Winnebago Industries Inc. (NYSE:WGO) stock climbed Thursday after the recreational vehicle and marine products manufacturer reported fiscal third-quarter 2026 results.
The company reported adjusted earnings of 66 cents per share, below the analyst consensus estimate of 76 cents. Revenue totaled $698.7 million, missing the Street estimate of $755.67 million.
Revenue declined 9.9% year over year primarily due to lower unit volume, partially offset by selective price increases and a favorable product mix.
Segment Performance
Towable RV revenue fell 26.1% year over year to $274.7 million as lower unit shipments and a shift toward lower-priced models outweighed selective price increases.
Marine revenue declined 8.3% to $92.4 million, reflecting lower unit volume and an unfavorable product mix, partially offset by pricing actions.
Motorhome RV revenue increased 10.1% to $320.7 million, driven by higher unit shipments and selective price increases.
Margins And Balance Sheet
Gross profit declined 10.5% year over year to $94.9 million. Gross margin was flat from a year earlier as selective pricing offset higher input costs and lower production leverage.
Adjusted EBITDA fell 18.7% year over year to $37.8 million.
Winnebago ended the quarter with $57.1 million in cash and cash equivalents and $442.9 million in total debt.
The company’s board approved a quarterly cash dividend of 35 cents per share, payable on June 24, 2026.
Management Commentary
Chief Executive Officer Michael Happe said the company continues to navigate a cautious consumer environment by focusing on disciplined spending, product innovation, affordability and operational efficiency.
He said demand for the outdoor lifestyle remains healthy, but inflation, elevated interest rates and geopolitical uncertainty continue to delay purchases of higher-priced discretionary products.
Happe said market share gains in motorhomes were driven by Grand Design Motorized, Newmar and the ongoing turnaround of the Winnebago Motorhome brand.
He added that newer towable products, including Thrive, Access and Grand Design’s Transcend Lite, are helping the company appeal to more value-conscious consumers.
He also said Barletta continues to gain market share in the pontoon segment through its dealer network, product lineup and customer service.
Chief Financial Officer Bryan Hughes said the company lowered its full-year outlook because consumer demand weakened further, dealer ordering became more cautious and promotional activity increased in the towable RV market.
He said Winnebago is protecting profitability through selective pricing, cost controls, disciplined working capital management and production adjustments.
Outlook
Winnebago lowered its fiscal 2026 adjusted earnings guidance to a range of $1.65 to $2.00 per share from its prior outlook of $2.10 to $2.80. The revised forecast is below the analyst consensus estimate of $2.21.
The company also reduced its revenue outlook to $2.65 billion to $2.75 billion from its previous range of $2.80 billion to $3.00 billion. Analysts were expecting revenue of $2.88 billion.
In addition, Winnebago lowered its forecast for North American RV wholesale shipments to 290,000 to 310,000 units from its previous expectation of 315,000 to 345,000 units for fiscal 2026.
WGO Price Action: Winnebago Industries shares were up 13.15% at $30.85 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments