Financial Analysis

"COMMITMENTS AND CONTINGENCIES Holdback Payments and Contingent Consideration From time to time, the Company finances a portion of its business combinations with deferred acquisition payments (""holdback payments"") and/or contingent earnout provisions. Holdback payments are accrued at their discounted present value. As required, the liability for contingent consideration is measured at fair value quarterly, considering actual sales of the acquired products, updated sales projections, and the updated market participant weighted average cost of capital. Depending upon the weighted average costs of capital and future sales of the products which are subject to contingent consideration, the Company could record adjustments in future periods. See Note 4 - Acquisitions, Goodwill and Other Intangible Assets for information on certain holdback payments. Contingent consideration balances were not material at December 31, 2025 and 2024. Product Recalls From time to time, the Company cooperates with and assists its customers on their product recalls and inquiries, and occasionally receives inquiries directly from the National Highway Traffic Safety Administration regarding reported incidents involving the Company's products. As a result, the Company has incurred expenses associated with product recalls from time to time and may incur expenditures for future investigations or product recalls. Environmental The Company's operations are subject to certain Federal, state, and local regulato …

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"RETIREMENT AND OTHER BENEFIT PLANS Defined Contribution Plan The Company maintains a discretionary defined contribution 401(k) profit sharing plan covering all eligible employees. The Company contributed $12.5 million, $11.6 million, and $12.1 million to this plan during the years ended December 31, 2025, 2024, and 2023, respectively. Deferred Compensation Plan The Company has an Executive Non-Qualified Deferred Compensation Plan (the ""Plan""). Pursuant to the Plan, certain management employees are eligible to defer all or a portion of their regular salary and incentive compensation. Participants deferred $0.9 million, $0.4 million, and $2.6 million during the years ended December 31, 2025, 2024, and 2023, respectively. The amounts deferred under this Plan are credited with earnings or losses based upon changes in values of the notional investments elected by the Plan participants. Each Plan participant is fully vested in their deferred compensation and earnings credited to his or her account as all contributions to the Plan are made by the participant. The Company is responsible for certain costs of Plan administration, which are not significant, and will not make any contributions to the Plan. Pursuant to the Plan, payments to the Plan participants are made from the general unrestricted assets of the Company, and the Company's obligations pursuant to the Plan are unfunded and unsecured. Participants withdrew $2.6 million, $2.9 million, and $5.0 million from the Plan durin …

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"LONG-TERM INDEBTEDNESS Long-term debt consisted of the following at December 31: (In thousands) 2025 2024 2030 Convertible Notes $ 460,000 $ 2026 Convertible Notes 92,000 460,000 Term Loan 397,005 280,000 Revolving Credit Loan 19,263 Other 9,062 1,588 Unamortized deferred financing fees (12,882) (3,598) 945,185 757,253 Less current portion (3,683) (423) Long-term indebtedness $ 941,502 $ 756,830 Credit Agreement The Company and certain of its subsidiaries are party to a credit agreement dated March 25, 2025 with JPMorgan Chase, N.A., as a lender and administrative agent, and other bank lenders, which was amended by an Amendment No. 1 dated September 26, 2025 (""Amendment No. 1"" and the credit agreement as amended, the ""Credit Agreement""). The Credit Agreement provides for a $600.0 million revolving credit facility (of which up to $50.0 million is available for the issuance of letters of credit (the ""LC Facility"") and up to $400.0 million is available in approved foreign currencies). The Credit Agreement also provides for term loans (the ""Term Loans"") to the Company in an aggregate principal amount of $400.0 million. The maturity date of the Term Loans is March 25, 2032 and the maturity date of the revolving credit facility is March 25, 2030 or, if earlier, the date that is 91 days prior to the scheduled maturity date of any 2030 Convertible Notes outstanding at any such time or the date on which the revolving commitments are reduced to zero or otherwise terminated. Th …

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Net sales by OEM Segment product were as follows for the years ended December 31: (In thousands) 2025 2024 2023 OEM Segment: Chassis, chassis parts, and slide-out mechanisms $ 895,486 $ 811,607 $ 785,158 Windows and doors 882,799 838,530 851,761 Furniture and mattresses 501,435 404,021 464,113 Axles, ABS, and suspension solutions 316,877 306,760 313,224 Appliances 310,098 251,503 215,630 Other 282,958 248,029 273,856 Total OEM Segment net sales 3,189,653 2,860,450 2,903,742 Total Aftermarket Segment net sales 932,364 880,758 881,066 Total net sales $ 4,122,017 $ 3,741,208 $ 3,784,808

