Earnings

Winnebago Guides Fiscal 2027 Adjusted Earnings To $1.65 To $2.25 A Share After Fourth-Quarter Revenue Fell To $645.1 Million

The motorhome unit turned profitable and net leverage fell to 2.2x, but towables weakened and management called the recovery's timing hard to predict.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Winnebago Guides Fiscal 2027 Adjusted Earnings To $1.65 To $2.25 A Share After Fourth-Quarter Revenue Fell To $645.1 Million

Winnebago's fourth-quarter revenue fell to $645.1 million from $777.3 million a year earlier, the company said in an earnings release attached to an 8-K filed Wednesday. The RV and boat maker also guided fiscal 2027 adjusted earnings to $1.65 to $2.25 per share, against $1.79 adjusted for fiscal 2026.

The quarter: lower volume, thinner profit

Winnebago blamed the 17.0% revenue decline mainly on lower unit volume and product mix, partly offset by selective price adjustments. Net income was $9.7 million, or $0.34 per diluted share, versus $13.7 million, or $0.49, a year earlier.

Adjusted earnings were $0.49 per share, down 31.0% from $0.71. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with other adjustments) was $32.6 million, versus $38.2 million.

Gross margin slipped to 12.5% from 12.8%, which the company tied mainly to volume deleverage, meaning fixed costs spread over fewer units. Operating expenses fell 20.1% to $63.1 million on cost cuts.

Towables slid, motorhomes turned a profit

Towable RV revenue dropped 28.1% to $220.3 million, and operating income fell to $9.3 million from $21.4 million. Unit deliveries fell to 5,985 from 7,833, and the mix shifted toward lower-priced models.

Motorhome RV earned $7.9 million in operating income versus a $0.3 million loss a year ago, on revenue of $323.6 million, down 10.4%. The company credited operational efficiencies from its transformation initiatives and lower discounts. Marine revenue was $92.3 million, down 2.7%, with operating income of $6.6 million versus $6.7 million.

For the full year, revenue was $2,703.9 million versus $2,798.2 million, while operating income rose to $66.2 million from $57.2 million. Net income was $34.5 million, or $1.21 per diluted share, and adjusted earnings were $1.79 versus $1.67.

Cash, debt and the fiscal 2027 outlook

Operating cash flow was $142.5 million in the quarter. Cash stood at $181.4 million, up from $57.1 million at the end of the third quarter, and net leverage improved to 2.2x from 3.0x. Total outstanding debt was $443.3 million, and the board raised the quarterly dividend 3% to $0.36 per share.

For fiscal 2027, Winnebago expects revenue of $2.65 billion to $2.80 billion and reported earnings of $0.90 to $1.50 per diluted share. It expects calendar 2027 North American RV wholesale shipments of 265,000 to 295,000 units, and 275,000 to 295,000 for calendar 2026.

CEO Michael Happe said the outlook "reflects a market where the timing and pace of recovery remain difficult to predict." He said the capacity and footprint actions are at different stages, and the company expects their financial contribution "to build gradually, with greater value accruing in future years."

Seeking Alpha reported the forecast came in below consensus.

The next marker is the calendar 2027 shipment range of 265,000 to 295,000 units that underpins the guidance, and whether the footprint changes lift margins as Happe expects.

Sources

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