Financial Analysis

"ACQUISITIONS Business combinations generally take place to strengthen Patrick's positions in existing markets and increase its market share and per unit content, expand into additional markets, or gain key technology. Acquisitions meeting the definition of a business combination are accounted for under the acquisition method of accounting. For each acquisition, the excess of the purchase consideration over the fair value of the net assets acquired is recorded as goodwill, which generally represents the combined value of the Companys existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the acquired companies respective management teams to maximize efficiencies, market share growth and net income. During the years ended December 31, 2025, 2024 and 2023, the Company completed the acquisitions described below that qualify as business combinations. The acquisitions were funded through cash on hand or borrowings under the Companys credit facility in existence at the time of acquisition. For each of the acquisitions discussed, we either acquired the assets and assumed the liabilities of the business, or acquired 100% of the equity interests. Assets acquired and liabilities assumed in the individual acquisitions were recorded on the Companys consolidated balance sheet at their estimated fair values as of the respective dates of acquisition. For each acquisition, the Company completes its allocation of the purchase price to …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES The Company is subject to proceedings, lawsuits, audits, and other claims arising in the normal course of business. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. Accruals for these items, when applicable, have been provided to the extent that losses are deemed probable and are reasonably estimable. These accruals are adjusted from time to time as developments warrant. Although the ultimate outcome of these matters cannot be ascertained, on the basis of present information, amounts already provided, availability of insurance coverage and legal advice received, it is the opinion of management that the ultimate resolution of these proceedings, lawsuits, and other claims will not have a material adverse effect on the Companys consolidated balance sheet, results of operations, or cash flows. In August 2019, a group of companies calling itself the Lusher Site Remediation Group (the Group) commenced litigation against the Company in Lusher Site Remediation Group v. Sturgis Iron & Metal Co., Inc., et al., Case Number 3:18-cv-00506, pending in the U.S. District Court for the Northern District of Indiana, relating to a site owned by the Company (the ""Lusher Street Site""). The Groups Second Amended Complaint, which was the first to assert claims against Patrick, asserted claims under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601 et seq., …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT The following table presents a summary of total debt outstanding: As of December 31, ($ in thousands) 2025 2024 Long-term debt: Term loan due 2029 $ 117,188 $ 123,438 Revolver due 2029 75,000 100,000 1.75% convertible notes due 2028 258,701 258,750 4.75% senior notes due 2029 350,000 350,000 6.375% senior notes due 2032 500,000 500,000 Total debt 1,300,889 1,332,188 Less: convertible notes debt discount, net (2,915) (3,915) Less: term loan deferred financing costs, net (430) (543) Less: senior notes deferred financing costs, net (8,473) (9,796) Less: current maturities of long-term debt (6,250) (6,250) Total long-term debt, less current maturities, net $ 1,282,821 $ 1,311,684 2024 Credit Facility On October 24, 2024, the Company entered into the Fifth Amended and Restated Credit Agreement (the 2024 Credit Agreement), totaling $1.0 billion with a maturity date of October 24, 2029. The credit facility under the 2024 Credit Agreement (the ""2024 Credit Facility"") is comprised of an $875.0 million revolving credit facility (the ""Revolver due 2029"") and a $125.0 million term loan (the ""Term Loan due 2029""). Pursuant to the terms of the 2024 Credit Agreement, the interest rate for borrowings under the Revolver due 2029 and the Term Loan due 2029 is either the Prime Rate or SOFR plus a margin, which ranges from 0.00% to 0.75% for Prime Rate loans and from 1.00% to 1.75% for SOFR loans depending on the Companys consolidated total leverage ratio. The interest rate for incre …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, revenue from contracts with customers, net of all intercompany sales, is disaggregated by market type and by reportable segment as follows: Year Ended December 31, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,246,117 $ 