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, resulting in a net loss of $5.2M and sharply lower profitability in RV segments, while the marine segment delivered sequential and year-over-year growth with Barletta and Chris-Craft gaining share.

• Strategic leadership changes and operational adjustments are underway in RV businesses to drive future performance, with performance improvements anticipated in the back half of FY25.

• Inventory management, cost control, and disciplined capital allocation remain priorities to position for a market recovery in the second half of FY25.

• Cash and cash equivalents at quarter-end were $262.5M, with no borrowings on the $350M ABL Credit Facility.

• $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; gross margin declined 290 bps to 12.3% due to volume deleverage, increased warranty spend, and product mix.

• Adjusted EBITDA was $14.4M (2.3% margin), down from $54.1M (7.1% margin) in Q1 FY24.

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

• Free cash flow for Q1 FY25 was ($26.7M), compared to ($33.2M) in Q1 FY24.

• Share repurchases totaled $33.6M, with $200M remaining under the current authorization.

Outlook and guidance

• FY25 consolidated revenue guidance reaffirmed at $2.9B–$3.2B.

• Adjusted EPS guidance narrowed to $3.10–$4.40 per diluted share, with the midpoint unchanged at $3.75.

• 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.