PATRICK INDUSTRIES INCPATK
PATRICK INDUSTRIES INC Segments Disclosure
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 Company’s 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 components; RV painting; thermoformed shower surrounds; fiberglass and plastic components including front and rear caps and marine helms; polymer-based and other flooring; Marine hardware and accessories; air handling products; treated, untreated and laminated plywood; RV and marine furniture; adhesives and sealants; audio systems and accessories, including amplifiers, tower speakers, soundbars, and subwoofers; Marine non-slip foam flooring, padding, and accessories; protective covers for boats, RVs, aircraft, and military and industrial equipment; windshield and wiper systems; roofs/canopies; integrated door systems; fender flares and rear panels; composite panels; and other products.
Distribution – The Company distributes pre-finished wall and ceiling panels; drywall and drywall finishing products; interior and exterior lighting products; wiring, electrical and plumbing products; transportation and logistics services; electronics and audio systems components; cement siding; raw and processed lumber; fiber reinforced polyester (“FRP”) products; interior passage doors; roofing products; laminate and ceramic flooring; shower doors; fireplaces and surrounds; appliances; tile; Marine hardware and accessories; RV awnings, windows, fiberglass siding and roofing; Marine windshields; RV air conditioning units and furniture; and other products in addition to providing transportation and logistics services.
The CODM evaluates the performance of the Company's segments and allocates resources to them based on a variety of indicators including but not limited to net sales, gross profit and operating income. On at least a quarterly basis, the CODM considers actual to budget variances as well as actual to prior year actual performance for both profit measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment gross profit and segment operating income to assess the performance of each segment by comparing the results of each segment with one another.
The accounting policies of the segments are the same as those described in Note 1 "Basis of Presentation and Significant Accounting Policies". Segment net sales data includes inter-segment sales. The Company accounts for inter-segment sales similar to third party transactions, which reflect current market prices. Certain income from purchase incentive agreements is not allocated to the segments and instead recorded at the corporate level. Assets are identified to the segments except for cash, prepaid expenses, land and buildings, and certain deferred assets, which are identified with corporate. Corporate charges rent to the segments for use of the land and buildings based upon estimated market rates.
The following tables summarize key financial information by segment:
Year Ended December 31, 2025 | ||||||||||||||||||||
| ($ in thousands) | Manufacturing | Distribution | Total | |||||||||||||||||
| Total net sales | $ | 2,958,970 | $ | 1,014,320 | $ | 3,973,290 | ||||||||||||||
| Cost of goods sold | 2,302,770 | 762,889 | 3,065,659 | |||||||||||||||||
| Gross profit | $ | 656,200 | $ | 251,431 | $ | 907,631 | ||||||||||||||
| Operating expenses | 298,164 | 148,426 | 446,590 | |||||||||||||||||
| Operating income | $ | 358,036 | $ | 103,005 | $ | 461,041 | ||||||||||||||
| Reconciliation of reportable segment operating income to consolidated income before income tax: | ||||||||||||||||||||
| Selling, general and administrative | 96,706 | |||||||||||||||||||
| Amortization of intangible assets | 96,956 | |||||||||||||||||||
| Interest expense, net | 74,507 | |||||||||||||||||||
| Other expenses | 24,420 | |||||||||||||||||||
| Elimination of inter-segment profits | (8,610) | |||||||||||||||||||
| Consolidated income before income taxes | $ | 177,062 | ||||||||||||||||||
| Total assets | $ | 2,476,411 | $ | 493,308 | $ | 2,969,719 | ||||||||||||||
| Capital expenditures | $ | 71,042 | $ | 970 | $ | 72,012 | ||||||||||||||
| Depreciation and amortization | $ | 145,108 | $ | 18,183 | $ | 163,291 | ||||||||||||||
Year Ended December 31, 2024 | ||||||||||||||||||||
| ($ in thousands) | Manufacturing | Distribution | Total | |||||||||||||||||
