Market Newsdesk

LCI Industries Reports Third Quarter Financial Results

Growth in Adjacent Industries and Aftermarket; Strong Execution Drives Operating Margin Expansion

Third Quarter 2026 Highlights versus Third Quarter 2025

• Consolidated net sales of $992 million relative to $1,036 million

• Diversified businesses grew, with Adjacent Industries net sales growth of 7% and Aftermarket up 6%, partially mitigating lower RV OEM sales

• Operating profit margin expanded 30 bps to 7.6% from 7.3%

• Adjusted operating profit margin, which excludes the impacts of merger-related expenses and restructuring costs, expanded 100 bps to 8.3% from 7.3%

• Net income of $50 million, or 5.0% of net sales, relative to $62 million, or 6.0% of net sales

• Diluted earnings per share decreased 20% to $2.05 relative to $2.55

• Adjusted net income of $54 million; adjusted diluted EPS increased 12% to $2.21 from $1.97

• Adjusted EBITDA of $111 million, or 11.2% of net sales, up from $106 million, or 10.2% of net sales

• Towable RV content per unit up 6% to $5,733

Other Highlights

• Cash flows from operations of $316 million for the LTM ended September 30, 2026

• $28 million returned to shareholders via dividends during the quarter

• Strong liquidity position of $841 million, comprising $246 million of cash and cash equivalents and $595 million of availability on revolving credit facility at September 30, 2026

• As previously announced, on June 30, 2026, the Company entered into a definitive agreement to combine with Patrick Industries, Inc. in an all-stock merger. The Company will hold a special meeting of stockholders on November 18, 2026. Please visit www.PatrickandLippertTogether.com for more information.

ELKHART, Ind.–(BUSINESS WIRE)–
LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported third quarter 2026 results.

“Our third-quarter results reflect continued progress in improving profitability in a soft outdoor recreation market. Margin expansion and 6% growth in product content per unit contributed to our performance and position us to achieve our updated full-year outlook,” said Johnny Sirpilla, Interim Chief Executive Officer. “Our 2026 performance has been driven by taking actions on those areas within our control. This includes the ongoing pursuit of operational efficiencies and strategic cost reductions. Our cost management and growth in adjacent industries and aftermarket sales contributed to our bottom line results and we believe leave us well-positioned as conditions normalize.”

Mr. Sirpilla continued, “Our new product pipeline and the repair and replacement needs of the installed RV base provide opportunities to serve customers even as demand for new units remains constrained. We are also advancing toward the proposed merger with Patrick Industries, which we continue to expect to close in the first half of 2027. Until that time, our focus remains on disciplined execution and strengthening the business under current market conditions, while driving long-term shareholder value.”

Third Quarter 2026 Results

Consolidated net sales of $992.5 million in the third quarter of 2026 compares to $1,036.5 million in the same period of 2025. The decrease in consolidated net sales was primarily driven by lower North American RV wholesale shipments, partially offset by increases in selling prices contractually tied to indices of select commodities, growth in the automotive aftermarket, and sales from acquired businesses ($5.2 million in the third quarter).

Net income was $50.1 million, or $2.05 per diluted share, compared to $62.5 million, or $2.55 per diluted share, in the third quarter of 2025. Adjusted net income increased to $54.0 million, or $2.21 per diluted share, compared to $48.1 million, or $1.97 per diluted share. Adjusted EBITDA increased to $111.5 million, compared to $105.9 million in the third quarter of 2025. Operating profit margin increased to 7.6% in the third quarter of 2026 compared to 7.3% in the same period of 2025. Year-over-year margin expansion was driven primarily by cost improvement actions, including materials sourcing strategies, partially offset by lower absorption of fixed costs due to lower sales volumes and merger-related expenses.

*Additional information regarding adjusted net income, adjusted EPS, adjusted EBITDA, and adjusted operating profit margin used throughout this release, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, is provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.

OEM Segment – Third Quarter Performance

OEM net sales decreased $57.7 million, or 7%, to $732.3 million for the third quarter of 2026, compared to $790.0 million in the same period of 2025. RV OEM net sales decreased 17% to $389.9 million, primarily due to a decrease in North American travel trailer and fifth-wheel shipments, and a change in RV sales mix toward more lower content single axle travel trailers, partially offset by increases in selling prices contractually tied to indices of select commodities. Adjacent Industries OEM net sales increased 7% year-over-year to $342.4 million, primarily driven by higher sales to North American transportation, marine, and manufactured housing OEMs.

Operating profit of the OEM Segment was $44.1 million in the third quarter of 2026, or 6.0% of net sales, compared to $43.6 million, or 5.5% of net sales, in the same period in 2025. Operating profit margin of the OEM Segment benefited primarily from increases in selling prices contractually tied to indices of select commodities, cost improvement actions, including materials sourcing strategies, and a favorable shift in component sales mix, partially offset by the impact of fixed costs spread over decreased production volumes, decreases in selling prices for certain products primarily related to changes in tariff costs, higher material and freight costs, including higher steel and aluminum costs and rising fuel costs, as well as merger-related expenses.

Aftermarket Segment – Third Quarter Performance

Aftermarket net sales increased 6% to $260.2 million for the third quarter of 2026, compared to $246.5 million in the same period of 2025. The increase was primarily driven by increases in volume in the automotive aftermarket.

