per
Common Share
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
$3,951
$135
$3.90
Operating Cash Flow
($ millions)
Annual Dividends Per Share
Stock Price At December 31st
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
Annual Report     2025
$329
$1.67
$108.43

Dear Fellow
Shareholders,
Reflecting on 2025, I am incredibly proud of how our teams rose to meet a dynamic and often
unpredictable environment with resilience, creativity, and an unwavering commitment to our
customers. Their relentless focus on exceeding expectations inspired innovation and meaningful
product development, enabling Patrick to deliver 6% total net sales growth and generate
meaningful content gains across our Outdoor Enthusiast end markets.
Throughout the year, we continued to advance our longterm strategic initiatives, including our Advanced Product
Group and full solutions model, while accelerating the
development of our aftermarket platform through RecPro.
Together, these efforts underscore our commitment
to delivering value for shareholders, customers, and
employees alike.
    Innovation and Full Solutions Driving Content Growth:
Our team succeeded in gaining incremental content
across our Outdoor Enthusiast markets through
innovative new product offerings, expanded full
solutions capabilities, and an improving mix of highly
engineered products. Our full solutions platform
enables us to deliver greater innovation, individuality,
functionality, and efficiency to our customers. In 2025,
we acquired Medallion Instrumentation Systems,
Quality Engineered Services, and Egis Group,
enhancing our comprehensive marine electrical
solution and deepening our role as a trusted partner.
    Advanced Materials Leadership: Composite materials
hold key advantages for our customers relative to
many of the wood products being used today, and
as a market leader, we are well-positioned to benefit
from the shift in demand toward more sustainable
and durable materials. The acquisition of Elkhart
Composites further expanded our manufacturing
capabilities and technical expertise, while our
Advanced Product Group continues to collaborate
closely with customers to develop next-generation
composite solutions.
    Aftermarket: We accelerated our aftermarket platform
initiatives and formalized a unified channel strategy and
structure across the business. The team is identifying
white-space opportunities and acquisition candidates,
while continuing to develop exciting new products
for consumers and dealers. Our aftermarket business,
which has grown to approximately 10% of Patrick   s total
net sales, represents an increasingly material part of
our revenue mix, with positive margin implications for
the future. We welcomed Lillipad Marine to the Patrick
family in 2025, further strengthening our enthusiastfocused aftermarket portfolio.
    Investing in the Future: At Patrick, we are thinking
boldly about the future of AI and making prudent
investments in infrastructure at every level of
the organization. By leveraging advanced data
analytics and AI-enabled tools at the enterprise
and operational levels, we are enhancing efficiency,
improving visibility, and enabling more informed
strategic decision-making. On behalf of our
customers, we also debuted    The Experience   
at our design studio in Elkhart, Indiana.    The
Experience    is an industry-leading, full-scale
virtual design and reality solution that provides
actual scale modeling and product development,
elevating our collaboration with customers and
enhancing our ability to deliver differentiated
solutions.
    BETTER Together: United by our BETTER Together
philosophy, our people remain the foundation
of our success. We are committed to shaping a
culture that lasts by prioritizing the safety, wellbeing, and development of next generation
leaders. Our enthusiast spirit mirrors the passion
of our customers and the end markets we serve,
inspiring pride in our work and a relentless focus on
quality and innovation.
Our priorities remain unchanged: serving our
customers at the highest level, investing in organic
growth initiatives, pursuing accretive acquisitions, and
delivering long-term profitable growth. We remain
confident in our strategic direction, encouraged
by the operational momentum we have built, as we
remain focused on unlocking the full potential of
Patrick.
On behalf of the entire Patrick team, I thank you for
your continued support and commitment.
Andy L. Nemeth
Chairman and
Chief Executive Officer

2025
Highlights
NET INCOME
SALES
$4.0B
Annual Report     2025
$135M
OPERATING
CASH FLOW
$329M

    Net sales growth of 6% was driven by content
per unit gains and acquisitions, including our
increasing aftermarket presence.
    Patrick had approximately $168 million
remaining under its current share repurchase
authorization at the end of 2025.
    Allocated capital of $122 million toward the
acquisitions of Elkhart Composites, Medallion
Instrumentation Systems, Lillipad Marine,
Quality Engineered Services, and Egis Group.
The acquisitions bring new technology,
innovation, and capabilities to Patrick and
further deepen our strong leadership bench.
    Generated free cash flow (a non-GAAP
financial measure) of $246 million.
    At the end of 2025, net leverage was 2.6x,
down from 2.7x at the end of 2024.
    Returned $87 million to shareholders, including
$55 million in dividends, and share repurchases
of $32 million; Patrick   s Board of Directors
authorized an increase of 17.5% in our quarterly
cash dividend in the fourth quarter.
LIQUIDIT Y
STRATEGIC
CAPITAL
ALLO CATIONS
TO ACQUISITIONS, CAPEX, STOCK
REPURCHASES, AND DIVIDENDS
TO SHAREHOLDERS
FREE CASH FLOW
$246M
$818M
$292M

3/30/2026 Letter Continued (Full PDF)

 

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