Winnebago Industries (NYSE: WGO) shares surged 6.96% in pre-market trading on Thursday following the release of its better-than-expected fiscal second-quarter results. The recreational vehicle manufacturer reported adjusted earnings per share of $0.19, surpassing the analyst consensus estimate of $0.13, while revenue came in at $620.2 million, exceeding expectations of $616.66 million.

Despite challenging market conditions, Winnebago demonstrated solid performance in its strategic markets. The company's President and CEO, Michael Happe, highlighted the company's success in leveraging product differentiation and sharper affordability options to maintain healthy market share in core premium and mid-range RV segments. Notably, Barletta, Winnebago's marine segment, achieved a 9.5% market share in the U.S. aluminum pontoon market, representing a 140 basis point improvement year-over-year and securing its position as the third-largest player in the segment.

The company also updated its fiscal 2025 outlook, projecting sales between $2.8 billion and $3.0 billion, with adjusted earnings per share ranging from $2.75 to $3.75. While this guidance reflects ongoing challenges such as stubborn interest rates and inconsistent consumer sentiment, management expressed confidence in the long-term demand landscape for outdoor recreation. Winnebago's strong balance sheet and robust cash flows continue to provide flexibility for product innovation and shareholder returns through dividends and share repurchases.