Winnebago(US:WGO)2025-10-22 20:08Financial 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].