Group 1 - OneWater Marine reported quarterly earnings of $0.79 per share, missing the Zacks Consensus Estimate of $1.12 per share, and down from $1.05 per share a year ago, representing an earnings surprise of -29.46% [1] - The company posted revenues of $552.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.13%, compared to year-ago revenues of $542.44 million [2] - Over the last four quarters, OneWater Marine has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2 - OneWater Marine shares have lost about 16.2% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook will be crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The estimate revisions trend for OneWater Marine was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3 - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $381.3 million, and $0.76 on revenues of $1.78 billion for the current fiscal year [7] - The Leisure and Recreation Products industry, to which OneWater Marine belongs, is currently in the bottom 25% of the Zacks Industry Rank, which can materially impact stock performance [8]

[Fiscal Third Quarter 2025 Earnings Announcement](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Earnings%20Announcement) OneWater Marine Inc. announced its fiscal third quarter 2025 results, highlighting its ability to outperform industry trends despite macroeconomic uncertainty and competitive pressures [Executive Summary and Highlights](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Highlights) OneWater Marine Inc. reported strong fiscal third quarter 2025 results, outperforming industry trends with increased revenue and strategic inventory management [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Austin Singleton highlighted the company's strong performance against industry trends, emphasizing customer service, strategy, and disciplined inventory management - CEO Austin Singleton noted the company's outperformance against broader industry trends despite macroeconomic uncertainty and competitive margin pressures[3](index=3&type=chunk) - The company remains focused on customer service, strategy execution, market share gains, and disciplined inventory management, including strategic brand exits[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Key financial metrics for Q3 FY2025 include $553 million in revenue, a 2% increase in same-store sales, and $33 million in Adjusted EBITDA Fiscal Third Quarter 2025 Key Financial Highlights | Metric | Value | | :--- | :--- | | Revenue | $553 million | | Same-store sales | 2% increase | | Gross profit margin | 23.3% | | GAAP net income | $11 million | | GAAP diluted EPS | $0.65 | | Adjusted diluted EPS | $0.79 | | Adjusted EBITDA | $33 million | [Fiscal Third Quarter 2025 Financial Performance](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Results) OneWater Marine's Q3 FY2025 financial performance showed a 1.9% revenue increase driven by pre-owned boat sales, alongside declines in profitability and a 13.6% reduction in total inventory [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Total revenues increased by 1.9% to $552.9 million, primarily driven by a 17.8% surge in pre-owned boat sales, offsetting a slight decline in new boat revenue Q3 FY2025 Revenue by Category (vs. Q3 FY2024) | Revenue Category | 2025 ($ in thousands) | 2024 ($ in thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | New boat | $326,134 | $333,162 | $(7,028) | (2.1)% | | Pre-owned boat | $125,941 | $106,889 | $19,052 | 17.8% | | Finance & insurance income | $17,782 | $17,932 | $(150) | (0.8)% | | Service, parts & other | $83,007 | $84,458 | $(1,451) | (1.7)% | | **Total revenues** | **$552,864** | **$542,441** | **$10,423** | **1.9%** | - Total revenues increased by **1.9% to $552.9 million**, with same-store sales up **2%**[4](index=4&type=chunk) - New boat revenue decreased **2.1%** due to fewer units sold, partially offset by higher average prices. Pre-owned boat revenue surged **17.8%** from increased units and average prices[4](index=4&type=chunk) - Service, parts & other sales decreased **1.7%** due to lower distribution segment sales, despite an increase in dealership service sales[4](index=4&type=chunk) [Profitability Metrics](index=1&type=section&id=Profitability%20Metrics) Gross profit margin declined by 110 basis points to 23.3%, while SG&A expenses increased to 16.7% of revenue, impacting net income and Adjusted EBITDA