Is Patrick Industries (PATK) Quietly Turning Outsourcing Trends Into a More Durable Competitive Edge?

• Patrick Industries recently appeared in Mairs & Power Small Cap Fund’s third-quarter 2025 investor letter as a new holding, and earlier this month presented at the Raymond James TMT & Consumer Conference in New York, underscoring its profile across recreational vehicle, marine, manufactured housing, and residential construction markets.
• The fund’s decision to initiate a position after tariff and inventory concerns had pressured the stock highlights how some institutional investors view Patrick Industries as well-positioned to benefit from ongoing outsourcing trends across several cyclical end markets.
• We’ll now explore how this fresh institutional interest, framed around outsourcing-led growth, may influence Patrick Industries’ existing investment narrative.

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Patrick Industries Investment Narrative Recap

To own Patrick Industries, you need to believe in its ability to turn cyclical demand in RV, marine, and housing markets into steady outsourcing and content-per-unit gains, despite earnings volatility tied to rates and consumer confidence. The recent appearance in Mairs & Power’s portfolio and at the Raymond James TMT & Consumer Conference does not materially change that near term, but it does reinforce outsourcing as the key catalyst and end-market cyclicality as the central risk.

The most relevant recent announcement is Patrick’s Q3 2025 result, which showed higher sales but lower net income and diluted EPS year over year, underscoring how margin pressure and cost inflation can bite even when demand holds up. Against that backdrop, fresh institutional interest around outsourcing-led growth sits alongside the reality that earnings can still be pressured by tariffs, input costs, and cyclical end markets.

Yet behind the outsourcing opportunity, investors should also be aware of how exposed Patrick remains to prolonged weakness in...

Read the full narrative on Patrick Industries (it's free!)

Patrick Industries' narrative projects $4.2 billion revenue and $273.7 million earnings by 2028. This requires 3.2% yearly revenue growth and an earnings increase of about $147.6 million from $126.1 million today.

Uncover how Patrick Industries' forecasts yield a $110.20 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have only two fair value estimates for Patrick Industries, ranging from US$110.20 up to about US$158.17, underlining how far apart individual views can be. You might weigh those against the company’s ongoing exposure to highly cyclical RV, marine, and manufactured housing demand, which can swing reported earnings and challenge even well executed outsourcing growth plans.

Explore 2 other fair value estimates on Patrick Industries - why the stock might be worth just $110.20!

Build Your Own Patrick Industries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Patrick Industries research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Patrick Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Patrick Industries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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