Operating profit of the Aftermarket Segment was $30.9 million, or 11.9% of net sales in the third quarter of 2026, compared to $31.9 million, or 12.9% of net sales, in the same period of 2025. Operating profit margin of the Aftermarket Segment was negatively impacted by higher material and freight costs related to tariffs, higher steel and aluminum costs, rising fuel costs, investments in capacity and distribution to support the Aftermarket Segment, restructuring costs to support growth in the automotive aftermarket, and merger-related expenses, partially offset by the impact of fixed costs spread over increased automotive aftermarket production volumes, cost improvement actions, including materials sourcing strategies, and increases in selling prices for targeted products and to cover increased material costs.

Income Taxes

The Company’s effective tax rate was 26.7% for the quarter ended September 30, 2026, compared to 25.6% for the quarter ended September 30, 2025. The increase in the effective tax rate was primarily due to the reduction in a discrete tax benefit related to an increase in the cash surrender value of company-owned life insurance policies compared to the prior year period and a write-off of projected non-deductible deferred executive compensation.

Balance Sheet and Other Items

At September 30, 2026, the Company’s cash and cash equivalents balance was $245.6 million, relative to $222.6 million at December 31, 2025. The Company used $92.0 million to pay off the remaining balance of its 2026 Convertible Notes at maturity, $83.8 million for dividend payments to shareholders, and $41.9 million for capital expenditures in the nine months ended September 30, 2026.

The Company’s outstanding long-term indebtedness, including current maturities, was $852.4 million at September 30, 2026. As of September 30, 2026, the Company had $595.4 million of borrowing availability under its revolving credit facility.

Outlook

Based on current market and economic conditions along with existing tariffs, the Company currently expects the following:

• October 2026 net sales of approximately $341 million, down 10% from prior year

• 2026 North American RV wholesale shipments of 285,000 to 295,000

• 2026 revenue of $3.9 billion to $4.0 billion

• 2026 adjusted operating profit margin of 7.5% to 8.0%

• 2026 adjusted EPS of $8.25 to $8.50

Conference Call & Webcast

LCI Industries will host a conference call to discuss its third quarter results on Thursday, November 5, 2026, at 8:30 a.m. Eastern time. An online, real-time webcast, as well as a supplemental earnings presentation, will be available on the Company’s website, investors.lci1.com. The conference call and webcast can also be accessed by dialing (833) 461-5787 for participants in the U.S. and (585) 542-9983 for participants outside the U.S. using the required access code 567748958#. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call.

A replay of the conference call will be available for two weeks by dialing (833) 309-1852 for participants in the U.S. and (929) 828-5978 for those outside the U.S. and referencing access code 567748958#. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

About LCI Industries

LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit www.lippert.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margins, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company’s common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to the Company’s 2026 outlook and related assumptions, production levels, future financial results and business prospects, net sales, expenses and income (loss), operating margins, capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand and shipments, run rates, integration of acquisitions, planned divestitures and facility consolidations, optimization of facilities and infrastructure, R&D investments, commodity prices, addressable markets, industry trends, and the Company’s proposed merger with Patrick Industries, Inc. (“Patrick”), whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company’s senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, (1) the impacts of costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, (2) tariff refunds and related pass through to customers, (3) future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company’s customers, suppliers, team members, business and cash flows, (4) pricing pressures due to domestic and foreign competition, (5) seasonality and cyclicality in the industries to which we sell our products, (6) availability of credit for financing the retail and wholesale purchase of products for which we sell our components, (7) inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, (8) the financial condition of our customers, (9) the financial condition of retail dealers of products for which we sell our components, (10) retention and concentration of significant customers, (11) the costs, pace of and successful integration of acquisitions and other growth initiatives, (12) availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, (13) efficiency improvements and cost reductions, (14) the disruption of business resulting from natural disasters or other unforeseen events, (15) the successful entry into new markets, (16) the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, (17) information technology performance and security, (18) the ability to protect intellectual property, (19) warranty and product liability claims or product recalls, (20) interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, (21) risks related to the pending merger with Patrick, including (a) the risk that the cost savings and any revenue synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (b) disruption to each party’s business as a result of the announcement and pendency of the transaction, (c) the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate as a result of unexpected factors or events, (d) the failure to obtain the necessary approvals by the stockholders of the Company or Patrick, (e) the ability by each of the Company and Patrick to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction, (f) reputational risk and the reaction of each party’s customers, suppliers, employees or other business partners to the transaction, (g) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, (h) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (i) risks related to management and oversight of the expanded business and operations of the combined company due to the increased size and complexity, (j) the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the transaction or the size, scope and complexity of the combined company’s business operations, and (k) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against the Company, Patrick or the combined company before or after the transaction, and (22) other risks and uncertainties discussed more fully under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2026 and in the Company’s subsequent filings with the Securities and Exchange Commission (the “SEC”). Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Important Information About the Proposed Transaction and Where to Find It

In connection with the proposed transaction between the Company and Patrick, Patrick has filed relevant materials with the SEC, including, among other filings, a Patrick registration statement on Form S-4 (File No. 333-299100) that includes a preliminary joint proxy statement of the Company and Patrick that also constitutes a prospectus of Patrick with respect to shares of Patrick’s common stock to be issued in the proposed transaction. The registration statement was declared effective by the SEC on October 19, 2026, and the Company and Patrick commenced mailing the definitive joint proxy statement/prospectus (the “Joint Proxy Statement/Prospectus”) to their respective stockholders on or about October 19, 2026. The Company and Patrick may also file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for the Joint Proxy Statement/Prospectus or any other document which the Company and Patrick may file with the SEC. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND PATRICK ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders are able to obtain free copies of the registration statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by the Company and Patrick through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by the Company are available free of charge on the Company’s website at lippert.com under the tab “Investors” and under the heading “Financials” and subheading “SEC Filings.” Copies of the documents filed with the SEC by Patrick are available free of charge on Patrick’s website at patrickind.com under the tab “Investors” and under the heading “SEC Filings.”

