Truist Sees More Upside in Patrick Industries (PATK) as RecPro Aftermarket Gains Momentum

Patrick Industries, Inc. (NASDAQ:PATK) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 9, Truist analyst Gregory Miller raised the firm’s price target on Patrick Industries, Inc. (NASDAQ:PATK) to $126 from $114 and maintained a Buy rating on the stock. In his note, Miller said Patrick stood out in 2025, beating the broader recreation group as investors responded positively to how well the company held up despite a tougher macro backdrop.

Truist also pointed to a few areas that could support growth going forward. One is the company’s aftermarket business through RecPro, which has been gaining traction. Another is Patrick’s expanding presence in powersports, which now accounts for roughly 9%–10% of total revenue, giving the company a bigger foothold in a market with long-term potential.

In Q3 2025, Patrick reported net sales of $976 million, up 6% year-over-year. The increase was driven by steady organic growth and contributions from acquisitions, though industry-wide shipment declines continued to weigh on results. Management said revenue improved across all four of its main end markets, helped by stronger content per unit and the added boost from acquisitions.

Profitability was a bit softer compared to last year. Operating income came in at $66 million versus $74 million in the prior-year quarter, and operating margin eased to 6.8% from 8.1%. Net income was $35 million, down from $41 million a year earlier.

On the cash flow side, operating cash flow totaled $199 million year-to-date, compared with $224 million in the same period last year. Over the trailing twelve months, free cash flow was $211 million. The company also returned $13 million to shareholders through its regular quarterly dividend.

Patrick Industries, Inc. (NASDAQ:PATK) supplies component solutions to manufacturers across the RV, marine, powersports, and housing markets.

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