Winnebago Industries (WGO) Q1 2026 earnings summary

Executive summary

• Net revenues rose 12.3% year-over-year to $702.7 million, driven by growth in Motorhome and Towable RV segments, with margin expansion and a return to net income.

• Adjusted EBITDA more than doubled to $30.2 million, and adjusted EPS improved to $0.38 from a loss per share last year.

• Balance sheet strengthened with net leverage ratio improving to 2.7x, cash and equivalents at $181.7 million, and positive operating cash flow.

• Focused on product innovation, operational efficiency, and brand expansion amid a mixed macroeconomic backdrop and industry softness, especially in Marine.

• Recognized for corporate responsibility, with over $3.9 million contributed to community initiatives and multiple industry awards.

Financial highlights

• Net revenue increased 12.3% year-over-year to $702.7 million, driven by higher unit volume and selective price increases.

• Adjusted EBITDA more than doubled to $30.2 million (4.3% margin), and adjusted EPS was $0.38, up from a loss per share last year.

• Gross margin improved to 12.7% from 12.3% year-over-year, and operating income rose to $13.8 million from a loss.

• Operating expenses declined 3.2% year-over-year due to cost reduction initiatives.

• Net cash provided by operating activities was $25.4 million, compared to net cash used in the prior year.

Outlook and guidance

• FY2026 guidance raised: net revenues of $2.8B–$3.0B, reported EPS $1.40–$2.10, adjusted EPS $2.10–$2.80.

• Q2 sales expected to be up year-over-year but down sequentially due to seasonality; EPS to be flat to modestly up year-over-year.

• North American RV wholesale shipments for 2025 forecast at 335,000–345,000 units; 2026 forecast at 315,000–345,000 units.

• Guidance reflects current trade policy, tariff rates, and macroeconomic factors.

• Management expects dealer ordering patterns to stabilize as consumer demand recovers.