LCI Industries (NYSE:LCII) shares rose over 2% in premarket trading Thursday after the supplier of recreational and transportation components delivered third-quarter earnings and revenue that topped analyst expectations, supported by broad-based demand growth and stronger margins.
The company reported adjusted earnings of $1.97 per share, well ahead of the $1.44 analyst consensus, while revenue climbed 13.2% year-over-year to $1.04 billion, beating forecasts of $963.75 million.
Diversification Drives Strong Results
Revenue growth was driven primarily by organic expansion in the RV OEM and Aftermarket divisions, along with $41.9 million in contributions from recent acquisitions. The operating profit margin improved to 7.3%, up 140 basis points from 5.9% in the same period last year.
President and CEO Jason Lippert praised the company’s strategic execution: “Our diversification strategy has continued to fundamentally contribute to our strong performance, as our team’s outstanding efforts resulted in 13% revenue growth, which drove strong margin expansion and a meaningful increase in adjusted earnings per share of 42%.”
Segment Performance
The OEM segment posted 15% growth in net sales to $790 million, led by a robust recovery in the RV OEM business, where sales increased 11% to $470.1 million.
The Adjacent Industries OEM division also delivered impressive results, with 22% year-over-year growth to $319.9 million, while the Aftermarket segment rose 7% to $246.5 million.
Outlook
Looking ahead, LCI Industries expects October 2025 net sales of around $380 million, representing a 15% year-on-year increase. Management also forecasts an 85-basis-point improvement in operating margin for full-year 2025 compared to 2024.
The company said the solid quarterly performance underscores the success of its diversification and operational optimization strategies, which have strengthened its position amid a gradual industry recovery.