Winnebago Industries Reports 11.8% Revenue Decline in Q2 Fiscal 2025

Winnebago Industries, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with net revenues of $620.2 million, down 11.8% from $703.6 million in the same period last year. The company's gross profit also decreased to $83.1 million, representing a 21.1% decline compared to $105.3 million in the prior year. The operating income fell sharply to $7.8 million from $35.4 million, leading to a net loss of $0.4 million, a significant improvement from a net loss of $12.7 million in the previous year. The diluted loss per share was reported at $0.02, compared to a loss of $0.43 per share in the same quarter last year.

The decrease in revenue was primarily attributed to a reduction in average selling prices per unit, influenced by product mix changes, although this was partially offset by targeted price increases. The Motorhome RV segment experienced a notable decline in unit volume, which was somewhat balanced by increases in the Towable RV and Marine segments. For the six months ending March 1, 2025, total revenues were $1.245 billion, down 15.1% from $1.467 billion in the same period last year, with a corresponding drop in gross profit from $221.1 million to $159.9 million.

Strategically, Winnebago has established a new operating segment for Grand Design motorhomes, which is included in the Motorhome RV reportable segment. This move aligns with the company's efforts to expand its product offerings. The company also executed a tender offer for $100 million of its Senior Secured Notes, resulting in a loss on note repurchase of $2 million during the quarter. Additionally, Winnebago repurchased approximately 951,000 shares of its common stock at a cost of $50 million in the first half of the fiscal year.

Operationally, Winnebago's total assets decreased to $2.194 billion from $2.384 billion as of August 31, 2024. The company reported a cash and cash equivalents balance of $115.5 million, down from $330.9 million at the end of the previous fiscal year. The company’s working capital also declined to $438.4 million from $584.0 million. Despite these challenges, Winnebago remains optimistic about the long-term demand for RV and marine products, anticipating a stabilization in consumer demand as the spring selling season approaches.

Looking ahead, Winnebago is closely monitoring macroeconomic conditions, including inflation and interest rates, which have impacted consumer spending and dealer inventory management. The company expects that as market conditions improve, dealer ordering patterns will stabilize. Winnebago continues to focus on aligning production with dealer demand and is committed to maintaining its operational efficiencies while navigating the current economic landscape.