Winnebago Industries, Inc. Q4 FY2025 earnings call

• Ended fiscal 2025 with a strong fourth quarter, showing resilience of the team and strength of the diversified portfolio. - Strategic actions to transform Winnebago branded RV businesses are beginning to show results, including returning to positive operating cash flow, improving working capital, and reducing net leverage ratio. - Highlighted success stories in various product categories such as Newmar's Dutch Star leading Class A diesel, Winnebago brands leading Class B, etc. - Focused on executional drivers for fiscal 2026 including new product introductions, stronger dealer partnerships, operational efficiency, and various operational initiatives across manufacturing, vertical integration, etc.

Towable RV Segment: Revenue down slightly year over year, with a mix shift toward more value-oriented products; operating income margin increased 210 basis points due to targeted price increases and improved operating efficiencies, outweighing higher warranty experience and slight deleverage on lower sales. Motorhome RV Segment: Double-digit top-line growth driven by higher unit volume and favorable mix, partially offset by higher discounts and allowances. Marine Segment: Net revenues up double digits from higher unit volume and targeted price increases; margin improvement largely reflects prior year goodwill impairment, volume leverage, and price increases on model year 26 products.

• For fiscal 2026, expect wholesale RV shipments in the range of 315,000 to 345,000 units. - Consolidated net revenues projected to be between $2.75 billion and $2.95 billion. - Reported earnings per diluted share expected to be $1.25 to $1.95, and adjusted earnings per diluted share $2.20 to $2.70. - Aim to have a net leverage ratio approximating two times by the end of fiscal 2026.

• Tariff challenges, with the company actively mitigating but remaining vigilant as market and trade conditions evolve. - Industry retail variability and potential softness in certain segments like the marine industry, with marine dealers still having elevated inventory concerns.

Q: Could you dig into tariffs a little? Last quarter, you guys had talked about some unmitigated expense in that 50 to 75¢ worth of EPS range.

A: This morning's guidance includes the full impact of tariffs on business performance in the next twelve months. The tariff environment is dynamic, and the team continues to mitigate tariff exposure through supplier engagement, sourcing diversification, etc.

Q: I wanted to dig into the guidance a little bit. Let's start with the industry numbers. I'm having a tough time getting the sort of full year shipment numbers to foot. What are your assumptions for retail for '25 and '26?

A: Retail in calendar '25 did not show as expected, and for fiscal 2026, not anticipating significant increase in dealer inventory. Watching marine space closely for weakness. Retail in remaining months of 2025 may be down in low to mid-single-digit range.

Q: Hey, good morning. Thanks for taking my question. I had a question around market share. You've had a really good story in the last five years with respect to market share in RVs and in marine. But at least in RVs, it appeared to take a step back in fiscal 2025, and that's probably due to a mix shift favoring some low-end units where you just don't play aggressively. What's your view on market share trends for your brand, especially if this trend towards low-end RV units persists?

A: Significant areas of pressure in RV industry for market share include Class B category and some fifth-wheel retail share pressure. Have plans in place to stabilize and strengthen share, including new product introductions, stronger dealer partnerships, etc.

Q: Could you talk a bit more about any takeaways from the RV open house? Anything notable as far as recent retail demand or year-over-year sales trends? And I guess how did that general sentiment from the open house factor into the 2026 outlook?

A: September open house in Elkhart had strong dealer attendance. Pleased with orders taken on Grand Design and Winnebago brands, especially Winnebago Towables being a record-setting order-taking event. Retail trends similar to July-August, with no significant change in momentum yet.