Core Insights - Winnebago Industries Inc.'s stock experienced its largest one-day gain in over 40 years, attributed to the company's success in attracting younger buyers for its recreational vehicles and boats [1][2]. Company Overview - Historically, Winnebago has been popular among retirees and older individuals who can afford RVs, which can cost hundreds of thousands of dollars [2]. - The company is now witnessing a broader demographic of buyers, indicating a shift in its customer base [2].

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]