529,971 $ 1,776,088 Marine 566,829 39,585 606,414 Powersports 367,727 16,404 384,131 Manufactured Housing 298,887 382,599 681,486 Industrial 463,204 39,450 502,654 Total $ 2,942,764 $ 1,008,009 $ 3,950,773 Year Ended December 31, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,121,128 $ 504,083 $ 1,625,211 Marine 530,828 39,896 570,724 Powersports 338,904 13,329 352,233 Manufactured Housing 300,689 381,401 682,090 Industrial 449,685 35,740 485,425 Total $ 2,741,234 $ 974,449 $ 3,715,683 Year Ended December 31, 2023 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,018,003 $ 485,339 $ 1,503,342 Marine 743,826 38,749 782,575 Powersports 109,362 12,592 121,954 Manufactured Housing 258,551 309,659 568,210 Industrial 457,041 34,923 491,964 Total $ 2,586,783 $ 881,262 $ 3,468,045

DisaggregationOfRevenueTableTextBlock

"COMPENSATION PLANS Stock-Based Compensation The Company has various stock option and stock-based incentive plans and various agreements whereby stock options, restricted stock awards, and stock appreciation rights (""SARs"") are made available to certain key employees, directors, and others based upon meeting various individual, divisional or company-wide performance criteria and time-based criteria. All such awards qualify and are accounted for as equity awards. Equity incentive plan awards, which are granted under the Company's 2009 Omnibus Incentive Plan, are intended to retain and reward key employees for outstanding performance and efforts as they relate to the Companys short-term and long-term objectives and its strategic plan. As of December 31, 2025, approximately 1.4 million common shares remain available for stock-based compensation grants. Stock-based compensation expense was $19.1 million, $16.8 million and $19.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. Income tax benefit for stock-based compensation expense was $4.7 million, $4.3 million and $4.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was approximately $31.2 million of total unrecognized compensation cost related to share-based compensation arrangements granted under incentive plans. That cost is expected to be recognized over a weighted-average period of approximately 21.2 months. Stock Options: On February 25 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE AND FINANCIAL INSTRUMENTS The Company accounts for certain assets and liabilities at fair value. The fair values are separated into three broad levels (Levels 1, 2 and 3) based on the assessment of the availability of observable market data and the significance of non-observable data used to determine fair value. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. The three levels are as follows: Level 1 inputs, which are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, which are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 inputs, which are unobservable inputs for the asset or liability. These unobservable inputs reflect the entitys own assumptions about the assumptions that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances (which might include the reporting entitys own data). The following table presents fair values of certain assets and liabilities as of December 31, 2025 and December 31, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 by segment are as follows: ($ in thousands) Manufacturing Distribution Total Balance at January 1, 2024 $ 560,370 $ 77,023 $ 637,393 Acquisitions 119,859 40,074 159,933 Adjustment to prior year preliminary purchase price allocation 17 (107) (90) Balance at December 31, 2024 $ 680,246 $ 116,990 $ 797,236 Acquisitions 41,675 41,675 Adjustment to prior year preliminary purchase price allocation 109 1,081 1,190 Balance at December 31, 2025 $ 722,030 $ 118,071 $ 840,101 As of December 31, 2025 and 2024, accumulated impairment of goodwill in the Manufacturing segment was $27.4 million. Intangible assets, net consisted of the following : Estimated Useful Lives (years) As of December 31, ($ in thousands) 2025 2024 Customer relationships 10 $ 949,448 $ 924,720 Non-compete agreements 5 27,376 25,776 Patents 1-20 94,949 89,641 Trademarks 230,877 225,527 Intangible assets, gross 1,302,650 1,265,664 Less: accumulated amortization: Customer relationships (506,656) (419,358) Non-compete agreements (22,204) (20,065) Patents (31,229) (23,352) Intangible assets, net $ 742,561 $ 802,889 Changes in the carrying value of intangible assets for the years ended December 31, 2025 and 2024 by segment are as follows: ($ in thousands) Manufacturing Distribution Total Balance at January 1, 2024 $ 553,703 $ 97,450 $ 651,153 Additions (1) 199,966 48,400 248,366 Amortization (82,538) (13, …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The