Winnebago Industries, Inc. Q2 FY2026 earnings call

Winnebago Industries delivered solid second quarter, focused on enterprise strategies. Across portfolio of brands, built outdoor recreation platform. Introducing new products, emphasizing higher value segments. On Winnebago branded motorhome business, made progress in restoration. On towable RV side, reinvigorating business with new products. Highlighting Lithionics as vital part of enterprise profile. Teams managed to deleverage balance sheet, strengthen cash flow, reduce controllable costs. Retail activity in second quarter aligned with slower period, impacted by weather events. RV Industry Association's outlook for modest industry shipment growth in 2026. Showcasing product portfolio at Florida RV Super Show. Barletta Boats holds number three position in U.S. aluminum pontoons, expanded lineup with Sansa series. Barletta and Chris Craft recognized with Marine Awards. Released seventh annual Corporate Responsibility Report

Consolidated net revenues increased 6% year-over-year. Towable RV: net revenues declined by 9%, segment operating income margin of 4.2% was down 20 basis points from prior year, through first half of fiscal 2026 segment operating income is up 3% versus same period last year on roughly comparable 3% increase in net revenues. Motorhome RV: net revenue increase of 29% with volume momentum across brands, operating income margin improved 270 basis points year over year to 2.4% in Q2, first half segment operating income margin 2.6% compared with negative 0.8% in first half of fiscal 2025. Marine: segment net revenues decreased by 3%, operating income margin of 3.7% was down 300 basis points from last year's fiscal second quarter due to higher warranty expense and Volume D leverage, through first half of fiscal 2026 marine segment operating income margin was 5.3% versus 6.7% in same period last year, revenue flat year over year

For fiscal 2026, maintaining full-year revenue and adjusted EPS outlook. Consolidated net revenues in range of $2.8 billion to $3.0 billion. Reported earnings per diluted share in range of $1.50 to $2.20. Adjusted earnings per diluted share in range of $2.10 to $2.80. In total RVs, expect revenue softer than fiscal 2025 while maintaining operating margins. In motorhome RV, expect both revenue growth and improved operating margins compared to prior year. In marine, expect full-year net revenues below fiscal 2025 levels. Third quarter expected to have continued strength in motorhome RV offset by softer conditions in towable RV and marine, resulting in consolidated revenue flat to down versus prior year levels, adjusted EBITDA and adjusted earnings per diluted share roughly in line with prior year. Outlook subject to macroeconomic conditions

Geopolitical developments and their potential impact on commodity prices, which could affect the business. Uncertainty from the conflict in the Middle East and its potential impact on consumer demand and input costs. Impact of tariffs, which are being monitored and mitigated, but the situation is fluid

Q: First question on inventory.

A: Mike said it'll be a combination of seasonal retail momentum, conservative industry wholesale estimate assumptions, and support from Winnebago branded towable line and Grand Design's Transcend model.

Q: Impact of weather, cadence of trends.

A: Second quarter retail environment had some good shows but weather events impacted some, March retail better than January and February.

Q: Impact of geopolitical events on gas prices and consumer demand.

A: Gas prices impact people traveling less distance, not big impact on new product purchases yet, historically Americans may turn to domestic road trips.

Q: Towable and motorhome turns.

A: Won't share specific breakdown, but intention to drive field inventory turns back to close to 2.0 by end of fiscal and calendar year.

Q: Interest rate assumptions in guidance.

A: Too early to tell impact of geopolitical events on interest rates, no significant adjustment to guidance.

Q: ERV2 electric prototype.

A: Decided to not proceed with all-electric motorhome platform currently.

Q: Grand Design share trends.

A: Unit retail share pressure from intense competition on fifth wheels, team working on brand and product strength.

Q: Margin improvement initiatives in motorhomes.

A: Winnebago Motorhome transition to profitability, ramp-up of Grand Design Motorhome entry, margin enhancement on Newmar side.

Q: Tariffs impact.

A: Teams monitoring and mitigating impacts, recent Supreme Court decision on IEPA and new tariffs in 122 category being evaluated.

Q: Tax refunds impact.

A: Tax refunds size elevated, early to tell impact but positive from refund size standpoint.

Q: Lithionics as competitive differentiator.

A: Acquired in 2023, gold standard in lithium battery packs, expanded product line, certified for marine industry, aftermarket element, higher profitability