Executive Summary

Q3 revenue was $775.1M and adjusted EPS $0.81; results were essentially in line with the June 5 prelim and modestly above consensus on both revenue and EPS, driven by Towables and Marine volume, while Motorhome margins remained pressured . Revenue consensus was $774.8M and EPS consensus $0.79; actuals modestly beat both, a small positive surprise amid a cautious dealer backdrop (values retrieved from S&P Global)*.
Full‑year FY25 guidance was cut: revenue to $2.7–$2.8B, reported EPS to $0.50–$1.00, adjusted EPS to $1.20–$1.70, reflecting softer retail, Motorhome destocking, and production discipline; this is a material reset from the prior ranges in Q2 and Q1 .
Segment mix: Marine delivered double‑digit net revenue growth and 190 bps margin expansion; Towables unit growth came at lower ASPs; Winnebago‑branded Motorhome suffered heavy discounting and inefficiencies, compressing segment margin to 1.0% .
Management flagged tariff risk for FY26 (net $0.50–$0.75 EPS headwind if not mitigated) and paused buybacks in H2 to prioritize deleveraging (net debt/EBITDA 4.8x; target 0.9–1.5x), setting catalysts around a Motorhome margin recapture plan beginning in FY26 and continued Marine share gains .

What Went Well and What Went Wrong

What Went Well

Marine momentum: Net revenues +14.6% YoY to $100.7M and adjusted EBITDA +37.0% YoY; brands (Chris‑Craft, Barletta) gained share and managed dealer inventory well . “Chris‑Craft…has begun rolling out to a great response from dealers…Barletta continued to increase its share…to 9.2%” .
Towables unit growth with affordability focus: Total Towables units +2.5% YoY; new Grand Design Transcend and Winnebago Thrive travel trailers supported volume even as mix reduced ASPs . “We are leaning into…affordability…Grand Design Transcend Series and Winnebago Thrive…deliver exceptional value” .
Market share progress and product pipeline: Grand Design Lineage motorhomes tracking to $100M+ revenue in FY25; Newmar expanding into compact Class C (Freedom Air) with strong dealer interest .

What Went Wrong

Motorhome margin compression: Adjusted EBITDA margin fell to 1.0% (340 bps YoY) on higher discounts/allowances, deleverage, and operational inefficiencies in Winnebago‑branded motorhomes . Segment unit deliveries down 14.8% YoY .
Gross margin headwinds: Consolidated GM fell 130 bps YoY to 13.7% on higher warranty experience and adverse mix, only partially offset by efficiencies .
Working capital and cash flow pressure: Q3 cash from operations used was $25.3M; nine‑month FCF negative and leverage elevated, driving capital allocation pivot (pause buybacks) .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$625.6	$620.2	$775.1
Revenue Consensus ($USD Millions)*	$672.2	$616.7	$774.8
Diluted EPS ($USD)	$(0.18)	$(0.02)	$0.62
Adjusted EPS ($USD)	$(0.03)	$0.19	$0.81
Primary EPS Consensus Mean ($USD)*	$0.20	$0.16	$0.79
Gross Margin %	12.3%	13.4%	13.7%
Operating Income ($USD Millions)	$(0.9)	$7.8	$30.2
Adjusted EBITDA ($USD Millions)	$14.4	$22.8	$46.5
Adjusted EBITDA Margin %	—	3.7%	6.0%

Values retrieved from S&P Global* for consensus estimates.

Segment trend (net revenues and adjusted EBITDA):

Segment	Q1 2025 Net Rev ($M)	Q1 2025 Adj EBITDA ($M)	Q2 2025 Net Rev ($M)	Q2 2025 Adj EBITDA ($M)	Q3 2025 Net Rev ($M)	Q3 2025 Adj EBITDA ($M)
Towable RV	$254.0	$13.6	$288.2	$17.0	$371.7	$35.4
Motorhome RV	$271.7	$2.7	$235.6	$5.2	$291.2	$3.0
Marine	$90.5	$8.4	$81.7	$7.7	$100.7	$11.6

Key operating KPIs (unit deliveries):

KPI	Q1 2025	Q2 2025	Q3 2025
Towables – Travel Trailer Units	4,637	4,828	6,569
Towables – Fifth Wheel Units	1,979	2,397	2,926
Towables – Total Units	6,616	7,225	9,495
Motorhome – Class A Units	242	278	288
Motorhome – Class B Units	469	283	406
Motorhome – Class C Units	711	583	737
Motorhome – Total Units	1,422	1,144	1,431
Marine – Boats Units	1,171	1,046	1,254

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue	FY 2025	$2.8B–$3.0B (Mar 27) ; $2.9B–$3.2B (Dec 20)	$2.7B–$2.8B (Jun 25)	Lowered
Reported EPS	FY 2025	$2.10–$3.10 (Mar 27) ; $2.50–$3.80 (Dec 20)	$0.50–$1.00 (Jun 25)	Lowered
Adjusted EPS	FY 2025	$2.75–$3.75 (Mar 27) ; $3.10–$4.40 (Dec 20)	$1.20–$1.70 (Jun 25)	Lowered
Dividend per Share	Quarterly	$0.34 declared Dec 18 and Mar 19	$0.34 declared May 16; payable Jun 25	Maintained