Q3 FY2025 Profitability Overview (vs. Q3 FY2024) | Metric | 2025 ($ in millions) | 2024 ($ in millions) | Change | | :--- | :--- | :--- | :--- | | Gross profit | $128.7 | $132.6 | $(3.9) million | | Gross profit margin | 23.3% | 24.4% | (110) bps | | SG&A expenses | $92.1 | $87.1 | $5.0 million | | SG&A as % of revenue | 16.7% | 16.0% | 70 bps | | Net income | $10.7 | $16.7 | $(6.0) million | | Diluted EPS | $0.65 | $0.99 | $(0.34) | | Adjusted diluted EPS | $0.79 | $1.05 | $(0.26) | | Adjusted EBITDA | $32.8 | $39.2 | $(6.4) million | - Gross profit margin decreased by **110 basis points to 23.3%**, attributed to new boat model mix, pricing strategies, and the impact of exiting select brands[5](index=5&type=chunk) - Selling, general and administrative expenses increased to **16.7% of revenue**, up from **16.0%**, due to efforts to drive same-store sales and inflationary costs[6](index=6&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) The company improved its liquidity position with cash increasing to $70.1 million and total inventory decreasing by 13.6% to $517.1 million Key Balance Sheet and Liquidity Metrics (as of June 30, 2025 vs. 2024) | Metric | June 30, 2025 ($ in millions) | June 30, 2024 ($ in millions) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $70.1 | $41.0 | $29.1 million | | Total liquidity | >$85.0 | N/A | N/A | | Total inventory | $517.1 | $598.6 | $(81.5) million (-13.6%) | | Total long-term debt | $419.5 | N/A | N/A | | Adjusted long-term net debt | $349.3 | N/A | N/A | | Pro forma adjusted net debt leverage ratio | 5.8x | N/A | N/A | - Total inventory decreased by **13.6% to $517.1 million**, reflecting the company's inventory management strategy[8](index=8&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Guidance) OneWater Marine updated its FY2025 guidance, projecting revenue between $1.80 billion and $1.85 billion, with Adjusted EBITDA of $65 million to $80 million Fiscal Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $1.80 billion to $1.85 billion | | Dealership same-store sales | Up low single digits | | Adjusted EBITDA | $65 million to $80 million | | Adjusted Diluted EPS | $0.50 to $0.75 | [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides unaudited condensed consolidated statements of operations and balance sheets, detailing GAAP financial performance and position for Q3 and YTD FY2025 [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The unaudited condensed consolidated statements of operations detail revenues, gross profit, income from operations, and net income for the three and nine months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited, in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Nine Months Ended June 30, 2025 (in thousands) | Nine Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $552,864 | $542,441 | $1,412,199 | $1,394,775 | | Total gross profit | $128,663 | $132,605 | $323,128 | $344,410 | | Income from operations | $30,379 | $39,999 | $44,677 | $60,325 | | Net income (loss) | $10,715 | $16,714 | $(3,272) | $4,235 | | Net income (loss) attributable to OneWater Marine Inc. | $10,715 | $14,683 | $(1,624) | $3,544 | | Diluted EPS | $0.65 | $0.99 | $(0.10) | $0.24 | [Condensed Consolidated Balance Sheet](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) The unaudited condensed consolidated balance sheet provides a snapshot of assets, liabilities, and equity as of June 30, 2025 and 2024, highlighting changes in cash and inventory Condensed Consolidated Balance Sheet (Unaudited, in thousands) | Asset/Liability/Equity | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Cash | $70,146 | $41,034 | | Inventories | $517,093 | $598,567 | | Total current assets | $739,962 | $821,996 | | Total assets | $1,540,429 | $1,635,880 | | Notes payable – floor plan | $435,777 | $486,547 | | Total current liabilities | $603,331 | $638,934 | | Long-term debt, net | $381,497 | $417,599 | | Total liabilities | $1,147,200 | $1,235,531 | | Total stockholders' equity attributable to OneWater Marine Inc. | $393,229 | $368,641 | | Total stockholders' equity | $393,229 | $400,349 | [Reconciliation of Non-GAAP Financial Measures](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA, used by management to evaluate operating performance [Adjusted Net Income and Diluted EPS Reconciliation](index=5&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS%20Reconciliation) This