What Patrick Industries, Inc. told the SEC could break it.

Patrick's manufactured components rely on commodity-based raw materials (lumber/plywood, aluminum, resins, foams and related inputs) whose prices have historically been volatile and continued to fluctuate in 2025. Its cost of goods sold percentage moves with these raw-material and commodity-based component costs; while it has generally been able to pass cost increases through to customers during volatile periods, sustained spikes pressure margins to the extent pass-through lags.

“In addition, prices of certain raw materials have historically been volatile and continued to fluctuate in 2025.”

Beyond tariff policy, Patrick has a structural foreign-sourcing concentration: it purchases a material portion of its raw materials and other supplies from suppliers located in Indonesia, China, Vietnam, Malaysia, Mexico and Canada. This exposes its input supply to foreign-currency fluctuations, the economic strength of those countries, difficulties enforcing contractual obligations, and broader supply-continuity risk if any of those sourcing regions is disrupted.

“We purchase a material portion of our raw materials and other supplies from suppliers located in Indonesia, China, Vietnam, Malaysia, Mexico and Canada.”

Patrick Industries sources a significant portion of its products and components from outside the U.S. — China, Vietnam, Indonesia, Malaysia, Mexico and Canada — and the U.S. has imposed tariffs and export controls on goods such as plywood from these countries, drawing retaliatory tariffs from China and others. Further or broader U.S. tariffs (or foreign retaliation) could raise its supply-chain costs in ways it may not be able to offset, and could also dampen demand from its RV/marine/MH OEM customers.

“The United States has imposed tariffs and export controls on certain goods and products imported from China, Vietnam, Indonesia, Malaysia, Mexico, Canada and certain other countries, such as plywood, which has resulted in retaliatory tariffs by China and other countries and additional tariffs may be imposed by the current U.S. administration on products imported from China, Vietnam, Indonesia, Malaysia, Mexico and Canada.”