Winnebago Industries reported financial results for the fiscal 2025 third quarter ended May 31.
- Net revenues of $775.1 million
- Gross profit of $106.0 million, representing 13.7% gross margin
- Net income of $17.6 million, or $0.62 per diluted share; adjusted earnings per diluted share of $0.81
- Adjusted EBITDA of $46.5 million, representing 6.0% adjusted EBITDA margin
CEO Commentary
“Our fiscal third-quarter results reflect both the diverse dynamics of our business segments and the challenges posed by an uncertain economic environment,” said Michael Happe, president and chief executive officer of Winnebago Industries. “While retail demand across the outdoor recreation sector remains soft, our dealer partners are navigating the market with prudence and agility. At Winnebago Industries, we continue to pursue discipline in every aspect of our operations. We are focused on protecting long-term profitability and sustaining strong customer relationships while aligning production closely with healthy field inventory turn targets. Most importantly, I want to thank our entire team for their dedication. Their commitment and resilience continue to power our progress and position us for future growth.”
“Winnebago Industries’ 67-year history of innovation is reflected in the exciting new products and model year updates launching across our portfolio,” Happe continued. “In our towable RV segment, we are leaning into the growing consumer emphasis on affordability by introducing a range of competitively priced products that are meeting the needs of today’s buyers. New travel trailer offerings such as the Grand Design Transcend Series and the Winnebago Thrive are designed to deliver exceptional value and quality, ensuring that more families can experience the RV lifestyle without compromising on comfort or reliability. In our motorhome RV segment, Grand Design RV’s entrance into the motorized market with the expanding Lineage Series and new product entries from Newmar are gaining share momentum. In our marine segment, our Chris-Craft and Barletta brands also continue to grow market share, helping to drive a double-digit increase in profitability.”
Third Quarter Fiscal 2025 Results
Net revenues were $775.1 million, a decrease of 1.4% compared to $786.0 million in the third quarter of last year, driven by a reduction in average selling price per unit related to product mix, partially offset by targeted price increases. Volume growth in the towable RV and marine segments was partially offset by volume reductions in the motorhome RV segment, as dealers continue their efforts to right-size field inventories in this segment.
Gross profit was $106.0 million, a decrease of 10.3% compared to $118.2 million in the third quarter of last year. Gross profit margin decreased 130 basis points in the quarter to 13.7%, primarily as a result of higher warranty experience and product mix, partially offset by operational efficiencies compared to prior year.
Selling, general and administrative expenses were $70.3 million, an increase of 1.9% compared to $69.1 million in the third quarter of last year, primarily due to investment to support the growth of the new Grand Design motorhome business.
Operating income was $30.2 million, a decrease of 30.7% compared to $43.5 million in the third quarter of last year.
Net income was $17.6 million, compared to net income of $29.0 million in the third quarter of last year. Reported earnings per diluted share was $0.62, compared to reported earnings per diluted share of $0.96 in the third quarter of last year. Adjusted earnings per diluted share was $0.81, a decrease of 26.4% compared to adjusted earnings per diluted share of $1.10 in the third quarter of last year.
Consolidated Adjusted EBITDA was $46.5 million, a decrease of 19.8%, compared to $58.0 million in the third quarter of last year.
Click here to view the full release and Winnebago Industries’ financial tables.