provision for income taxes consists of the following: Year Ended December 31, ($ in thousands) 2025 2024 2023 Current income tax expense: U.S. federal $ 556 $ 35,288 $ 44,126 U.S. state and local 5,921 11,324 4,816 Foreign 38 10 Total current 6,477 46,650 48,952 Deferred income tax (benefit) expense, net: U.S federal 34,020 (5,509) (3,578) U.S. state and local 1,519 (971) 2,994 Foreign (10) (1) (7) Total deferred 35,529 (6,481) (591) Total income tax provision $ 42,006 $ 40,169 $ 48,361 The Company has accounted for in its 2025, 2024, and 2023 income tax provision the impact of Global Intangible Low-Taxed Income, base-erosion anti-abuse tax, interest expense limitations under Section 163(j) of the Internal Revenue Code of 1986, and foreign-derived intangible income deductions, although such provisions were either not applicable or resulted in a zero or immaterial impact to the consolidated financial statements. Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures , as described in Note 1 ""Basis of Presentation and Significant Accounting Policies"", cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows: ($ in thousands) Federal $ 18,160 State (1) 5,482 Foreign Total cash paid for income taxes, net of refunds $ 23,642 (1) For the year ended December 31, 2025, Indiana was the only U.S state jurisdiction where cash payments equaled or exceeded 5% of total income taxes. Cash paid for income taxes, net …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has operating and finance leases for certain facilities, trailers, forklifts and other assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense related to these short-term leases was immaterial for the years ended December 31, 2025, 2024 and 2023. Variable lease payments, principally related to trucks, forklifts, and index-related facility rent escalators, was immaterial for the years ended December 31, 2025, 2024 and 2023. The leases have remaining lease terms of 1 to 14 years. Certain leases include options to renew for an additional term. Where there is reasonable certainty to utilize a renewal option, we include the renewal option in the lease term used to calculate operating lease right-of-use assets and lease liabilities. The components of lease expense were as follows: Year Ended December 31, ($ in thousands) 2025 2024 2023 Operating lease cost $ 69,602 $ 64,391 $ 56,370 Finance lease cost: Amortization of right-of-use assets 454 Interest on lease liabilities 244 Total finance lease cost 698 Total lease cost $ 70,300 $ 64,391 $ 56,370 Supplemental balance sheet information was as follows: Year Ended December 31, ($ in thousands) 2025 2024 Finance lease assets: Property, plant and equipment, net $ 2,000 $ Finance lease liabilities: Other current liabilities $ 424 $ Other long-term liabilities 1,626 Total finance lease liabilities $ 2,050 $ Supplemental cash flow information was as follows: Year Ended D …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 , "" Income Taxes (Topic 740): Improvements to Income Tax Disclosures"" . This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company adopted this ASU during the year ended December 31, 2025 and applied the requirements for the fiscal year ended December 31, 2025 on a prospective basis to all periods presented. Accounting Standards Not Yet Adopted 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"" . This update eliminates the previous stage- based capitalization model for internal-use software projects and instead requires capitalization once management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The update permits an ent …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION In the following table, revenue from contracts with customers, net of all intercompany sales, is disaggregated by market type and by reportable segment as follows: Year Ended December 31, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,246,117 $ 529,971 $ 1,776,088 Marine 566,829 39,585 606,414 Powersports 367,727 16,404 384,131 Manufactured Housing 298,887 382,599 681,486 Industrial 463,204 39,450 502,654 Total $ 2,942,764 $ 1,008,009 $ 3,950,773 Year Ended December 31, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,121,128 $ 504,083 $ 1,625,211 Marine 530,828 39,896 570,724 Powersports 338,904 13,329 352,233 Manufactured Housing 300,689 381,401 682,090 Industrial 449,685 35,740 485,425 Total $ 2,741,234 $ 974,449 $ 3,715,683 Year Ended December 31, 2023 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 1,018,003 $ 485,339 $ 1,503,342 Marine 743,826 38,749 782,575 Powersports 109,362 12,592 121,954 Manufactured Housing 258,551 309,659 568,210 Industrial 457,041 34,923 491,964 Total $ 2,586,783 $ 881,262 $ 3,468,045

