After Lippert proclaimed profit gains in the supplier’s 2024 fourth-quarter and full-year financial report, company leaders addressed industry concerns and 2025 expectations.
Amid the recent tariff discourse, Lippert leaders clarified that they anticipate the steel and aluminum tariffs to affect sales by about 50 basis points, or 0.5%. The supplier’s largest product, its chassis, is constructed with steel, but according to President and CEO Jason Lippert, 99% of the chassis’ steel is domestic.
According to Lippert Chief Financial Officer (CFO) Lillian Etzkorn, the company has pricing mechanisms to adjust costs to customers. She said cost increases will first begin to surface in material costs. She predicted that after one to two quarters, Lippert’s pricing will reflect increased material costs.
“Obviously, the tariffs are an overhang that the team needs to work aggressively to mitigate,” she said, “but we are confident that we will continue to expand the margins as we progress through 2025.”
The company is collaborating with its vendors to address any changes.
Single-axle travel trailer popularity affected Lippert’s 2024 figures. Lippert said the industry sold over 1,000 single-axle travel trailers in January. The smaller single-axle trailers contain less content than larger travel trailers. Lippert said he expected the industry’s product mix to begin to normalize after the beginning of the second quarter. The result would limit manufacturers’ shipments of single-axle travel trailers.
The company credited its 2024 profit gains to new product launches throughout the year. Products such as Curt’s Touring Coil Suspension and Furrion’s Chill Cube air conditioner were successful.
Lippert said he is satisfied with the divisions’ success and is considering the company’s next acquisition move. Lippert said he was talking with a few companies and hoped to acquire business this year.
The supplier upfitted 14 Camping World retail departments with its products and displays in 2024.
“They like what we have done,” Lippert said. “It has really given a nice little facelift to some of their part stores.”
Camping World wants the supplier to upfit all its 217 stores. Lippert said the process will take time.
“It has been great where our products are getting a lot of face time and frontage and good areas in their stores,” he said. “The customers that are coming in see our products right away.”
Lippert said other dealers have asked the supplier to similarly revamp their stores.
Moving forward into 2025, the company is focused on cost reductions. In 2024, the company had $28 million in cost reductions. Etzkorn said the company planned to continue reducing overhead costs.
With positive profits in the company’s final quarter, acquisition possibilities in sight and tariff precautions in place, Lippert is positioned for 2025 growth.