reconciliation details the adjustments from GAAP net income and diluted EPS to their adjusted non-GAAP counterparts for the three and nine months ended June 30, 2025 and 2024 Adjusted Net Income and Diluted EPS Reconciliation (Unaudited, in thousands except per share data) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Nine Months Ended June 30, 2025 (in thousands) | Nine Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) attributable to OneWater Marine Inc. | $10,715 | $14,683 | $(1,624) | $3,544 | | Adjusted net income attributable to OneWater Marine Inc. | $13,017 | $15,513 | $7,075 | $19,914 | | Net earnings (loss) per share of Class A common stock - diluted | $0.65 | $0.99 | $(0.10) | $0.24 | | Adjusted earnings per share of Class A common stock - diluted | $0.79 | $1.05 | $0.45 | $1.35 | [Adjusted EBITDA and Net Debt Reconciliation](index=6&type=section&id=Adjusted%20EBITDA%20and%20Net%20Debt%20Reconciliation) This reconciliation provides a detailed breakdown of Adjusted EBITDA for the three months and trailing twelve months, along with the calculation of Adjusted Long-Term Net Debt Adjusted EBITDA and Net Debt Reconciliation (Unaudited, in thousands except ratios) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Trailing twelve months ended June 30, 2025 (in thousands) | | :--- | :--- | :--- | :--- | | Net income (loss) | $10,715 | $16,714 | $(13,683) | | Adjusted EBITDA | $32,845 | $39,206 | $60,457 | | Long-term debt (including current portion) | N/A | N/A | $419,467 | | Less: cash | N/A | N/A | $(70,146) | | Adjusted long-term net debt | N/A | N/A | $349,321 | | Pro forma adjusted net debt leverage ratio | N/A | N/A | 5.8x | [About OneWater Marine Inc.](index=6&type=section&id=About%20OneWater%20Marine%20Inc.) OneWater Marine Inc. is a leading U.S. premium marine retailer with 97 locations across 19 states, offering diverse products and services including boat sales and maintenance - OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States[22](index=22&type=chunk) - The company operates **97 retail locations**, **9 distribution centers/warehouses**, and multiple online marketplaces in **19 states**[22](index=22&type=chunk) - Revenue streams are diversified, including sales of new and pre-owned boats, finance & insurance products, parts & accessories, and maintenance/repair services[22](index=22&type=chunk) [Non-GAAP Financial Measures and Key Performance Indicators Definitions](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Performance%20Indicators) This section defines OneWater Marine's non-GAAP financial measures and key performance indicators, such as Adjusted EBITDA and Same-Store Sales, explaining their calculation and management's rationale [Adjusted EBITDA Definition](index=6&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is defined as net income adjusted for various non-cash and non-recurring items, used by management to compare operating performance consistently - Adjusted EBITDA is defined as net income (loss) before interest expense – other, income tax (benefit) expense, depreciation and amortization, and other (income) expense, further adjusted for items like change in fair value of contingent consideration, restructuring and impairment, stock-based compensation, and transaction costs[24](index=24&type=chunk) - Management uses Adjusted EBITDA to compare operating performance consistently across periods by removing effects of capital structure, asset base, and other non-core items[25](index=25&type=chunk) [Adjusted Net Income and Diluted EPS Definition](index=6&type=section&id=Adjusted%20Net%20(Loss)%20Income%20Attributable%20to%20OneWater%20Marine%20Inc.%20and%20Adjusted%20Diluted%20(Loss)%20Earnings%20Per%20Share) Adjusted Net Income and Diluted EPS are non-GAAP metrics that adjust for specific items to provide a clearer view of the company's core financial performance - Adjusted Net Income Attributable to OneWater Marine Inc. is Net Income Attributable to OneWater Marine Inc. adjusted for transaction costs, intangible amortization, change in fair value of contingent consideration, restructuring and impairment, and other expense (income), with allocations to non-controlling interest and income tax adjustments[26](index=26&type=chunk) - Adjusted Diluted Earnings Per Share applies these adjustments on a per-share basis[26](index=26&type=chunk) - These metrics are used to assess financial performance