Financial Performance - Net revenues for Fiscal 2025 decreased by 5.9% to $2,798.2 million compared to $2,973.5 million in Fiscal 2024[142]. - Gross profit margin declined to 13.0% in Fiscal 2025 from 14.6% in Fiscal 2024, primarily due to deleverage and higher warranty experience[143]. - Operating income fell by 42.9% to $57.2 million in Fiscal 2025, down from $100.2 million in Fiscal 2024[142]. - The Towable RV segment reported a 7.5% decrease in net revenues to $1,220.2 million, with unit deliveries down by 2.7%[146]. - The Motorhome RV segment experienced a 9.4% decline in net revenues to $1,159.7 million, with a significant operating loss of $7.3 million[149]. - The Marine segment saw a 13.0% increase in net revenues to $367.8 million, driven by higher unit volume and targeted price increases[151]. - Diluted earnings per share increased by 106.8% to $0.91 in Fiscal 2025, compared to $0.44 in Fiscal 2024[142]. Cash Flow and Capital Expenditures - Operating cash flow decreased to $128.9 million in Fiscal 2025 from $143.9 million in Fiscal 2024, primarily due to lower profitability and increased accounts receivable[154]. - Cash used in investing activities decreased to $(34.8) million in Fiscal 2025 from $(45.9) million in Fiscal 2024, attributed to favorable changes in other investing activities and lower capital expenditures[155]. - Cash used in financing activities increased to $(251.0) million in Fiscal 2025 from $(77.0) million in Fiscal 2024, mainly due to partial settlement of high-yield notes and maturity of 2025 Convertible Notes[156]. - Anticipated capital expenditures for Fiscal 2026 are projected to be between $35.0 million and $45.0 million, focusing on facility improvements and digital capabilities[163]. Balance Sheet and Working Capital - Working capital decreased to $465.1 million as of August 30, 2025, down from $584.0 million as of August 31, 2024[162]. - The company maintains a $350.0 million asset-based revolving credit facility with no borrowings as of August 30, 2025, and $174.0 million in cash and cash equivalents[157]. - No debt is maturing in the next twelve months classified as current on the Consolidated Balance Sheets as of August 30, 2025[160]. Strategic Focus and Market Conditions - The company is closely monitoring the impact of macroeconomic conditions, including inflation and interest rates, on consumer demand[137]. - The company is focused on aligning production schedules with dealer demand and reducing field inventory in response to market pressures[138]. - The company repurchased shares and paid dividends as part of its long-term capital allocation strategy, prioritizing operations and growth investments[164]. Asset Assessment - The company completed its annual assessment of indefinite-lived intangible assets and found no indication of impairment in Fiscal 2025, contrasting with a $30.3 million impairment charge in Fiscal 2024[177]. - The ABL Credit Facility remains undrawn as of August 30, 2025, representing the only floating rate debt instrument[185]. Taxation - The effective tax rate decreased due to prior year's non-deductible losses and favorable adjustments in Fiscal 2025[145].

Core Insights - Winnebago Industries, Inc. (WGO) shares increased by 27.48% to $40.31, reflecting a positive market reaction to the company's return to profitability and optimistic outlook [1] Financial Performance - The company reported a fourth-quarter net income of $13.7 million, or $0.49 per share, a significant improvement from a net loss of $29.1 million, or $1.01 per share, in the same quarter last year [1] - Net revenue rose by 7.8% to $777.3 million, up from $720.9 million, attributed to a favorable product mix and price increases [1] Stock Performance - During the trading session, the stock fluctuated between $36.03 and $40.78, opening at $36.31, compared to a previous close of $31.62 on the New York Stock Exchange [2] - Trading volume reached 2.19 million shares, significantly higher than the average of 0.52 million shares [2] - Over the past 52 weeks, Winnebago shares have traded within a range of $28.00 to $65.65 [2]

Core Viewpoint - Winnebago Industries experienced a significant stock price increase of up to 29% following a strong earnings report, ultimately settling at a 25.7% gain during the trading session [1]. Financial Performance - In the fourth quarter of fiscal year 2025, Winnebago's net sales increased by 7.8% year over year, reaching $777 million. Adjusted earnings surged by 154%, amounting to $0.71 per diluted share, surpassing analyst expectations of $0.51 per share on revenues around $725 million [2][8]. Recent Trends - Winnebago's recent performance has been inconsistent, with four earnings misses and five negative revenue surprises in the last six reports. The latest results represent a positive shift from these trends, although shares still trade 39% below their 52-week highs even after the recent surge [4]. Challenges Ahead - The company faces challenges with thin profit margins and is actively seeking strategies to mitigate the impact of tariffs. Management is preparing to address macroeconomic pressures affecting the RV-component supply chain [5][6].