RevenueFromContractWithCustomerTextBlock

"SEGMENT INFORMATION The Company has two reportable segments, Manufacturing and Distribution, which are defined based on the way in which internally reported information is regularly reviewed and evaluated by the Companys chief operating decision maker (the ""CODM""), who is our Chairman and Chief Executive Officer, to allocate resources, evaluate financial results and make decisions. The Company does not measure profitability at the end market (RV, marine, powersports, MH and industrial) level. Manufacturing This segment includes the following products: laminated products utilized to produce furniture, shelving, walls and countertops; laminated and decorative surface products, including laminated panels, decorative and wrapped vinyls, paper-laminated panels, and vinyl printing; solid surface, granite and quartz countertops; fabricated aluminum products; hardwood profile mouldings; electrical systems components including instrument, digital switching, dash panels, digital displays and gauges; slide-out trim and fascia; cabinet products, doors, components and custom cabinetry; tooling for fiberglass boat manufacturers; fiberglass bath fixtures and tile systems; specialty bath and closet building products; boat towers, tops, power bimini systems, trailers, frames and other engineered structural components; softwoods lumber; interior passage doors and baggage doors; wiring and wire harnesses; CNC molds and composite parts; aluminum and plastic fuel tanks; slotwall panels and com …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business Patrick Industries, Inc. (Patrick or the Company) operations consist of the manufacture and distribution of component products and materials for use primarily by the recreational vehicle (RV), marine, powersports, manufactured housing (MH) and industrial markets for customers throughout the United States and Canada. As of December 31, 2025, the Company maintained approximately 191 manufacturing plants and 50 distribution facilities located in 25 states with a small presence in Mexico, China and Canada. Patrick operates in two business segments: Manufacturing and Distribution. Principles of Consolidation The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The consolidated financial statements include the accounts of Patrick and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates include the valuation of goodwill and indefinite-lived intangible assets, the allowance for credit l …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"ACQUISITIONS General Business combinations generally take place to strengthen Patrick's positions in existing markets and increase its market share and product offerings, expand into additional markets, and gain key technologies. Acquisitions are accounted for under the acquisition method of accounting. For each acquisition, the excess of the purchase consideration over the fair value of the net assets acquired is recorded as goodwill, which generally represents the combined value of the Companys existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the acquired companies respective management teams to maximize efficiencies, market share growth and net income. The Company completed one acquisition in the third quarter of 2025 and three acquisitions in the first nine months of 2025 (the ""2025 Acquisitions""). Acquisition-related costs associated with the 2025 Acquisitions were immaterial. For the third quarter and nine months ended September 28, 2025, net sales included in the Company's condensed consolidated statements of income related to the 2025 Acquisitions were $11.0 million and $24.2 million, respectively, and operating income was $0.1 million and operating losses were $0.3 million, respectively. Assets acquired and liabilities assumed in the acquisitions were recorded on the Company's condensed consolidated balance sheet at their estimated fair values as of the respective dates of acquisition. For each acquis …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES The Company is subject to proceedings, lawsuits, audits, and other claims arising in the normal course of business. