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]