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $777.3 million for Q4, with adjusted diluted EPS of $0.71, reflecting a significant increase of 150% year-over-year [7][14] - Consolidated adjusted EBITDA increased by 33.1% year-over-year, while operating income improved significantly from the previous year, which had been impacted by an impairment charge [14][17] - The net leverage ratio improved to 3.1 at the end of the year, down from 4.8 at the end of the previous quarter [17][18] Business Line Data and Key Metrics Changes - The motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable product mix, particularly from Grand Design's motorized Lineage lineup [15][16] - The towable RV segment saw a slight revenue decline year-over-year, attributed to a shift towards more value-oriented consumers, although operating income margin increased by 210 basis points [15][16] - The marine segment reported double-digit revenue growth, with Barletta and Chris-Craft managing production effectively despite industry headwinds [16][17] Market Data and Key Metrics Changes - Retail demand for RVs remained stable, with dealer inventories improving, although total RV shipments declined slightly in August [8][9] - The company expects wholesale RV shipments to be in the range of 320,000-340,000 units for calendar 2025 and 315,000-345,000 units for calendar 2026 [9][10] - The inventory turn rate was 1.9 times at the end of Q4, reflecting seasonal dynamics and dealer demand [10] Company Strategy and Development Direction - The company is focused on executing operational initiatives to improve profitability and cash flow, including manufacturing optimization and vertical integration [13][24] - New product introductions and revitalized dealer partnerships are expected to drive growth in the Winnebago-branded motorhomes and travel trailers [12][13] - The company aims to achieve a net leverage ratio of approximately 2x by the end of fiscal 2026, prioritizing improvements in growth and leverage [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, emphasizing that growth will be driven by actions within the company's control rather than relying on market recovery [25][26] - The company anticipates a flat retail environment for the RV sector, with expectations for modest growth in the motorhome segment and a decline in the marine segment [22][25] - Management highlighted the importance of maintaining a prudent, demand-driven approach to inventory and production [10][19] Other Important Information - The company returned $88.9 million to shareholders in fiscal 2025, including $50 million in share repurchases and $38.9 million in dividends [18] - The company has proactively addressed tariff challenges through supplier engagement and sourcing diversification [19][20] Q&A Session Summary Question: Can you talk about the unmitigated portion of tariffs and its impact on guidance? - Management indicated that the guidance includes the anticipated full impact of tariffs, which remains dynamic and could change [31][32] Question: What are the assumptions for retail in 2025 and 2026? - Management acknowledged that retail in 2025 may see significant destocking, while they do not anticipate significant increases in dealer inventory for 2026 [39][40] Question: How does the company view market share trends, especially with a shift towards low-end units? - Management noted pressure in the Class B category and fifth wheel retail share but expects to stabilize and grow market share in fiscal 2026 [49][52] Question: What are the expectations for warranty expenses in FY2026? - Management expects consistent warranty rates in 2026, with no major drivers for change [85]

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $777.3 million for Q4, with adjusted diluted EPS of $0.71, reflecting a significant increase of 150% year-over-year [6][14] - Consolidated adjusted EBITDA increased by 33.1% year-over-year, while operating income improved significantly from the previous year, which had been impacted by an impairment charge [13][14] - The net leverage ratio improved to 3.1 at the end of the year, down from 4.8 at the end of the previous quarter [17] Business Line Data and Key Metrics Changes - The motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable product mix, particularly from Grand Design's motorized Lineage lineup and Newmar [15][16] - The towable RV segment saw a slight revenue decline year-over-year, attributed to a shift towards more value-oriented consumers, although operating income margin increased by 210 basis points [15] - The marine segment reported double-digit revenue growth, with both Chris-Craft and Barletta managing production effectively despite industry headwinds [16][17] Market Data and Key Metrics Changes - Retail RV registrations declined in August, but dealer inventories improved, contributing to a healthier channel [7][8] - The company expects wholesale RV shipments for calendar 2025 to be between 320,000 and 340,000 units, with a forecast of 315,000 to 345,000 units for calendar 2026 [8][19] - The inventory turn rate was 1.9 times at the end of Q4, with a target of achieving higher turns over time [9] Company Strategy and Development Direction - The company is focused on revitalizing the Winnebago motorhome and towables lineup, aligning operations with market demand, and streamlining cost structures [24][25] - Strategic initiatives include new product introductions, improved dealer partnerships, and operational efficiencies to drive growth in the Winnebago-branded motorhomes and travel trailers [12][19] - The company aims for a net leverage ratio of approximately 2x by the end of fiscal 2026, prioritizing improvements in growth and net leverage [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, emphasizing execution over assumptions about market recovery, with expectations for consolidated net revenues between $2.75 billion and $2.95 billion [19][20] - The company anticipates flat to modest low single-digit growth in the towable RV segment, while the marine segment is expected to see a decline in sales due to soft retail trends [22] - Management