Winnebago Industries reported financial results for the fiscal 2025 second quarter ended March 1.
- Net revenues of $620.2 million
- Gross profit of $83.1 million, representing 13.4% gross margin
- Net loss of $0.4 million, or $0.02 per diluted share; adjusted earnings per diluted share of $0.19
- Adjusted EBITDA of $22.8 million, representing 3.7% adjusted EBITDA margin
CEO Commentary
“Winnebago Industries continues to demonstrate solid performance in our strategic markets, leveraging product differentiation and sharper affordability options to maintain healthy market share in our core premium and mid-range RV segments,” said President and Chief Executive Officer Michael Happe. “We’re expanding our RV brand portfolio with new products across diverse price points, while maintaining our commitment to profitability. This strategic approach allows us to capitalize on market opportunities and positions us for sustainable financial performance as the market recovers. Our most recent example of this is the introduction of Grand Design’s Class C Lineage Series M, which has been enthusiastically received in the marketplace and highlights the demand for the brand’s innovative motorized RVs. With the latest launch of our new Lineage Class Super C motorhome, the Lineage brand is on a trajectory to achieve its $100 million-plus revenue target in fiscal 2025.”
“In our marine segment, Barletta continues to grow its share of the U.S. aluminum pontoon market and outperform the category,” Happe said. “For the 12-month period ended Feb. 28, Barletta achieved a market share of 9.5%, an improvement of 140 basis points over the prior-year period and placing Barletta as the number three player in aluminum pontoons.”
“Our strong financial position provides flexibility to invest in growth opportunities while maintaining disciplined fiscal management,” Happe said. “During the second quarter, we completed a cash tender offer to repurchase $100 million of our 6.25% Senior Secured Notes due 2028, and we also repurchased $20 million of our stock. Reducing our higher-cost debt and returning value to shareholders, while continuing to focus on internal investments, underscores our commitment to executing a diverse capital allocation strategy and deliver resiliency through the cycle.”
Second Quarter Fiscal 2025 Results
Net revenues were $620.2 million, a decrease of 11.8% compared to $703.6 million in the second 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 offset by volume reductions in the motorhome RV segment, as dealers continue their efforts to reduce field inventories in this segment in an effort to combat higher interest rates.
Gross profit was $83.1 million, a decrease of 21.1% compared to $105.3 million in the second quarter of last year. Gross profit margin decreased 160 basis points in the quarter to 13.4% as a result of deleverage associated with product mix, partially offset by operational efficiencies.
Selling, general and administrative expenses were $69.7 million, an increase of 8.6% compared to $64.2 million in the second quarter of last year, primarily due to the mix of incentive-based compensation plans relative to performance across the businesses, and investments to support Grand Design motorized growth and also growth in Barletta.
Operating income was $7.8 million, a decrease of 78.0% compared to $35.4 million in the second quarter of last year.
Net loss was $0.4 million, compared to net loss of $12.7 million in the second quarter of last year. Reported net loss per diluted share was $0.02, compared to reported net loss per share of $0.43 in the second quarter of last year. Results for the second quarter of fiscal 2024 include a charge of $32.7 million, or $1.12 per share, attributable to the loss on repurchase of a significant portion of the company’s 2025 convertible senior notes. Adjusted earnings per diluted share was $0.19(3), a decrease of 79.6% compared to adjusted earnings per diluted share of $0.93(3) in the second quarter of last year.
Consolidated Adjusted EBITDA was $22.8 million, a decrease of 54.2%, compared to $49.8 million in the second quarter of last year.
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