Executive Summary

Q2 FY25 delivered small beats vs S&P Global consensus and sequential margin improvement: adjusted EPS $0.19 vs $0.16 consensus*, revenue $620.2M vs $616.7M consensus*, and adjusted EBITDA $22.8M vs $22.4M consensus*. Sequential gross margin rose ~110 bps and adjusted EBITDA margin rose ~140 bps on lower allowances/discounts and efficiency gains .
YoY performance remained weak on mix and Motorhome deleverage: revenue -11.8% to $620.2M, gross margin down 160 bps to 13.4%, and adjusted EPS down to $0.19 from $0.93 .
Guidance cut: FY25 sales to $2.8–$3.0B (from $2.9–$3.2B), reported EPS to $2.10–$3.10 (from $2.50–$3.80), and adjusted EPS to $2.75–$3.75 (from $3.10–$4.40), citing soft retail, dealer discipline (especially Motorhome), and tariff/macro uncertainty .
Marine outperformed with share gains at Barletta (9.5% TTM share; +140 bps YoY) and strong profitability, while Motorhome remained the principal drag; execution focus heightened via new SVP of Enterprise Operations from Deere and targeted margin/quality initiatives .
Capital allocation supports equity story: $100M tender of 6.25% 2028 notes and $20M buybacks executed in Q2; quarterly dividend maintained at $0.34 (43rd straight) .

What Went Well and What Went Wrong

What Went Well
- Sequential profitability improvements: management cited 110 bps sequential gross margin expansion and 140 bps adjusted EBITDA margin improvement, driven by lower allowances/discounts and operating efficiencies .
- Marine strength and share gains: Marine revenue +17.1% YoY to $81.7M; adj. EBITDA +75.7% with margin up 310 bps to 9.4%; Barletta TTM share rose to 9.5% (+140 bps YoY), now #3 in aluminum pontoons .
- Towable stabilization on affordability/product: Towable revenue +1.2% YoY with unit deliveries +7.1%; CEO emphasized “product differentiation and sharper affordability options” and new Grand Design/Winnebago towables resonating with dealers .
What Went Wrong
- Motorhome deleverage: Motorhome revenue -30.4% YoY to $235.6M; adj. EBITDA margin down 540 bps to 2.2% on volume deleverage, with rebates/discounts still elevated (though improving sequentially) .
- Consolidated margins down YoY on mix: gross margin fell to 13.4% from 15.0% YoY as the company leaned into lower-priced units and faced Motorhome weakness .
- Higher SG&A YoY: SG&A +8.6% YoY to $69.7M on incentive comp mix and investments to support Grand Design Motorized and Barletta growth .

Financial Results

Overall P&L (oldest → newest)

Metric	Q4 FY2024	Q1 FY2025	Q2 FY2025
Revenue ($USD Millions)	$720.9	$625.6	$620.2
Gross Margin %	13.1%	12.3%	13.4%
Operating Income ($MM)	$(17.8)	$(0.9)	$7.8
Net Income ($MM)	$(29.1)	$(5.2)	$(0.4)
Diluted EPS ($)	$(1.01)	$(0.18)	$(0.02)
Adjusted EPS ($)	$0.28	$(0.03)	$0.19
Adjusted EBITDA ($MM)	$28.7	$14.4	$22.8

YoY snapshot (Q2 FY2025 vs Q2 FY2024)

Metric	Q2 FY2024	Q2 FY2025
Revenue ($USD Millions)	$703.6	$620.2
Gross Margin %	15.0%	13.4%
Adjusted EPS ($)	$0.93	$0.19

Segment performance (sequential view)

Segment	Q1 FY2025 Net Rev ($MM)	Q1 Adj. EBITDA ($MM) / %	Q2 FY2025 Net Rev ($MM)	Q2 Adj. EBITDA ($MM) / %
Towable RV	$254.0	$13.6 / 5.3%	$288.2	$17.0 / 5.9%
Motorhome RV	$271.7	$2.7 / 1.0%	$235.6	$5.2 / 2.2%
Marine	$90.5	$8.4 / 9.3%	$81.7	$7.7 / 9.4%

KPIs

KPI	Q2 FY2024	Q1 FY2025	Q2 FY2025
Towable Unit Deliveries (units)	6,747	6,616	7,225
Motorhome Unit Deliveries (units)	1,811	1,422	1,144
Marine Boats Delivered (units)	862	1,171	1,046
Towable Dealer Inventory (units)	18,106	—	17,406
Motorhome Dealer Inventory (units)	4,844	—	3,784
Marine Dealer Inventory (units)	4,095	—	3,610

Non-GAAP adjustments (EPS): Q2 FY25 adjusted EPS $0.19 reconciles from GAAP via amortization (+$0.20), loss on note repurchase (+$0.07), tax impact (-$0.06) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$2.9B – $3.2B	$2.8B – $3.0B	Lowered
Reported EPS	FY2025	$2.50 – $3.80	$2.10 – $3.10	Lowered
Adjusted EPS	FY2025	$3.10 – $4.40	$2.75 – $3.75	Lowered
Dividend	Q2 FY2025	$0.34 declared prior quarter	$0.34 (payable Apr 30, 2025)	Maintained

