Wed, Jun 25, 8:09 PM (19 days ago)
**Summary of Winnebago Industries, Inc. (WGO) Q1 2025 Financial Performance** **Revenue and Profitability:** - **Revenue:** $775.1 million, down 1.4% YoY. - **Gross Profit:** $106.0 million, down 10.3% YoY. - **Operating Income:** $30.2 million, down 30.7% YoY. - **Net Income:** $17.6 million, down 39.1% YoY. - **Earnings per Share (EPS):** $0.62, down 35.4% YoY. **Segment Performance:** - **Towable RV:** Revenue down 3.8% YoY, Adjusted EBITDA margin down 15.7% YoY. - **Motorhome RV:** Revenue down 2.6% YoY, Adjusted EBITDA margin down 77.7% YoY. - **Marine:** Revenue up 14.6% YoY, Adjusted EBITDA margin up 37.0% YoY. **Cash Flow and Liquidity:** - **Operating Cash Flow:** $(52.5) million, down from $103.2 million YoY. - **Capital Expenditures:** $29.2 million, down from $33.8 million YoY. - **Cash and Cash Equivalents:** $10.5 million, down from $330.9 million QoQ. - **Debt:** $539.9 million, down from $637.1 million QoQ. **Trends and Uncertainties:** - **Macroeconomic Challenges:** Inflation, elevated interest rates, and lower consumer confidence impacting retail consumers and dealers. - **Inventory Management:** Dealers exercising caution in managing stocking levels. - **Segment-Specific Issues:** Most acute in the Winnebago motorhome business, with steps taken to lower field inventory and improve working capital. - **Future Outlook:** Expectation of stabilized consumer demand leading to more stable ordering patterns. **Future Operations Impact:** - **Strategic Initiatives:** Focus on aligning production with market demand and accelerating stronger product value. - **Debt Management:** Partial settlement of high-yield notes and maturity of 2025 Convertible Notes. - **Share Repurchases:** $180.0 million remaining under the Board-approved repurchase authorization. **Conclusion:** Winnebago Industries faces challenges due to macroeconomic conditions, with a notable impact on the Motorhome RV segment. The company is taking strategic steps to address these issues, including inventory management and production alignment. Despite a decrease in revenue and profitability, the Marine segment shows positive growth. The company maintains a focus on liquidity and capital allocation strategies to support future operations.