highlighted the importance of controlling internal factors to drive profitability, regardless of market conditions [51] Other Important Information - The company returned $88.9 million to shareholders in fiscal 2025, including $50 million in share repurchases and $38.9 million in dividends, marking the 45th consecutive quarterly dividend payment [17][18] - The company is actively addressing tariff challenges through supplier engagement and sourcing strategies [19] Q&A Session Summary Question: Can you discuss the impact of tariffs on EPS guidance? - Management indicated that the guidance includes the anticipated full impact of tariffs, which remains dynamic, and they are actively finding ways to mitigate tariff exposure [27][28] Question: What are the assumptions for retail and wholesale shipments in 2025 and 2026? - Management confirmed expectations for a significant inventory reduction in 2025 and a flat retail environment for 2026, with no significant dealer destocking anticipated [33][34] Question: How does the company view market share trends, especially with a shift towards low-end units? - Management acknowledged pressure on market share in the Class B and fifth wheel categories but expressed confidence in stabilizing and growing share through strategic initiatives [43][47] Question: What are the expectations for warranty expenses in FY2026? - Management expects warranty expenses to remain consistent with FY2025, with no major drivers anticipated to change the trend [75][76]

Financial Data and Key Metrics Changes - The company reported adjusted diluted earnings per share of $0.71 on net revenues of $777.3 million, with a significant increase in adjusted EBITDA by 33.1% year over year [9][18][25] - Consolidated gross profit increased due to higher revenues, although gross margin declined primarily due to costs associated with the ongoing transformation of the Winnebago branded businesses [18][21] - The net leverage ratio improved to 3.1 at the end of the year, a substantial improvement from 4.8 at the end of the third quarter [22] Business Line Data and Key Metrics Changes - The Towable RV segment saw a slight revenue decline year over year, reflecting a shift towards more value-oriented consumers, but operating income margin increased by 210 basis points due to targeted price increases and improved efficiencies [19] - The Motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable mix, particularly from Grand Design RV's motorized Lineage lineup [20] - The Marine segment reported double-digit revenue growth, with both Chris Craft and Barletta managing production effectively in a cautious retail environment [21] Market Data and Key Metrics Changes - RV retail registrations declined in August, but retail demand remained stable on a trailing three-month basis, with dealer inventories improving [10] - Wholesale RV shipments are expected to be in the range of 315,000 to 345,000 units for calendar year 2026, with a median estimate of 330,000 units [11][25] - The company anticipates a decline in sales in the Marine segment due to continuing soft retail trends [28] Company Strategy and Development Direction - The company is focused on executional drivers that contribute to volume, share, and profitability, with new product introductions and improved dealer partnerships expected to benefit the Winnebago branded motorhomes business [16] - Strategic actions are being taken to revitalize the Winnebago Motorhome and Towables lineup, align operations with market demand, and streamline the cost structure [30] - The company aims for a net leverage ratio approximating two times by the end of fiscal year 2026, prioritizing improvements to growth and net leverage [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, grounded in execution rather than assumptions about market recovery, with expectations for improved results driven by strategic initiatives [30] - The company is closely monitoring the tariff environment and has implemented proactive strategies to mitigate tariff challenges [24] - Management indicated that the RV consumer base is becoming younger and more diversified, which is beneficial for the industry [63] Other Important Information - The company returned $88.9 million to shareholders in fiscal year 2025, consisting of $50 million in share repurchases and $38.9 million in dividends [22] - The company repaid $159 million of debt during the past year, reinforcing its commitment to shareholder value [22] Q&A Session Summary Question: Can you talk about the unmitigated tariff expenses? - Management indicated that the guidance includes the anticipated full impact of tariffs on business performance, acknowledging the dynamic nature of the tariff environment [36] Question: What should be expected for retail and wholesale shipment numbers? - Management expects a relatively flat retail and wholesale shipment environment, with a focus on actions within their control to drive stronger results [40][49] Question: How does the company view market share trends? - Management acknowledged recent pressure on market share in certain segments but expressed confidence in plans to stabilize and grow share in fiscal year 2026 [62] Question: What are the expectations for warranty expenses in FY 2026? - Management expects consistent warranty rates in FY 2026, with no major drivers for change identified at this time [96]

