Core Insights - OneWater Marine reported Q3 FY2025 GAAP revenue of $552.9 million, exceeding analyst expectations and reflecting a 1.9% year-over-year increase [1][5] - Adjusted earnings per share (non-GAAP) were $0.79, significantly below the consensus estimate of $1.12 and down from $1.05 in Q3 FY2024, indicating margin pressures and lower profits [1][2] - The company demonstrated resilience in sales and market share gains despite broader industry weakness, outperforming the industry with a 2% increase in same-store sales compared to an industry decline of over 10% [1][5] Financial Performance - Revenue for Q3 FY2025 was $552.9 million, surpassing the estimate of $532.0 million, with a year-over-year increase from $542.4 million [2] - Adjusted EBITDA fell to $32.8 million, down 16.3% from $39.2 million in Q3 FY2024 [2] - Gross profit margin decreased to 23.3%, down 1.1 percentage points from the previous year, reflecting ongoing aggressive promotions and a shift in the mix of boats sold [2][7] Business Overview - OneWater Marine operates nearly 100 retail dealerships and multiple distribution centers across the U.S., focusing on the sale of new and pre-owned boats, marine parts, service, and insurance products [3] - The company partners with top boat manufacturers and targets premium and high-demand brands, enhancing its market position [3][4] Growth Strategy - The growth strategy includes expanding store footprint through acquisitions and diversifying revenue sources, with a focus on managing inventory levels and maintaining competitive pricing [4] - OneWater aims to streamline its product portfolio by exiting low-performing brands and focusing on higher-quality offerings, which is expected to improve margins in future quarters [9][11] Inventory and Cost Management - Inventory was reduced by 13.6% year-over-year to $517.1 million, indicating disciplined inventory management as part of a broader cleanup strategy [9] - Operating expenses increased to $92.1 million, or 16.7% of total revenue, driven by efforts to boost same-store sales and inflationary costs [10] Future Outlook - Management updated FY2025 guidance, projecting full-year revenue between $1.80 billion and $1.85 billion, with adjusted EBITDA forecasted at $65 million to $80 million [12] - Profitability expectations were lowered due to ongoing price competition and margin pressures, with adjusted diluted EPS now expected to fall between $0.50 and $0.75 [12]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-3 ...

OneWater Marine (ONEW) Q3 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning. My name is Sergio, and I will be your conference operator today. At this time, I would like to welcome everyone to the OneWater Marine, Inc. Fiscal Third Quarter twenty twenty five Conference Call. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the conference over to Jack Tisel, Chief Fin ...

OneWater Marine (ONEW) came out with quarterly earnings of $0.79 per share, missing the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -29.46%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.13, delivering a surprise of -48%.Over the last four quarters, the company h ...

OneWater Marine Inc. Announces Fiscal Third Quarter Results Continuing to Drive Sales and Enhance Long-term Positioning Fiscal Third Quarter 2025 Highlights BUFORD, GA – July 31, 2025 – OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") today announced results for its fiscal third quarter ended June 30, 2025. "The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional a ...

The market expects OneWater Marine (ONEW) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better ...

