Winnebago Slides As Q3 Tops Estimates But FY25 Outlook Gets Slashed
Winnebago Industries, Inc. (NYSE:WGO) shares dipped Wednesday after the recreational vehicle maker beat third-quarter earnings estimates but cut its full-year outlook.
The company reported third-quarter adjusted earnings per share of 81 cents, beating the analyst consensus estimate of 79 cents.
Quarterly sales of $775.10 million (down 1.4% year over year), beating the Street view of $774.81 million.
The decrease in net sales was driven by a reduction in average selling price per unit related to product mix, partially offset by targeted price increases.
Net revenues for the Towable RV segment decreased by 3.8% to $371.7 million, Motorhome RV segment decreased by 2.6% from the prior year to $291.2 million, net revenues from Marine segment rose 14.6% to $100.7 million.
Gross profit was $106.0 million, down 10.3% from $118.2 million in the third quarter of last year.
Gross profit margin decreased 130 basis points in the quarter to 13.7%, primarily due to higher warranty experience and product mix, partially offset by operational efficiencies compared to the prior year.
Operating income was $30.2 million, a decrease of 30.7% compared to $43.5 million in the third quarter of last year.
Consolidated Adjusted EBITDA was $46.5 million, a decrease of 19.8%, as compared to $58.0 million in the third quarter of last year.
“With a new leadership team in place, Winnebago motorhomes is launching a comprehensive margin recapture plan centered on refreshing the product line, boosting operational efficiency and rebuilding sustained profitability beginning in fiscal 2026,” said Michael Happe, president and CEO.
As of May 31, cash and equivalents totaled $10.5 million, and the company’s total outstanding debt was $539.9 million.
Dividend: The company approved a quarterly cash dividend of $0.34 per share payable on June 25 to common stockholders of record at the close of business on June 11.
Outlook: Winnebago Industries cut its FY2025 adjusted EPS guidance to $1.20–$1.70, down from $2.75–$3.75, compared with the $1.74 consensus estimate.
It also lowered its FY2025 sales outlook to $2.70 billion—$2.80 billion, compared to the prior range of $2.80 billion—$3.00 billion and the $2.758 billion estimate.
Price Action: WGO shares are trading lower by 3.92% to $30.10 at last check on Wednesday.
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