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.

LCI INDUSTRIES
OPERATING RESULTS
(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,								Last Twelve
		2026				2025				2026				2025			Months
(In thousands, except per share amounts)
Net sales	$	992,483			$	1,036,477			$	3,051,675			$	3,189,317			$	3,984,375
Cost of sales		728,688				783,864				2,213,071				2,414,934				2,939,859
Gross profit		263,795				252,613				838,604				774,383				1,044,516
Warehouse and transportation		59,458				49,650				176,682				153,740				228,002
Selling, general and administrative expenses		129,322				127,524				395,788				376,083				515,018
Operating profit		75,015				75,439				266,134				244,560				301,496
Interest expense, net		8,389				10,323				24,621				26,003				34,328
Loss on extinguishment of debt		—				806				—				8,859				—
Gain on sale of real estate		(1,681	)			(19,716	)			(2,235	)			(19,716	)			(2,235	)
Income before income taxes		68,307				84,026				243,748				229,414				269,403
Provision for income taxes		18,220				21,533				63,573				59,848				70,544
Net income	$	50,087			$	62,493			$	180,175			$	169,566			$	198,859
Net income per common share:
Basic	$	2.06			$	2.56			$	7.42			$	6.79			$	8.19
Diluted	$	2.05			$	2.55			$	7.39			$	6.78			$	8.16
Weighted average common shares outstanding:
Basic		24,322				24,389				24,288				24,978				24,272
Diluted		24,417				24,466				24,376				25,004				24,371
Depreciation	$	15,999			$	16,706			$	50,019			$	50,195			$	66,878
Amortization	$	12,943			$	13,779			$	39,579			$	40,155			$	53,601
Capital expenditures	$	13,445			$	16,297			$	41,877			$	38,071			$	56,450

LCI INDUSTRIES
SEGMENT RESULTS
(unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,						Last Twelve
	2026			2025			2026			2025			Months
(In thousands)
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	337,852		$	412,472		$	1,062,207		$	1,325,592		$	1,444,851
Motorhomes		52,013			57,635			173,622			178,615			230,983
Adjacent Industries OEMs		342,420			319,916			1,024,063			948,930			1,320,574
Total OEM Segment net sales		732,285			790,023			2,259,892			2,453,137			2,996,408
Aftermarket Segment:
Total Aftermarket Segment net sales		260,198			246,454			791,783			736,180			987,967
Total net sales	$	992,483		$	1,036,477		$	3,051,675		$	3,189,317		$	3,984,375
Operating profit:
OEM Segment	$	44,117		$	43,570		$	164,704		$	157,227		$	191,597
Aftermarket Segment		30,898			31,869			101,430			87,333			109,899
Total operating profit	$	75,015		$	75,439		$	266,134		$	244,560		$	301,496
Depreciation and amortization:
OEM Segment depreciation	$	10,184		$	11,992		$	33,749		$	36,488		$	45,592
Aftermarket Segment depreciation		5,815			4,714			16,270			13,707			21,286
Total depreciation	$	15,999		$	16,706		$	50,019		$	50,195		$	66,878
OEM Segment amortization	$	8,951		$	9,917		$	27,512		$	28,669		$	37,508
Aftermarket Segment amortization		3,992			3,862			12,067			11,486			16,093
Total amortization	$	12,943		$	13,779		$	39,579		$	40,155		$	53,601

LCI INDUSTRIES
BALANCE SHEET INFORMATION
(unaudited)
	September 30, 2026			December 31, 2025
(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	245,618		$	222,615
Accounts receivable, net		385,231			243,425
Inventories, net		746,726			809,094
Prepaid expenses and other current assets		68,132			74,552
Total current assets		1,445,707			1,349,686
Fixed assets, net		405,705			428,031
Goodwill		618,906			622,183
Other intangible assets, net		359,782			402,568
Operating lease right-of-use assets		268,390			272,995
Other long-term assets		101,656			100,524
Total assets	$	3,200,146		$	3,175,987
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term indebtedness	$	3,650		$	3,683
Accounts payable, trade		196,353			202,257
Current portion of operating lease obligations		46,074			44,174
Accrued expenses and other current liabilities		266,778			223,253
Total current liabilities		512,855			473,367
Long-term indebtedness		848,745			941,502
Operating lease obligations		241,190			246,047
Deferred taxes		28,002			27,495
Other long-term liabilities		111,299			126,743
Total liabilities		1,742,091			1,815,154
Total stockholders’ equity		1,458,055			1,360,833
Total liabilities and stockholders’ equity	$	3,200,146		$	3,175,987