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. Accruals for these items, when applicable, have been provided to the extent that losses are deemed probable and are reasonably estimable. These accruals are adjusted from time to time as developments warrant. Although the ultimate outcome of these matters cannot be ascertained, on the basis of present information, amounts already provided, availability of insurance coverage and legal advice received, it is the opinion of management that the ultimate resolution of these proceedings, lawsuits, and other claims will not have a material adverse effect on the Companys financial position, results of operations, or cash flows. In the Company's Form 10-K for the year ended December 31, 2024, the Company described the current status of litigation concerning the Lusher Site Remediation Group. In early July 2023, the Court granted the Companys Rule 54(b) Motion for Final Judgment on previously dismissed claims and granted the Companys Motion to Dismiss the plaintiffs remaining claims against the defendants, without prejudice (the Companys Motion to Dismiss having been joined by the remaining defendants in the litigation.) The only remaining issue pending in the litigation for the Courts determination is the plaintiffs motion to bar contribution …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT A summary of total debt outstanding at September 28, 2025 and December 31, 2024 is as follows: ($ in thousands) September 28, 2025 December 31, 2024 Long-term debt: Term loan due 2029 $ 120,313 $ 123,438 Revolver due 2029 110,000 100,000 1.75% convertible notes due 2028 258,722 258,750 4.75% senior notes due 2029 350,000 350,000 6.375% senior notes due 2032 500,000 500,000 Total debt 1,339,035 1,332,188 Less: convertible notes deferred financing costs, net (3,173) (3,915) Less: term loan deferred financing costs, net (458) (543) Less: senior notes deferred financing costs, net (8,811) (9,796) Less: current maturities of long-term debt (6,250) (6,250) Total long-term debt, less current maturities, net $ 1,320,343 $ 1,311,684 As of September 28, 2025, the Company maintained a senior secured credit facility comprised of a $875 million revolving credit facility (the ""Revolver due 2029"") and a $125 million term loan (the ""Term Loan due 2029"") and together with the Revolver due 2029, (the ""2024 Credit Facility""). The interest rate for incremental borrowings under the Revolver due 2029 as of September 28, 2025 was the Secured Overnight Financing Rate (SOFR) plus 1.75% (or 5.91%) for the SOFR-based option. The fee payable on committed but unused portions of the Revolver due 2029 was 0.225% as of September 28, 2025. Total cash interest paid was $4.0 million and $38.6 million for the third quarter and nine months ended September 28, 2025, respectively, and $4.7 million and …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, revenue from contracts with customers, net of all intercompany sales, is disaggregated by market type and by reportable segment: Third Quarter Ended September 28, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 292,557 $ 132,984 $ 425,541 Marine 141,134 9,349 150,483 Powersports 93,964 3,854 97,818 Manufactured Housing 73,115 101,553 174,668 Industrial 117,831 9,290 127,121 Total $ 718,601 $ 257,030 $ 975,631 Third Quarter Ended September 29, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 275,020 $ 121,476 $ 396,496 Marine 126,066 9,925 135,991 Powersports 84,487 2,903 87,390 Manufactured Housing 76,634 100,780 177,414 Industrial 113,319 8,834 122,153 Total $ 675,526 $ 243,918 $ 919,444 Nine Months Ended September 28, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 969,799 $ 413,909 $ 1,383,708 Marine 424,907 31,115 456,022 Powersports 262,917 12,219 275,136 Manufactured Housing 230,979 299,362 530,341 Industrial 352,432 28,966 381,398 Total $ 2,241,034 $ 785,571 $ 3,026,605 Nine Months Ended September 29, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 876,170 $ 391,050 $ 1,267,220 Marine 417,485 31,499 448,984 Powersports 264,795 9,115 273,910 Manufactured Housing 223,532 284,618 508,150 Industrial 344,799 26,497 371,296 Total $ 2,126,781 $ 742,779 $ 2,869,560

DisaggregationOfRevenueTableTextBlock

"STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense, net of forfeitures, of approximately $3.9 million and $15.2 million in the third quarter and nine months ended September 28, 2025, respectively, and $4.7 million and $14.4 million in the third quarter and nine months ended September 29, 2024, respectively. The Board approved various share grants under the Companys 2009 Omnibus Incentive Plan in the nine months ended September 28, 2025 totaling 243,035 shares in the aggregate at an average fair value of $94.90 per share at grant date for a total fair value at grant date of $23.1 million. Stock Appreciation Rights (""SARs""): On February 25, 2025, the Board approved the grant of 329,850 SARs divided into four tranches at exercise prices of $92.72, $110.76, $132.31 and $158.05 per share. The SARs vest pro-ratably over four years from the grant date and have nine-year contractual terms. The SARs are to be settled in shares of common stock or, at the sole discretion of the Board, in cash. As of