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OneWater Marine Inc. (ONEW)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue beat but EPS missed vs consensus: Q3 revenue was $0.553B vs $0.532B consensus*, while Primary EPS came in at $0.79 vs $1.06 consensus*; margins remained pressured by promotions and brand exits .
  • Guidance mix: Full-year revenue raised to $1.80–$1.85B, but Adjusted EBITDA cut to $65–$80M and Adjusted EPS cut to $0.50–$0.75, reflecting continued margin pressure despite better sales trajectory .
  • Execution positives: same‑store sales +2% while industry units declined >15% in key categories; pre‑owned strength and disciplined inventory reduction drove improved working capital .
  • Near‑term catalysts: progress on brand exits and normalized OEM price increases for MY26, plus encouraging July post‑quarter trends; headwinds include competitive discounting and tariff/macro uncertainty .

What Went Well and What Went Wrong

What Went Well

  • Outperformed industry: same‑store sales +2% despite industry unit declines “in excess of 15%” in categories where ONEW competes .
  • Strength in pre‑owned: revenue +17.8% YoY driven by higher units and pricing; management emphasized increased trade‑ins and upgrades supporting churn across boat sizes .
  • Inventory reduction and liquidity: inventory down 13.6% YoY to $517.1M; cash $70.1M and total liquidity >$85M, supporting leverage management .
  • Quote: “Our focus on serving our customers, executing our strategy, and taking market share remains unwavering.” — CEO Austin Singleton .

What Went Wrong

  • Margin compression: gross margin fell 110 bps YoY to 23.3% on promotional activity, model mix, and impact from exiting brands; adjusted EBITDA declined to $32.8M .
  • EPS miss vs Street: Primary EPS $0.79 vs $1.06 consensus*, reflecting lower gross margins and higher SG&A to drive sales .
  • Distribution segment softness: service, parts & other down 1.7% YoY as lower OEM production constrained distribution; SG&A rose to 16.7% of revenue on selling and inflationary costs .

Financial Results

Consolidated metrics (oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$0.376 $0.484 $0.553
GAAP Diluted EPS ($USD)$(0.81) $(0.02) $0.65
Adjusted Diluted EPS ($USD)$(0.54) $0.13 $0.79
Gross Profit Margin %22.4% 22.8% 23.3%
Adjusted EBITDA ($USD Millions)$1.9 $17.9 $32.8
SG&A (% of Revenue)21.0% 18.2% 16.7%
Operating Income ($USD Millions)$(2.0) $16.3 $30.4
Net Income ($USD Millions)$(13.6) $(0.4) $10.7

Segment revenue breakdown (oldest → newest)

Segment Revenue ($USD Millions)Q1 2025Q2 2025Q3 2025
New boat$248.0 $309.5 $326.1
Pre‑owned boat$56.8 $89.7 $125.9
Finance & insurance income$9.4 $15.0 $17.8
Service, parts & other$61.6 $69.3 $83.0
Total revenues$375.8 $483.5 $552.9

KPIs and balance sheet (oldest → newest)

KPIQ1 2025Q2 2025Q3 2025
Same‑store sales (%)+4% −2% +2%
Cash & Equivalents ($M)$22.7 $67.5 $70.1
Total Liquidity ($M)>$40.0 >$74.0 >$85.0
Inventory ($M)$636.7 $602.4 $517.1
Long‑term debt ($M)$428.3 $427.2 $419.5
Adjusted net debt leverage (x)5.2x 5.4x 5.8x

Q3 2025 vs Estimates

Values marked with * are retrieved from S&P Global.

MetricActualConsensusSurprise
Revenue ($USD Millions)$552.9 $532.0*+$20.9M (beat)*
Primary EPS ($USD)$0.79 $1.06*−$0.27 (miss)*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$1.70–$1.80B (Q2) $1.80–$1.85B (Q3) Raised
Same‑store salesFY 2025Flat to down low‑single digits (Q2) Up low‑single digits (Q3) Raised
Adjusted EBITDAFY 2025$65–$95M (Q2) $65–$80M (Q3) Lowered (narrowed down)
Adjusted Diluted EPSFY 2025$0.75–$1.25 (Q2) $0.50–$0.75 (Q3) Lowered

