Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on how tariffs, particularly on steel and aluminum, are impacting your outlook for the year? A: Jason Lippert, CEO: We haven't included any tariff impacts in our plan as it's still fluid. Our largest product, chassis, uses almost 99% domestic steel, so tariffs have minimal impact there. Overall, we estimate about a 50 basis point impact, which we believe we can mitigate through pricing and supplier cooperation.
Q: How do you expect the mix of single axle trailers to trend this year, and what does that mean for content per unit? A: Jason Lippert, CEO: Single axle trailer production increased last year, but we expect it to normalize by Q2. Dealers are aware of the mix situation, and we anticipate a return to more typical production levels, which should stabilize content per unit.
Q: Can you discuss the penetration and acceptance rates for your recent innovations like suspension systems and glass entry doors? A: Jason Lippert, CEO: Products like the Chill Cube and ABS are gaining traction, with ABS seeing double-digit growth in product placement. While more expensive products take longer to penetrate, we are seeing positive reception and expect continued growth.
Q: What is your outlook for operating margins in 2025, considering potential tariff impacts and other factors? A: Lillian Etzkorn, CFO: We are not providing a specific margin target but expect incremental margins of about 25%. We are focused on cost reductions and expect reasonable margin improvements, despite the tariff overhang.
Q: Can you provide more detail on your M&A pipeline and opportunities in the market? A: Jason Lippert, CEO: We have a robust M&A pipeline and are in discussions across our diversified businesses, including RV and marine. We are hopeful to execute some acquisitions this year as we have been conserving cash to maintain leverage targets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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