September 28, 2025, the total remaining cost to be expensed over the four-year vesting period will be $5.3 million which will be expensed ratably over the four-year vesting period. Stock Options: On February 25, 2025, the Board approved the grant of 329,850 stock options at an exercise price per share of $92.72. The stock options vest pro-rata over four years from the grant date and have nine-year contractual terms. As of September 28, 2025, the total remaining …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS The following table presents fair values of certain assets and liabilities as of September 28, 2025 and December 31, 2024: September 28, 2025 December 31, 2024 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 1.75% convertible notes due 2028 (1) $ $ 419.0 $ $ $ 351.3 $ 4.75% senior notes due 2029 (1) $ $ 344.2 $ $ $ 330.3 $ 6.375% senior notes due 2032 (1) $ $ 506.9 $ $ $ 485.0 $ Term loan due 2029 (1) (2) $ $ 120.3 $ $ $ 123.4 $ Revolver due 2029 (1) (2) $ $ 110.0 $ $ $ 100.0 $ Contingent consideration (3) $ $ $ 3.2 $ $ $ 3.6 (1) The amounts of these notes listed above are the fair values for disclosure purposes only, and they are recorded in the Company's condensed consolidated balance sheets as of September 28, 2025 and December 31, 2024 at carrying value. (2) The carrying amounts of our term loan and revolving credit facility approximate fair value as of September 28, 2025 and December 31, 2024 based upon their terms and conditions in comparison to the terms and conditions of debt instruments with similar terms and conditions available at those dates. (3) The estimated fair value of the Company's contingent consideration is discussed further in Note 5 ""Acquisitions""." …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill for the nine months ended September 28, 2025 by segment are as follows: ($ in thousands) Manufacturing Distribution Total Balance at December 31, 2024 $ 680,246 $ 116,990 $ 797,236 Acquisitions 16,696 16,696 Adjustments to preliminary purchase price allocations 109 1,080 1,189 Balance at September 28, 2025 $ 697,051 $ 118,070 $ 815,121 Intangible assets, net consisted of the following as of September 28, 2025 and December 31, 2024: ($ in thousands) September 28, 2025 December 31, 2024 Customer relationships $ 940,905 $ 924,720 Non-compete agreements 26,876 25,776 Patents 94,040 89,641 Trademarks 227,777 225,527 Intangible assets, gross 1,289,598 1,265,664 Less: accumulated amortization Customer relationships (485,239) (419,358) Non-compete agreements (21,668) (20,065) Patents (29,207) (23,352) Intangible assets, net $ 753,484 $ 802,889 Changes in the carrying value of intangible assets for the nine months ended September 28, 2025 by segment are as follows: ($ in thousands) Manufacturing Distribution Total Balance at December 31, 2024 $ 671,131 $ 131,758 $ 802,889 Additions 22,338 22,338 Amortization (61,972) (11,366) (73,338) Adjustments to preliminary purchase price allocations 357 1,238 1,595 Balance at September 28, 2025 $ 631,854 $ 121,630 $ 753,484 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The effective tax rate in the third quarter of 2025 and 2024 was 26.2% and 24.8%, respectively, and the effective tax rate for the comparable nine month periods was 23.1% and 21.6%, respectively. The first nine months of 2025 and 2024 tax rates include the impact of the recognition of excess tax benefits on share-based compensation that was recorded as a reduction to income tax expense in the amount of $3.4 million and $6.7 million, respectively. Cash paid for income taxes, net of refunds, was $1.1 million and $23.4 million in the third quarter and first nine months of 2025, respectively, and $18.2 million and $37.4 million in the third quarter and first nine months of 2024, respectively. On July 4, 2025, the One Big Beautiful Bill Act (the ""OBBBA"") was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic research and development expenditures, more favorable business interest deductibility and 100 percent first-year bonus depreciation on qualifying property with effective dates in 2025. In accordance with Accounting Standards Codification (ASC) 740, Income Taxes, the Company has recognized the effects of the OBBBA during the current quarter for the provisions currently enacted, which has increased the Companys deferred tax liability. The Company anticipates that the OBBBA will reduce its federal income tax liability and r …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"New Accounting Standards Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASUs) to the FASBs Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were either assessed and determined to be not applicable or are expected