Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company has achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy includes focusing on used RV sales, service businesses, and Good Sam services as core revenue drivers [11] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, citing potential resistance due to rising prices and economic uncertainty [7][20] - The company plans to maintain a conservative approach to inventory and sales forecasts, allowing flexibility to adjust based on market conditions [24][65] - Management believes that the used RV business will continue to provide stability and growth opportunities, mitigating risks associated with the new RV market [91] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without associated mortgages [13][14] - The management team emphasized the importance of maintaining a clean inventory position heading into 2026 [35] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some stabilization observed earlier in the year, but current trends indicate potential softening due to economic factors [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges for consumers [26][27] Question: Can you clarify your EBITDA guidance for the year? - Management set a conservative EBITDA floor of $310 million for 2026, with expectations for growth driven primarily by used RV sales [33][64] Question: What is the outlook for M&A activity? - Management is focused on smaller, accretive acquisitions, with a goal to return to a 10% to 15% run rate of acquisitions, depending on market conditions [81][46] Question: What are the average price increases from OEMs for model year 2026? - The average price increase is expected to be around 5% to 7%, with potential for adjustments based on market demand [70][73]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy focuses on enhancing used RV sales, service, and Good Sam businesses as core differentiators [8][11] - The company is investing in AI and technology to improve operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer sentiment and labor markets, anticipating challenges due to rising OEM pricing and economic uncertainty [7][28] - The company is preparing for a conservative outlook for 2026, emphasizing the importance of maintaining clean inventory and managing cash flow effectively [35][66] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without an associated mortgage [13][14] - Management highlighted the importance of a conservative approach to inventory and forecasting to avoid miscalculations that could lead to excess inventory [24][66] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some resistance from consumers due to rising prices and economic uncertainty [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges [26][27] Question: What are the building blocks to reach the $310 million floor? - Management identified used business growth, cost savings, dealership acquisitions, and new RV sales as key drivers for achieving the target [33][34] Question: What is the outlook for M&A activity? - Management expressed a cautious approach to M&A, focusing on smaller, accretive acquisitions that align with their growth strategy [46][61] Question: How do you see the financing landscape? - Management noted that while short-term rates have dropped, there may be a lag in passing these savings to consumers, with expectations for more significant changes in early 2026 [99]

Camping World (NYSE:CWH) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Speaker5Good morning and welcome to the Camping World Holdings Inc. conference call to discuss financial results for the third quarter ended September 30, 2025. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that this call is being recorded and the reproduction of the call in whole or in part is not permitted ...