Group 1 - U.S. stocks experienced a decline, with the Dow Jones index falling approximately 0.2% on Wednesday [1] - Winnebago Industries, Inc. reported better-than-expected fourth-quarter financial results, with adjusted earnings of 71 cents per share, surpassing market estimates of 53 cents per share [1] - The company's quarterly sales reached $777.300 million, exceeding expectations of $727.824 million [1] Group 2 - Winnebago Industries shares surged 23.3% to $39.00 on Wednesday following the positive financial results [2] - Beyond Meat, Inc. shares increased by 86% to $6.73, driven by factors such as short interest and a new distribution partnership with Walmart [4] - Vicor Corporation saw a gain of 32% to $86.75 after reporting better-than-expected quarterly financial results [4] - Krispy Kreme, Inc. shares jumped 30% to $4.8200 [4] - GoPro, Inc. gained 19% to $2.6100 after announcing a new lineup of accessories for GoPro 360 cameras [4] - Intuitive Surgical, Inc. shares surged 16% to $537.10 following better-than-expected third-quarter financial results [4] - Simulations Plus, Inc. increased by 15.7% to $18.01 after issuing FY26 guidance [4] - Travel + Leisure Co. rose 13.4% to $68.83, driven by stronger-than-expected third-quarter results [4] - Pegasystems Inc. gained 10.2% to $62.91 after reporting better-than-expected quarterly financial results [4] - Avery Dennison Corporation jumped 6.8% to $174.74 following upbeat earnings [4] - PennyMac Financial Services, Inc. increased by 6.4% to $128.71 after better-than-expected earnings [4] - Badger Meter, Inc. rose 6.3% to $188.59 [4] - Hilton Worldwide Holdings Inc. gained 4.1% to $276.90 after beating third-quarter earnings estimates and raising FY25 adjusted EPS guidance [4]

Financial Performance - Winnebago Industries' Q4 net revenues increased by 7.8% to $777.3 million compared to $720.9 million in F24 Q4[32, 33] - The company's adjusted diluted EPS increased to $0.71 compared to $0.28 in F24 Q4[32, 33] - The gross margin decreased slightly by 30 bps compared to F24 Q4, landing at 12.8%[32, 33] - Free cash flow was $171.2 million in Q4, compared to $29.5 million in the same quarter of the previous year[76] Segment Results - Towable RV segment net revenues decreased by 3.4% to $306.3 million, but operating income increased by 38.3% to $21.4 million[35, 36, 37, 38] - Motorhome RV segment net revenues increased by 17.3% to $361.2 million, but operating income decreased to $(0.3) million[42, 43, 44, 45] - Marine segment net revenues increased by 17.9% to $94.9 million, with operating income increasing to $6.7 million[49, 50, 51, 52] Market Position and Outlook - Barletta achieved the No 3 position in the U S Aluminum Pontoon Market with a 9.0% market share in F25[24] - The company anticipates total wholesale RV shipments of 320,000 – 340,000 units in CY25 and 315,000 – 345,000 units in CY26[17] - Winnebago Industries projects FY26 net revenues between $2.75 billion and $2.95 billion, with a midpoint of $2.85 billion, representing a 2% increase from FY25[67]

Core Insights - Winnebago Industries reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and showing a significant increase from $0.28 per share a year ago, resulting in an earnings surprise of +22.41% [1] - The company achieved revenues of $777.3 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 7.50% and up from $720.9 million year-over-year [2] Earnings Performance - Over the last four quarters, Winnebago has surpassed consensus EPS estimates two times [2] - The company had an earnings surprise of +2.53% in the previous quarter, with actual earnings of $0.81 per share against an expected $0.79 [1][2] Stock Performance - Winnebago shares have declined approximately 33.8% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The current Zacks Rank for Winnebago is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $655.62 million, while the estimate for the current fiscal year is $2.32 on revenues of $2.94 billion [7] - The outlook for the industry, specifically the Building Products - Mobile Homes and RV Builders sector, is currently in the bottom 11% of Zacks industries, which may impact Winnebago's stock performance [8]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fourth Quarter Fiscal 2025 Financial Summary](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Summary) Winnebago Industries reported a solid fourth quarter for Fiscal 2025, with net revenues increasing by 7.8% to $777.3 million, driven by favorable product mix and targeted price increases. The company achieved significant improvements in profitability, with adjusted earnings per diluted share up 153.6% and adjusted EBITDA up 33.1% year-over-year. Operating cash flow was strong at $181.4 million, and the net leverage ratio improved to 3.1x Fourth Quarter Fiscal 2025 Financial Summary | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :----------------------- | :------------------ | :------------------ | :--------- | | Net revenues | $777.3 | $720.9 | 7.8% | | Gross profit | $99.2 | $94.2 | 5.2% | | Gross margin | 12.8% | 13.1% | (30 bps) | | Net income | $13.7 | ($29.1) | NM | | Diluted EPS | $0.49 | ($1.01) | NM | | Adjusted diluted EPS | $0.71 | $0.28 | 153.6% | | Adjusted EBITDA | $38.2 | $28.7 | 33.1% | | Net cash flow from operations | $181.4 | N/A | N/A | | Net leverage ratio | 3.1x | N/A | Improved | [Full Year Fiscal 2025 Financial Summary](index=1&type=section&id=Full%20Year%20Fiscal%202025%20Financial%20Summary) For the full Fiscal Year 2025, Winnebago Industries reported net revenues of $2,798.2 million, a decrease of 5.9% from Fiscal 2024. Gross profit and adjusted EBITDA also saw declines. However, net income increased significantly to $25.7 million, and net cash flow from operations remained positive at $128.9 million Full Year Fiscal 2025 Financial Summary | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :----------------------- | :--------------- | :--------------- | :--------- | | Net revenues | $2,798.2 | $2,973.5 | (5.9)% | | Gross profit | $365.1 | $433.5 | (15.8)% | | Gross margin | 13.0% | 14.6% | (160 bps) | | Net income | $25.7 | $13.0 | 97.7% | | Diluted EPS | $0.91 | $0.44 | 106.8% | | Adjusted diluted EPS | $1.67 | $3.40 | (50.9)% | | Adjusted EBITDA | $121.9 | $190.6 | (36.0)% | | Net cash flow from operations | $128.9 | N/A | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Michael Happe highlighted the company's solid Q4 performance despite a challenging environment, attributing success to a diversified product portfolio, improved profitability, market share gains, and strong operating cash flow. He noted positive progress in the Winnebago-branded businesses' turnaround and emphasized disciplined inventory management and new product innovation, particularly in RVs and the Grand Design motorized strategy - The company's diversified product portfolio