to have an immaterial impact on the Companys unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements Accounting Standards Not Yet Adopted 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"" . This update eliminates the previous stage-based capitalization model for internal-use software projects and instead requires capitalization once management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The update permits an entity to apply the new guidance using a prospective transition approach, modified transition approach or a retrospective transition approach. This ASU is effective for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of ASU 2025-06 will have on the Company's c …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION In the following table, revenue from contracts with customers, net of all intercompany sales, is disaggregated by market type and by reportable segment: Third Quarter Ended September 28, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 292,557 $ 132,984 $ 425,541 Marine 141,134 9,349 150,483 Powersports 93,964 3,854 97,818 Manufactured Housing 73,115 101,553 174,668 Industrial 117,831 9,290 127,121 Total $ 718,601 $ 257,030 $ 975,631 Third Quarter Ended September 29, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 275,020 $ 121,476 $ 396,496 Marine 126,066 9,925 135,991 Powersports 84,487 2,903 87,390 Manufactured Housing 76,634 100,780 177,414 Industrial 113,319 8,834 122,153 Total $ 675,526 $ 243,918 $ 919,444 Nine Months Ended September 28, 2025 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 969,799 $ 413,909 $ 1,383,708 Marine 424,907 31,115 456,022 Powersports 262,917 12,219 275,136 Manufactured Housing 230,979 299,362 530,341 Industrial 352,432 28,966 381,398 Total $ 2,241,034 $ 785,571 $ 3,026,605 Nine Months Ended September 29, 2024 ($ in thousands) Manufacturing Distribution Total Market type: Recreational Vehicle $ 876,170 $ 391,050 $ 1,267,220 Marine 417,485 31,499 448,984 Powersports 264,795 9,115 273,910 Manufactured Housing 223,532 284,618 508,150 Industrial 344,799 26,497 371,296 Total $ 2,126,781 $ 742,779 $ 2,869,560 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION The Company has two reportable segments, Manufacturing and Distribution, which are defined based on the way in which internally reported information is regularly reviewed and evaluated by the Companys chief operating decision maker (the ""CODM""), who is our Chairman and Chief Executive Officer, to allocate resources, evaluate financial results and make decisions. The Company does not measure profitability at the end market (RV, marine, powersports, MH and industrial) level. Manufacturing This segment includes the following products: laminated products that are utilized to produce furniture, shelving, walls, countertops and cabinet products; cabinet doors; fiberglass bath fixtures and tile systems; hardwood furniture; vinyl printing; RV and marine furniture; audio systems and accessories, including amplifiers, tower speakers, soundbars, and subwoofers; decorative vinyl and paper laminated panels; solid surface, granite, and quartz countertop fabrication; RV painting; fabricated aluminum products; fiberglass and plastic components; fiberglass bath fixtures and tile systems; softwoods lumber; custom cabinetry; polymer-based and other flooring; electrical systems components including instrument and dash panels; wrapped vinyl, paper and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; thermoformed shower surrounds; specialty bath and closet building products; fiberglass and plastic helm systems and componen …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Patrick Industries, Inc. (Patrick, the Company, ""we"", ""our"") contain all adjustments (consisting of normal recurring adjustments) that we believe are necessary to present fairly the Companys financial position as of September 28, 2025 and December 31, 2024, its results of operations for the third quarter and nine months ended September 28, 2025 and September 29, 2024, and its cash flows for the nine months ended September 28, 2025 and September 29, 2024. Patrick's unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (""U.S. GAAP""). The accompanying unaudited condensed consolidated financial statements for Patrick do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to Patricks Audited Consolidated Financial Statements and corresponding notes in the Companys Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025. The Company maintains its financial records on the basis of a fiscal year ending on December 31, with the fiscal …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS

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