Management cited consumer sentiment, dealer inventory discipline (especially Motorhome/Marine), and tariff risk as drivers for the reduction .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 FY25)	Trend
Tariffs / macro	Q1: Monitoring inflation/tariff policy; guidance midpoint maintained then .	Tariff impact embedded in FY25 outlook; pricing actions possible; mitigation with suppliers; impact limited in FY25 timing .	Rising risk; mitigation in progress.
Dealer inventory/turns	Q1: Field inventories healthier; Towable backlog uptick; cautious dealers .	Motorhome inventories still being reduced; Towables healthy; turns ~2x with dealers seeking higher efficiency .	Still conservative, especially Motorhome.
Product innovation (Grand Design Lineage)	Q1: Target $100M+ FY25; Series F Super C launch slated .	Series M ramp strong; Series F opening shipments; $100M+ FY25 target reiterated .	Building momentum.
Marine performance/share	Q1: Marine sequential and YoY margin up; share gains .	Marine revenue +17% YoY; margin +310 bps; Barletta TTM share 9.5% (+140 bps) .	Positive, outperformance continues.
Operations/leadership	Q4: Leadership changes at Winnebago-branded businesses .	Hired SVP Enterprise Operations (ex-Deere) to drive manufacturing excellence, sourcing, quality .	Intensifying execution focus.
Pricing/discounting	Q1: Elevated discounting pressured Motorhome margin .	Rebates/discounting still elevated in Motorhome but improved sequentially .	Easing slightly.

Management Commentary

“Profitability for the company increased sequentially… reflecting operating, pricing or cost improvements within our Towable and Motorhome RV segments.” – CEO Michael Happe .
“We completed a $100 million cash tender offer… and repurchased $20 million of our stock… underscor[ing] our commitment to… capital allocation and deliver resiliency through the cycle.” – CEO Michael Happe .
“At the end of Q2, our net debt-to-EBITDA ratio stood at 4.0x… We remain committed to… bringing our leverage ratio back in line with our historical target.” – CFO Bryan Hughes .
“Our full-year financial outlook… includes our current estimate of the net impact of tariffs… [and] anticipated pricing actions that may be required to offset… inflationary pressures.” – CEO Michael Happe .

Q&A Highlights

Guidance and tariffs: FY25 guidance range already includes tariff impact; management expects limited FY25 effect given timing, inventory on hand, supplier negotiations; potential price increases/surcharges to offset costs .
Retail/inventory tone: Early March retail similar to February; guidance cut reflects later-than-expected retail rebound and dealer inventory caution, notably in Motorhome .
Discounts/warranty: Motorhome rebates/discounts remain elevated but improved sequentially; Towables warranty costs elevated due to Winnebago-branded quality remediation and broader GD campaigns (30–50 bps above historical) .
Marine cycle vs RV: Marine likely lags RV in destocking; WGO’s marine dealer inventories down double-digits YoY; Barletta gaining share with disciplined channel management .
Operations uplift: New SVP Ops (ex-Deere) to drive manufacturing productivity, sourcing, quality, and footprint efficiency; longer-dated margin opportunities in quality/innovation .

Estimates Context

Q2 FY2025 vs S&P Global consensus

Metric	Consensus*	Actual	Result
Adjusted EPS	$0.16* (9 est.)	$0.19	Beat
Revenue ($MM)	$616.7* (13 est.)	$620.2	Beat
Adjusted EBITDA ($MM)	$22.4*	$22.8	Beat

Values retrieved from S&P Global via GetEstimates.*

Forward look (for reference): company reduced FY25 revenue to $2.8–$3.0B and adjusted EPS to $2.75–$3.75 .

Key Takeaways for Investors

Modest beat and sequential margin improvement signal early operating traction; however, Motorhome headwinds and mix keep YoY margins under pressure .
Guidance reset lowers the FY25 bar; near-term stock drivers likely center on selling season sell-through, Motorhome channel clean-up, and tariff developments .
Marine is a bright spot with structural share gains at Barletta and resilient margins; this segment partially offsets RV cyclicality .
Affordability strategy is working in Towables (units +7% YoY) and should support shipment normalization as dealer confidence improves .
Capital allocation remains supportive (debt tender, buybacks, dividend); deleveraging back toward the historical 0.9–1.5x target is a medium-term focus .
Watch for execution catalysts: Grand Design Lineage motorized ramp (Series M, Series F) toward $100M+ FY25 target and Winnebago-branded margin/quality progress .
Risks: sustained consumer softness, elevated Motorhome discounts, tariff pass-through, and quality costs in Towables .

WINNEBAGO INDUSTRIES INC (WGO)·Q2 2025 Earnings Summary