Financial Performance & Growth - OneWater Marine Inc achieved a 47% Compound Annual Growth Rate (CAGR) in Adjusted EBITDA and a 31% CAGR in Revenue from FY17 to FY23[11, 42] - In Q3 2024, total revenue was $542441 thousand, a decrease of 87% year-over-year compared to $594339 thousand in Q3 2023[62] - Adjusted EBITDA for Q3 2024 was $39206 thousand, a decrease of 366% compared to $61883 thousand in Q3 2023, with a margin of 72%[62] - Net income for Q3 2024 was $16714 thousand, a decrease of 498% compared to $33290 thousand in Q3 2023[62] Acquisition Strategy & Returns - The company aims to acquire dealerships at less than 40x EV/EBITDA and double their EBITDA within 24 months[23] - Acquisitions from FY16 to FY22, with a combined purchase price of $386 million and preacquisition EBITDA of $78 million, generated $135 million in FY23 EBITDA, resulting in a 35% Return on Invested Capital (ROIC) and a 29x FY23 EV/EBITDA multiple[23, 24] - Acquisitions from FY16 to FY18, with a combined purchase price of $72 million and preacquisition EBITDA of $16 million, generated $58 million in FY23 EBITDA, resulting in an 80% ROIC and a 13x FY23 EV/EBITDA multiple[25, 26] Revenue Streams & Inventory - New boat sales contribute 50% to revenue and 64% to gross profit, while pre-owned boat sales contribute 10% to revenue and 14% to gross profit[21] - Finance & Insurance contribute 3% to revenue and 17% to gross profit, while service, parts, and other contribute 16% to revenue and 26% to gross profit[21] Market Position & Footprint - The company has retail locations across 16 states, with 12 of those states being in the top 20 boating states[18]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $483.5 million, a decrease of 1.6% compared to $488.3 million for the same period in 2024[19]. - For the six months ended March 31, 2025, total revenue was $859.3 million, compared to $852.3 million for the same period in 2024, indicating an increase of approximately 0.7%[138]. - Net loss attributable to OneWater Marine Inc. for the three months ended March 31, 2025, was $368,000, compared to a net loss of $3.97 million for the same period in 2024[19]. - For the six months ended March 31, 2025, the net loss was $13,987,000 compared to a net loss of $12,479,000 for the same period in 2024, representing an increase in loss of approximately 12.1%[24]. - The company reported a gross profit margin of 22.9% for the three months ended March 31, 2025, compared to 24.6% for the same period in 2024[19]. Cash and Assets - Cash and cash equivalents increased to $67.5 million as of March 31, 2025, from $16.8 million as of September 30, 2024[17]. - Total assets rose to $1.64 billion as of March 31, 2025, compared to $1.59 billion as of September 30, 2024[17]. - Cash and restricted cash at the end of the period was $75,553,000, an increase of $48,216,000 from the beginning of the period[24]. - Total accounts receivable increased to $91.6 million as of March 31, 2025, from $73.3 million as of September 30, 2024, representing a 24.9% increase[67]. - The company experienced a decrease in accounts receivable by $15,540,000 for the six months ended March 31, 2025[24]. Inventory and Financing - Inventory levels increased to $602.4 million as of March 31, 2025, from $590.8 million as of September 30, 2024[17]. - The outstanding balance of the Inventory Financing Facility was $509.0 million as of March 31, 2025, up from $443.4 million as of September 30, 2024[72]. - The Company’s Inventory Financing Facility balance was $309.0 million as of March 31, 2025, with a potential interest expense change of approximately $3.1 million for a 100 basis point interest rate fluctuation[251]. - The A&R Credit Facility had an outstanding balance of $231.4 million as of March 31, 2025, with a potential interest expense change of approximately $2.3 million for a 100 basis point interest rate fluctuation[252]. Expenses and Liabilities - Selling, general and administrative expenses were $87.8 million for the three months ended March 31, 2025, slightly up from $86.5 million in the same period of 2024[19]. - Interest expense related to floor plan financing was $7.5 million for the three months ended March 31, 2025, compared to $8.5 million in the same period of 2024[19]. - The company reported depreciation and amortization of $12,208,000 for the six months ended March 31, 2025, up from $10,470,000 in the prior year[24]. - The company incurred total expenses of $40.8 million under the Tax Receivable Agreement as of March 31, 2025, representing 85% of anticipated net cash savings from tax benefits[119]. Shareholder Equity and Stock - OneWater Marine Inc. reported a total stockholders' equity of $381,615,000 as of March 31, 2025, down from $390,753,000 at the end of 2024[21]. - The company issued 160 shares upon vesting of equity-based awards, resulting in a decrease of $1,824,000 in additional paid-in capital[21]. - The total unrecognized compensation expense related to outstanding equity awards was $7.8 million as of March 31, 2025[87]. - As of March 31, 2025, the company has repurchased and retired 73,487 shares of Class A common stock for approximately $1.9 million, with $48.1 million remaining available for future purchases under the share repurchase program[91]. Operational Insights - The company experienced a decrease in new boat revenues, which totaled $309.5 million for the three months ended March 31, 2025, down from $327.3 million in 2024[19]. - The company anticipates continued challenges in the boat industry due to seasonality and economic conditions affecting consumer demand[12]. - As of March 31, 2025, OneWater Marine Inc. operates 98 retail locations and 9 distribution centers across 19 states[27]. - The company recorded a loss on asset disposals of $200,000 for the six months ended March 31, 2025[24]. Tax and Regulatory Matters - The effective tax rates for the three months ended March 31, 2025, and 2024, were 28.3% and 29.0%, respectively, while for the six months ended March 31, 2025, and 2024, they were 27.9% and 24.8%[113]. - The Company has not recognized any uncertain tax positions or penalties as of March 31, 2025, indicating a stable tax position[118]. Risk Factors - Economic conditions, including rising interest rates and trade policy uncertainties, may negatively impact the Company's operating results[28]. - The company is exposed to foreign currency risk due to purchasing new boats and parts from foreign manufacturers, which may affect competitive pricing in the U.S.[254]. - Fluctuations in foreign currency rates could adversely impact the company's future operating results if not recaptured in customer pricing[254].