helped offset operating margin pressure from the Winnebago-branded businesses' turnaround, which is proceeding **positively**[6](index=6&type=chunk) - Management remains **disciplined** in managing production schedules and inventory levels, aligning shipments with retail demand to maintain inventory health and brand strength[8](index=8&type=chunk) - Winnebago debuted exciting new products across its three RV brands at September's RV Open House, showcasing progress in the refreshed Winnebago-branded RV lineup and the Grand Design motorized strategy[9](index=9&type=chunk) [Financial Results Overview](index=2&type=section&id=Financial%20Results%20Overview) [Fourth Quarter Fiscal 2025 Results](index=2&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Results) In Q4 FY25, net revenues increased by 7.8% to $777.3 million, primarily due to favorable product mix and targeted price increases. Gross profit margin slightly decreased by 30 basis points to 12.8% due to transformation costs. Operating expenses significantly decreased by 29.5%, leading to an operating income of $20.1 million compared to a loss in the prior year. Net income turned positive, and adjusted diluted EPS surged by 153.6% Fourth Quarter Fiscal 2025 Results | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net revenues | $777.3 | $720.9 | 7.8% | | Gross profit | $99.2 | $94.2 | 5.2% | | Gross profit margin | 12.8% | 13.1% | (30 bps) | | Operating expenses | $79.1 | $112.0 | (29.5)% | | Operating income (loss) | $20.1 | ($17.8) | NM | | Net income (loss) | $13.7 | ($29.1) | NM | | Reported diluted EPS | $0.49 | ($1.01) | NM | | Adjusted diluted EPS | $0.71 | $0.28 | 153.6% | | Consolidated Adjusted EBITDA | $38.2 | $28.7 | 33.1% | - Operating expenses decreased primarily due to prior year goodwill impairment and cost reduction initiatives in Fiscal 2025, offsetting investments in the Grand Design motorhome business[12](index=12&type=chunk) [Full Year Fiscal 2025 Results](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Results) For the full Fiscal Year 2025, net revenues decreased by 5.9% to $2.8 billion, mainly due to lower average selling prices and unit volume. Gross profit margin declined by 160 basis points to 13.0% due to deleverage and higher warranty experience. Operating income decreased by 42.9%. While reported net income and EPS increased significantly, adjusted diluted EPS decreased by 50.9%, and consolidated adjusted EBITDA fell by 36.0% Full Year Fiscal 2025 Results | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :-------------------------- | :--------------- | :--------------- | :--------- | | Net revenues | $2,798.2 | $2,973.5 | (5.9)% | | Gross profit | $365.1 | $433.5 | (15.8)% | | Gross profit margin | 13.0% | 14.6% | (160 bps) | | Operating expenses | $307.9 | $333.3 | (7.6)% | | Operating income | $57.2 | $100.2 | (42.9)% | | Net income | $25.7 | $13.0 | 97.7% | | Reported diluted EPS | $0.91 | $0.44 | 106.8% | | Adjusted diluted EPS | $1.67 | $3.40 | (50.9)% | | Consolidated Adjusted EBITDA | $121.9 | $190.6 | (36.0)% | - The decrease in full-year operating expenses was primarily due to prior year goodwill impairment and current year cost reduction initiatives, partially offset by investments in Grand Design motorhome and Barletta marine businesses[17](index=17&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) [Towable RV Segment](index=3&type=section&id=Towable%20RV) The Towable RV segment experienced a 3.4% decrease in Q4 FY25 net revenues to $306.3 million, primarily due to a shift to lower price-point models and lower unit volume. However, operating income increased by 38.3% to $21.4 million, and operating income margin improved by 210 basis points to 7.0% due to targeted price increases and transformation efforts. For the full year, net revenues decreased by 7.5%, and operating income declined by 29.5%, with margin decreasing by 180 basis points Towable RV Segment Performance | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | FY25 (Millions) | FY24 (Millions) | Change (%) | | :-------------------- | :------------------ | :------------------ | :--------- | :--------------- | :--------------- | :--------- | | Net revenues | $306.3 | $317.0 | (3.4)% | $1,220.2 | $1,318.8 | (7.5)% | | Operating income | $21.4 | $15.5 | 38.3% | $72.7 | $103.1 | (29.5)% | | Operating income margin | 7.0% | 4.9% | 210 bps | 6.0% | 7.8% | (180) bps | - Q4 operating income margin increased due to targeted price increases and operating efficiencies from Winnebago towables business transformation efforts, partially offset by higher warranty experience and deleverage[20](index=20&type=chunk) - Full year operating income margin decreased primarily due to deleverage, including that associated with product mix, and higher warranty experience[22](index=22&type=chunk) [Motorhome RV Segment](index=4&type=section&id=Motorhome%20RV) The Motorhome RV segment saw a 17.3% increase in Q4 FY25 net revenues to $361.2 million, driven by higher unit volume and favorable product mix. However, the segment reported an operating loss of $0.3 million, with operating income margin decreasing by 230 basis points to (0.1)%, primarily due to transformation costs and higher discounts. For the full year, net revenues decreased by 9.4%, and the segment incurred an operating loss of $7.3 million Motorhome RV Segment Performance | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | FY25 (Millions) | FY24 (Millions) | Change (%) | | :-------------------- | :------------------ | :------------------ | :--------- | :--------------- | :--------------- | :--------- | | Net revenues | $361.2 | $308.0 | 17.3% | $1,159.7 | $1,279.8 | (9.4)% | | Operating income (loss) | ($0.3) | $6.9 | NM | ($7.3) | $52.9 | NM | | Operating income margin | (0.1)% | 2.2% | (230) bps | (0.6)% | 4.1% | (470) bps | - Q4 operating income margin decreased primarily due to costs associated with the transformation of the Winnebago motorhome business and higher discounts and allowances, partially offset by leverage and lower warranty expense[25](index=25&type=chunk) - Full year net revenues decreased due to lower unit