Lippert parent sees continued profit growth in Q1, aiming to mitigate tariff effects
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Elkhart-based LCI Industries Inc., the parent of recreational vehicle manufacturer Lippert, is reporting first-quarter net income of $49.4 million, up from $36.5 million during the same period last year.
CEO Jason Lippert said the 35% increase exceeded expectations despite ongoing macroeconomic headwinds.
The company also reported $1 billion in net sales for the quarter, an 8% year-over-year increase. Lippert attributed the results to the company’s cost management efforts and operational flexibility.
“Our first quarter results also demonstrated the agility of our operations, as we scaled production to support modest RV inventory rebuilding and drove 20% sales growth in our North American RV OEM business,” Lippert said. “This performance reinforces our confidence in the long-term potential of our approach.”
Lippert noted that LCI Industries is on track to achieve its goal of $5 billion in organic revenue by 2027.
During a conference call with investors, Lippert said tariffs are top of mind for LCI as well as consumers. He said the company is working to mitigate the effect of tariffs through a variety of measures.
In 2024, approximately 35% of raw materials and components came from producers outside the United States, about two-thirds of which came from China. Lippert said by the end of 2025, the number of materials coming from China will be about 10% as the company transitions production into more “strategically favorable regions.”
“The most important point to note is that we have navigated tariffs and other impactful challenges before, and we have the experienced leadership team in place to do it again with a successful result,” he said. “In the meantime, we’re moving quickly, engaging in supplier negotiations and supplier repositioning to continue to diversify our supply chain and manage inventory timing.”
Lippert did note that the company’s mitigation efforts also include sharing some of the costs of the tariffs with vendors, as well as some price increases for consumers, which could be between 3%-9%, though specific details were not provided.
“One of the other things we’re doing with the OEMs on our end is making sure that we’re working through some excess and obsolete inventory, to help them maybe make some substitutions in the near term that’ll help their cost structures avoid some of the tariffs,” he said.
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