LCI Industries (LCII) | Investment Case

1. Company Snapshot

1.a. Company Description

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally.It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket.The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories.

This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers.The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers.This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry.

The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016.LCI Industries was incorporated in 1984 and is based in Elkhart, Indiana.

Show Full description

1.b. Last Insights on LCII

LCI Industries' recent performance was driven by strong Q3 2025 earnings, with revenue growth of 13% and adjusted earnings per share increasing 42%. The company's diversification strategy has contributed to its success. A recent acquisition, Bigfoot Hydraulic Systems, expanded its product offerings. Institutional ownership remains high, with 99.7% of shares held by institutions. Additionally, World Investment Advisors purchased a new stake in the company, indicating growing investor interest. The company's leadership targets significant organic growth to $5 billion in revenue by 2027.

1.c. Company Highlights

Last Price	121.02
Change Percentage	0.02%
Open	120.75
Previous Close	120.99
Market Cap ( Millions)	2928
Volume	136387
Year High	123
Year Low	72.31
M A 50	103.52
M A 200	95.33

FCF Yield	10.58%
Dividend Yield	3.80%
ROE	13.03%
Debt / Equity	88.09%
Net Debt / EBIDTA	255.32%
Price To Book	2.17
Price Earnings Ratio	16.48
Price To FCF	9.46
Price To sales	0.73
EV / EBITDA	10.03

2. LCI Industries Posts Strong Q3 with 13% Revenue Growth

LCI Industries reported a robust third quarter with sales growth of 13% to over $1 billion, driven by a combination of volume uplift, optimization, and mix improvements. Operating margins also showed significant improvement, expanding 140 basis points year-over-year to 7.3%. The company's RV OEM net sales reached $470 million, up 11% year-over-year, while Adjacent Industries OEM net sales were $320 million, a 22% increase primarily due to acquisitions. Aftermarket net sales grew 7% year-over-year to $246 million. Earnings per share (EPS) came in at $1.97, beating estimates of $1.44. As noted by management, "The team has done a solid job mitigating the impact of tariffs through resourcing, vendor negotiations, and customer pricing."

Publication Date: Nov -10

                                    📋 Highlights
                                    Sales Growth:
                                                Revenues surged 13% to over $1 billion, driven by volume, mix, and $42 million from acquisitions.
Margin Expansion:
                                                Operating margins rose 140 bps to 7.3%, with 150 bps gross margin improvement expected for Q4.
RV OEM Performance:
                                                Net sales hit $470 million (+11%), boosted by higher-content fifth-wheel units and market share gains.
Shareholder Returns:
                                                $215 million returned year-to-date via dividends and buybacks, with $20 million from facility consolidations.
2025 Outlook:
                                                Anticipates 340,000–350,000 RV wholesale shipments and 7–8% operating margins by 2026.

                                

Segment Performance

The RV segment continued to show strength, with content expansion driving market share gains. Content per towable RV unit increased 6% year-over-year to $5,431. The aftermarket business, particularly in RV, continues to grow strongly, driven by new product launches and repair and replacement cycles. Adjacent Industries also saw significant growth, primarily due to acquisitions.

Outlook and Guidance

LCI Industries expects North American RV wholesale shipments in the range of 340,000 to 350,000 for 2025 and anticipates mid-teens year-over-year growth for the full fourth quarter. The company targets organic towable content growth of 3% to 5% annually and expects operating margins to reach 7% to 8% in 2026. Analysts estimate next year's revenue growth at 4.5%.

Valuation and Returns

With a P/E Ratio of 14.8 and an EV/EBITDA of 9.27, the company's valuation appears reasonable. The Dividend Yield stands at 4.23%, indicating a relatively attractive return for income investors. The company's Return on Equity (ROE) is 13.03%, and Return on Invested Capital (ROIC) is 7.14%, indicating a decent return on capital employed.

Operational Efficiency

The company has achieved significant productivity gains, with 50 fewer team members year-over-date and 1,000 more with acquisitions. Gross margin expansion is expected to be around 150 basis points, with a similar improvement in Q4. The company is also expecting more proceeds from future facility consolidations and sales.