volume and higher discounts related to the Winnebago motorhome business, partially offset by the introduction of the Grand Design motorhome business and product mix[26](index=26&type=chunk) [Marine Segment](index=4&type=section&id=Marine) The Marine segment demonstrated strong growth in Q4 FY25, with net revenues increasing by 17.9% to $94.9 million, driven by higher unit volume and targeted price increases. The segment achieved an operating income of $6.7 million, a significant improvement from a loss in the prior year, with operating income margin surging by 4,080 basis points to 7.1%. For the full year, net revenues increased by 13.0%, and operating income turned positive at $27.7 million Marine Segment Performance | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | FY25 (Millions) | FY24 (Millions) | Change (%) | | :-------------------- | :------------------ | :------------------ | :--------- | :--------------- | :--------------- | :--------- | | Net revenues | $94.9 | $80.5 | 17.9% | $367.8 | $325.5 | 13.0% | | Operating income (loss) | $6.7 | ($27.1) | NM | $27.7 | ($13.5) | NM | | Operating income margin | 7.1% | (33.7)% | 4,080 bps | 7.5% | (4.2)% | 1,170 bps | - Q4 operating income margin increased primarily due to prior year goodwill impairment, leverage, and targeted price increases[27](index=27&type=chunk) - Full year operating income margin increased due to prior year goodwill impairment, targeted price increases, and volume leverage[32](index=32&type=chunk) [Financial Position & Capital Allocation](index=5&type=section&id=Financial%20Position%20%26%20Capital%20Allocation) [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Winnebago Industries significantly improved its balance sheet and cash flow position in Q4 FY25. Cash and cash equivalents increased to $174.0 million from $10.5 million in the prior quarter. Total outstanding debt was $540.5 million, and working capital improved to $465.1 million. The net leverage ratio improved to 3.1x at quarter-end from 4.8x in the previous quarter, reflecting disciplined management and stronger operating efficiency Balance Sheet and Cash Flow Highlights (Q4 FY25) | Metric | Amount (Millions) | | :----------------------- | :---------------- | | Cash and cash equivalents | $174.0 | | Total outstanding debt | $540.5 | | Working capital | $465.1 | | Cash flow from operations | $181.4 | | Net leverage ratio | 3.1x | - Cash and cash equivalents increased significantly from **$10.5 million** at the end of Q3 FY25 to **$174.0 million** at the end of Q4 FY25[28](index=28&type=chunk) - The net leverage ratio improved from **4.8x** at the end of Q3 FY25 to **3.1x** at the end of Q4 FY25[28](index=28&type=chunk) [Quarterly Cash Dividend and Share Repurchases](index=5&type=section&id=Quarterly%20Cash%20Dividend%20and%20Share%20Repurchases) The Board of Directors approved a 3% increase in the quarterly cash dividend to $0.35 per share, paid on September 24, 2025 - The company's Board of Directors approved a **3% increase** in the quarterly cash dividend to **$0.35 per share** on August 14, 2025[29](index=29&type=chunk) [Business Outlook & Financial Guidance](index=5&type=section&id=Business%20Outlook%20and%20Financial%20Guidance) Winnebago Industries provided financial guidance for Fiscal 2026, anticipating consolidated net revenues between $2.75 billion and $2.95 billion, reported EPS of $1.25 to $1.95, and adjusted EPS of $2.00 to $2.70. The company also projected North American RV wholesale shipments for calendar years 2025 and 2026. The outlook considers prevailing RV sector trends, competitive dynamics, consumer preferences, and macroeconomic factors, with the CEO expressing confidence in strengthening margins and operational efficiency North American RV Wholesale Shipments Guidance | Year | Range (Units) | | :--- | :------------ | | 2025 | 320,000 to 340,000 | | 2026 | 315,000 to 345,000 | Fiscal 2026 Financial Guidance | Metric | Range | | :-------------------- | :-------------------- | | Consolidated net revenues | $2.75 billion to $2.95 billion | | Reported diluted EPS | $1.25 to $1.95 | | Adjusted diluted EPS | $2.00 to $2.70 | - The company's outlook takes into account prevailing trends in the RV sector, including tariff structure, competitive dynamics, shifts in consumer preferences, and key macroeconomic factors[30](index=30&type=chunk) - CEO Michael Happe expressed confidence that decisive actions underway will strengthen margins, enhance operational efficiency, and create long-term value for shareholders, despite a full return to mid-cycle demand across the industry taking time[30](index=30&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) [Q4 FY 2025 Conference Call](index=5&type=section&id=Q4%20FY%202025%20Conference%20Call) Winnebago Industries scheduled a conference call for 9:00 a.m. Central Time on October 22, 2025, to discuss its fourth quarter and full year Fiscal 2025 earnings results. A live broadcast and accompanying presentation slides are available via the Investor Relations page of the Company's website, with an archived replay available for 90 days - A conference call to discuss Q4 and full year Fiscal 2025 earnings results was scheduled for **9:00 a.m. Central Time** on **October 22, 2025**[31](index=31&type=chunk) - Access to the live broadcast and presentation slides is available via the Investor Relations page of the Company's website (http://investor.wgo.net), with an archived replay for **90 days**[31](index=31&type=chunk) [About Winnebago Industries](index=6&type=section&id=About%20Winnebago%20Industries) Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products, including motorhomes, travel trailers, fifth-wheel products, and various powerboats, under brands like Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta. The company is committed to sustainable innovation and vertical integration, with manufacturing facilities across several states - Winnebago Industries is a leading North American manufacturer of outdoor lifestyle products under the **Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta** brands[33](index=33&type=chunk) - The company