OneWater Marine Inc. Q1 FY2026 earnings call

• Austin Singleton noted a solid first quarter in line with expectations, with revenues up, same-store sales flat despite strategic inventory initiatives, healthy inventory levels, and OEM partners supportive. Brand rationalization efforts positively impacted gross margins. - Anthony Aisquith mentioned lower unit volumes offset by pricing and mix, improved margin profile, stable news environment aiding customer sentiment, early boat show season underway, and pre-owned boat sales growth supported by trade-in availability. - Jack Ezzell discussed revenue details, balance sheet including classification of distribution assets as held for sale, inventory reduction, and maintained fiscal year 2026 guidance.

Fiscal first quarter revenue was $381 million, a 1% increase compared to $370 million in the prior year period. New boat sales were down 6%, while pre-owned boat sales were 24% higher, driven by increased unit sales and average unit price. Service, parts, and other revenue grew by 10%. First quarter gross profit increased to $89 million compared to $84 million in the prior year period, with a gross profit margin expanding to 23.5%, an improvement of 110 basis points. Selling, general, and administrative expenses totaled $81 million. Net loss for the quarter was $8 million, and adjusted EBITDA increased to $4 million.

Maintaining fiscal year 2026 guidance ranges: total sales expected to be in the range of $1.83 billion to $1.93 billion, adjusted EBITDA in the range of $65 million to $85 million, and adjusted earnings per diluted share in the range of $0.25 to $0.75. Industry outlook is flat to down low single digits year over year, with same-store sales impacted by brand rationalization headwinds resulting in flat same-store sales overall.

Q: Joe Altobello asked about the mix shift, particularly pre-owned outperforming and if it's due to lower-priced units or better used inventory availability.

A: Austin Singleton said it's better availability due to more trades as pre-owned boats aren't going person to person as much.

Q: Joe Altobello asked about year-end net leverage and inventory outlook.

A: Jack Ezzell said sale of distribution assets should bring leverage down to almost four times at end of March and under four times by year-end; inventory is managed according to retail conditions.

Q: Joe Altobello asked about boat show season.

A: Austin Singleton said it's been pretty good, flat with enthusiasm from consumers and margin better than expected.

Q: Craig Kennison followed up on pre-owned market and inventory freshness.

A: Austin Singleton said inventory is in best shape since he can remember, with majority of premium dealers in good shape.

Q: Michael Albanese asked about storm impacts.

A: Austin Singleton said not feeling impact as it's not boating season, and boat show impact unknown as they don't operate material shows.

Q: Noah Zatzkin asked about buyer sentiment and margin cadence.

A: Austin Singleton said inventory cleanup leads to margin creep but offset by potential loss of manufacturer promotions; margin benefits will creep up but have some choppiness.

Q: Gerrick Johnson asked about government shutdown impact and payment buyers.

A: Austin Singleton and Jack Ezzell said no impact from government shutdown; majority of customers finance, but focus on premium space.