Winnebago Industries Q4 Results Miss Estimates, Stock Dips On Soft Outlook

Winnebago Industries, Inc. WGO shares are trading lower on Wednesday after the company reported fourth-quarter results.

The company reported adjusted earnings per share of 28 cents, missing the street view of 89 cents. Quarterly sales of $720.9 million outpaced the analyst consensus of $719.14 million.

Gross profit was $94.2 million, a decrease of 26.1% year over year. Gross profit margin decreased 340 basis points to 13.1%, reflecting higher warranty expenses, operational challenges, and deleverage.

“Winnebago Industries’ fourth quarter performance fell short of our expectations, primarily reflecting the sluggish retail demand environment and operating inefficiencies within our Winnebago branded businesses,” said Michael Happe, the Company’s President and Chief Executive Officer.

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“The RV industry continues to face various headwinds, including uncertain retail conditions, higher inventory carrying costs and slightly elevated inventories in the motorhome segment, leading to continued dealer hesitancy and increased promotional efforts.” 

Operating expenses were $112.0 million, an increase of 60.4% compared to $70.0 million in the fourth quarter of last year.

This increase was primarily driven by a $30.3 million impairment charge associated with the Chris-Craft reporting unit, start-up costs associated with the launch of the Grand Design motorized business.

Consolidated adjusted EBITDA was $28.7 million, a decrease of 60.6% from $72.9 million last year.

As of August 31, cash and equivalents were $330.9 million. Total outstanding debt was $696.2 million ($709.3 million of debt, net of debt issuance costs of $13.1 million) with working capital of $584.0 million.

Outlook: Winnebago Industries anticipates fiscal 2025 consolidated revenues of $2.9 billion to $3.2 billion, compared to the $3.2 billion estimate, and projects adjusted earnings per share of $3.00 to $4.50, below the $5.35 estimate.

“Although the recent easing of interest rates is expected to bolster consumer demand as we move into the second half of the 2025 calendar year, near-term visibility remains limited due to the potential for further economic instability and the likelihood of continued industry-wide destocking within the motorhome RV category,” Happe added.

Price Action: WGO shares are trading lower by 7.49% to $53.68 at last check Wednesday.

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