Core Insights - OneWater Marine reported revenue of $483.52 million for the quarter ended March 2025, reflecting a year-over-year decline of 1% and an EPS of $0.13, down from $0.67 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $496.25 million, resulting in a surprise of -2.57%, while the EPS surprise was -48.00% compared to the consensus estimate of $0.25 [1] Revenue Breakdown - Service, parts & other revenues reached $69.29 million, exceeding the two-analyst average estimate of $67.30 million, marking a year-over-year increase of +2.4% [4] - Pre-owned boat revenues were $89.73 million, surpassing the average estimate of $79.45 million, and showing a year-over-year growth of +14.1% [4] - New boat revenues totaled $309.50 million, below the average estimate of $329 million, indicating a year-over-year decline of -5.4% [4] - Finance & insurance income was reported at $15 million, slightly below the average estimate of $15.15 million, with a year-over-year increase of +1.9% [4] Stock Performance - Over the past month, OneWater Marine's shares have returned -11.9%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased by 1% to $484 million in 2025 from $488 million in 2024 [14] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased by 14% to $90 million [14] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024, driven by lower gross margins [15] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share, compared to a net loss of $5 million or $0.27 per diluted share in the prior year [16] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [17] Business Line Data and Key Metrics Changes - Same store sales declined by 2%, primarily due to a decrease in new boat sales [4] - Revenue from service parts and other sales increased by 2% to $69 million, driven by growth in the dealership segment [14] - Financing and insurance revenue increased by 10 basis points as a percentage of sales [15] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [12] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry [4] - The average unit price of new boats increased, driven by strength in larger boats [11] - The company expects total sales to be in the range of $1.7 billion to $1.8 billion, with same store sales flat to down low single digits [20] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to consolidate its offerings and strengthen its market position [41][45] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [8] Management Comments on Operating Environment and Future Outlook - Management noted considerable macroeconomic uncertainty and a challenging environment but expressed optimism about improving performance over time [4] - The company is taking a cautious view on the demand environment and updating its outlook accordingly [8] - Management emphasized the importance of controlling factors within their operations to weather current challenges [9] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [18] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [18] - The company aims to reduce leverage in the latter half of 2025 as part of its capital allocation strategy [19] Q&A Session Summary Question: What are the demand trends seen in April post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22] Question: What drove the margin down on used boats? - Management noted that the model mix and aggressive pricing strategies to move inventory contributed to the margin decline [24][26] Question: Where is the company gaining market share? - The company is primarily gaining share in the premium segment, outperforming the industry which is down 10% [32] Question: Is the company discounting heavily to move volume? - Management confirmed that while some discounting is occurring, it is strategic and focused on clearing outdated inventory [34][36] Question: How does the company see the industry evolving post-slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [41][43]