Patrick Industries, Inc. (PATK): BCG Matrix [Dec-2025 Updated]

You're looking at Patrick Industries, Inc.'s (PATK) current portfolio health, and honestly, the picture is sharp: a clear split between high-flyers and businesses needing a decision as of late 2025. We've mapped their segments using the BCG Matrix, finding their RV Segment-a clear Star at 44% of Q3 net sales-is outrunning the market with 7% revenue growth, while the stable Housing business acts as a reliable Cash Cow contributing 30% of sales. Meanwhile, the small Powersports unit is clearly a Dog facing a revenue decline, but the Marine segment, despite being a Question Mark, is showing exciting 11% revenue growth that demands strategic investment to convert it. Dive in to see exactly where you should be focusing capital right now.

Background of Patrick Industries, Inc. (PATK)

You know Patrick Industries, Inc. (PATK) as a key component solutions provider, primarily serving the Outdoor Enthusiast and Housing markets. They've built their business on supplying parts for recreational vehicles (RV), marine products, powersports, and manufactured housing. Honestly, the company's headquarters are right there in Elkhart, Indiana, which is central to a lot of that industry.

Looking at the most recent numbers we have, which are from the third quarter of 2025, Patrick Industries showed some real staying power. Net sales for that quarter hit $976 million, marking a 6% jump compared to the same time last year. This growth is important because it happened even as the broader industry faced shipment declines; the company's strategy of diversification is definitely helping them navigate those choppy waters.

Here's the quick math on what drove that revenue increase for Q3 2025: it was a mix of solid organic growth and acquisitions, both contributing around 4% each, which managed to overcome a roughly 2% headwind from general industry trends. The trailing twelve months (TTM) revenue, as of that late 2025 reporting, stood at $3.87 Billion USD.

When you break down the business by end market, the RV segment remains the biggest piece of the pie. In Q3 2025, RV revenue grew 7% year-over-year to $426 million, making up about 44% of their total net sales for the quarter. While the Marine and Powersports segments faced revenue decreases in Q2, the Q3 report indicated higher revenue across all four primary end markets, suggesting they are successfully expanding content per unit through innovation and acquisitions, like the recent purchase of LilliPad Marine.

Still, you can't ignore the margin pressure you're seeing. For Q3 2025, operating income was $66 million, which is down from $74 million the year prior, pushing the operating margin down to 6.8% from 8.1%. Consequently, net income was $35 million, leading to diluted earnings per share (EPS) of $1.01, compared to $1.20 in Q3 2024. This shows that while they're growing the top line, profitability is definitely being squeezed right now.

On the balance sheet side, Patrick Industries maintains a strong liquidity position, which gives them flexibility. At the end of the third quarter, they reported total net liquidity of $779 million. Plus, management's confidence in their financial footing is clear: they just approved raising the quarterly cash dividend to $0.47 per share, up from $0.40, payable in mid-December 2025. Their total net leverage ratio was sitting at 2.8x.

Patrick Industries, Inc. (PATK) - BCG Matrix: Stars

You're looking at the segment of Patrick Industries, Inc. (PATK) that is clearly leading the pack, the one with the highest potential for future dominance. In the BCG framework, these are the Stars-businesses operating in high-growth markets where Patrick Industries currently holds a strong market position.

The Recreational Vehicle (RV) Segment is the definitive Star for Patrick Industries as of the third quarter of 2025. This segment is outperforming the broader market, which is the hallmark of a Star. While the overall RV wholesale industry experienced a contraction, Patrick Industries' components business within that segment continued to gain traction, which strongly suggests market share capture.

Here's a snapshot of the Q3 2025 performance that solidifies its Star status:

The fact that Patrick Industries' revenue grew by 7% in the third quarter of 2025 to reach $426 million while the RV wholesale industry saw its unit shipments decline by 2% is a powerful indicator of leadership. This outperformance is not just about volume; it's about value, too. The content Patrick embeds into each wholesale RV unit-what we call Content Per Unit (CPU)-grew 3% to $5,055 on a trailing twelve-month (TTM) basis. That CPU increase shows strong relative market share gains and solid pricing power, meaning customers are choosing Patrick's more valuable components.

This segment is definitely the primary engine for future growth at Patrick Industries, Inc. You want to keep investing here because the underlying market is projected to expand at a long-term compound annual growth rate (CAGR) of 8.15% through 2033. If Patrick Industries can maintain this market share momentum as the high-growth RV market eventually matures, this Star is definitely on the path to becoming a Cash Cow.

Key takeaways supporting the Star classification include:

• RV Segment sales accounted for 44% of total Q3 2025 net sales.
• Q3 2025 RV revenue was $426 million, a 7% year-over-year increase.
• The industry faced a 2% decline in wholesale unit shipments in Q3 2025.
• Content per unit increased 3% to $5,055 TTM.
• The underlying RV market has a projected long-term CAGR of 8.15%.

The strategy here is clear: invest heavily to maintain and grow that high market share in this expanding space. You need to fund the promotion and placement of these leading products to ensure they capture the lion's share of that 8.15% market growth.

Patrick Industries, Inc. (PATK) - BCG Matrix: Cash Cows

You're looking at the core stability of Patrick Industries, Inc. (PATK) portfolio, and right now, that stability is anchored in the Housing segment, specifically manufactured housing components. These are your classic Cash Cows: high market share in a mature, yet fundamentally necessary, market. They don't require massive promotional spending because the demand is structural, not speculative.