by removing the effects of unusual or one-time charges and other items impacting comparability[27](index=27&type=chunk) [Adjusted Long-Term Net Debt Definition](index=6&type=section&id=Adjusted%20Long-Term%20Net%20Debt) Adjusted Long-Term Net Debt, calculated as long-term debt less cash, serves as an indicator of financial leverage, especially when compared to Adjusted EBITDA - Adjusted Long-Term Net Debt is defined as long-term debt (including current portion) less cash[28](index=28&type=chunk) - It is considered an indicator of financial leverage, especially when divided by trailing twelve-month Adjusted EBITDA[28](index=28&type=chunk) [Same-Store Sales Definition](index=6&type=section&id=Same-Store%20Sales) Same-store sales, excluding new and acquired stores, measure the organic growth of the Dealership segment and are a key indicator of comparative financial results - Same-store sales are defined as sales from the Dealership segment, excluding new and acquired stores[29](index=29&type=chunk) - New and acquired stores are included in the comparable store base after **13 months** of operation under company ownership, with revenues included for identical months[29](index=29&type=chunk) - This metric is used to assess the organic growth of Dealership segment revenue and is considered an important indicator of comparative financial results[29](index=29&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=7&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to inherent uncertainties and risks, which could cause actual results to differ materially from expectations - The document contains forward-looking statements regarding strategy, future operations, financial position, and guidance, which are not guarantees of future performance[30](index=30&type=chunk) - Key risks include changes in demand, industry seasonality and volatility, supply chain challenges, inflation, interest rate fluctuations, adverse weather, acquisition strategies, compliance with credit covenants, cash flow, global public health concerns, and geopolitical risks[31](index=31&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[31](index=31&type=chunk) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast) OneWater Marine will host a conference call and webcast on July 31st at 8:30 am ET to discuss Q3 earnings, with a replay available until August 7th, 2025 - A conference call to discuss fiscal third quarter earnings will be held on Thursday, July 31st, at **8:30 am Eastern time**[10](index=10&type=chunk) - Access is available via phone (**+1 646 564 2877** or **+1 800 549 8228**) or a live webcast on the company's investor relations website (https://investor.onewatermarine.com/)[10](index=10&type=chunk)[11](index=11&type=chunk) - A telephonic replay will be available through **August 7th, 2025**, using specific dial-in numbers and access code **25911 **[12](index=12&type=chunk) [Investor Contact Information](index=7&type=section&id=Investor%20or%20Media%20Contact) For investor or media inquiries, contact Jack Ezzell, Chief Financial Officer, at IR@OneWaterMarine.com - Investor or media contact: **Jack Ezzell, Chief Financial Officer**, IR@OneWaterMarine.com[32](index=32&type=chunk)

Core Viewpoint - The market anticipates OneWater Marine (ONEW) to report a year-over-year earnings increase despite a decline in revenues when it releases its quarterly results for June 2025 [1] Earnings Expectations - The upcoming earnings report is expected on July 31, with a consensus EPS estimate of $1.12, reflecting a +6.7% change year-over-year. Revenues are projected to be $536.1 million, down 1.2% from the previous year [3][2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections [4] Earnings Surprise Prediction - The Most Accurate Estimate for OneWater Marine is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.45%, suggesting a bearish outlook from analysts [12] - The stock currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, OneWater Marine was expected to post earnings of $0.25 per share but only achieved $0.13, resulting in a -48.00% surprise [13] - Over the past four quarters, the company has only beaten consensus EPS estimates once [14] Conclusion - OneWater Marine does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of its earnings release [17]

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]

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]