Winnebago Industries (WGO) investor relations material

Executive summary

• Q3 FY25 net revenues were $775.1M, down 1.4% year-over-year, with EPS and revenue in line with preliminary forecasts; net income was $17.6M, a 39.1% decrease from the prior year.

• Macroeconomic uncertainty and operational headwinds, especially in Motorhome RV, led to leadership changes and transformation initiatives.

• Strategic actions included inventory reduction, cost management, supply chain evolution, and new product launches in RV and marine segments.

• Marine segment achieved double-digit profitability growth, while Towable RV saw unit volume gains and Motorhome RV experienced volume declines.

• Grand Design motorhomes segment was established in Q1 FY25, included in the Motorhome RV segment.

Financial highlights

• Gross margin for Q3 FY25 was 13.7%, down 130 bps year-over-year, mainly due to higher warranty costs and product mix.

• Adjusted EBITDA for Q3 FY25 was $46.5M (6.0% margin), down from $58.0M (7.4%) in Q3 FY24.

• Operating income for Q3 FY25 was $30.2M, a 30.7% decrease from the prior year.

• Free cash flow for Q3 was $(81.7)M, a significant decrease from $69.4M in the prior year quarter.

• Cash and cash equivalents at quarter-end were $10.5M, with $350M in unused credit facility.

Outlook and guidance

• FY25 net revenues are projected at $2.7B–$2.8B, with adjusted EPS guidance of $1.20–$1.70 and reported EPS of $0.50–$1.00.

• Guidance assumes North American RV shipments of 315,000–335,000 units for CY25.

• Management remains confident in long-term growth as market conditions normalize, but near-term macroeconomic challenges persist.

• Tariff-related risks for FY26 could impact diluted EPS by $0.50–$0.75 if not mitigated.

• Dealer ordering patterns expected to stabilize as demand recovers, but caution remains.