Winnebago rises on better-than-feared earnings results
Sue Thatcher
Winnebago Industries (WGO) reported revenue fell 17.0% to $645.1M in its fiscal fourth quarter. The RV maker company's decline was mainly due to lower unit volume and product mix, partly offset by selective price increases. "Even as market pressure across our segments persisted, we began to see encouraging early signs across several strategic initiatives: real traction in the Winnebago Motorhome transformation, stabilizing share trends and improving market share at Grand Design Towables, growing market penetration for Grand Design Motorized, and impressive share growth at Winnebago Towables," highlighted CEO Michael Happe.
Gross profit dropped 18.6% to $80.7M, and gross margin slipped 30 basis points to 12.5%. Lower volume hurt margins, while efficiencies from the motorhome transformation helped. Operating expenses fell 20.1% to $63.1M due in part to cost cuts, and operating income declined 12.3% to $17.6M.
Net income was $9.7M vs. $13.7M a year ago. Adjusted EPS fell 31.0% to $0.49 from $0.71 but topped the consensus estimate of $0.47. Adjusted EBITDA dropped 14.7% to $32.6M on a 5.1% margin.
By segment, Towable RV revenue fell 28.1% to $220.3M, and its operating margin narrowed to 4.2% from 7.0%. Motorhome RV revenue declined 10.4% to $323.6M, but its operating margin improved to 2.4% from a small loss. Marine revenue dipped 2.7% to $92.3M, with the margin steady at 7.1%.
Looking ahead, Winnebago (WGO) now expects North American RV wholesale shipments of 275K to 295K units in calendar year 2026 and 265K to 295K units in calendar year 2027. For FY27, Winnebago (WGO) expects revenue of $2.65B to $2.80B (midpoint $2.725) vs. the $2.74B consensus and adjusted EPS of $1.65 to $2.25 (midpoint $1.95) vs. the $2.19 consensus. CEO Michael Happe said the timing and pace of a market recovery are still hard to predict. He added that the gains made in FY26 give the company a stronger base to handle near-term volatility.
Shares of Winnebago (WGO) were up 4.8% in premarket action to $24.27.
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