LCI INDUSTRIES
SUMMARY OF CASH FLOWS
(unaudited)
	Nine Months Ended September 30,
		2026				2025
(In thousands)
Cash flows from operating activities:
Net income	$	180,175			$	169,566
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization		89,598				90,350
Stock-based compensation expense		17,030				16,868
Loss on extinguishment of debt		—				8,859
Gain on sale of real estate		(2,235	)			(19,716	)
Other non-cash items		6,839				9,860
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net		(144,308	)			(145,752	)
Inventories, net		60,987				33,176
Prepaid expenses and other assets		1,567				11,069
Accounts payable, trade		(3,360	)			24,333
Accrued expenses and other liabilities		30,982				53,491
Net cash flows provided by operating activities		237,275				252,104
Cash flows from investing activities:
Capital expenditures		(41,877	)			(38,071	)
Acquisition of businesses		—				(102,990	)
Proceeds from sale of real estate		3,681				22,674
Other investing activities		7,701				(3,249	)
Net cash flows used in investing activities		(30,495	)			(121,636	)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes		(6,718	)			(5,242	)
Repayments under revolving credit facility		—				(19,261	)
Proceeds from term loan borrowings		—				391,000
Repayments under term loan and other borrowings		(3,225	)			(282,535	)
Proceeds from issuance of convertible notes		—				448,500
Repurchase of convertible notes		(92,000	)			(368,920	)
Purchases of convertible note hedge contracts		—				(67,574	)
Proceeds from issuance of warrants concurrent with note hedge contracts		—				27,600
Payment of dividends		(83,838	)			(86,215	)
Repurchases of common stock		—				(128,571	)
Other financing activities		—				(4,998	)
Net cash flows used in financing activities		(185,781	)			(96,216	)
Effect of exchange rate changes on cash and cash equivalents		2,004				(287	)
Net increase in cash and cash equivalents		23,003				33,965
Cash and cash equivalents at beginning of period		222,615				165,756
Cash and cash equivalents at end of period	$	245,618			$	199,721

LCI INDUSTRIES
SUPPLEMENTARY INFORMATION
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,								Last Twelve
	2026			2025				2026				2025			Months
Industry Data(1)(in thousands of units):
Industry Wholesale Production:
Travel trailer and fifth-wheel RVs	57.4			65.7				196.3				233.5				261.0
Motorhome RVs	7.7			8.9				28.2				27.6				36.6
Industry Retail Sales:
Travel trailer and fifth-wheel RVs	75.6			90.7				215.8				254.0				267.9
Impact on dealer inventories	(18.2	)		(25.0	)			(19.5	)			(20.5	)			(6.9	)
Motorhome RVs	9.6			10.4				27.6				30.1				35.5
							Twelve Months Ended
							September 30,
								2026				2025
Lippert Content Per Industry Unit Produced(2):
Travel trailer and fifth-wheel RV							$	5,733			$	5,431
Motorhome RV							$	3,873			$	3,839
							September 30,								December 31,
								2026				2025				2025
Balance Sheet Data (debt availability in millions):
Remaining availability under the revolving credit facility(3)							$	595.4			$	595.2			$	595.2
Days sales in accounts receivable, based on last twelve months								31.3				29.4				29.7
Inventory turns, based on last twelve months								3.7				4.2				4.2
Estimated Full Year Data:							2026
Revenue							$3.9 – $4.0 billion
Adjusted operating profit margin(4)							7.5% – 8.0%
Adjusted diluted EPS							$8.25 – $8.50
Capital expenditures							$55 – $65 million
Depreciation and amortization							$115 – $125 million
Stock-based compensation expense							$22 – $25 million
Annual tax rate							25% – 27%

(1)	Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.
(2)	Excludes the impact on net sales in 2026 from IEEPA tariff refunds passed through or expected to be passed through to customers.
(3)	Remaining availability under the revolving credit facility is subject to covenant restrictions.
(4)	Estimate excludes impact of restructuring costs, merger-related expenses, and IEEPA tariff refunds.

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

The following table reconciles net income to Adjusted EBITDA, net sales to adjusted net sales, and net income as a percentage of net sales to Adjusted EBITDA as a percentage of adjusted net sales.

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
(In thousands)
Net income	$	50,087			$	62,493			$	180,175			$	169,566
Interest expense, net		8,389				10,323				24,621				26,003
Provision for income taxes		18,220				21,533				63,573				59,848
Depreciation expense		15,999				16,706				50,019				50,195
Amortization expense		12,943				13,779				39,579				40,155
EBITDA	$	105,638			$	124,834			$	357,967			$	345,767
Loss on extinguishment of debt		—				806				—				8,859
Gain on sale of real estate		(1,681	)			(19,716	)			(2,235	)			(19,716	)
Restructuring costs		2,393				—				6,814				—
Merger expenses		5,120				—				19,244				—
Net impact of IEEPA tariff refunds		—				—				(15,972	)			—
Executive separation costs		—				—				—				3,193
Adjusted EBITDA	$	111,470			$	105,924			$	365,818			$	338,103
Net sales	$	992,483			$	1,036,477			$	3,051,675			$	3,189,317
IEEPA tariff refunds impact on net sales		—				—				88,792				—
Adjusted net sales	$	992,483			$	1,036,477			$	3,140,467			$	3,189,317
Net income as a percentage of net sales		5.0	%			6.0	%			5.9	%			5.3	%
Adjusted EBITDA as a percentage of adjusted net sales		11.2	%			10.2	%			11.6	%			10.6	%

The following table reconciles operating profit margin to adjusted operating profit margin.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Operating profit margin	7.6	%		7.3	%		8.7	%		7.7	%
Restructuring costs	0.2	%		—	%		0.2	%		—	%
Merger expenses	0.5	%		—	%		0.6	%		—	%
Net impact of IEEPA tariff refunds	—	%		—	%		(0.7	)%		—	%
Executive separation costs	—	%		—	%		—	%		0.1	%
Adjusted operating profit margin	8.3	%		7.3	%		8.8	%		7.8	%

The following table reconciles net income to adjusted net income and net income per diluted share to adjusted net income per adjusted diluted share (“Adjusted EPS”).

