Winnebago Industries (WGO) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 FY25 were $620.2M, down 11.8% year-over-year, with sequential profitability improvement driven by operational, pricing, and cost actions in RV segments.

• Adjusted EPS was $0.19, down 79.6% year-over-year; net loss was $0.4M compared to a $12.7M loss in the prior year.

• Marine segment showed strong growth and market share gains, while Motorhome RV segment faced significant declines; Towable RV segment was stable with slight revenue growth.

• New product launches in motorhome (Grand Design Lineage Series) and marine (Chris-Craft Sportster 28, Catalina 31) segments received strong market response.

• Strategic transformation underway in Winnebago Towables, aiming for significant market share growth.

Financial highlights

• Gross margin for Q2 FY25 was 13.4%, down 160 bps year-over-year; adjusted EBITDA margin was 3.7%, down from 7.1% year-over-year.

• Adjusted EBITDA for Q2 FY25 was $22.8M, down from $49.8M year-over-year.

• Free cash flow for TTM was $72.3M, down from $224.9M in the prior year.

• $20M in share repurchases in Q2; $180M remains under repurchase program.

• Net debt-to-EBITDA ratio at quarter-end was 4.0x, above the target range of 0.9–1.5x.

Outlook and guidance

• FY25 net revenues expected between $2.8B and $3.0B; adjusted EPS guidance $2.75–$3.75, reported EPS $2.10–$3.10.

• Wholesale RV shipment forecast for calendar 2025 set at 320,000–350,000 units, below industry consensus.

• Guidance reflects weaker consumer confidence, dealer inventory reductions, and macroeconomic headwinds including interest rates and tariffs.

• Management expects dealer demand to stabilize as the spring selling season begins, with long-term confidence in RV and marine demand.