Earnings Call Themes & Trends

TopicPrevious Mentions (Q‑2: Q1 2025)Previous Mentions (Q‑1: Q2 2025)Current Period (Q3 2025)Trend
Tariffs/macroCautious outlook; fewer rate cuts expected; watching inventory clean‑up as green shoot Updating outlook given tariff uncertainty; April in line; cautious demand view Less tariff concern post‑quarter; July results positive; premium customer resilient Improving clarity; cautious optimism
Inventory managementTarget >10% YoY reduction by Sep‑25; progress on aged inventory Inventory −12% YoY; accelerated brand exits; expect −10% to −15% by year‑end Inventory −13.6% YoY; exits progressing; leverage focus Ongoing improvement
Brand rationalizationExiting brands depressing margins near term Exiting brands increased from 13 to 15; diminishing residual units Model mix and exiting brands pressured margins; exits “progressing as planned” Near‑term pressure; structural benefit
Promotions/pricingPremium margins healthier vs exited brands; boat shows competitive Promotional environment persists; OEM support; SG&A up from boat shows Competitive environment continues to pressure margins; intentional pricing Persistent pressure
Pre‑owned dynamics & trade‑insPre‑owned supply constrained; trades rising with legislative changes Strong pre‑owned; higher trade‑ins/trade‑ups; mix affects margins Pre‑owned revenue +17.8%; increased trade‑ins driving churn across sizes Positive volume; margin mix watch
Regional/weatherFlorida storm impacts tapering; comps ex‑FL stronger West Coast FL softness weighed Q2 comps Not a focal headwind in Q3 narrative Normalizing

Management Commentary

  • “The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty… strategic brand exits are progressing as planned.” — CEO Austin Singleton .
  • “Gross margins remain under pressure… due to heightened promotional activity… and model mix… We are being intentional in our pricing strategy.” — CEO Austin Singleton .
  • “Pre‑owned boats… is a priority of the company to invest in that category, and I think we’ll continue to see outpaced results.” — CFO Jack Ezzell .
  • “Total inventory… decreased to $517 million… net leverage of 5.8x… reducing leverage remains a priority.” — CFO Jack Ezzell .
  • “We are raising our total revenue outlook to $1.8–$1.85 billion… but expect adjusted EBITDA to be $65–$80 million and adjusted EPS $0.50–$0.75.” — CFO Jack Ezzell .

Q&A Highlights

  • Tariffs and demand: Management saw confusion during the quarter but less concern afterwards; July was a “good month,” premium customers resilient; clarity helped sentiment .
  • Pre‑owned growth drivers: Increased trade‑ins/upgrades, company focus on pre‑owned stores; trickle‑down effect from larger new‑boat trades supporting pre‑owned volumes .
  • Promotional strategy: Aggressive discounting on dated/noncurrent inventory; current model margins “pretty decent”; exits reduced residual units to a small fraction of total inventory .
  • Guidance framing: Revenue raised on sales strength; profitability ranges lowered on margin pressure and macro uncertainty; focus on leverage reduction .
  • Distribution headwinds: Lower OEM production continues to weigh on distribution sales; dealership service/parts resilient .

Estimates Context

  • Q3 revenue beat Street by ~$20.9M (actual $552.9M vs $532.0M consensus*), while Primary EPS missed by ~$0.27 (actual $0.79 vs $1.06 consensus*). Management’s updated FY revenue range implies stronger sales trajectory, but narrowed/lowered profitability guidance suggests Street EPS/EBITDA expectations should reset lower to reflect persistent margin headwinds*.
  • Forward quarters: consensus implies trough EPS in Q1 2026 and seasonal recovery by Q3 2026, consistent with marine retail seasonality and inventory normalization dynamics*.
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue strength amid industry weakness suggests share gains and resilient premium demand; focus near term remains on margin recovery as promotions fade .
  • The top‑line raise and EPS/EBITDA cuts point to a “sell‑through, margin‑rebuild later” setup; position sizing should reflect continued gross margin pressure in H2 FY25 .
  • Inventory clean‑up and completion of brand exits are key catalysts for improved margins and reduced floorplan interest in FY26; monitor OEM production normalization and TH distribution implications .
  • Pre‑owned expansion is structurally accretive to volume and customer churn; margin mix requires careful modeling given higher trade‑in activity .
  • Balance sheet: liquidity improved, but leverage at 5.8x remains elevated; mgmt prioritizes deleveraging—credit metrics are a critical watch item .
  • Macro/tariffs: reduced concern post‑quarter but still a swing factor for sentiment and OEM pricing; July trends encouraging—watch for sustained momentum in Q4 seasonally softer period .
  • Near‑term trading lens: Expect estimate revisions to lower EPS/EBITDA despite higher revenue, with stock reactions tied to margin commentary, inventory progress, and any evidence of promotional normalization .

Appendix: Additional Q3 2025 PRs

  • Earnings release date and call details announcement (Jul 17, 2025) .

Primary Sources

  • Q3 2025 8‑K and Exhibit 99.1 press release with detailed financials .
  • Q3 2025 earnings call transcript (prepared remarks and Q&A) .
  • Q2 2025 8‑K and press release; Q2 call transcript .
  • Q1 2025 8‑K and press release; Q1 call transcript .