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
(In thousands, except per share amounts)
Net income	$	50,087			$	62,493			$	180,175			$	169,566
Loss on extinguishment of debt		—				806				—				8,859
Gain on sale of real estate		(1,681	)			(19,716	)			(2,235	)			(19,716	)
Restructuring costs		2,393				—				6,814				—
Merger expenses		5,120				—				19,244				—
Net impact of IEEPA tariff refunds, including interest income		(713	)			—				(20,377	)			—
Executive separation costs		—				—				—				3,193
Tax effect of adjustments		(1,229	)			4,531				(827	)			1,836
Adjusted net income	$	53,977			$	48,114			$	182,794			$	163,738
Weighted average common shares outstanding – diluted		24,417				24,466				24,376				25,004
Net income per common share – diluted	$	2.05			$	2.55			$	7.39			$	6.78
Loss on extinguishment of debt		—				0.03				—				0.35
Gain on sale of real estate		(0.07	)			(0.80	)			(0.09	)			(0.79	)
Restructuring costs		0.10				—				0.28				—
Merger expenses		0.21				—				0.79				—
Net impact of IEEPA tariff refunds, including interest income		(0.03	)			—				(0.84	)			—
Executive separation costs		—				—				—				0.13
Tax effect of adjustments		(0.05	)			0.19				(0.03	)			0.08
Adjusted net income per common share – diluted (Adjusted EPS)	$	2.21			$	1.97			$	7.50			$	6.55

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of Adjusted EBITDA, adjusted net sales, adjusted operating profit margin, Adjusted EBITDA as a percentage of adjusted net sales, adjusted net income, and Adjusted EPS to illustrate and improve comparability of its results from period to period. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, amortization expense, loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, and executive separation costs, as applicable, during the three and nine month periods ended September 30, 2026 and 2025. Adjusted net sales is defined as net sales adjusted for the reduction in net sales related to IEEPA tariff refunds passed through or expected to be passed through to customers, during the nine month period ended September 30, 2026. Adjusted operating profit margin is defined as operating profit margin adjusted for restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, and executive separation costs, as applicable, during the three and nine month periods ended September 30, 2026 and 2025. Adjusted net income is defined as net income adjusted for loss on extinguishment of debt, gain on sale of real estate, restructuring costs, merger expenses, the net impact of IEEPA tariff refunds, including interest income, executive separation costs, and the related tax effects, as applicable, during the three and nine month periods ended September 30, 2026 and 2025. Adjusted EPS is defined as adjusted net income divided by weighted average common shares outstanding – diluted. The restructuring costs adjusted out of the non-GAAP measures relate to the Company’s plant consolidations at our U.S. glass and automotive aftermarket facilities. The Company considers these non-GAAP measures in evaluating and managing the Company’s operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. These measures are not in accordance with, nor are they substitutes for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies.

Further, the Company has provided its outlook for full-year 2026 Adjusted EPS and adjusted operating profit margin in this release. The Company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because the Company is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. The financial impact of such items is uncertain and is dependent on various factors, including timing, and could be material to the Company’s consolidated statements of income.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261105208208/en/

Lillian D. Etzkorn, CFO

(574) 535-1125

[email protected]

KEYWORDS: United States North America Indiana

INDUSTRY KEYWORDS: Retail Engineering Transportation Automotive Manufacturing Travel Manufacturing Aftermarket Other Transport Automotive Transport Sports Outdoors Specialty Recreational Vehicles

MEDIA:

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Nexstar Media Group Reports Record Quarterly Net Revenue of $2.1 Billion

Q3 Net Revenue Drives Net Income of $250 Million, Adjusted EBITDA of $756 Million, Net Cash Provided by Operating Activities of $680 Million and Adjusted Free Cash Flow of $443 Million

Delivered Record Q3 Political Advertising Revenue of $317 Million

Repaid $1.3 Billion of Debt Year-to-Date through Today and Returned $58 Million to Shareholders in Dividends in Q3

IRVING, Texas–(BUSINESS WIRE)–
Nexstar Media Group, Inc. (NASDAQ: NXST) (“Nexstar” or the “Company”) today reported financial results for the third quarter ended September 30, 2026 as summarized below. Please visit Nexstar’s website to view the full press release.

STATEMENT FROM PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO

“Nexstar delivered the highest quarterly net revenue in the Company’s history, reflecting the acquisition of TEGNA, Inc. and strong distribution and advertising revenue performance, including all-time high third-quarter political advertising revenue. The CW set a network record with its most-watched sports broadcast ever, as August’s New Mexico State – Florida State football game outperformed three of the major broadcast networks in primetime among Adults 25–54. NewsNation continues its momentum, growing total day viewership 9% year-over-year for the third quarter. Our strong operating performance for the first nine months of the year generated $1.1 billion in Adjusted Free Cash Flow, enabling us to reduce debt by $786 million and return $171 million to shareholders through dividends, while also funding ongoing investments in local news and sports programming. Looking ahead, we will continue to execute our playbook to drive long-term shareholder value while enhancing the programming, products and services that make Nexstar a leading choice for audiences and advertisers and an essential partner to networks and distributors.”

