Winnebago Industries Tops Second-Quarter Estimates, Lowers Guidance Amid Macro Headwinds

02:13 PM EDT, 03/27/2025 (MT Newswires) -- Winnebago Industries ( WGO ) logged better-than expected fiscal second-quarter results, though macro and industry headwinds prompted the outdoor lifestyle product manufacturer to lower its full-year guidance.

Adjusted earnings fell to $0.19 per share for the quarter ended March 1 from $0.93 a year earlier, but topped the $0.13 consensus on FactSet. Revenue fell about 12% to $620.2 million, but surpassed the $616.7 million projected by analysts.

Winnebago shares were up 7% intraday Thursday, trimming its year-to-date decline to 22%.

Towable RV sales rose 1.2%, while marine jumped 17%, partially offsetting a 30% drop in the motorhome RV segment that was driven by lower volume tied to market conditions.

"Winnebago Industries ( WGO ) continues to demonstrate solid performance in our strategic markets, leveraging product differentiation and sharper affordability options to maintain healthy market share in our core premium and mid-range (recreation vehicle) segments," Chief Executive Michael Happe said in a statement.

Winnebago now anticipates adjusted EPS of $2.75 to $3.75 for fiscal 2025, down from its previous projection of $3.10 to $4.40. The consensus on FactSet is for $3.18, indicating a drop from the previous year's $3.40. Sales are now projected between $2.8 billion and $3 billion, compared with the prior guidance range of $2.9 billion to $3.2 billion. Analysts are looking for $2.94 billion, implying a slowdown from 2024's $2.97 billion.

"Our full-year financial outlook for fiscal 2025 is updated to take into consideration the very dynamic environment and the macro-economic and sector challenges that our industry has been presented," Happe said. "Among these are stubborn interest rates, inconsistent consumer sentiment, and dealers that continue to push inventory levels lower, particularly in the Motorhome RV and Marine segments."

To mitigate the impact of tariffs, the company is working with suppliers to identify exposed components and exploring alternative suppliers with lower tariff exposure, Chief Financial Officer Bryan Hughes said at an earnings call, according to a FactSet transcript.

"While we expect to mitigate a large portion of tariff-related costs, some residual impact may require price adjustments," Hughes said. "Given the fluid nature of tariff policies, quantifying the precise impact remains fluid."

Price: 37.15, Change: +2.39, Percent Change: +6.88

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