OneWater(US:ONEW)2025-11-13 14:30Financial Data and Key Metrics Changes - Fiscal fourth quarter 2025 revenue increased 22% to $460 million compared to $378 million in the prior year period [10] - Full-year 2025 total revenue increased 6% to $1.9 billion, driven by a slight increase in units and higher average selling prices [12] - Net loss for fiscal year 2025 was $116 million, or $7.22 per diluted share, compared to a net loss of $6.39 per diluted share in the prior year [15] - Adjusted EBITDA for fiscal year 2025 was $70 million, with adjusted diluted earnings per share of $0.44 [15] Business Line Data and Key Metrics Changes - New boat sales in Q4 increased 27% to $275 million, while pre-owned sales increased 25% to $91 million [10] - Same-store sales for the year grew by 6%, outperforming the industry which saw a decline of over 13% [12] - Revenue from service parts and other sales for the quarter increased 7% to $81 million [10] Market Data and Key Metrics Changes - The company experienced a 6% same-store sales growth for the year, outperforming broader industry trends [4] - Inventory levels decreased to $540 million from $591 million in the prior year, reflecting strategic inventory positioning [15] Company Strategy and Development Direction - The company completed a strategic exit from discontinued brands to focus on high-performing brands, which is expected to improve margins in the long term [5] - The company aims to maintain a disciplined approach to inventory and cost management to adapt to market conditions [17] - The outlook for 2026 anticipates flat same-store sales, with total sales expected to range from $1.83 billion to $1.93 billion [16] Management's Comments on Operating Environment and Future Outlook - Management noted that industry conditions remain challenging, with retail demand normalizing from pandemic highs and increased promotional activity [4] - There are positive signs of improved channel inventories and normalizing OEM production, which could support demand and growth [6] - Management expressed cautious optimism for 2026, expecting demand to fluctuate with traditional seasonal cycles [16] Other Important Information - The company exited the year with the cleanest inventory levels seen in years, providing a competitive advantage [5] - The company has a total liquidity of over $67 million, including cash and credit facilities [15] Q&A Session Summary Question: Can you quantify the change in inventory year over year? - The company reported a decrease of approximately 8.5%, or $50 million, year over year [19] Question: What is the right assumption for inventory for fiscal 2026? - Inventory is expected to increase modestly due to price increases, with a headwind of around 5% from exiting brands [20] Question: What is the outlook for interest rate expenses in 2026? - Interest rate expenses are expected to be flattish to slightly up for floor plan interest, while term interest should decrease [22] Question: Have consumer rates started to come down in a meaningful way? - Consumer rates have started to decrease, contributing to positive sales momentum [26] Question: How much were sales up at the Fort Lauderdale boat show? - Sales were nearly up 20% compared to last year at the Fort Lauderdale boat show [29] Question: How do you see the promotional environment playing out in fiscal 2026? - The promotional environment is expected to remain stable until manufacturers increase production [35] Question: What is the current dynamic regarding trade-ins for pre-owned boats? - There has been an increase in trade-ins as consumers are opting to sell through dealerships rather than independently [40] Question: What is the company's approach to M&A in the current environment? - The company is focused on being disciplined regarding debt and is taking a methodical approach to potential M&A opportunities [42]