Winnebago Industries Reports 6% Revenue Growth

By Chris Stiles • Wednesday, March 25 13:36 • Permanent Link

Winnebago Industries reported fiscal second-quarter revenue of $657.4 million, up 6.0% from $620.2 million a year earlier, as higher pricing and a better product mix offset lower unit volume.

Gross profit rose to $85.6 million from $83.1 million, while gross margin slipped to 13.0% from 13.4%. Selling, general and administrative expenses fell 1.9% to $68.4 million from $69.7 million.

Operating income climbed 50.7% to $11.8 million from $7.8 million. Net income improved to $4.8 million, or $0.17 per diluted share, from a net loss of $0.4 million, or $0.02 per diluted share, a year ago. Adjusted earnings per diluted share increased 42.1% to $0.27 from $0.19. Adjusted EBITDA rose 7.0% to $24.4 million from $22.8 million.

The company’s motorhome RV business was the standout in the quarter. Revenue in that segment jumped 29.3% to $304.7 million from $235.6 million, and operating income turned to $7.5 million from a loss of $0.6 million. Operating margin improved to 2.4% from negative 0.3%.

Towable RV revenue fell 9.0% to $262.4 million from $288.2 million, and operating income declined 12.2% to $11.1 million from $12.7 million. Marine revenue decreased 3.0% to $79.2 million from $81.7 million, while operating income dropped 46.2% to $2.9 million from $5.4 million.

Cash and cash equivalents ended the quarter at $47.4 million, down from $181.7 million at the end of the first quarter and $174.0 million at the end of fiscal 2025. The decline mainly reflected a $100 million senior secured note redemption. Total outstanding debt stood at $442.3 million, and working capital was $403.5 million, down from $465.1 million at fiscal 2025 year-end.

Cash flow from operations was $0.6 million in the first half of fiscal 2026. The gross leverage ratio improved to 3.2x from 4.0x at the end of the first quarter, and net leverage was 2.9x at quarter-end.

Winnebago maintained full-year revenue guidance of $2.8 billion to $3.0 billion and adjusted earnings per diluted share guidance of $2.10 to $2.80. It raised reported earnings per diluted share guidance to $1.50 to $2.20 from a prior range of $1.40 to $2.10. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $47.79. If you want to know more, read the company's complete 8-K report here.

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