2026 Third Quarter Financial Summary
($ in millions)		Three Months Ended September 30,										Nine Months Ended September 30,
		2026				2025				% Change		2026				2025				% Change
Distribution		$	1,091			$	709			53.9		$	3,044			$	2,204			38.1
Advertising			1,023				476			114.9			2,433				1,410			72.6
Other			19				13			46.2			45				46			(2.2	)
Net Revenue		$	2,133			$	1,198			78.0		$	5,522			$	3,660			50.9
Net Income		$	250			$	65			284.6		$	523			$	253			106.7
% Margin(1)			11.7	%			5.4	%		6.3			9.5	%			6.9	%		2.6
Adjusted EBITDA(2)		$	756			$	358			111.2		$	1,860			$	1,128			64.9
% Margin(1)			35.4	%			29.9	%		5.5			33.7	%			30.8	%		2.9
Net Cash Provided by Operating Activities		$	680			$	117			481.2		$	1,267			$	701			80.7
Adjusted Free Cash Flow(2)		$	443			$	166			166.9		$	1,101			$	615			79.0

(1)	Net Income margin is Net Income as a percentage of Net Revenue. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Net Revenue.
(2)	Please refer to the “Definitions and Disclosures Regarding Non-GAAP Financial Information” section herein and the reconciliations at the end of this press release.

Company and Business Highlights

• Completed a multi-year affiliation agreement extending the FOXaffiliation in 41 markets. (August 2026)

• TEGNA completed a multi-year agreementextending the ABC affiliation in 13 markets. (October 2026)
• Nexstar and TEGNA each completed multi-year affiliation agreements extending CW affiliations in 66 and 8 markets, respectively. (August 2026)
• TEGNA CEO Patrick Paolini appointed new operating and sales executives to the Company’s leadership team. (October 2026)
• Ahead of the midterm elections, Nexstar’s local television stations produced 88 candidate debates and forums, connecting communities with candidates to discuss the issues that matter most, while providing candidates with an unmatched platform to reach voters.

• Continued to advance The CW’s strategy to expand its audience and programming.
  • The CW ranked as the #9 rated English-language ad-supported network in Q3 2026. (September 2026)

  • Expanded The CW’s college football lineup with the addition of the San Diego County Credit Union Poinsettia Bowl and the Annual Holiday Bowl games. (August 2026)
  • Reached an exclusive multi-year media rights agreement with the National Hot Rod Association (NHRA) for The CWto broadcast the final seven races of the Mission Foods Drag Racing Seriesbeginning in September 2027. (September 2026)
• NewsNation momentum continued, growing total day viewership 9% in the third quarter compared to the same quarter in 2025. (September 2026)

Financial Results

• Net Revenue. Record quarterly net revenue of $2.13 billion, increased $935 million year-over-year, or 78.0%, primarily due to $765 million of incremental revenue from our acquisition of TEGNA and higher advertising and distribution revenue from our legacy business units.
• Distribution Revenue. Third quarter distribution revenue of $1,091 million, increased $382 million, or 53.9%, versus the comparable prior year quarter, primarily reflecting $352 million of incremental revenue from the acquisition of TEGNA and higher revenue from our legacy business units due to increased rates, the impact of a one-time charge in the third quarter of 2025 which did not recur in the 2026 period, growth in vMVPD and other streaming subscribers, and the addition of CW affiliations on certain of our stations, partially offset by MVPD subscriber attrition and affiliation replacements on six stations previously affiliated with CBS.
• Advertising Revenue. Third quarter advertising revenue of $1,023 million, increased $547 million, or 114.9%, from the comparable prior year quarter, primarily reflecting $405 million of incremental revenue from the acquisition of TEGNA and a $163 million increase in political advertising at our legacy business units, partially offset by lower non-political advertising due, in part, to crowd-out from political advertising. In total, Q3 political advertising revenue was $317 million, as 2026 is an election year.
• Net Income. Third quarter net income of $250 million increased $185 million, or 284.6%, compared to the prior year quarter, primarily due to increased operating income from the acquisition of TEGNA and increased political advertising revenue generated at our legacy business units, partially offset by increased interest, income tax and one-time expenses, all in connection with the TEGNA transaction. Net income margin increased to 11.7% from 5.4% in the comparable prior year period.
• Adjusted EBITDA. Third quarter Adjusted EBITDA of $756 million, increased $398 million, or 111.2%, compared to the prior year quarter reflecting $243 million of incremental Adjusted EBITDA from the acquisition of TEGNA and increased revenue at our legacy business units. Adjusted EBITDA margin was 35.4% compared to 29.9% in the comparable prior year period.
• Net Cash Provided by Operating Activities. Third quarter Net Cash Provided by Operating Activities of $680 million, increased $563 million, or 481.2%, compared to the comparable prior year quarter, due primarily to an increase in net income and the impact of changes in operating assets and liabilities reflecting the timing of receipts and payments.
• Adjusted Free Cash Flow. Third quarter Adjusted Free Cash Flow of $443 million, increased $277 million, or 166.9%, compared to the prior year quarter, due primarily to increased Adjusted EBITDA, partially offset by an increase in interest expense, capital expenditures and income tax payments, all primarily related to the acquisition of TEGNA.

Capital Allocation

• In the third quarter of 2026, the Company used cash on hand and cash flow from operations to repay $350 million of debt and pay $58 million in dividends.

($ in millions, shares in thousands)	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Cash Used For
Debt repayment	$	350			$	25			$	786			$	157
Acquisitions		–				–				3,657				22
Stockholder return		58				56				171				294
Common stock dividends		58				56				171				169
Stock repurchases		–				–				–				125
Shares Outstanding
End of period		30,818				30,324				30,818				30,324
Less: Beginning of period		30,806				30,315				30,328				30,621
Change in shares outstanding		12				9				490				(297	)
% Change		0.0	%			0.0	%			1.6	%			(1.0	%)

Debt, Cash and Leverage

• As of September 30, 2026, the consolidated debt of Nexstar and Mission Broadcasting, Inc., an independently owned variable interest entity, was $11.4 billion, including senior secured debt of $8.6 billion.