3. NewsRoom

Congress Beat the Market Again—Here Are the 3 Stocks They Bought

Dec -01

Source: marketbeat.com

Analyzing LCI Industries (NYSE:LCII) & Pinewood Technologies Group (OTCMKTS:PINWF)

Dec -01

Source: defenseworld.net

First Look: CME outage, Black Friday shifts, AI job impact

Nov -28

Source: gurufocus.com

Analyzing China Yuchai International (NYSE:CYD) & LCI Industries (NYSE:LCII)

Nov -21

Source: defenseworld.net

LCI Industries to Participate in Upcoming Truist Conference

Nov -06

Source: businesswire.com

World Investment Advisors Takes Position in LCI Industries $LCII

Nov -05

Source: defenseworld.net

Critical Survey: EVgo (NASDAQ:EVGO) vs. LCI Industries (NYSE:LCII)

Nov -05

Source: defenseworld.net

LCI Industries (LCII) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Original Equipment Manufacturers

Expected Growth: 6.5%

LCI Industries' 6.5% growth as an Original Equipment Manufacturer (OEM) is driven by increasing demand for recreational vehicles, strategic acquisitions, and expansion into adjacent markets. Additionally, the company's focus on innovation, operational efficiency, and strong relationships with major OEMs contribute to its growth momentum.

Aftermarket

Expected Growth: 7.5%

LCI Industries' aftermarket segment growth of 7.5% is driven by increasing demand for recreational vehicles, rising consumer spending on outdoor activities, and the company's strategic acquisitions and partnerships. Additionally, the growing need for replacement parts and accessories, as well as the company's focus on digitalization and e-commerce, contribute to the segment's growth.

7. Detailed Products

Chassis and Chassis Components

LCI Industries provides a wide range of chassis and chassis components, including axles, frames, and suspension systems, designed for recreational vehicles, buses, and specialty vehicles.

Towables

LCI Industries offers a variety of towable products, including travel trailers, fifth-wheel trailers, and tent trailers, designed for outdoor recreation and adventure.

Motorized Recreation Vehicles

LCI Industries manufactures motorized recreation vehicles, including motorhomes, camper vans, and conversion vans, designed for comfort and adventure on the go.

Aftermarket Parts and Accessories

LCI Industries provides a wide range of aftermarket parts and accessories, including appliances, furniture, and hardware, designed for recreational vehicles and specialty vehicles.

Windows and Doors

LCI Industries manufactures a variety of windows and doors, including slide-out windows, entrance doors, and compartment doors, designed for recreational vehicles and specialty vehicles.

Thermal Insulation and Flooring

LCI Industries offers thermal insulation and flooring products, including foam insulation, vinyl flooring, and carpeting, designed for recreational vehicles and specialty vehicles.

8. LCI Industries's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LCI Industries is moderate, as there are alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for LCI Industries is low, as the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LCI Industries is moderate, as the company relies on a few large suppliers for its raw materials, but it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants for LCI Industries is low, as the industry has high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for LCI Industries is high, as the industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.47%
Debt Cost	4.72%
Equity Weight	60.53%
Equity Cost	11.07%
WACC	8.56%
Leverage	65.22%

11. Quality Control: LCI Industries passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

LCI

A-Score: 5.6/10

Value: 6.9

Growth: 5.8

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

Thor Industries

A-Score: 4.8/10

Value: 6.1

Growth: 4.0

Quality: 5.3

Yield: 4.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Brunswick

A-Score: 4.5/10

Value: 6.9

Growth: 4.8

Quality: 2.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Harley-Davidson

A-Score: 4.4/10

Value: 6.6

Growth: 4.0

Quality: 3.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Polaris

A-Score: 3.9/10

Value: 6.4

Growth: 2.6

Quality: 2.4

Yield: 7.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.82%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.56%

LCI Industries - US50189K1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LCII

1.c. Company Highlights

Higher Yield

Average Growth

Stable Momentum

Earnings Beats

Average Quality

Higher Growth

Revenues Beats

Medium Volatility

Revenues Miss

2. LCI Industries Posts Strong Q3 with 13% Revenue Growth

Segment Performance

Outlook and Guidance

Valuation and Returns

Operational Efficiency

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Original Equipment Manufacturers

Expected Growth: 6.5%

Aftermarket

Expected Growth: 7.5%

7. Detailed Products

Chassis and Chassis Components

Towables

Motorized Recreation Vehicles

Aftermarket Parts and Accessories

Windows and Doors

Thermal Insulation and Flooring

8. LCI Industries's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: LCI Industries passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

121.01$

Current Price

121.02$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA