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] - 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 and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [11] - Financing and insurance revenue increased slightly as a percentage of total sales, indicating strong performance in in-store financing programs [12] 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 streamline operations and focus on higher-performing brands [46][48] - The company is monitoring the tariff landscape closely and does not expect an immediate impact on pricing for current inventory [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in April, indicating that results were in line with the prior year [22] - The macroeconomic environment remains uncertain, leading to an updated fiscal 2025 guidance with total sales expected to be in the range of $1.7 billion to $1.8 billion [20] - Management emphasized the importance of controlling factors within their operations to navigate 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 is the demand outlook post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22][23] 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 softer margins [25][26] Question: Where is the company gaining market share? - The majority of market share gains are in the premium segment, with the company performing better than the industry average [32][33] Question: Is the company discounting heavily to gain share? - Management confirmed that while some discounting is occurring, it is strategic and focused on moving dated inventory [36][37] 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][45]

Company Performance - OneWater Marine reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.67 per share a year ago, representing an earnings surprise of -48% [1] - The company posted revenues of $483.52 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.57%, and down from $488.32 million year-over-year [2] - Over the last four quarters, OneWater Marine has surpassed consensus EPS estimates only once [2] Stock Outlook - OneWater Marine shares have declined approximately 13.6% since the beginning of the year, compared to a decline of -5.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $559.63 million, and for the current fiscal year, it is $1.21 on revenues of $1.81 billion [7] Industry Context - The Leisure and Recreation Products industry, to which OneWater Marine belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact OneWater Marine's stock performance [5]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased 1% to $484 million in 2025 from $488 million in 2024 [13] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased 14% to $90 million [13] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024 [14] - 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 [14][15] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [15] Business Line Data and Key Metrics Changes - Same store sales declined 2%, primarily due to a decrease in new boat sales [4][13] - Revenue from service parts and other sales increased 2% to $69 million, driven by growth in the dealership segment [13] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [11] 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 and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [10] 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 streamline operations and focus on higher-performing brands [40][41] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [7] 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 updated its fiscal 2025 guidance, anticipating total sales in the range of $1.7 billion to $1.8 billion, with same store sales expected to be flat to down low single digits [18] - Management emphasized a focus on factors within their control, including rationalizing the brand portfolio and streamlining operations [8] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [16] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [16] Q&A Session Summary Question: What are you seeing in April from a demand standpoint post the tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs of demand continuing into May [20][21] Question: Can you discuss the margins on used boats? - Management noted that margins were affected by model mix and aggressive pricing strategies to move inventory [22][23] Question: Where are you taking market share? - The company is primarily gaining share in the premium segment, outperforming the industry despite a decline in same store sales [29][30] Question: Are you having to discount heavily to move volume? - Management confirmed that while some discounting is necessary, they are strategically managing margins on current year models [31][32] Question: How do you see the industry shaking out after the slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [36][40]

Revenue and Sales Performance - Fiscal second quarter 2025 revenue was $483.5 million, a decrease of 1.0% from $488.3 million in the same quarter of 2024[4] - Same-store sales decreased by 2% due to lower sales in the West Coast of Florida[3] - New boat revenue decreased by 5.4% to $309.5 million, while pre-owned boat revenue increased by 14.1% to $89.7 million[4] - For fiscal year 2025, the company anticipates revenue between $1.7 billion and $1.8 billion, with dealership same-store sales expected to be flat to down low single digits[9] Profitability and Expenses - Gross profit for the quarter was $110.4 million, down from $120.4 million, resulting in a gross profit margin of 22.8%, a decrease of 180 basis points year-over-year[5] - Selling, general and administrative expenses totaled $87.8 million, representing 18.2% of revenue, up from 17.7% in the prior year[6] - Adjusted EBITDA decreased to $17.9 million from $28.3 million in the prior year quarter[8] - Adjusted net income attributable to OneWater Marine Inc. was $2,031,000 for the three months ended March 31, 2025, compared to $9,831,000 for the same period in 2024[18] - Adjusted EBITDA for the three months ended March 31, 2025, was $17,857,000, while for the same period in 2024, it was $28,295,000[21] Net Loss and Earnings Per Share - The net loss for the quarter was $(0.4) million, or $(0.02) per diluted share, compared to a net loss of $(4.5) million, or $(0.27) per diluted share, in the same quarter of 2024[8] - OneWater Marine Inc. reported a net loss of $368,000 for the three months ended March 31, 2025, compared to a net loss of $3,969,000 for the same period in 2024[18] - The net loss per share of Class A common stock - diluted was $(0.02) for the three months ended March 31, 2025, compared to $(0.27) for the same period in 2024[18] Inventory and Assets - Total inventory decreased by 12.4% to $602.4 million compared to $687.5 million a year earlier[8] - Total assets increased to $1,643.66 million from $1,712.61 million[16] - Total current assets amounted to $833.70 million, compared to $391.30 million previously[16] - Accounts receivable, net stood at $91.63 million, reflecting a slight increase from $91.10 million[16] Liabilities and Equity - Total liabilities were reported at $696.77 million, a decrease from $750.10 million[16] - Current portion of long-term debt, net was $26.70 million, down from $88.64 million[16] - Total current liabilities reached $696.77 million, compared to $750.10 million previously[16] - Total stockholders' equity attributed to One Water Marine Inc. was $381.61 million, a decrease from $397.69 million[16] - Long-term debt, net was reported at $400.48 million, down from $485.41 million[16] - Long-term debt, including the current portion, stood at $427,193,000, with adjusted long-term net debt calculated at $359,732,000 after accounting for cash[21] Operational Highlights - The company operates 98 retail locations and 9 distribution centers across 19 states, positioning itself as one of the largest marine retailers in the U.S.[22] - Same-store sales are used to assess organic growth, excluding new and acquired stores, which is crucial for evaluating the performance of the Dealership segment[29] Transaction and Restructuring Costs - The company incurred transaction costs of $377,000 for the three months ended March 31, 2025, compared to $145,000 for the same period in 2024[21] - Restructuring and impairment costs were $388,000 for the three months ended March 31, 2025, significantly lower than $11,847,000 for the same period in 2024[21]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for OneWater Marine despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on May 1, 2025, with a projected EPS of $0.32, reflecting a 52.2% decrease year-over-year, while revenues are estimated at $498.4 million, a 2.1% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.17% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a negative reading of -7.22% for OneWater Marine, suggesting analysts have lowered their expectations, making it challenging to predict an earnings beat [10][11]. Historical Performance - In the last reported quarter, OneWater Marine had a surprise of +42.55%, posting a loss of $0.54 per share against an expected loss of $0.94, but has only beaten consensus EPS estimates once in the last four quarters [12][13]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment, making it essential to consider additional elements beyond earnings expectations [14][16].

Group 1 - OneWater Marine (ONEW) is a notable stock within the Consumer Discretionary sector, which consists of 268 companies and is currently ranked 11 in the Zacks Sector Rank [2] - OneWater Marine has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for its full-year earnings increasing by 9% in the past quarter [3] - Year-to-date, OneWater Marine has returned approximately 0.9%, outperforming the Consumer Discretionary sector average return of -2.8% [4] Group 2 - OneWater Marine belongs to the Leisure and Recreation Products industry, which includes 23 companies and is currently ranked 176 in the Zacks Industry Rank [5] - The Leisure and Recreation Products industry has seen an average gain of about 3.1% year-to-date, indicating that OneWater Marine is slightly underperforming its industry [5] - Another stock in the Consumer Discretionary sector, PIGEON CORP (PGENY), has significantly outperformed the sector with a year-to-date return of 49.9% [4][6]

Core Viewpoint - OneWater Marine (ONEW) has shown a recent price increase of 5.1% and has a mean price target of $22.80, indicating a potential upside of 27.1% from its current price of $17.94 [1] Price Targets - The average price targets from analysts range from a low of $19 to a high of $25, with a standard deviation of $2.49, suggesting a variability in estimates [2] - The lowest estimate indicates a 5.9% increase, while the highest suggests a 39.4% upside [2] - A low standard deviation indicates a higher agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts are optimistic about ONEW's earnings prospects, as indicated by upward revisions in earnings estimates, which have shown a strong correlation with stock price movements [9] - Over the last 30 days, two earnings estimates have increased, leading to a Zacks Consensus Estimate rise of 11.2% [10] Zacks Rank - ONEW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a solid potential upside [11] Caution on Price Targets - While price targets can provide insights, relying solely on them for investment decisions may lead to disappointing returns, and they should be approached with skepticism [8][12]

Core Viewpoint - OneWater Marine (ONEW) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - The recent upgrade for OneWater Marine reflects an improvement in its earnings outlook, which is expected to positively impact its stock price [3][5]. Earnings Estimate Revisions - OneWater Marine is projected to earn $1.57 per share for the fiscal year ending September 2025, representing a year-over-year increase of 60.2% [8]. - Over the past three months, the Zacks Consensus Estimate for OneWater Marine has increased by 9%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - OneWater Marine's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Revenue Performance - Total revenues for the three months ended December 31, 2024, increased to $375.814 million, up from $364.013 million in the same period of 2023, representing a growth of 2.4%[18] - New boat sales revenue reached $247.997 million, compared to $241.084 million in the prior year, reflecting an increase of 2.5%[18] - Sales from the top ten brands accounted for approximately 45.7% of total sales for the three months ended December 31, 2024, down from 48.9% in the same period of 2023[28] - The company recognized revenue from contract liabilities of $38.41 million for the three months ended December 31, 2024, compared to $31.38 million for the same period in 2023, indicating a year-over-year increase of approximately 22.5%[46] - Revenue from goods and services transferred at a point in time accounted for 92.6% of total revenue for the three months ended December 31, 2024, slightly down from 92.7% in the same period of 2023[47] Financial Losses - The net loss attributable to OneWater Marine Inc. for the quarter was $11.971 million, compared to a net loss of $7.170 million in the same quarter of 2023, indicating a deterioration in performance[18] - For the three months ended December 31, 2024, OneWater Marine Inc. reported a net loss of $13,612,000, compared to a net loss of $7,970,000 for the same period in 2023, indicating a year-over-year increase in losses of approximately 71.5%[23] - Net loss increased by $5.6 million to $13.6 million for the three months ended December 31, 2024, compared to $8.0 million for the same period in 2023[176] - Adjusted net loss attributable to OneWater Marine Inc. was $8.0 million for the three months ended December 31, 2024, compared to $5.4 million for the same period in 2023, indicating a decrease of $2.54 million[190] Cash Flow and Assets - The company’s cash position improved to $22.711 million as of December 31, 2024, compared to $16.849 million at the end of September 2024, an increase of 34.8%[16] - Total current assets increased to $797.474 million as of December 31, 2024, up from $777.366 million at the end of September 2024, marking a rise of 2.8%[16] - Total cash and restricted cash at the end of the period was $36,558,000, down from $54,153,000 at the end of December 2023, reflecting a decrease of 32.5%[23] - Net cash used in operating activities decreased by $72.6 million to $37.4 million for the three months ended December 31, 2024, compared to $110.0 million for the same period in 2023[199] - Net cash used in investing activities was $2.8 million for the three months ended December 31, 2024, a decrease of $42.6 million from net cash provided by investing activities of $39.8 million in 2023[200] Expenses and Liabilities - Selling, general and administrative expenses for the quarter were $79.060 million, slightly down from $79.599 million in the same quarter of 2023, a