• As of September 30, 2026, the Company’s pro forma first lien net leverage ratio was 3.03x compared to a covenant ratio test of 4.75x and its total net leverage ratio was 4.04x, both calculated in accordance with the terms of its credit agreements which – beginning in the second quarter 2026 – exclude the synergies expected in connection with the acquisition of TEGNA⁽¹⁾.

• Subsequent to September 30, through the date hereof, the Company repaid an additional $525 million of its secured credit facilities.

• The table below summarizes the Company’s cash balances and debt obligations (net of financing costs, discounts and/or premiums) as of September 30, 2026 and December 31, 2025.

($ in millions)		September 30, 2026			December 31, 2025
Cash on Hand		$	446		$	280
Secured Credit Facilities		$	4,849		$	3,622
Secured Notes			3,797			–
Unsecured Notes			2,763			2,711
Total Debt		$	11,409		$	6,333

(1)

We are currently subject to a preliminary injunction that has impacted our ability to execute on synergies anticipated in connection with the acquisition of TEGNA. The trial on the merits of the plaintiffs’ claims is set for July 6, 2027. For synergies to be recognized for our covenant ratio test, they must be anticipated to be realized within 18 months from the date of the transaction, which date would be September 19, 2027 (the “Outside Synergies Date”). Given the limited time between the resolution of the trial and the Outside Synergies Date, we have removed the projected anticipated synergies from the leverage calculation. If conditions change, we will revisit this assessment and calculation.

Third Quarter Conference Call

Nexstar will host a conference call at 10:00 a.m. ET today. Senior management will discuss the financial results and host a question-and-answer session. The dial in number for the audio conference call is 1-877-407-9208 or 1-201-493-6784, conference ID 13762965 (domestic and international callers). Participants can also listen to a live webcast of the call through the “Events and Presentations” section under “Investor Relations” on Nexstar’s website at nexstar.tv. A webcast replay will be available for 90 days following the live event at nexstar.tv.

Forward-Looking Statements

This communication includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the words “guidance,” “believes,” “expects,” “anticipates,” “could,” or similar expressions. For these statements, Nexstar claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this communication, concerning, among other things, future financial performance, including changes in net revenue, operating expenses and cash flow and the Company’s ability to integrate TEGNA and realize anticipated synergies, involve risks and uncertainties, and are subject to change based on various important factors, including the impact of changes in national and regional economies, the ability to service and refinance our outstanding debt, successful integration of business acquisitions (including achievement of synergies and cost reductions), the outcome of the pending litigations related to the TEGNA acquisition, pricing fluctuations in local and national advertising, future regulatory actions and conditions in the television stations’ operating areas, competition from others in the broadcast television markets, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Nexstar undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this communication might not occur. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see Nexstar’s other filings with the Securities and Exchange Commission.

Definitions and Disclosures Regarding Non-GAAP Financial Information

Adjusted EBITDA is calculated as net income, plus or (minus): transaction, other one-time and restructuring expenses, stock-based compensation expense, depreciation and amortization of intangible assets (excluding amortization of broadcast rights), amortization of basis difference of equity method investments, (gain) loss on asset disposal, impairment charges, interest expense, net, loss on extinguishment of debt, pension and other postretirement plans costs (credit), income tax expense (benefit) and other operating and non-operating expense (income). We consider Adjusted EBITDA to be an indicator of our assets’ operating performance.

Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures.

Adjusted Free Cash Flow is calculated as Free Cash Flow plus or (minus): transaction, other one-time and restructuring expenses, changes in operating assets and liabilities, net of acquisitions (excluding changes in income tax payable), taxes paid on sale of assets, pension and other postretirement plans costs (credit) and other items. We consider Adjusted Free Cash Flow to be an indicator of our liquidity. We consider Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be available for use in ongoing operations, debt payments, pension contributions, dividends, share repurchases, acquisitions and other items. Adjusted Free Cash Flow is not intended to represent the amount of cash flow available for discretionary expenditures as certain items and non-discretionary expenditures, such as changes in working capital, mandatory debt service requirements and pension contributions, are not deducted from this measure.

For a reconciliation of these non-GAAP financial measurements to the GAAP financial results cited in this news announcement, please see the supplemental tables at the end of this release.

About Nexstar Media Group, Inc.

Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms. For more information, please visit nexstar.tv.

Nexstar Media Group, Inc.
Condensed Consolidated Statements of Operations
(in millions, except for share and per share amounts, unaudited)
		Three Months Ended September 30,										Nine Months Ended September 30,
		2026					2025					2026					2025
Net revenue		$	2,133				$	1,198				$	5,522				$	3,660
Operating expenses:
Direct operating			936					562					2,477					1,670
Selling, general and administrative			316					202					862					607
Corporate			105					68					342					183
Amortization of broadcast rights			87					72					246					239
Depreciation and amortization of intangible assets			155					118					434					353
Other			2					1					2					1
Total operating expenses			1,601					1,023					4,363					3,053
Income from operations			532					175					1,159					607
Income from equity method investments, net			–					5					7					24
Interest expense, net			(186	)				(94	)				(495	)				(288	)
Pension and other postretirement plans credit, net			7					7					22					23
Loss on extinguishment of debt			(11	)				–					(21	)				(5	)
Other income, net			1					3					1					3
Income before income taxes			343					96					673					364
Income tax expense			(93	)				(31	)				(150	)				(111	)
Net income			250					65					523					253
Net loss attributable to noncontrolling interests			5					5					16					22
Net income attributable to Nexstar Media Group, Inc.		$	255				$	70				$	539				$	275
Net income per share available to common stockholders:
Basic		$	7.97				$	2.16				$	16.86				$	8.66
Diluted		$	7.92				$	2.14				$	16.62				$	8.57
Weighted average number of common shares outstanding:
Basic (in thousands)			30,812					30,319					30,601					30,357
Diluted (in thousands)			31,013					30,649					31,030					30,696

