Executive Summary

Q4 2025 delivered topline growth and margin improvement with net revenues of $777.3M (+7.8% y/y), gross margin 12.8%, GAAP diluted EPS $0.49 and adjusted EPS $0.71; operating cash flow was strong at $181.4M, and net leverage improved to 3.1x from 4.8x in Q3 .
Results exceeded Wall Street consensus: adjusted EPS beat by $0.18 and revenue beat by $50.9M; 12 estimates underpinned the consensus. Values retrieved from S&P Global*.
FY2026 guidance set at consolidated net revenues of $2.75–$2.95B, reported EPS $1.25–$1.95, and adjusted EPS $2.00–$2.70; management expects back-half weighted improvement and motorhome operating margin to move to low-single digits in FY2026 from -0.6% in FY2025 .
Stock reaction drivers: disciplined production and inventory management, motorhome footprint consolidation, strong Grand Design Motorized momentum, and Barletta share gains, partially offset by continued competitive discounts and marine softness cited by management .

What Went Well and What Went Wrong

What Went Well
- Favorable mix and targeted price increases drove revenue growth and improved profitability; adjusted EBITDA rose 33.1% y/y to $38.2M, and adjusted EPS rose 154% y/y to $0.71 .
- Strong operational execution and efficiency actions yielded $181.4M operating cash flow and improved net leverage to 3.1x; CEO highlighted diversified portfolio strength across brands .
- Segment wins: Towable operating margin expanded 210 bps to 7.0%; Marine swung to positive operating margin (7.1%) on pricing and prior-year impairment normalization; Newmar and Grand Design gained share in key segments .
What Went Wrong
- Gross margin fell 30 bps y/y to 12.8%, pressured by costs associated with transforming Winnebago-branded businesses and higher discounts/allowances in motorhomes .
- Motorhome operating income turned negative (-$0.3M; margin -0.1%) despite double-digit revenue growth, reflecting transformation costs and higher discounts and allowances .
- Management noted continued marine retail softness industry-wide and elevated warranty experience in Towables; Q&A emphasized industry destocking persisted through 2025 .

Financial Results

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$620.2	$775.1	$777.3
Gross Margin %	13.4%	13.7%	12.8%
Operating Margin %	1.3%	3.9%	2.6%
GAAP Diluted EPS ($)	($0.02)	$0.62	$0.49
Adjusted EPS ($)	$0.19	$0.81	$0.71

vs Estimates (Q4 2025)

Metric	Consensus	Actual	Surprise
Adjusted/Primary EPS ($)	0.532*	0.71	+0.18*
Revenue ($USD)	726.4M*	777.3M	+50.9M*
# EPS Estimates	12*	—	—
# Revenue Estimates	12*	—	—

Values retrieved from S&P Global.

Segment Breakdown (Q4 2025 vs Q4 2024)

Segment	Revenue Q4’25 ($M)	Revenue Q4’24 ($M)	Op Inc Q4’25 ($M)	Op Inc Q4’24 ($M)	Op Margin Q4’25	Op Margin Q4’24
Towable RV	306.3	317.0	21.4	15.5	7.0%	4.9%
Motorhome RV	361.2	308.0	(0.3)	6.9	(0.1)%	2.2%
Marine	94.9	80.5	6.7	(27.1)	7.1%	(33.7)%

KPIs (Q4 2025)

KPI	Value
Operating Cash Flow ($M)	181.4
Net Leverage Ratio	3.1x (vs 4.8x in Q3)
Cash & Equivalents ($M)	174.0
Total Debt ($M)	540.5 (includes $550.0M less $9.5M issuance costs)
Working Capital ($M)	465.1
Towable Unit Deliveries	7,833 (TT 5,680; FW 2,153)
Motorhome Unit Deliveries	1,745 (A 403; B 524; C 818)
Marine Unit Deliveries	1,164 boats
Dealer Inventory – Towable	16,200 units
Dealer Inventory – Motorhome	3,562 units
Dealer Inventory – Marine	2,687 units

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Revenues	FY2026	N/A	$2.75B–$2.95B	New
Reported EPS	FY2026	N/A	$1.25–$1.95	New
Adjusted EPS	FY2026	N/A	$2.00–$2.70	New
Motorhome Op Margin	FY2026	N/A	Low-single digits (from FY2025 -0.6%)	Raise
North American RV Wholesale Shipments	CY2025	N/A	320k–340k units	New
North American RV Wholesale Shipments	CY2026	N/A	315k–345k units	New
Cash Dividend	Quarterly	$0.34 (Q3)	$0.35 (Q4)	Raised

