Winnebago Industries (WGO) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was $625.6M, down 18% year-over-year, due to soft retail demand, lower unit volumes, and less favorable product mix in RV segments, while the marine segment delivered sequential and year-over-year growth with Barletta and Chris-Craft gaining market share.

• Profitability declined, with net loss of $5.2M and adjusted EBITDA down 73% to $14.4M, driven by volume deleverage, higher warranty costs, and increased operating expenses.

• Strategic leadership changes and operational improvements are underway, aiming for performance gains in the back half of calendar 2025.

• Disciplined inventory management and cost containment measures are in place, positioning the company for a market recovery.

• $30M in share repurchases executed in Q1, reflecting confidence in long-term positioning.

Financial highlights

• Q1 FY25 consolidated revenue was $625.6M, down from $763.0M in Q1 FY24, with gross margin declining 290 bps to 12.3% and operating loss of $0.9M.

• Adjusted EBITDA margin fell to 2.3% from 7.1% year-over-year; marine segment adjusted EBITDA margin improved to 9.3%.

• Adjusted loss per share was ($0.03) versus adjusted diluted EPS of $0.95 in Q1 FY24; net loss per diluted share was $0.18.

• Free cash flow for Q1 FY25 was ($26.7M), consistent with seasonal trends.

• Cash and cash equivalents at quarter-end were $262.5M; working capital was $556.1M.

Outlook and guidance

• FY25 consolidated revenue guidance reaffirmed at $2.9–$3.2 billion, with adjusted EPS guidance narrowed to $3.10–$4.40 per diluted share; midpoints unchanged.

• Q2 sales expected to be in line with Q1, with modest profitability improvement; stronger performance anticipated in the second half as demand recovers.

• Guidance based on North American RV shipments of 320,000–350,000 units in calendar 2025.

• Management expects dealer ordering to stabilize as consumer demand recovers entering the spring selling season.