| Total net sales | $ | 2,756,547 | $ | 980,127 | $ | 3,736,674 | ||||||||||||||
| Cost of goods sold | 2,143,995 | 755,272 | 2,899,267 | |||||||||||||||||
| Gross Profit | $ | 612,552 | $ | 224,855 | $ | 837,407 | ||||||||||||||
| Operating expenses | 271,591 | 120,140 | 391,731 | |||||||||||||||||
| Operating income | $ | 340,961 | $ | 104,715 | $ | 445,676 | ||||||||||||||
| Reconciliation of reportable segment operating income to consolidated income before income tax: | ||||||||||||||||||||
| Selling, general and administrative | 92,902 | |||||||||||||||||||
| Amortization of intangible assets | 96,235 | |||||||||||||||||||
| Interest expense, net | 79,470 | |||||||||||||||||||
| Elimination of inter-segment profits | 1,501 | |||||||||||||||||||
| Other | (3,002) | |||||||||||||||||||
| Consolidated income before income taxes | $ | 178,570 | ||||||||||||||||||
| Total assets | $ | 2,402,533 | $ | 524,827 | $ | 2,927,360 | ||||||||||||||
| Capital expenditures | $ | 62,342 | $ | 10,808 | $ | 73,150 | ||||||||||||||
| Depreciation and amortization | $ | 143,844 | $ | 15,728 | $ | 159,572 | ||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||
| ($ in thousands) | Manufacturing | Distribution | Total | |||||||||||||||||
| Total net sales | $ | 2,653,257 | $ | 889,408 | $ | 3,542,665 | ||||||||||||||
| Cost of goods sold | 2,075,973 | 693,902 | 2,769,875 | |||||||||||||||||
| Gross Profit | $ | 577,284 | $ | 195,506 | $ | 772,790 | ||||||||||||||
| Operating expenses | 256,188 | 105,411 | 361,599 | |||||||||||||||||
| Operating income | $ | 321,096 | $ | 90,095 | $ | 411,191 | ||||||||||||||
| Reconciliation of reportable segment operating income to consolidated income before income tax: | ||||||||||||||||||||
| Selling, general and administrative | 82,674 | |||||||||||||||||||
| Amortization of intangible assets | 78,616 | |||||||||||||||||||
| Interest expense, net | 68,942 | |||||||||||||||||||
| Elimination of inter-segment profits | (10,299) | |||||||||||||||||||
| Consolidated income before income taxes | $ | 191,258 | ||||||||||||||||||
| Total assets | $ | 2,071,500 | $ | 426,931 | $ | 2,498,431 | ||||||||||||||
| Capital expenditures | $ | 50,771 | $ | 8,094 | $ | 58,865 | ||||||||||||||
| Depreciation and amortization | $ | 126,431 | $ | 12,710 | $ | 139,141 | ||||||||||||||
A reconciliation of certain line items pertaining to the total reportable segments to the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 and as of December 31, 2025 and 2024 is as follows:
| Year Ended December 31, | |||||||||||||||||
| ($ in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales: | |||||||||||||||||
| Total sales for reportable segments | $ | 3,973,290 | $ | 3,736,674 | $ | 3,542,665 | |||||||||||
Elimination of intersegment sales(1) | (22,517) | (20,991) | (74,620) | ||||||||||||||
| Consolidated net sales | $ | 3,950,773 | $ | 3,715,683 | $ | 3,468,045 | |||||||||||
| Depreciation and amortization: | |||||||||||||||||
| Depreciation and amortization for reportable segments | $ | 163,291 | $ | 159,572 | $ | 139,141 | |||||||||||
| Corporate depreciation and amortization | 6,921 | 6,973 | 5,402 | ||||||||||||||
| Consolidated depreciation and amortization | $ | 170,212 | $ | 166,545 | $ | 144,543 | |||||||||||
| Capital expenditures: | |||||||||||||||||
| Capital expenditures for reportable segments | $ | 72,012 | $ | 73,150 | $ | 58,865 | |||||||||||
| Corporate capital expenditures | 10,909 | 2,532 | 3,183 | ||||||||||||||
| Consolidated capital expenditures | $ | 82,921 | $ | 75,682 | $ | 62,048 | |||||||||||
| ($ in thousands) | As of December 31, | ||||||||||
| Total assets: | 2025 | 2024 | |||||||||
| Identifiable assets for reportable segments | $ | 2,969,719 | $ | 2,927,360 | |||||||
| Corporate assets unallocated to segments | 80,023 | 60,033 | |||||||||
| Cash and cash equivalents | 26,432 | 33,561 | |||||||||
| Consolidated total assets | $ | 3,076,174 | $ | 3,020,954 | |||||||
(1)Eliminations for the years ended December 31, 2025 and 2024 include only the elimination of inter-segment transactions.
The Company's revenue from external customers and long-lived assets are substantially all attributed to the U.S.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.