produces motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles[33](index=33&type=chunk) - Winnebago Industries is committed to advancing sustainable innovation and leveraging vertical integration in key component areas, with facilities in Iowa, Indiana, Minnesota, and Florida[33](index=33&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking statements, including the Fiscal 2026 financial guidance. It highlights that such statements are inherently uncertain and subject to various risks and uncertainties, such as general economic conditions, financing availability, competition, supply chain issues, and regulatory changes, which could cause actual results to differ materially. The company disclaims any obligation to update these statements - Forward-looking statements, including Fiscal 2026 financial guidance, are inherently **uncertain** and involve potential risks and uncertainties[34](index=34&type=chunk) - Factors that could cause actual results to differ materially include general economic uncertainty, financing availability, competition, ability to innovate, inventory management, cyclicality, supplier relationships, material costs, and governmental regulation[34](index=34&type=chunk) - The company disclaims any obligation to disseminate updates or revisions to any forward-looking statements, except as required by law[34](index=34&type=chunk) [Contacts & Footnotes](index=6&type=section&id=Contacts%20%26%20Footnotes) This section provides contact information for investor relations and media inquiries. It also includes footnotes clarifying data sources, such as Statistical Surveys Inc. for market share data, and details regarding the exclusion of intangible amortization from Fiscal 2026 adjusted EPS guidance - Investor inquiries can be directed to Ray Posadas at ir@winnebagoind.com, and media inquiries to Dan Sullivan at media@winnebagoind.com[35](index=35&type=chunk) - Footnote (1) indicates that market share data is sourced from Statistical Surveys Inc. for the trailing 12 months ended August 31, 2025, and August 31, 2024[36](index=36&type=chunk) - Footnote (2) clarifies that Fiscal 2026 adjusted EPS guidance excludes the pretax impact of intangible amortization of approximately **$22 million**[36](index=36&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income show Winnebago Industries' financial performance for the three months and full year ended August 30, 2025, compared to the prior year. Key figures include net revenues, gross profit, operating income (loss), and net income (loss), along with corresponding percentages of net revenues and earnings per share Condensed Consolidated Statements of Income (Unaudited) | (in millions, except per share data) | Three Months Ended Aug 30, 2025 | Three Months Ended Aug 31, 2024 | Year Ended Aug 30, 2025 | Year Ended Aug 31, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :---------------------- | :---------------------- | | Net revenues | $777.3 | $720.9 | $2,798.2 | $2,973.5 | | Gross profit | $99.2 | $94.2 | $365.1 | $433.5 | | Operating income (loss) | $20.1 | ($17.8) | $57.2 | $100.2 | | Net income (loss) | $13.7 | ($29.1) | $25.7 | $13.0 | | Diluted EPS | $0.49 | ($1.01) | $0.91 | $0.44 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present the company's financial position as of August 30, 2025, and August 31, 2024. It details assets, liabilities, and shareholders' equity, showing changes in cash, inventories, total assets, and total liabilities year-over-year Condensed Consolidated Balance Sheets (Unaudited) | (in millions) | Aug 30, 2025 | Aug 31, 2024 | | :---------------------------- | :----------- | :----------- | | Cash and cash equivalents | $174.0 | $330.9 | | Inventories, net | $396.4 | $438.7 | | Total current assets | $792.2 | $988.7 | | Total assets | $2,154.4 | $2,384.2 | | Total current liabilities | $327.1 | $404.7 | | Long-term debt, net | $540.5 | $637.1 | | Total liabilities | $929.7 | $1,110.9 | | Shareholders' equity | $1,224.7 | $1,273.3 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows outline the cash generated from or used in operating, investing, and financing activities for the years ended August 30, 2025, and August 31, 2024. Net cash provided by operating activities decreased, while net cash used in financing activities significantly increased, leading to a net decrease in cash and cash equivalents for FY25 Condensed Consolidated Statements of Cash Flows (Unaudited) | (in millions) | Year Ended Aug 30, 2025 | Year Ended Aug 31, 2024 | | :-------------------------------- | :---------------------- | :---------------------- | | Net cash provided by operating activities | $128.9 | $143.9 | | Net cash used in investing activities | ($34.8) | ($45.9) | | Net cash used in financing activities | ($251.0) | ($77.0) | | Net (decrease) increase in cash and cash equivalents | ($156.9) | $21.0 | | Cash and cash equivalents at end of period | $174.0 | $330.9 | [Supplemental Disclosure](index=10&type=section&id=Supplemental%20Disclosure) This section provides supplemental non-cash and cash flow information, including income taxes paid, interest paid, capital expenditures in accounts payable, dividends declared but not yet paid, and increases in operating and financing lease assets in exchange for lease liabilities Supplemental Disclosure (Year Ended) | (in millions) | Aug 30, 2025 | Aug 31, 2024 | | :------------ | :----------- | :----------- | | Income taxes paid, net | $2.5 | $14.4 | | Interest paid | $29.5 | $29.0 | | Capital expenditures in accounts payable | $0.4 | $4.6 | | Dividends declared not yet paid | $11.0 | $10.9 | | Increase in operating lease assets | $2.7 | $9.8 | | Increase in financing lease assets | $0.2 | $1.8 | [Supplemental Segment Information](index=11&type=section&id=Supplemental%20Segment%20Information) [Towable RV Supplemental Data](index=11&type=section&id=Supplemental%20Information%20by%20Reportable%20Segment%20-%20Towable%20RV) Detailed supplemental data for the Towable RV segment shows a Q4 FY25 net revenue decrease of 3.4% and a full-year decrease of 7.5%. Despite this, Q4 operating income increased by 38.3% due to