OneWater Marine's Q3 2025 Earnings Call: Navigating Contradictions in Pre-Owned Sales and Inventory Management

Pre-owned boat sales growth, inventory correction and margin improvement, inventory reduction and management, customer behavior and market segmentation, and market conditions and customer behavior are the key contradictions discussed in OneWater Marine's latest 2025Q3 earnings call.



Revenue Performance and Industry Comparison:
- OneWater Marine reported total revenue of $553 million for Q3 2025, an increase of 2% year-on-year.
- The company's revenue growth stood out against a backdrop of a broader industry facing declines of more than 15% in relevant categories.
- This performance was attributed to OneWater's strong execution, strategic positioning, and resilience in a competitive market.

Preowned Boat Sales and Inventory Management:
- Preowned boat sales grew by 18% to $126 million in Q3, marking the third consecutive quarter of growth.
- The increase was driven by higher volumes and average unit prices, offsetting a decline in new boat sales.
- This trend was supported by better access to field inventory, leading to more trade-ins and upgrades.

Gross Margin Pressure and Pricing Strategy:
- Gross margins remained under pressure due to heightened promotional activity and strategic brand exits.
- Despite the challenges, the company maintained a disciplined pricing strategy aimed at preserving margins while driving sales.
- Moderate price increases from manufacturing partners for model year 2026 also contributed to easing tariff-related uncertainties.

Inventory Reduction and Brand Rationalization:
- Total inventory decreased by 14% year-over-year, with a goal to end the fiscal year with a decline of 10% to 15%.
- The reduction was supported by the company's brand rationalization strategy, which involves exiting selected brands by the end of the year.
- This focus on high-performing brands strengthens OneWater's foundation and optimizes working capital efficiency.

Guidance and Market Outlook:
- OneWater Marine updated its full-year guidance, raising its total revenue outlook to be in the range of $1.8 billion to $1.85 billion.
- The company anticipates same-store sales to be up in the low single digits for the year.
- Despite persistent macroeconomic uncertainty, OneWater remains cautiously optimistic due to progress on inventory management and clarity on tariff impacts.