Winnebago Industries (WGO) Q2 2026 earnings summary

Executive summary

• Net revenues rose 6.0% year-over-year to $657.4 million in Q2 FY26, driven by strong Motorhome RV performance, selective price adjustments, and product mix, despite lower unit volume and softness in Towable RV and Marine segments.

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

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

• Maintained a broad, premium brand portfolio and operational discipline, supporting competitive positioning and innovation.

• Balance sheet strengthened by redeeming $100 million of Senior Secured Notes, improving leverage and financial flexibility.

Financial highlights

• Q2 FY26 net revenues were $657.4 million, up from $620.2 million in Q2 FY25; six-month net revenues increased 9.2% to $1,360.1 million.

• Operating income improved 50.7% to $11.8 million; adjusted EBITDA margin was 3.7%.

• Gross margin was 13.0%, down 40 bps year-over-year due to product mix.

• 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.

• Expect continued strength in Motorhome RV, offset by softer Towable RV and Marine; Q3 consolidated revenue expected flat to down year-over-year.

• Inventory turns targeted to reach 2.0x by year-end, with improvement expected in Q3 and Q4.

• Guidance reflects current market trends, macroeconomic factors, and ongoing operational initiatives.