Winnebago(WGO) - 2026 Q1 - Quarterly Results

Financial Performance - Net revenues for Q1 Fiscal 2026 were $702.7 million, a 12.3% increase from $625.6 million in Q1 Fiscal 2025, driven by higher unit volume and selective price increases[7] - Gross profit rose to $89.0 million, reflecting a gross margin of 12.7%, up from 12.3% in the same quarter last year[9] - Adjusted EBITDA increased by 109.7% year-over-year to $30.2 million, compared to $14.4 million in Q1 Fiscal 2025[12] - Net income was $5.5 million, or $0.19 per diluted share, compared to a net loss of $5.2 million, or a loss of $0.18 per diluted share, in Q1 Fiscal 2025[11] - Operating income improved to $13.8 million, a margin of 2.0%, compared to a loss of $0.9 million in the same quarter last year[35] - For the three months ended November 29, 2025, the net income was $5.5 million, compared to a net loss of $5.2 million for the same period in 2024[52] - Adjusted diluted earnings per share for the three months ended November 29, 2025, was $0.38, a significant improvement from a loss of $0.03 in the prior year[51] - EBITDA for the three months ended November 29, 2025, was $29.1 million, up from $14.4 million in the same period of 2024[52] - Adjusted EBITDA for the same period was $30.2 million, compared to $14.4 million in the prior year, indicating strong operational performance[52] Segment Performance - The Motorhome RV segment achieved net revenues of $308.5 million, a 13.5% increase from $271.7 million in the prior year, with an operating income margin improvement of 390 basis points[15] - The Towable RV segment reported net revenues of $293.4 million, a 15.5% increase from $254.0 million, with operating income rising by 24.8%[13] - Towable RV segment net revenues increased by 15.5% to $293.4 million, with operating income rising by 24.8% to $11.1 million[41] - Motorhome RV segment net revenues increased by 13.5% to $308.5 million, with operating income turning positive at $8.2 million compared to a loss of $3.2 million in the prior year[44] - Marine segment net revenues grew by 2.2% to $92.5 million, with operating income slightly declining to $6.1 million[46] Guidance and Projections - The company raised its FY 2026 earnings guidance, projecting consolidated net revenues between $2.8 billion and $3.0 billion, and adjusted earnings per diluted share in the range of $2.10 to $2.80[27] Cash Flow and Leverage - Cash flow from operations improved to $25.4 million, compared to cash flow used in operations of $16.7 million in Q1 Fiscal 2025[17] - The net leverage ratio improved to 2.7x at the end of Q1 Fiscal 2026, down from 3.1x at the end of Fiscal 2025[17] - Cash and cash equivalents at the end of the period were $181.7 million, up from $174.0 million at the beginning of the period[40] Tax and Interest - The income tax provision for the three months ended November 29, 2025, was $2.9 million, compared to a tax benefit of $1.5 million in the prior year[52] - The statutory tax rate used for fiscal 2026 was 22.0%, while it was 23.0% for fiscal 2025[51] - The company reported interest expense of $5.5 million for the three months ended November 29, 2025, slightly down from $5.8 million in the same period of 2024[52] Non-GAAP Measures - Management emphasizes the use of non-GAAP financial measures to assess operational profitability and evaluate potential acquisitions[53] - The company aims to provide meaningful supplemental information about its operating performance through these non-GAAP measures[53] Assets and Liabilities - Total current assets decreased to $777.6 million from $792.2 million as of August 30, 2025[38] - Total liabilities decreased to $893.6 million from $929.7 million as of August 30, 2025[38] Restructuring Costs - The company incurred restructuring and related costs of $1.2 million during the three months ended November 29, 2025[52]