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INCOME TAXES The components of earnings before income taxes consisted of the following for the years ended December 31: (In thousands) 2025 2024 2023 United States $ 255,957 $ 195,866 $ 92,679 Foreign (888) (6,528) (9,675) Total earnings before income taxes $ 255,069 $ 189,338 $ 83,004 The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31: (In thousands) 2025 2024 2023 Current: Federal $ 40,179 $ 45,922 $ 15,454 State and local 6,727 6,887 1,752 Foreign 4,031 735 (464) Total current provision 50,937 53,544 16,742 Deferred: Federal 15,918 (2,249) 5,824 State and local 3,537 (425) 824 Foreign (3,573) (4,399) (4,581) Total deferred provision (benefit) 15,882 (7,073) 2,067 Provision for income taxes $ 66,819 $ 46,471 $ 18,809 The Company had cash and cash equivalents of approximately $222.6 million and $165.8 million at December 31, 2025 and 2024, respectively, of which approximately 15 percent and 11 percent was held by subsidiaries in foreign countries. The Company examined the potential liabilities related to investments in foreign subsidiaries and concluded that there are no material deferred tax liabilities that should be recorded. The provision for income taxes differs from the amount computed by applying the federal statutory rate of 21 percent for 2025 to income before income taxes for the reasons detailed in the table below. Due to the adoption of ASU 2023-09, Income Taxes (Topic 740): Improvements to Incom …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The components of lease cost were as follows for the years ended December 31: (In thousands) 2025 2024 2023 Operating lease cost $ 71,275 $ 64,343 $ 61,247 Short-term lease cost 3,039 3,587 4,969 Variable lease cost 4,291 4,180 4,312 Total lease cost $ 78,605 $ 72,110 $ 70,528 At December 31, 2025, the Company's operating leases had a weighted-average remaining lease term of 7.9 years and a weighted-average discount rate of 7.0 percent. Cash Flows Right-of-use assets of $96.9 million, $29.6 million, and $44.5 million were recognized as non-cash asset additions that resulted from new operating lease obligations during the years ended December 31, 2025, 2024, and 2023, respectively, which included $15.5 million, $5.5 million, and $0.4 million of right-of-use assets from acquisitions, respectively. Cash paid for amounts included in the present value of operating lease obligations and included in cash flows from operations was $63.2 million, $59.6 million, and $55.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. Future minimum lease payments under operating leases as of December 31, 2025 were as follows: (In thousands) Year Ending December 31, 2026 $ 62,286 2027 54,266 2028 49,318 2029 43,247 2030 36,471 Thereafter 135,371 Total future minimum lease payments 380,959 Less interest (90,738) Present value of operating lease liabilities $ 290,221

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"Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In December 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which is intended to improve the navigability of the guidance in Accounting Standards Codification 270, Interim Reporting, and clarify when it applies. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosures requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which removes all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project; and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This ASU …

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"SEGMENT REPORTING The Company has two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant. The OEM Segment, which accounted for 77 percent, 76 percent, and 77 percent of consolidated net sales for the years ended December 31, 2025, 2024, and 2023, respectively, manufactures and distributes a broad array of highly engineered components for the leading OEMs in the recreation and transportation markets, consisting of RVs and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. Approximately 54 percent, 53 percent, and 47 percent of the Company's OEM Segment net sales in 2025, 2024, and 2023, respectively, were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for 23 percent, 24 percent, and 23 percent of consolidated net sales for each of the years ended December 31, 2025, 2024, and 2023, respectively, supplies engineered components to the related aftermarket channels of the recreation and transportation markets, primarily through retail dealers, wholesale distributors, and service centers, as well as direct-to-consumer sales through online platforms. The Aftermarket Segment also includes biminis, covers, buoys, and fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, tankless water heaters, and t …

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"STOCKHOLDERS' EQUITY The following table summarizes information about shares of the Company's common stock at December 31: (In thousands) 2025 2024 Common stock authorized 75,000 75,000 Common stock issued 28,906 28,804 Treasury stock 4,707 3,341 Common stock outstanding 24,199 25,463 Dividends The table below summarizes the regular quarterly dividends declared and paid during the years ended December 31: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2023 $ 1.05 03/10/23 03/24/23 $ 26,563 Second Quarter 2023 1.05 06/02/23 06/16/23 26,591 Third Quarter 2023 1.05 09/01/23 09/15/23 26,590 Fourth Quarter 2023 1.05 12/01/23 12/15/23 26,592 Total 2023 $ 4.20 $ 106,336 (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2024 $ 1.05 03/08/24 03/22/24 $ 26,721 Second Quarter 2024 1.05 05/31/24 06/14/24 26,734 Third Quarter 2024 1.05 08/30/24 09/13/24 26,736 Fourth Quarter 2024 1.15 11/29/24 12/13/24 29,280 Total 2024 $ 4.30 $ 109,471 First Quarter 2025 $ 1.15 03/07/25 03/21/25 $ 29,352 Second Quarter 2025 1.15 05/30/25 06/13/25 29,036 Third Quarter 2025 1.15 08/29/25 09/12/25 27,827 Fourth Quarter 2025 1.15 11/28/25 12/12/25 27,828 Total 2025 $ 4.60 $ 114,043 Stock-Based Awards On May 24, 2018, the Company's stockholders approved the LCI Industries 2018 Omnibus Incentive Plan (the ""2018 Plan""), which provides that the number of shares of common stock that may be the subject of awards a …

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"SUBSEQUENT EVENT On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (""IEEPA"") were unlawful. As a result of this ruling, the availability, timing, and amount of any potential refunds associated with IEEPA tariffs previously paid by the Company remain uncertain and are subject to ongoing legal, regulatory, and administrative processes. Following the Courts decision, the U.S. presidential administration announced its intention to rely on other statutory authorities to continue collecting tariffs and introduced new tariffs on imports from all countries, in addition to existing non-IEEPA tariffs. The duration and scope of existing and newly announced tariff measures, potential modifications or suspensions, and the likelihood of additional tariffs or other retaliatory actions remain uncertain and may adversely impact the Companys operations. The Company continues to monitor these developments and evaluate their potential effect on its business, financial condition, and results of operations."

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