OneWater Marine Inc. (ONEW)·Q4 2025 Earnings Summary

Executive Summary

• Q4 2025 revenue was $460.1M, up 21.8% YoY, with same‑store sales +23%; GAAP diluted EPS was $(6.90) driven by a $145.8M non‑cash goodwill/intangible impairment, while adjusted diluted EPS was approximately $0.00 .
• Mix-normalization and pricing on continuing brands kept gross margin at 22.6% (−140 bps YoY), though management flagged early signs of margin pressure easing post boat show season .
• FY26 guidance: revenue $1.83B–$1.93B, adjusted EBITDA $65M–$85M, adjusted diluted EPS $0.25–$0.75; inventory exited FY25 at “cleanest levels in years,” positioning for margin expansion as OEM production normalizes .
• Street: revenue beat ($460.1M vs $407.6M consensus*), EBITDA slightly above ($20.5M vs $19.9M consensus*), but EPS missed versus $0.21 consensus* due to the impairment; investors likely focus on non‑cash nature of the charge and FY26 margin setup . Values retrieved from S&P Global*.

What Went Well and What Went Wrong

What Went Well

• Strong top-line: revenue +21.8% YoY; new boat +26.7%, pre‑owned +24.6%; same‑store sales +23% in Q4 .
• Execution on inventory: “cleanest inventory levels we’ve seen in years,” enabling better pricing/volume balance and margin potential into FY26 .
• Early demand signals: Fort Lauderdale Boat Show sales up nearly 20% YoY with signs that margin pressure is “going away,” and October/November tracking “pretty decent” .

What Went Wrong

• Gross margin compression: 22.6% in Q4 (−140 bps YoY) on new model mix/pricing and the impact of exited brands; FY25 gross margin 22.8% (−170 bps YoY) .
• GAAP loss due to non‑cash impairment: Q4 net loss $(113.0)M; FY25 net loss $(116.2)M; diluted EPS Q4 $(6.90) and FY25 $(7.22), despite adjusted metrics near break-even in Q4 and $0.44 for FY25 .
• Distribution segment softness: lower sales tied to reduced OEM production, partially offset by dealership service/parts strength .

Financial Results

Sequential Performance (oldest → newest)

YoY Q4 Comparison

Q4 Segment Breakdown (Revenue)

KPIs and Balance Sheet Progression (period-end)

Notes: Q4 2024 revenue was negatively impacted by Hurricane Helene disruptions in Florida (favoring the YoY comp for Q4 2025) .

Guidance Changes

Management expectations for FY26 include flat industry unit sales and flat same‑store sales when factoring revenue lost from exited brands; margin expansion opportunity as inventories normalize and focus sharpens on core brands .

Earnings Call Themes & Trends

Management Commentary

• “We exited this year with the cleanest inventory levels we've seen in years, giving us a significant competitive advantage as we enter 2026.” — Austin Singleton, Executive Chairman .
• “Adjusted diluted earnings per share was less than $0.01… non‑cash goodwill and intangible asset impairments of $146 million [drove GAAP loss]… this adjustment does not impact cash flow, liquidity, or operational flexibility.” — Jack Ezzell, CFO/COO .
• “We were almost up 20% for [Fort Lauderdale Boat Show]… we started to see that margin pressure go away… momentum seems to be pretty decent right now.” — Austin Singleton .
• “Interest rates… every rate cut [moves] down… optimism of the cuts… drives confidence… [F&I] penetration remained healthy.” — Austin Singleton & Jack Ezzell .
• “Our outlook… industry unit sales flat… exited brands ~5% headwind… expect outperformance at flat market; total sales $1.83B–$1.93B; adjusted EBITDA $65M–$85M; adjusted EPS $0.25–$0.75.” — Jack Ezzell .

Q&A Highlights

• Inventory levels: down 8.5% YoY ($50M); modest inventory build expected in FY26 given pricing and demand dynamics .
• Headwinds/tailwinds balance: ~5% headwind from exited brands offset by share/outperformance at flat market; implies mid‑single‑digit pro forma growth absent exits .
• Interest expense outlook: floor plan interest flattish to slightly up; term interest down ~5%–10% on amortization, assuming ~50 bps of rate cuts .
• Margin outlook and promo environment: signs of margin pressure easing; promotions likely persist until OEMs see dealers ordering more; normalization expected through boat show/summer seasons .
• M&A cadence: disciplined pace; focus on debt reduction through winter months; selective and methodical approach .

Estimates Context

Notes: GAAP diluted EPS was $(6.90), driven by a $145.8M non‑cash impairment . Values retrieved from S&P Global*.

Key Takeaways for Investors

• Top-line strength with broad-based growth in new and pre‑owned boats; Q4 revenue +21.8% YoY, same‑store sales +23% aided by hurricane‑impacted comps .
• The EPS miss is largely optical: a non‑cash impairment drove GAAP loss; adjusted EPS ~breakeven and adjusted EBITDA +123% YoY in Q4 .
• Inventory and cost discipline are core catalysts into FY26; “clean” inventory and OEM normalization support margin expansion potential .
• FY26 guide sets a realistic baseline (flat SSS; $1.83B–$1.93B revenue); execution on mix/pricing and core brand focus are key to upside .
• Distribution softness remains a watch‑item, but dealership service/parts resilience and improving F&I environment mitigate risk .
• Rate cuts are a subtle tailwind to affordability and demand confidence; F&I penetration remains healthy .
• Capital priorities are clear: deleveraging first, selective M&A later; leverage at 5.1x TTM adjusted EBITDA with improving inventory/liquidity .

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Sources: Q4 FY25 8‑K and press release (financials, guidance, reconciliation tables, balance sheet), and Q4 FY25 earnings call transcript (prepared remarks and Q&A). Citations: . Values retrieved from S&P Global* for consensus estimates.