Group 1 - DA Davidson raised the price target on Winnebago (WGO) to $38 from $32 while maintaining a Neutral rating on the shares [1] - The company reported Q4 results that exceeded expectations and provided FY26 guidance that was slightly above the midpoint of analyst estimates [1] - Winnebago is currently undergoing a turnaround in several of its RV-related segments, which may enhance its profitability profile [1]

Core Viewpoint - Thor Industries reported strong earnings for Q4 fiscal 2025, significantly beating expectations, but experienced a slight decline in revenues year-over-year [2][8]. Financial Performance - Earnings per share for Q4 fiscal 2025 were $2.31, surpassing the Zacks Consensus Estimate of $1.16 and up from $1.68 in Q4 fiscal 2024 [2]. - Total revenues for Q4 were $2.52 billion, exceeding the Zacks Consensus Estimate of $2.31 billion, but down 0.4% from the previous year [2]. Segmental Results - **North American Towable RVs**: Revenues were $888.7 million, a decrease of 4.6% year-over-year, but above the estimate of $825.6 million [3]. - **North American Motorized RVs**: Revenues increased by 7.8% year-over-year to $557.4 million, exceeding the estimate of $504 million [5]. - **European RVs**: Revenues were $923 million, down 2.2% year-over-year, but above the estimate of $856.3 million [6]. Profitability Metrics - Gross profit for the company totaled $118.6 million, a 1% increase year-over-year, driven by reduced warranty and promotional expenses [4]. - Pretax income rose to $74.5 million from $50.9 million in the previous year, primarily due to improved gross profits [4]. Backlog and Cash Position - Total backlog at the end of the quarter was $525 million, down from $552.4 million a year earlier [4]. - Cash and cash equivalents stood at $586.6 million, with long-term debt of $919.6 million as of July 31, 2025 [7]. Guidance and Future Outlook - For fiscal 2026, Thor Industries projects consolidated net sales between $9 billion and $9.5 billion, down from $9.6 billion in fiscal 2025, with EPS expected to range from $3.75 to $4.25 compared to $4.84 in fiscal 2025 [8]. - There has been a downward trend in estimates revisions, with the consensus estimate shifting down by 9.43% [9][10]. Investment Scores - Thor Industries holds a strong Growth Score of A but has a lower Momentum Score of C, with an overall VGM Score of A [11].

Core Insights - Winnebago Industries (WGO) reported adjusted earnings of 71 cents per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of 58 cents and significantly up from 28 cents in the same period last year [1][8] - The company's revenues for the quarter reached $777.3 million, surpassing the Zacks Consensus Estimate of $744 million, marking a year-over-year increase of 7.82% [1][8] Segmental Performance - **Towable RV**: Revenues decreased by 3.4% year over year to $306.3 million, missing the estimate of $329.6 million. Deliveries fell 4.3% to 7,833 units, also below the estimate of 8,680 units. Operating income rose 38.3% to $21.4 million, but was short of the expected $22.7 million [2] - **Motorhome RV**: Revenues increased by 17.3% year over year to $361.2 million, exceeding the estimate of $281.3 million. Deliveries rose 12.9% to 1,745 units, surpassing the estimate of 1,331 units. However, the segment recorded an operating loss of $0.3 million, missing the expected operating income of $8.9 million [3] - **Marine**: Revenues totaled $94.9 million, up 17.9% year over year but below the estimate of $97.2 million. Deliveries increased by 11.7% to 1,164 units, falling short of the estimate of 1,228 units. Operating income was $6.7 million, compared to a loss of $27.1 million in the previous year, but missed the expectation of $7.3 million [4] Financials & Outlook - As of August 30, 2025, Winnebago had cash and cash equivalents of $174 million and long-term debt of $540.5 million [5] - For fiscal 2026, the company expects consolidated revenues to be in the range of $2.75 billion to $2.95 billion, compared to $2.8 billion in fiscal 2025. Adjusted EPS is projected to be between $2 and $2.70, up from $1.67 reported in fiscal 2025 [5][8] Zacks Rank & Key Picks - Winnebago currently holds a Zacks Rank of 5 (Strong Sell) [6] - Other better-ranked stocks in the auto sector include Mobileye Global Inc. (MBLY) and Standard Motor Products, Inc. (SMP), both with a Zacks Rank of 1 (Strong Buy), and Autoliv, Inc. (ALV) with a Zacks Rank of 2 (Buy) [6]

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].

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].

Core Viewpoint - Polaris Inc (PII) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts raising earnings estimates [1][3]. Earnings Estimate Revisions - The trend of increasing earnings estimate revisions reflects growing analyst optimism regarding Polaris Inc's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.37 per share, showing a year-over-year decline of 49.3%. However, the Zacks Consensus Estimate has increased by 44.83% over the last 30 days due to two upward revisions [6]. - For the full year, the expected earnings are $0.08 per share, indicating a significant year-over-year decline of 97.5%. Despite this, the trend remains positive with two upward revisions and no negative changes [7]. Zacks Rank and Performance - Polaris Inc currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on the historical success of this rating system [8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - The stock has gained 19.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

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]