Winnebago Industries reported financial results for the company’s fourth quarter and full year fiscal 2025.
Fourth Quarter Fiscal 2025 Financial Summary
- Net revenues of $777.3 million, an increase of 7.8% from the fourth quarter of Fiscal 2024
- Gross profit of $99.2 million, representing 12.8% gross margin
- Net income of $13.7 million, or $0.49 per diluted share; adjusted earnings per diluted share of $0.71, up 153.6% year over year
- Adjusted EBITDA of $38.2 million, up 33.1% year over year
- Net cash flow from operations of $181.4 million
- Net leverage ratio improves to 3.1x at quarter-end
Full Year Fiscal 2025 Financial Summary
- Net revenues of $2,798.2 million, a decrease of 5.9% from Fiscal 2024
- Gross profit of $365.1 million, representing 13.0% gross margin
- Net income of $25.7 million, or $0.91 per diluted share; adjusted earnings per diluted share of $1.67
- Adjusted EBITDA of $121.9 million, representing 4.4% adjusted EBITDA margin
- Net cash flow from operations of $128.9 million
CEO Commentary
“I am proud of our team’s efforts in delivering solid overall results in the fourth quarter, especially given the challenging operating environment,” said Michael Happe, president and chief executive officer of Winnebago Industries. “We drove stronger revenue, improved profitability, gained share in key segments and delivered solid operating cash flow and an improved leverage position. Our performance clearly reflects the advantages of a diversified product portfolio, as strong momentum across our brands and product lines helped offset the operating margin pressure stemming from the ongoing turnaround of our Winnebago-branded businesses, which is proceeding positively.”
“While industry conditions continue to reflect higher competitive discounts and allowances, we remain disciplined in how we manage production schedules and inventory levels,” Happe said. “Our focus on aligning our shipments with retail demand has positioned us well to support our dealer partners, maintain inventory health and keep our brands strong in the eyes of consumers.”
“We were delighted with the enthusiasm at September’s RV Open House, where we debuted a range of exciting new products across our three RV brands. We also showcased the tremendous progress being made via the refreshed Winnebago-branded RV lineup and the ongoing rollout of our Grand Design motorized strategy. The positive feedback from our dealers and the interest in our newest models showcase the hard work our product teams are putting into innovating for today’s outdoor recreation customers.”
Fourth Quarter Fiscal 2025 Results
Net revenues were $777.3 million, an increase of 7.8% compared to $720.9 million in the fourth quarter of Fiscal 2024, primarily due to favorable product mix and targeted price increases, partially offset by higher discounts and allowances.
Gross profit was $99.2 million, an increase of 5.2% compared to $94.2 million in the fourth quarter of Fiscal 2024. Gross profit margin decreased 30 basis points in the quarter to 12.8%, primarily due to costs associated with the transformation of the Winnebago-branded businesses, partially offset by targeted price increases.
Operating expenses were $79.1 million, a decrease of 29.5% compared to $112.0 million in the fourth quarter of Fiscal 2024, primarily due to prior year goodwill impairment and cost reduction initiatives in Fiscal 2025, which more than offset Winnebago Industries’ investments in its Grand Design motorhome business. As a percentage of net revenues, selling, general and administrative expenses decreased by 100 basis points to 9.5% in the fourth quarter of Fiscal 2025 from 10.5% of net revenues in the fourth quarter of Fiscal 2024.
Operating income was $20.1 million compared to an operating loss of $17.8 million in the fourth quarter of Fiscal 2024, which included a previously disclosed $30.3 million goodwill impairment charge.
Net income was $13.7 million, compared to a net loss of $29.1 million in the fourth quarter of Fiscal 2024. Reported net income per diluted share was $0.49, compared to a reported net loss per diluted share of $1.01 in the fourth quarter of Fiscal 2024. Adjusted earnings per diluted share was $0.71, an increase of 153.6% compared to adjusted earnings per diluted share of $0.28 in the fourth quarter of Fiscal 2024.
Consolidated Adjusted EBITDA was $38.2 million, an increase of 33.1%, compared to $28.7 million in the fourth quarter of Fiscal 2024.
Full Year Fiscal 2025 Results
Net revenues were $2.8 billion, a decrease of 5.9% compared to $3.0 billion in Fiscal 2024, primarily due to a reduction in average selling price per unit related to product mix and lower unit volume, partially offset by targeted price increases.
Gross profit was $365.1 million, a decrease of 15.8% compared to $433.5 million in Fiscal 2024. Gross profit margin decreased 160 basis points year over year to 13.0% primarily due to deleverage and slightly higher warranty experience.
Operating expenses were $307.9 million, compared to $333.3 million in Fiscal 2024. The decrease was primarily due to the prior year goodwill impairment and cost reduction initiatives in the current year, partially offset by investments to support the growth of the Grand Design motorhome and Barletta marine businesses.
Operating income was $57.2 million, a decrease of 42.9% compared to $100.2 million in Fiscal 2024.
Net income was $25.7 million, compared to net income of $13.0 million in Fiscal 2024. Reported earnings per diluted share was $0.91, an increase of 106.8% compared to reported earnings per diluted share of $0.44 in Fiscal 2024. Adjusted earnings per diluted share was $1.67, a decrease of 50.9% compared to adjusted earnings per diluted share of $3.40 in Fiscal 2024.
Consolidated Adjusted EBITDA was $121.9 million, a decrease of 36.0%, compared to $190.6 million in Fiscal 2024.
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