Winnebago Industries (WGO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue declined 14.8% year-over-year to $2.97 billion, with net income dropping to $13.0 million from $215.9 million, reflecting a challenging retail environment in the RV and Marine industries.

• Fourth quarter revenue was $720.9 million, down 6.5% compared to the same quarter last year, with a net loss of $29.1 million due to a $30.3 million goodwill impairment charge for Chris-Craft.

• Leadership changes were made in Winnebago Motorhome and Towables to address operational and financial challenges, with new executives tasked to drive performance and market share.

• Grand Design launched its first motorized RV, the Lineage Series M, with positive dealer and consumer response, expected to ramp up in fiscal 2025.

• Barletta continued to gain share in the U.S. aluminum pontoon market, reaching a 9.1% TTM market share, and Chris-Craft saw five consecutive months of year-over-year retail growth.

Financial highlights

• Q4 FY24 revenue was $720.9 million, down from $771.0 million in Q4 FY23; gross margin decreased 340 bps to 13.1%.

• Adjusted EBITDA for FY 2024 was $190.6 million, down 46.3% year-over-year; Q4 Adjusted EBITDA was $28.7 million, down 60.6%.

• Adjusted EPS for the year was $3.40, down 49.8% year-over-year; Q4 adjusted EPS was $0.28, down 80.1%.

• Free cash flow for Q4 was $29.5 million, with $19 million returned to shareholders via buybacks and dividends.

• Net debt to EBITDA at year-end was approximately 2x, slightly above the target range.

Outlook and guidance

• Fiscal 2025 revenue is expected to be $2.9–$3.2 billion, with adjusted EPS of $3.00–$4.50; midpoint implies 10% EPS growth over fiscal 2024.

• Guidance is based on North American RV shipments of 320,000–350,000 units in 2025.

• First half of fiscal 2025 is expected to be weaker than prior year, with growth anticipated in the second half as market conditions improve.

• Grand Design motorhome sales are projected at $100 million for fiscal 2025, with initial dilution to segment profit but expected accretion by fiscal 2026.

• Mid-cycle targets remain $4.5–$5 billion in sales, 11–11.5% EBITDA margin, and $325–$375 million free cash flow.