Winnebago Industries 2025 Q3 Earnings Misses Targets as Net Income Falls 39.3%

Winnebago Industries (WGO) reported its fiscal 2025 Q3 earnings on June 25th, 2025. The company experienced a 1.4% drop in total revenue, with figures reaching $775.10 million, slightly below the prior year's $786 million. The adjusted earnings per share (EPS) were $0.81, narrowly exceeding the Zacks Consensus Estimate of $0.79, but still reflecting a decrease from the previous year's $1.10. The guidance for fiscal 2025 has been adjusted downwards, with EPS expectations lowered to $1.20–$1.70 per diluted share, reflecting ongoing challenges in the market environment.

Revenue

Winnebago Industries recorded a decline in total revenue to $775.10 million, a 1.4% decrease from the prior year's $786 million. The Towable RV segment contributed $371.70 million, while the Motorhome RV segment accounted for $291.20 million. The Marine segment showed growth with $100.70 million, and the Corporate/All Other segments added $11.50 million, leading to a consolidated total of $775.10 million.

Earnings/Net Income

Winnebago Industries reported a significant decline in EPS of 36.4%, dropping to $0.63 in 2025 Q3 from $0.99 in 2024 Q3. The net income also decreased to $17.60 million, marking a 39.3% reduction from the $29 million reported in the previous year. This decline indicates a challenging financial performance for the quarter.

Price Action

Post-Earnings Price Action Review

The strategy of acquiring WGO stock when revenues exceeded expectations and holding it for 30 days proved ineffective, yielding a disappointing excess return of -78.88%. The total return was -9.64%, with a compound annual growth rate (CAGR) of -2.10%. This approach also experienced a significant maximum drawdown of -54.55% and a low Sharpe ratio of -0.05, reflecting substantial risk and moderate returns. These metrics underscore the strategy's inability to generate positive outcomes, highlighting the volatile nature of the market and the challenges faced in achieving favorable returns through this investment tactic.

CEO Commentary

Michael J. Happe, CEO, emphasized the resilience of the Winnebago Industries team in navigating a challenging market environment, noting that "growing macroeconomic uncertainty led to a notable downshift in RV activity." He acknowledged that soft market conditions contributed to lower RV margins but highlighted the potential for improved margins and market share through new leadership and strategic initiatives. Happe stated, "We are focused on executing the areas of the business within our control," including lowering field inventory and enhancing operational efficiency. He expressed cautious optimism about the long-term growth potential, stating, "Our commitment to innovation... enables us to consistently deliver exceptional value."

Guidance

Winnebago Industries is reducing its full-year fiscal 2025 adjusted EPS guidance to a range of $1.20 to $1.70 per diluted share and adjusting its consolidated revenue forecast to $2.7 billion to $2.8 billion. For Q4, the company anticipates Motorhome sales will increase compared to last year's Q4 due to the success of the Grand Design RV Lineage lineup, while EBITDA will remain challenged. Towable sales are expected to be flat to slightly down, and the Marine segment is projected to show continued growth momentum with modest profitability improvements.

Additional News

In recent developments, Winnebago Industries announced the appointment of Steve Speich as Senior Vice President of Enterprise Operations, effective March 3, 2025. This strategic addition aims to enhance operational efficiency and leadership within the company. Furthermore, the Board of Directors approved a quarterly cash dividend of $0.34 per share, payable on June 25, 2025, to common stockholders of record as of June 11, 2025. This marks the continuation of Winnebago's consistent dividend policy, reflecting its commitment to returning value to shareholders. Additionally, Winnebago launched the new Thrive series, a high-quality, lightweight travel trailer designed to redefine comfort and design expectations in the RV category. This launch is part of the company's ongoing strategy to innovate and expand its product offerings.