Winnebago Industries (WGO) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 FY26 rose 6% year-over-year to $657.4 million, driven by strong Motorhome RV performance, selective price adjustments, and product mix, despite softness in Towable RV and Marine segments.

• Operating income increased 51% to $11.8 million, with margin improvement to 1.8%; adjusted EPS rose 42% to $0.27.

• Net income reached $4.8 million, reversing a net loss of $0.4 million in the prior year quarter.

• Balance sheet strengthened by redeeming $100 million of Senior Secured Notes, improving leverage and reducing interest expense.

• Operational discipline, cost control, and a diversified premium brand portfolio supported performance amid challenging market conditions.

Financial highlights

• Q2 FY26 net revenues were $657.4 million, up from $620.2 million in Q2 FY25.

• Operating income improved 50.7% to $11.8 million; gross margin was 13.0%, down 40 bps year-over-year due to product mix.

• Adjusted EBITDA margin was 3.7% for the quarter; adjusted EBITDA grew 7% to $24.4 million.

• Free cash flow for TTM FY26 Q2 was $125.8 million, up from $72.3 million in TTM FY25 Q2.

• Cash and cash equivalents at quarter-end were $47.4 million, with $350 million in unused credit facility.

Outlook and guidance

• Fiscal 2026 revenue guidance maintained at $2.8–$3.0 billion; adjusted EPS guidance held at $2.10–$2.80; reported EPS guidance raised to $1.50–$2.20.

• North American RV wholesale shipments expected in the range of 315,000 to 345,000 units for 2026.

• Management expects dealer ordering patterns to stabilize as consumer demand recovers, with long-term confidence in RV and marine markets.

• Guidance reflects current market trends, macroeconomic factors, and ongoing operational initiatives, but remains subject to macroeconomic and geopolitical risks.

• The company is monitoring the impact of a recent Supreme Court decision on tariffs, with financial effects yet to be determined.