Patrick Industries, Inc. reported strong financial performance for the third quarter and the first nine months of 2024, with notable increases in net sales, gross profit, and net income compared to the same periods in 2023.

For the third quarter ended September 29, 2024, net sales reached $919.4 million, a 6% increase from $866.1 million in the prior year. The nine-month figures also showed growth, with net sales of $2.87 billion, up 7% from $2.69 billion. Gross profit for the third quarter was $212.5 million, reflecting a 7% increase from $199.1 million, while gross profit for the nine months rose 8% to $648.7 million from $603.3 million. Operating income for the third quarter increased by 5% to $74.4 million, and for the nine months, it rose 8% to $218.4 million. Net income for the third quarter was $40.9 million, a 3% increase from $39.6 million, and for the nine months, net income increased by 10% to $123.8 million from $112.1 million.

The company’s basic earnings per share for the third quarter was $1.88, up from $1.84, and for the nine months, it increased to $5.71 from $5.20.

A significant driver of revenue growth was the acquisition of Sportech, which contributed $78.6 million in net sales for the third quarter and $216.4 million for the nine months. The manufacturing segment accounted for approximately 74% of total sales, with manufacturing net sales for the third quarter at $685.3 million, a 4% increase from the previous year. The distribution segment also saw growth, with sales of $239.1 million, up 5%.

However, the company faced challenges in the marine market, where net sales decreased by 21% in the third quarter and 29% in the first nine months, attributed to a decline in wholesale unit shipments. Conversely, sales to the powersports industry surged by 204% in the third quarter and 179% in the first nine months, reflecting strong demand.

On the balance sheet, total current assets increased to $913.0 million as of September 29, 2024, from $734.6 million at the end of 2023. Cash and cash equivalents rose significantly to $52.6 million from $11.4 million. The company’s total debt increased to $1.40 billion, up from $1.04 billion at the end of 2023, primarily due to funding acquisitions.

In terms of strategic developments, Patrick Industries completed eight acquisitions in 2024, with a total cash consideration of approximately $411.7 million. The company also announced a new credit agreement to increase its borrowing capacity, reflecting its ongoing growth strategy.