Q4 color: Motorhome sales expected up YoY on Grand Design Lineage, but EBITDA challenged; Towables roughly flat to slightly down sales with profitability improvement; Marine continued growth with modest margin improvement .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1/Q2)	Current Period (Q3)	Trend
Affordability in Towables	Emphasis on lower price‑point models; mix pressure in RV margins	New Grand Design Transcend and Winnebago Thrive launch; Towables units +2.5% YoY	Positive volume, ASP/mix headwind
Motorhome turnaround	Ongoing margin pressure; destocking; Lineage ramp	Winnebago‑branded Motorhome discounting and inefficiencies; margin recapture plan starting FY26	Near‑term challenged; plan in place
Marine market share and margins	Barletta share +140 bps YoY; segment margin improving	Net rev +14.6% YoY; margin +190 bps; continued share gains	Strengthening
Inventory turns & dealer discipline	Focus on aligning shipments to demand; cautious dealers	Enterprise turns ~1.8x; long‑term goal 2.0x; expect little field inventory build in 2H CY25	Stable to improving discipline
Tariffs and supply chain	Included tariff impact in FY25 outlook	Potential FY26 net EPS risk $0.50–$0.75; mitigation and selective price increases (low‑mid single digits)	Emerging headwind; mitigation ongoing
Capital allocation	Buybacks executed ($30M in Q1; $20M in Q2)	Pause buybacks H2; prioritize deleveraging; net debt/EBITDA 4.8x target 0.9–1.5x	Shift to balance sheet repair

Management Commentary

“We continue to pursue discipline in every aspect of our operations…aligning production closely with healthy field inventory turn targets” .
“Winnebago motorhomes is launching a comprehensive margin recapture plan centered on refreshing the product line, boosting operational efficiency and rebuilding sustained profitability beginning in fiscal 2026” .
“Grand Design’s Lineage…is on track to meet or exceed our $100 million‑plus revenue target in fiscal 2025” .
CFO on tariffs: “We believe we have a potential net risk of between $0.50 and $0.75 of diluted EPS for fiscal 2026…modest price increases of low to mid‑single digits will offset the net remaining exposure in fiscal 2025” .

Q&A Highlights

Motorhome strategy: Management chose to cut production rather than “push” units with deep discounts, focusing on working capital, cash generation, speed‑to‑market on new products, and improving value proposition; committed to competing profitably with the Winnebago brand .
Profitability drivers in Motorhome: Deleverage and “higher discounts and allowances” are sizable contributors to margin declines; aim to see initiatives take hold in Q4 .
Demand trends: June is “stable to slightly better” than May but still negative comps in early weeks, with variability across brands .
Inventory turns: Long‑term 2.0x target; discipline may sacrifice near‑term ship/share to avoid aging inventory; expect minimal net field inventory build in rest of CY25 .
Newmar performance: Healthy profitability and strong Class A diesel share (~33%+); expanding into compact luxury Class C (Freedom Air) and Super C models .

Estimates Context

Q3 comparison: Revenue $775.1M vs consensus $774.8M; Adjusted EPS $0.81 vs consensus $0.79 — both modest beats, with Towables and Marine volume offsetting Motorhome margin pressure (values retrieved from S&P Global)*.
Trajectory: Q2 beat (Adj EPS $0.19 vs $0.16; revenue $620.2M vs $616.7M); Q1 miss (Adj EPS $(0.03) vs $0.20; revenue $625.6M vs $672.2M) (values retrieved from S&P Global)*.
FY25 consensus context: Street revenue ~$2.75B and normalized EPS ~$1.49 vs company guidance revenue $2.7–$2.8B and adjusted EPS $1.20–$1.70, implying estimates likely need to drift toward the lower half of management’s ranges (values retrieved from S&P Global)* .

Key Takeaways for Investors

Marine is a relative bright spot with share gains and margin expansion; continued discipline and pricing power support profitability resilience .
Towables volume growth is intact, led by affordability offerings (Transcend, Thrive); however, mix is pressuring ASP and margins, requiring careful warranty/cost control .
Winnebago‑branded Motorhome is the swing factor; margin recapture plan and reduced production should stabilize in FY26, but near‑term EBITDA remains challenged — risk to multiple until proof of execution emerges .
Tariffs represent a tangible FY26 EPS headwind ($0.50–$0.75 net risk if not mitigated); watch for mitigation updates and pricing actions across product lines .
Balance sheet priorities have shifted: buybacks paused, debt paydown emphasized; progress toward net leverage target (0.9–1.5x) is key to equity re‑rating .
Guidance reset lowers expectations and narrows downside; Q4 segment color suggests Marine strength and Towables profitability improvement can partly offset Motorhome weakness .
Near‑term trading lens: modest estimate beats plus guidance cut and tariff overhang may limit upside; catalysts include incremental evidence of Motorhome transformation, Marine share updates, and tariff clarity around mid‑July and into October year‑end call .

Notes: All financial figures derived from the company’s Q3 2025 8-K/press release and prior quarter releases. Consensus estimate figures marked with * were retrieved from S&P Global.

WINNEBAGO INDUSTRIES INC (WGO)·Q3 2025 Earnings Summary