Winnebago Industries (WGO) Q2 2026 earnings summary

Executive summary

• Net revenues rose 6% 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 adjusted EPS up 42% to $0.27 and net income reaching $4.8 million, reversing a prior year loss.

• Maintained a broad, premium brand portfolio and operational discipline, supporting resilience and positioning for future share gains.

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

• Continued progress on deleveraging, cash flow improvement, and cost reduction initiatives.

Financial highlights

• Q2 FY26 net revenues were $657.4 million, up from $620.2 million in Q2 FY25, with consolidated net revenues increasing 6% year-over-year.

• Operating income rose 51% to $11.8 million; adjusted EBITDA margin was 3.7% and gross margin was 13.0%, down 40 bps year-over-year.

• 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.

• Six-month net revenues increased 9.2% year-over-year to $1,360.1 million.

Outlook and guidance

• Fiscal 2026 revenue guidance maintained at $2.8–$3.0 billion; adjusted EPS guidance held at $2.10–$2.80, with 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, with consolidated Q3 revenue 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.