improved margins. Unit deliveries for travel trailers slightly increased in Q4 and full year, while fifth-wheel deliveries decreased. Dealer inventory for Towable RVs increased by 1.6% year-over-year Towable RV Segment - Unit Deliveries & Dealer Inventory | Metric | Q4 FY25 Units | Q4 FY24 Units | Q4 Change (%) | FY25 Units | FY24 Units | FY Change (%) | | :---------------- | :------------ | :------------ | :------------ | :--------- | :--------- | :------------ | | Travel trailer | 5,680 | 5,649 | 0.5% | 21,714 | 21,636 | 0.4% | | Fifth wheel | 2,153 | 2,534 | (15.0)% | 9,455 | 10,403 | (9.1)% | | Total Towable RV | 7,833 | 8,183 | (4.3)% | 31,169 | 32,039 | (2.7)% | | Dealer Inventory | 16,200 | 15,940 | 1.6% | N/A | N/A | N/A | [Motorhome RV Supplemental Data](index=12&type=section&id=Supplemental%20Information%20by%20Reportable%20Segment%20-%20Motorhome%20RV) The Motorhome RV segment's supplemental data indicates a 17.3% increase in Q4 FY25 net revenues, with unit deliveries for all classes (A, B, C) showing growth. However, the segment reported an operating loss for both Q4 and the full year. Full-year net revenues decreased by 9.4%, and total unit deliveries declined by 15.0%. Dealer inventory for Motorhome RVs decreased by 9.4% year-over-year Motorhome RV Segment - Unit Deliveries & Dealer Inventory | Metric | Q4 FY25 Units | Q4 FY24 Units | Q4 Change (%) | FY25 Units | FY24 Units | FY Change (%) | | :---------------- | :------------ | :------------ | :------------ | :--------- | :--------- | :------------ | | Class A | 403 | 356 | 13.2% | 1,211 | 1,625 | (25.5)% | | Class B | 524 | 463 | 13.2% | 1,682 | 2,278 | (26.2)% | | Class C | 818 | 726 | 12.7% | 2,849 | 2,854 | (0.2)% | | Total Motorhome RV | 1,745 | 1,545 | 12.9% | 5,742 | 6,757 | (15.0)% | | Dealer Inventory | 3,562 | 3,933 | (9.4)% | N/A | N/A | N/A | [Marine Supplemental Data](index=13&type=section&id=Supplemental%20Information%20by%20Reportable%20Segment%20-%20Marine) Supplemental data for the Marine segment shows a strong 17.9% increase in Q4 FY25 net revenues and a 13.0% increase for the full year. Unit deliveries for boats increased by 11.7% in both Q4 and the full year. The segment successfully turned around its operating income from a loss in the prior year to a positive figure in both periods. Dealer inventory for Marine units increased by 4.8% year-over-year Marine Segment - Unit Deliveries & Dealer Inventory | Metric | Q4 FY25 Units | Q4 FY24 Units | Q4 Change (%) | FY25 Units | FY24 Units | FY Change (%) | | :---------- | :------------ | :------------ | :------------ | :--------- | :--------- | :------------ | | Boats | 1,164 | 1,042 | 11.7% | 4,635 | 4,149 | 11.7% | | Dealer Inventory | 2,687 | 2,564 | 4.8% | N/A | N/A | N/A | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) [Adjusted Diluted Earnings Per Share Reconciliation](index=14&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share%20Reconciliation) This section provides a reconciliation of GAAP diluted earnings per share to Adjusted diluted earnings per share for the three months and full year ended August 30, 2025, and August 31, 2024. Adjustments include acquisition-related costs, amortization, goodwill impairment, and other non-recurring items to provide a clearer view of core operating performance Adjusted Diluted Earnings Per Share Reconciliation | | Three Months Ended | | | Year Ended | | | :-------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | | Aug 30, 2025 | Aug 31, 2024 | Aug 30, 2025 | Aug 31, 2024 | | Diluted earnings (loss) per share | $0.49 | ($1.01) | $0.91 | $0.44 | | Amortization | 0.19 | 0.21 | 0.78 | 0.78 | | Restructuring and related costs | 0.10 | — | 0.10 | — | | Goodwill impairment | — | 1.05 | — | 1.03 | | Adjusted diluted earnings per share | $0.71 | $0.28 | $1.67 | $3.40 | [EBITDA and Adjusted EBITDA Reconciliation](index=14&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) This section reconciles net income to consolidated EBITDA and Adjusted EBITDA for the three months and full year ended August 30, 2025, and August 31, 2024. Adjustments include interest expense, income taxes, depreciation, amortization, and other non-recurring items like goodwill impairment and loss on note repurchase, to present comparable results from period to period EBITDA and Adjusted EBITDA Reconciliation | (in millions) | Three Months Ended | | | Year Ended | | | :-------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | | Aug 30, 2025 | Aug 31, 2024 | Aug 30, 2025 | Aug 31, 2024 | | Net income (loss) | $13.7 | ($29.1) | $25.7 | $13.0 | | EBITDA | $35.1 | ($3.8) | $116.6 | $118.1 | | Goodwill impairment | — | 30.3 | — | 30.3 | | Loss on note repurchase | — | — | 2.0 | 32.7 | | Restructuring and related costs | 2.9 | — | 2.9 | — | | Adjusted EBITDA | $38.2 | $28.7 | $121.9 | $190.6 | [Non-GAAP Measures Explanation](index=15&type=section&id=Non-GAAP%20Measures%20Explanation) This section defines non-GAAP financial measures such as Adjusted diluted earnings per share, EBITDA, and Adjusted EBITDA, explaining that they are provided to supplement GAAP measures by illustrating the effect of non-recurring transactions and improving comparability. Management uses these measures for evaluating performance, budgeting, assessing acquisitions, and ensuring compliance with debt covenants, believing they offer meaningful insights into core operating results - Non-GAAP financial measures like Adjusted diluted EPS, EBITDA, and Adjusted EBITDA are provided to supplement GAAP measures, illustrating the effect of non-recurring transactions and improving comparability[55](index=55&type=chunk) - Adjusted diluted EPS is defined as diluted EPS adjusted for after-tax items impacting comparability, while Adjusted EBITDA is net income before interest, taxes, depreciation, amortization, and other pretax adjustments[55](index=55&type=chunk) - Management uses these non-GAAP measures to evaluate historical and prospective financial performance, measure operational profitability, assess performance relative to competitors, evaluate acquisitions, and ensure compliance with debt terms[56](index=56&type=chunk)