OneWater(US:ONEW)2025-12-15 22:10Business Operations - As of September 30, 2025, OneWater Marine Inc. operates 95 dealerships across 17 states, representing approximately 92% of total revenues for the fiscal year 2025[24]. - The company has completed 35 acquisitions since its formation in 2014, expanding its dealership footprint significantly[27][31]. - The Distribution segment, which includes 9 distribution centers, accounted for approximately 8% of total revenues in fiscal year 2025[25]. - The company operates 95 dealerships across 17 states as of September 30, 2025[60]. - The company has relationships with over 35 manufacturers covering more than 50 brands, with top ten brands representing approximately 41% of total sales volume for fiscal year 2025[70]. - The company has acquired 83 additional dealerships and 12 warehouses/distribution centers through 35 acquisitions since 2014, indicating a strong growth strategy[155]. - The company aims to enhance revenue by increasing distribution, repair and maintenance services, parts and accessories, and financing and insurance businesses, which are higher margin areas[153]. Financial Performance - In fiscal year 2025, OneWater sold over 9,500 new and pre-owned boats, with new boat sales accounting for approximately $1,158.2 million or 61.9% of consolidated revenue[24][37]. - Non-boat sales contributed approximately 18.7% of revenue and 41.7% of gross profit in fiscal year 2025, indicating a diversification strategy[26]. - Revenue from fishing boats comprised 37% of new boat revenue for fiscal year 2025, highlighting a strong market presence in this segment[39]. - Revenue from yachts accounted for 27% of new boat revenue for fiscal year 2025[43]. - Revenue from service, parts, and other generated approximately $295.3 million, representing 15.8% of total revenue for fiscal year 2025[49]. - Fee income from finance and insurance products was approximately $55.0 million, or 2.9% of total revenue during fiscal year 2025[48]. - The inventory turnover ratio was 2.6x for fiscal year 2025, compared to 2.2x for fiscal year 2024[75]. - Approximately 80% of the company's revenue during fiscal years 2025, 2024, and 2023 was generated from the Southeast and Gulf Coast regions[127]. - Sales of new boats from the top ten brands represented approximately 40.8%, 41.7%, and 39.4% of total revenues for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[137]. - Malibu Boats, Inc. accounted for 12.2%, 13.1%, and 13.9% of total revenues for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[137]. Market and Industry Trends - Consumer spending on recreational boating in the U.S. reached $55.6 billion in 2024, with new powerboat sales contributing $15.5 billion, reflecting a 10% average annual growth rate since 2012[28][34]. - The boat dealership market is highly fragmented, with OneWater comprising less than 4% of total industry sales, indicating significant growth potential[29]. - The recreational boat industry faces intense competition, particularly from local marine retailers and larger operators, impacting customer acquisition and sales[149]. - The recreational boat industry is affected by changing consumer attitudes towards ownership, with younger consumers preferring sharing options over purchasing[148]. Strategic Initiatives - The company aims to leverage its scale for organic growth, focusing on same-store sales growth and expanding its online presence for boat sales and related products[30]. - OneWater's acquisition strategy targets family-owned businesses in a fragmented market, enhancing profitability through operational improvements[31]. - The company is focused on expanding its market presence and enhancing operational efficiency through experienced leadership[111][112][114]. - The company aims to enhance its online presence and sales through digital platforms, including online boat sales and finance products[65]. Risks and Challenges - The company faces intense competition in the marine retail industry, competing with local retailers and larger operators, as well as online merchants[95]. - Inflationary pressures on labor costs and raw materials could adversely impact profitability and operational expenses[129]. - Material increases in interest rates could negatively impact customers' ability or desire to purchase products, affecting profitability and margins[131]. - Tariffs on boats manufactured in Europe or parts sourced from Asia could materially increase costs or render specific product lines less competitive in the U.S. market[135]. - The company may face challenges in maintaining dealer agreements, which are crucial for product availability and competitive positioning[141]. - The integration of acquired businesses may require significant management resources and could impact profitability if not executed effectively[156]. - The company anticipates fluctuations in operating results due to the size and timing of future acquisitions, which may affect stock market performance[157]. - The company is exposed to international risks due to sales of products from foreign manufacturers, which could be affected by changes in trade policies[188]. - The company’s online marketplaces face risks such as cybersecurity threats and technical failures, which could disrupt sales and growth prospects[191]. Human Resources and Management - The company has 2,231 employees as of September 30, 2025, with 1,973 in location-level operations and 258 in corporate administration and management[101]. - The company has developed a robust training curriculum for employees, focusing on proprietary technology and retail strategies to enhance customer experience[102]. - The company maintains a performance-based compensation philosophy, which may lead to significant pay variations among employees based on individual and area performance[103]. - The company is focused on recruiting and retaining top talent, with a philosophy of paying competitive wages to reduce turnover and motivate employees[104]. Compliance and Regulations - The company is subject to numerous environmental and occupational health and safety laws, which may impose additional costs and operational restrictions[84]. - The company is required to estimate the fair value of contingent consideration liabilities related to acquisitions, which could materially affect financial results based on future performance[198]. - The company is subject to stringent federal, state, and local laws and regulations that could impose significant liabilities and affect operations[209]. - The company’s operations are subject to environmental regulations that could result in liabilities for past contamination by third parties[214]. - Future compliance with environmental regulations may lead to additional material expenditures for the company, its suppliers, or customers[219].