decrease of 0.7%[18] - The interest expense on floor plan financing was $7.026 million for the quarter, down from $7.812 million in the same period of 2023, a decrease of 10.1%[18] - Total liabilities rose to $1.227928 billion as of December 31, 2024, compared to $1.199236 billion at the end of September 2024, reflecting an increase of 2.4%[16] - The company reported depreciation and amortization expenses of $6,037,000 for the three months ended December 31, 2024, compared to $4,905,000 in the same period of 2023, reflecting an increase of 23.0%[23] Inventory and Receivables - The company’s inventory levels increased to $636.676 million as of December 31, 2024, compared to $590.838 million at the end of September 2024, an increase of 7.8%[16] - The company experienced a significant increase in accounts receivable, totaling $16,357,000 for the three months ended December 31, 2024, compared to $20,240,000 in the prior year, representing a decrease of 19.0%[23] - Total accounts receivable as of December 31, 2024, was $57.44 million, down from $73.82 million as of September 30, 2024, reflecting a decrease of approximately 22%[63] - New vessels inventory increased to $481.06 million as of December 31, 2024, from $442.83 million as of September 30, 2024, reflecting an increase of approximately 8.6%[64] Acquisitions and Growth Strategy - OneWater Marine Inc. acquired the remaining 20% of Quality Assets and Operations, LLC on October 31, 2023, resulting in full ownership as of December 31, 2024[30] - The company aims to acquire dealerships at attractive EBITDA multiples, typically less than 4.0x EBITDA on a trailing twelve-month basis[137] - The company expects to continue strategic acquisitions to enhance dealership growth and expand its parts and accessories business[136] - The company has completed 34 acquisitions since its formation in 2014, including 81 additional dealerships and 12 distribution centers[134] Market Presence - OneWater Marine Inc. operated 96 retail locations and 10 distribution centers/warehouses across 19 states as of December 31, 2024, maintaining a strong presence in key markets[26] - The company operates 96 dealerships across 17 states, positioning itself as one of the largest marine retailers in the U.S.[130] - The Dealerships segment accounted for approximately 93% of revenues, with over 9,500 new and pre-owned boats sold in fiscal year 2024[132] Financial Compliance and Standards - The Company was in compliance with all financial and non-financial covenants for the reporting period ended December 31, 2024[70] - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures in fiscal years 2025 and 2026, respectively, which may impact future financial reporting[56][57] - The company was in compliance with all covenants under the A&R Credit Facility and the Inventory Financing Facility for the reporting period ended December 31, 2024[195]

Core Viewpoint - OneWater Marine Inc. reported first-quarter fiscal 2025 results with earnings and revenues exceeding expectations, although the bottom line showed a decline compared to the previous year [1][4]. Financial Performance - The company reported an adjusted loss per share of 54 cents, which was better than the Zacks Consensus Estimate of a loss of 94 cents, but worse than the prior year's loss of 38 cents [4]. - Quarterly revenues reached $375.8 million, surpassing the Zacks Consensus Estimate of $335 million, marking a 3.2% year-over-year increase driven by new unit sales and a 4% growth in same-store sales [4]. - New boat revenues increased by 2.9% year over year to $248 million, while finance and insurance income rose by 27.7% to $9.4 million [5]. - Pre-owned boat revenues grew by 6.6% year over year to $56.8 million, supported by higher unit sales and average prices [5]. - Service, parts, and other sales declined by 1.1% year over year to $61.6 million [5]. Operational Highlights - Selling, general, and administrative expenses as a percentage of total revenues decreased to 21% from 21.9% in the prior year, attributed to lower personnel costs and ongoing expense management [6]. - Gross profit for the quarter was $84.1 million, down from $91.4 million in the prior year, with gross margins contracting by 270 basis points to 22.4% [7]. - Adjusted EBITDA was reported at $1.9 million, significantly lower than the $7.1 million from the previous year [7]. Balance Sheet - As of December 31, 2024, cash totaled $22.7 million, down from $44.6 million a year earlier [8]. - Inventory decreased to $636.7 million from $706.8 million in the prior year [8]. - Net long-term debt was reduced to $412.6 million from $433.7 million in the previous quarter [8]. Fiscal Outlook - For fiscal 2025, the company anticipates revenues between $1.7 billion and $1.85 billion, with dealership same-store sales expected to rise in the low single digits [9]. - Adjusted EBITDA is projected to be between $80 million and $110 million, with adjusted earnings per share expected to range from $1 to $2 [9].