Nexstar Media Group, Inc.
Condensed Consolidated Statements of Cash Flows
($ in millions, unaudited)
		Nine Months Ended September 30,
		2026					2025
Cash flows from operating activities:
Net income		$	523				$	253
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of broadcast rights			246					239
Depreciation and amortization of intangible assets			434					353
Stock-based compensation expense			80					58
Amortization of debt financing costs, debt discounts and premium			8					6
Loss on extinguishment of debt			21					5
Deferred income taxes			(56	)				(20	)
Payments for broadcast rights			(246	)				(249	)
Income from equity method investments, net			(7	)				(24	)
Distribution from equity method investments – return on capital			100					131
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable			128					15
Prepaid and other current assets			26					6
Other noncurrent assets			8					3
Accounts payable			(12	)				(30	)
Accrued expenses and other current liabilities			89					44
Income tax payable			(14	)				(45	)
Other noncurrent liabilities			(62	)				(50	)
Other			1					6
Net cash provided by operating activities			1,267					701
Cash flows from investing activities:
Purchases of property and equipment			(113	)				(94	)
Payments for acquisitions, net of cash acquired			(3,341	)				(22	)
Proceeds received from life insurance policies			55					1
Proceeds from disposal of property and equipment			12					1
Other investing activities, net			(5	)				(4	)
Net cash used in investing activities			(3,392	)				(118	)
Cash flows from financing activities:
Proceeds from debt issuance, net of debt discounts			11,106					3,393
Repayments of long-term debt			(8,498	)				(3,568	)
Payments for debt financing costs			(107	)				(2	)
Premium paid on debt extinguishment			(13	)				–
Purchase of treasury stock			–					(125	)
Common stock dividends paid			(171	)				(169	)
Payments for capitalized software obligations			(7	)				(14	)
Cash paid for shares withheld for taxes			(18	)				–
Other financing activities, net			(1	)				(6	)
Net cash provided by (used in) financing activities			2,291					(491	)
Net increase in cash and cash equivalents			166					92
Cash and cash equivalents at beginning of period			280					144
Cash and cash equivalents at end of period		$	446				$	236

Nexstar Media Group, Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP Measure)
($ in millions, unaudited)
		Three Months Ended September 30,										Nine Months Ended September 30,
		2026					2025					2026					2025
Net income		$	250				$	65				$	523				$	253
Add (Less):
Transaction, other one-time and restructuring expenses(1)			30					23					125					33
Stock-based compensation expense(2)			20					19					80					58
Depreciation and amortization of intangible assets			155					118					434					353
Amortization of basis difference of equity method investments			18					18					53					53
Interest expense, net			186					94					495					288
Loss on extinguishment of debt			11					–					21					5
Pension and other postretirement plans credit, net			(7	)				(7	)				(22	)				(23	)
Income tax expense			93					31					150					111
Other			–					(3	)				1					(3	)
Adjusted EBITDA		$	756				$	358				$	1,860				$	1,128

(1)	Primarily includes legal and other direct expenses associated with our acquisition of TEGNA, direct expenses associated with financing transactions, severance and other direct expenses associated with restructuring activities.
(2)	Includes $18 million of accelerated stock-based compensation related to TEGNA acquisition restructuring activities in Q2 2026.

Nexstar Media Group, Inc.
Reconciliation of Free Cash Flow and Adjusted Free Cash Flow (Non-GAAP Measure)
($ in millions, unaudited)
		Three Months Ended September 30,										Nine Months Ended September 30,
		2026					2025					2026					2025
Net cash provided by operating activities		$	680				$	117				$	1,267				$	701
Add (Less):
Capital expenditures			(46	)				(30	)				(113	)				(94	)
Free Cash Flow		$	634				$	87				$	1,154				$	607
Add (Less):
Transaction, other one-time and restructuring expenses(1)			30					23					147					33
Changes in operating assets and liabilities(2)			(258	)				75					(163	)				57
Changes in income tax payable(3)			36					(7	)				(14	)				(45	)
Pension and other postretirement plans credit, net			(7	)				(7	)				(22	)				(23	)
Other(4)			8					(5	)				(1	)				(14	)
Adjusted Free Cash Flow		$	443				$	166				$	1,101				$	615

(1)	Primarily includes legal and other direct expenses associated with our acquisition of TEGNA, direct expenses associated with financing transactions, severance and other direct expenses associated with restructuring activities.
(2)	Removes the impact of changes in operating assets and liabilities (including changes in income tax payable), net of acquisitions.
(3)	Includes changes in income tax payable to reflect all tax payments.
(4)	Primarily include payments for capitalized software obligations, proceeds from disposal of assets and insurance recoveries (excluding $11 million proceeds from sale of certain real estate property in Q2 2026), and $3 million of tax payments in Q3 2026 related to the sale of such real estate asset.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261105318042/en/

Investor Contacts:

Lee Ann Gliha

EVP and Chief Financial Officer

Nexstar Media Group, Inc.

972/373-8800

Joe Jaffoni, Jennifer Neuman

JCIR

212/835-8500 or [email protected]

Media Contact:

Gary Weitman

EVP and Chief Communications Officer

Nexstar Media Group, Inc.

972/373-8800 or [email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Advertising Entertainment Communications Technology TV and Radio Audio/Video Media

MEDIA:

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