LCI Industries : March Investor Presentation
LCII
Investor Presentation
March 2025
Mission
Statement
Whenever, Wherever, We make your experience better.
Purpose-Driven Innovation
Makes Customer and Consumer
Experiences Better
Forward-Looking Statements
This presentation contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this presentation that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.
Forward-looking statements, including, without limitation, those relating to the Company's future business prospects, net sales, revenue, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, production levels, retail and wholesale demand and shipments, integration of acquisitions, R&D investments, commodity prices and industry trends, whenever they occur in this presentation are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this presentation, the impacts of costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, future pandemics, geopolitical tensions, armed conflicts, or natural disaster on the global economy and on the Company's customers, suppliers, team members, business and cash flows, pricing pressures due to domestic and foreign competition, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company's subsequent filings with the Securities and Exchange Commission, including the Company's Quarterly Reports on Form 10-Q. Readers of this presentation are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.
This presentation includes certain non-GAAP financial measures, such as EBITDA, net debt to EBITDA leverage, free cash flow and free cash flow conversion. These non- GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are included in the Appendix to this presentation.
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Poised for Strong
Long-Term Performance
Targets
$5B Organic
Double-Digit
Revenue in 2027
Operating Margin
Growth & Margin Drivers
Continued
Strong focus
Expanding
Further
Further
presence in
Scaling
investment
on aftermarket
operational
development
diversified
appropriately
toward
repair,
improvements
in automotive
end-markets
with demand
innovation and
replacement
in automation
aftermarket
through proven
recovery
R&D
and upgrade
and efficiency
playbook
4
2025 Should Mark Significant Progress Toward Targets
Key Factors to Achieve Targets
Improving Environment
Capitalize on production environment improvements in both RV and Marine
Traction in New Products and
New Market Share Gains
Gain further traction in recently launched products and continue to introduce new innovations
Internal Efficiencies and
Leverage
Continue to reduce cost structure to create
leverage for the next years of growth
2025 Anticipated Progress
1.7% estimated increase in
FY25 RV wholesale shipments
(January up 22%)
Marine to rebound in 2H
$200M of organic growth across
Lippert end markets
85bps stretch target of margin improvement from G&A and overhead reductions
25% incremental margins* on
higher volumes
Driving Lippert Closer To
$5B Organic
Revenue Target
in 2027
and
A Return to
Double-Digit
Operating Margin
* Incremental margin over baseline comparative period volume.
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Lippert at a Glance
A global leader supplying the outdoor recreation and transportation markets, delivering net sales of $3.7B in 2024
$5.0B
$3.7B
$2.8B $5B
2020A Net Sales 2024A Net Sales 2027 Organic
Revenue Target
11,500+
OEM
Aftermarket
140+
Team
Facilities
Members
10
25+
Countries
Brands
Presence in Diverse End Markets (2024 Net Sales)
Recreational Vehicles
Automotive Aftermarket
International/Europe
RV & Marine Aftermarket
Utility Trailers
Marine
Transportation Products
Building Products
Other Adjacent
With a Deep Breadth of Products
Among Many Others
6
Proven Resilience, Cash Flow, Discipline and Shareholder Returns
Total Net Sales Growth
(2020 - 2024)
34%
Free Cash Flow Conversion(1)
(Full Year 2024)
95%
Content Per Towable Unit Growth
(2020 - 2024)
50%
Dividend Yield
(Full Year 2024)
4.2%
Average Senior Management
Tenure at LCI (Years)
17
Net Debt to EBITDA(1)
(as of 12/31/2024)
1.7x
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How Lippert Wins
Manufacturing &
Engineering
Competencies
Metal Fabrication & Welding
Glass Fabrication
Furniture
Manufacturing
Electronics
Lamination
Power &
Motion Systems
E-Coating &
Powder Coating
Plastics Forming
Enable Us to Solve Complex Customer Needs
Small Batch
Manufacturing with
Scale Benefits
Design/Engineering
Expertise
Custom,
Non-Commoditized
Products
And Create an
Unmatched Product
Ecosystem
Towable RV Chassis
Axles and
Suspension Systems
Furniture Solutions
Windows & Glass
Solutions
Appliance & Kitchen
Truck & Towing
Solutions
Accessories
Across Multiple
End Markets
Recreational Marine Vehicles
Building Products
Transportation
Utility & Cargo
RV & Marine
Trailers
Aftermarkets
Appliances
Doors, Steps &
Leveling, Stabilization
Awnings
& Slide-outs
AutomotiveInternational Aftermarket
8
Lippert's Competitive Moat
Our success and share gains are driven by scale, expertise, and people
$288M
$3.7B
2000 Net Sales
2024 Net Sales
Scale & Market Leader
Unique Manufacturing
Our People
Advantages
Capabilities & Offerings
& Culture
Bundling Capabilities
Diversified portfolio is an advantage as customers consolidate vendors
Customer Proximity
Strategically positioned near OEM partners to reduce lag time and costs
Customer Service
Handling over 1 million customer interactions annually through 300 service agents
Acquisitive DNA
70 acquisitions over two decades to expand footprint and product offerings
Low-Cost Manufacturer
Significant purchasing advantage due to size, allowing for pricing advantages
Manufacturer of Critical Products
Expanded competencies into critical product lines
Flexibility & Agility
Ability to rapidly produce and scale production when needed
Complex Manufacturing Experts
Highly skilled at engineering, design, and manufacturing of complex products
Automation Capabilities
Substantial investments into automation to increase speed and efficiencies
Strong Culture
A culture that drives heightened retention rates and fosters a collaborative environment
Experienced Leadership
17-year average tenure for top-25 executives with experience navigating numerous cycles
Best-In-Class Team
Team members who demonstrate resiliency and determination
Master Innovators
Experienced and innovative R&D team working to develop new products
Strong Customer Relationships
15+ years average customer tenure with an emphasis on customer satisfaction
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Consistent Market Share, Content, and Net Sales Gains Validate Competitive Advantages
NA RV & Marine
NA RV OEM; Chassis
Market Share
NA Towable RV Content per Unit
NA Marine
Content per Unit
2020
84%
$3,390
$739
2024
85%
$5,097 50%
$1,098 49%
NA Aftermarket
NA RV/Marine Aftermarket
Net Sales
NA Automotive Aftermarket
Net Sales
Adjacencies
Building Products
Net Sales
2020
$276M
$331M
2020
$113M
2024
$354M 28% $449M 36%
2024
$192M 70%
Dominant share in Chassis helps drive gains across categories as customers seek to consolidate suppliers
Transportation Products
Net Sales
Utility Trailer Products
Net Sales
International
Net Sales
$137M
$117M
$237M
$197M 44% $271M 132%
$394M 66%
* Marine, Building Products, and Transportation are fragmented markets, with dozens of competitors
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Disclaimer
LCI Industries published this content on March 03, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 03, 2025 at 23:04:03.424.