Winnebago Industries (NYSE: WGO) saw its stock surge 6.96% in pre-market trading following the release of its second-quarter fiscal 2025 earnings report, which exceeded analyst expectations despite ongoing challenges in the recreational vehicle market.

The Eden Prairie, Minnesota-based RV manufacturer reported adjusted earnings per share of $0.19, surpassing the consensus estimate of $0.13. Revenue for the quarter came in at $620.2 million, topping the expected $616.66 million. However, the company's net loss for the quarter stood at $0.4 million, or $0.02 per share, compared to a net loss of $12.7 million, or $0.43 per share, in the same period last year.

Despite the earnings beat, Winnebago lowered its full-year fiscal 2025 outlook, now expecting sales of $2.8 billion to $3.0 billion, down from the previous forecast of $2.9 billion to $3.2 billion. The company cited persistent challenges such as high interest rates, inconsistent consumer sentiment, and dealers pushing inventory levels lower, particularly in the Motorhome RV and Marine segments. CEO Michael Happe noted, "Our full-year financial outlook for fiscal 2025 is updated to take into consideration the very dynamic environment and the macro-economic and sector challenges that our industry has been presented."

On a positive note, Winnebago's Marine segment showed strong performance, with net revenues up 17.1% year-over-year. The company's Barletta brand continued to gain market share in the U.S. aluminum pontoon market, achieving a 9.5% share for the 12-month period ended February 28, 2025, an improvement of 140 basis points over the prior-year period. This growth positioned Barletta as the number three player in the aluminum pontoon market.