Copyright Benzinga
Winnebago Industries, Inc. (NYSE:WGO), a manufacturer of outdoor lifestyle products, reported fourth-quarter fiscal 2025 results that topped Wall Street expectations, driven by stronger sales across its product segments. The company’s share surged significantly following the earnings announcement. The company reported fourth-quarter adjusted earnings of 71 cents per share, up from 28 cents a year earlier and above the consensus estimate of 53 cents. Also Read: Winnebago Slides As Q3 Tops Estimates But FY25 Outlook Gets Slashed Quarterly revenue rose to $777.3 million, an increase of 7.8% from $720.9 million a year ago, also topping the $727.8 million consensus estimate. The gross profit margin for the quarter decreased 30 basis points to 12.8%, reflecting costs tied to the transformation of the Winnebago-branded businesses, partially offset by targeted price increases. The company reported operating income of $20.1 million, reversing an operating loss of $17.8 million in the fourth quarter of fiscal 2024, which had included a $30.3 million goodwill impairment charge. Winnebago’s consolidated adjusted EBITDA rose 33.1% to $38.2 million, compared with $28.7 million in the fourth quarter of fiscal 2024. Segment Performance The Towable RV segment reported revenue of $306.3 million, down 3.4% from the prior year, reflecting lower unit volumes and a shift toward more affordable product lines. Despite the decline, operating income rose 38.3% to $21.4 million, with margins improving to 7.0%, supported by pricing actions and operational efficiencies. The Motorhome RV segment delivered strong growth, with revenue up 17.3% to $361.2 million and recorded an operating loss of $0.3 million, for an operating margin of 0.1% decline, driven by higher unit sales and a favorable product mix. However, margins were tempered by costs tied to the ongoing transformation of the Winnebago-branded business. In the Marine segment, revenue increased 17.9% to $94.9 million, and operating income reached $6.7 million and an operating margin of 7.1%, reversing a prior-year loss. Cash Position and Capital Allocation At the end of the fourth quarter, cash and cash equivalents totaled $174.0 million. Cash flow provided by operations was $181.4 million in the fourth quarter. On August 14, 2025, the company's Board of Directors approved a 3% increase in the quarterly cash dividend of 35 cents per share. The dividend was paid on September 24, 2025, to common stockholders of record at the close of business on September 10, 2025. CEO Commentary “I am proud of our team’s efforts in delivering solid overall results in the fourth quarter, especially given the challenging operating environment,” said Michael Happe, president and CEO of Winnebago Industries. “We drove stronger revenue, improved profitability, gained share in key segments and delivered solid operating cash flow and an improved leverage position. Our performance clearly reflects the advantages of a diversified product portfolio, as strong momentum across our brands and product lines helped offset the operating margin pressure stemming from the ongoing turnaround of our Winnebago-branded businesses, which is proceeding positively,” Happe said. “While industry conditions continue to reflect higher competitive discounts and allowances, we remain disciplined in how we manage production schedules and inventory levels. Our focus on aligning our shipments with retail demand has positioned us well to support our dealer partners, maintain inventory health, and keep our brands strong in the eyes of consumers.” Fiscal 2026 Outlook Winnebago Industries expects fiscal 2026 consolidated net revenue between $2.75 billion and $2.95 billion, with adjusted earnings per diluted share projected between $2.00 and $2.70. The company is confident it enters fiscal 2026 from a position of strength due to robust new products, disciplined inventory management, and a focus on driving profitable revenue. Winnebago Industries projects North American RV wholesale shipments to be between 320,000 and 340,000 units in calendar year 2025, and between 315,000 and 345,000 units in calendar year 2026. While they acknowledge that a full return to mid-cycle demand will take time, Winnebago expects decisive actions to strengthen margins, enhance operational efficiency, and create long-term shareholder value. The projections account for trends like tariffs, competition, consumer shifts, and macroeconomic factors. Price Action: WGO shares were trading higher by 24.38% to $39.33 at last check Wednesday. Read Next: SCHMID Group Lands Two Major AI Server Equipment Projects Photo by Jonathan Weiss via Shutterstock
