Winnebago Industries WGO reported adjusted earnings of 19 cents per share in second-quarter fiscal 2025 (ended March 1, 2025), in line with the Zacks Consensus Estimate. WGO reported earnings of 93 cents per share in the year-ago period. The recreational vehicle (RV) maker reported revenues of $620.2 million for the quarter under review, which surpassed the Zacks Consensus Estimate of $609 million. The top line, however, declined 11.8% year over year.

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Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote

Segmental Performance

Towable RV: Revenues in the Towable RV segment rose 1.2% year over year to $288.2 million on higher volume. The metric also surpassed our estimate of $244.3 million. Total deliveries from the segment came in at 7,225 units, which increased 7.1% year over year and topped our estimate of 5,655 units. Adjusted EBITDA declined 36.5% to $17 million owing to product mix, high warranty expenses and input costs. The figure, however, came above our estimate of $16.7 million.

Motorhome RV: Revenues in the Motorhome RV segment decreased 30.4% year over year to $235.6 million due to a decline in unit volume. The top line missed our estimate of $271.3 million. Total deliveries from the Motorhome RV segment came in at 1,144 units, falling 36.8% year over year and missing our estimate of 1,443 units. The segment recorded an adjusted EBITDA of $5.2 million, down 79.8% due to volume deleverage. The metric also missed our estimate of $7.9 million.

Marine: Revenues from the segment totaled $81.7 million, up 17.1% year over year, primarily due to increased volume. The metric, however, fell short of our estimate of $92.7 million. The total deliveries from the segment came in at 1,046 units, up 21.3% year over year, but missed our estimate of 1,151 units. The segment recorded an adjusted EBITDA of $7.7 million, up 75.7% year over year due to targeted price increases, leverage and operational efficiencies. It also surpassed our expectation of $5.8 million.

Financials & Outlook

Winnebago had cash and cash equivalents of $115.5 million as of March 1, 2025. Long-term debt (excluding current maturities) totaled $539.4 million.

During the quarter under review, WGO bought back shares worth $20 million. 

WGO now expects its fiscal 2025 consolidated revenues in the band of $2.8-$3 billion, down from the prior expectation of $2.9-$3.2 billion. Adjusted EPS is now estimated between $2.75 and $3.75 compared with the prior guided range of $3.10-$4.40.

Peer Releases

Thor Industries THO released second-quarter fiscal 2025 (ended Oct. 31, 2024) results on March 5. It incurred a loss of 1 cent per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line fell from 40 cents per share reported in the corresponding quarter of fiscal 2024. The company registered revenues of $2.02 billion for the fiscal second quarter, beating the Zacks Consensus Estimate of $1.97 billion. The top line, however, declined 8.6% year over year. Thor projects its fiscal 2025 consolidated net sales in the range of $9-$9.5 billion, down from the previously estimated range of $9-$9.8 billion. EPS is expected in the range of $3.30-$4, down from the previous guidance of $4-$5.

REV Group REVG reported fiscal first-quarter 2025 results on March 5. It came out with quarterly earnings of 40 cents per share, beating the Zacks Consensus Estimate of 29 cents per share. This compares to earnings of 25 cents per share a year ago. Revenues of $525 million for the quarter ended January 2025 topped the Zacks Consensus Estimate of $496 million. This compares to year-ago revenues of $586 million. 

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