This segment is a leader that generates more cash than it consumes, funding the riskier ventures in the portfolio. For Patrick Industries, Inc., the numbers from the third quarter of 2025 clearly show this dependable performance. The segment contributed 31% of consolidated net sales in Q3 2025, demonstrating its significant, steady role in the overall revenue picture. Honestly, this is the engine room of the company.

The financial performance in the third quarter of 2025 was characterized by resilience, even as the underlying industry faced some volume pressure. The segment's revenue grew 1% year-over-year to $302 million. This growth, despite estimated manufactured housing wholesale unit shipments decreasing by 2% in the quarter, speaks volumes about Patrick Industries, Inc.'s entrenched supplier position and pricing power.

Here's a quick look at the key metrics that define this Cash Cow's strength as of Q3 2025:

The high content per manufactured housing unit of $6,682 is a key indicator of competitive advantage; it's up 2% year-over-year. This means Patrick Industries, Inc. is successfully embedding more of its products into each home built, which is exactly what you want from a market leader in a mature space. You're not just selling more volume; you're selling more value per unit.

The long-term outlook supports the strategy of maintaining this position passively, or 'milking' the gains, while investing only in efficiency improvements. The demand for affordable housing is the bedrock here. The underlying US manufactured housing market is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.4% through 2032. This moderate, stable growth prospect confirms the low-growth, high-share positioning required for a Cash Cow classification.

To maintain this status, the focus should be on operational excellence, not market expansion spending. You should be looking at investments that directly improve the margin on this existing revenue base. Consider infrastructure support that drives down the cost to serve, for example.

• Maintain current productivity levels through targeted capital expenditure.
• Focus on process automation to improve operating efficiency.
• Leverage the stable cash flow to fund Question Marks.
• Benefit from the underlying market CAGR of 5.4% through 2032.

Finance: draft 13-week cash view by Friday.

Patrick Industries, Inc. (PATK) - BCG Matrix: Dogs

The Powersports components segment at Patrick Industries, Inc. fits the profile of a Dog within the Boston Consulting Group Matrix. This classification stems from its position in a market characterized by low growth rates and the segment's relatively low market share contribution to the overall company revenue base, despite recent efforts to increase content per unit.

For the second quarter of 2025, the Powersports components business represented approximately 9% of Patrick Industries, Inc.'s total net sales, which for the quarter reached $1.05 billion. The segment's revenue for Q2 2025 was $96 million. This figure marked a 7% year-over-year decline compared to Q2 2024. This revenue contraction occurred even as the company reported achieving market share gains and a favorable shift in OEM attachment rates for premium utility vehicle content, which helped to partially mitigate the negative impact of the broader industry environment.

The underlying industry dynamics suggest limited upside potential for aggressive investment. The overall North American powersports market has been experiencing headwinds, with new and used sales showing declines, such as a -3.88% year-over-year decline in March 2025. Globally, while the market is projected to grow at a Compound Annual Growth Rate (CAGR) of 2.3% from 2025 to 2033, this low single-digit growth rate confirms the low-growth market characteristic assigned to this quadrant.

Here's a quick look at how the Powersports segment compared to Patrick Industries, Inc.'s other major segments in Q2 2025:

The strategic imperative for a Dog unit like this is not to pour capital into a turnaround that is unlikely to yield significant returns. Instead, the focus shifts to efficiency and cash preservation. For Patrick Industries, Inc., the approach involves:

• Maintaining profitability within the segment through disciplined cost management.
• Harvesting existing cash flow without committing to significant capital expenditure or expansion projects.
• Evaluating the long-term strategic fit, keeping divestiture as a potential option if market conditions do not improve or if capital can be better deployed elsewhere.

The management commentary suggests an awareness of this need for discipline, emphasizing capturing demand if it exceeds expectations while prioritizing acquisitions in other areas in late 2025 and 2026, rather than aggressive organic expansion in this specific low-growth area.

Patrick Industries, Inc. (PATK) - BCG Matrix: Question Marks

The Marine Segment at Patrick Industries, Inc. fits the Question Mark profile due to its high internal growth trajectory within an industry facing flat external demand, necessitating focused investment to capture market share.

This segment represents a high-growth internal story in what is characterized as a low-growth industry environment for unit volume. Strategic investment, including acquisitions, is the required action here to shift its position.

Segment revenue jumped 11% year-over-year to $150 million in the third quarter of 2025. This growth was explicitly driven by strategic acquisitions, including the completed purchase of LilliPad Marine, LLC, and an increase in content per unit.

This internal growth rate of 11% contrasts sharply with the external market reality: estimated wholesale powerboat industry unit shipments were reported as flat in the third quarter of 2025. This divergence highlights Patrick Industries, Inc.'s success in gaining share or increasing value capture despite stagnant volume.

The Marine Segment currently accounts for 15% of the company's consolidated net sales, which totaled $976 million in Q3 2025. The key investments focus on leveraging acquisitions and increasing the value captured from each unit sold.

Strategic acquisitions and the increase in content per unit are the primary levers Patrick Industries, Inc. is using to push this smaller segment toward a Star classification. The goal is to quickly increase market share before the high-growth internal story stalls and the unit becomes a Dog.

• Segment revenue growth: 11%
• Industry unit shipment growth: 0% (Flat)
• Trailing Twelve Month Content Per Unit: $4,091
• Investment driver: Acquisition of LilliPad Marine, LLC
• Segment revenue contribution: 15% of total sales

The estimated marine content per wholesale powerboat unit on a trailing twelve-month basis reached $4,091, marking a 4% increase compared to the prior year period. On a quarterly basis, content per unit increased 10% year over year. Finance: draft investment allocation plan for Marine Segment by end of Q4 2025.