Note: No specific OpEx, OI&E, or tax rate guidance provided; management highlighted back-half weighted cadence and net leverage target ~2x by FY2026 year-end .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Tariffs/Macro	Included tariff impact in FY2025 outlook; mitigation via pricing and vendor collaboration . Retail demand soft; dealer destocking ongoing .	FY2026 guidance includes full anticipated tariff impact; ongoing mitigation via supplier diversification and BOM redesign; monitoring potential 100% additional tariffs .	Elevated risk but improved mitigation; dynamic policy backdrop.
Motorhome Transformation	Q2/Q3: Motorhome margins pressured; initiatives underway .	Footprint consolidation (closing 2 of 4 Iowa sites), reduced schedules; expect FY2026 motorhome op margin to low-single digits; improved product/incentive structure .	Structural actions executed; margin recapture in FY2026.
Inventory/Production Discipline	Align shipments to retail; dealer destocking persisted; inventory turns targeted .	Target ~2.0 turns; selective undershipping; Q4 working capital improvement and strong cash conversion .	Continued focus; cash generation improving.
Product Performance	Grand Design Lineage ramp; Towables affordability mix (Transcend); Barletta share gains .	Newmar Dutch Star #1 Class A diesel; Winnebago B vans leadership; Lineage #3 Class C diesel; Transcend moved to #8 TT; Momentum #1 toy hauler segments .	Broad-based brand strength; share gains in targeted segments.
Marine Segment	Profitability growth in Q2/Q3; Barletta share up to 9.5% .	Marine still soft retail; margins improved y/y due to prior-year impairment and pricing; cautious dealer destocking .	Mixed: margin better, retail soft.
Pricing/Incentives	Higher discounts and allowances pressured margins .	Expect reduced incentives in motorhome; continued affordability-driven mix in towables; modest pricing offsets .	Normalizing incentives; mix remains value-focused.

Management Commentary

“We drove stronger revenue, improved profitability, gained share in key segments and delivered solid operating cash flow and an improved leverage position… diversified product portfolio… offset operating margin pressure stemming from the ongoing turnaround of our Winnebago-branded businesses.” – CEO Michael Happe .
“We took decisive action in Q4 to dramatically reduce production schedules and consolidate the brand’s manufacturing footprint by closing two of our four Winnebago motorhome manufacturing locations… drove significant cash conversion in the quarter.” – CFO Bryan Hughes .
“We expect consolidated net revenues $2.75–$2.95B, reported EPS $1.25–$1.95, adjusted EPS $2–$2.70… midpoint up 41% vs FY2025.” – CFO Bryan Hughes .
“We expect operating income margin in the motorhome RV segment to improve to low single digits for fiscal 2026 from negative 0.6% in fiscal 2025.” – CFO Bryan Hughes .

Q&A Highlights

Tariff impact in guidance: Management included full anticipated tariff impact in FY2026 guidance; no specific dollar quantification provided; mitigation continues via pricing and sourcing adjustments .
Cadence: Expect year-over-year improvement each quarter, with majority of upside in back-half; assumes flattish retail/wholesale environment .
Wholesale/retail modeling: Management sees FY2026 wholesale ~330k units; striving for ~2x inventory turns, with selective undershipping to maintain discipline .
Market share dynamics: Pressure in Class B vans and fifth wheels due to competition and price points; plans to stabilize and grow share via Grand Design Motorized and Winnebago Towables; strong Open House orders .
Warranty: Expect consistent rates; motorhome warranty improved y/y; towable/marine slightly elevated; warranty includes goodwill investments to support customer experience (e.g., holiday hotline) .

Estimates Context

Q4 2025 beat vs consensus: Adjusted/Primary EPS $0.71 vs $0.532 consensus (+$0.18), revenue $777.3M vs $726.4M consensus (+$50.9M); 12 estimates for each. Values retrieved from S&P Global*.
Implications: Estimate revisions likely upward for FY2026 on margin recapture, Grand Design momentum, and improved leverage; caution around marine softness and tariffs may temper top-line revisions .

Key Takeaways for Investors

Execution-driven improvement: Cost actions and footprint consolidation underpinned cash conversion and leverage reduction; expect margin recapture to continue in FY2026, especially in motorhomes .
Portfolio strength offsets mix/incentives: Grand Design Motorized, Newmar, and Towables affordability drove resilience; pricing targeted but incentives to normalize, supporting ASPs and margins .
Discipline remains central: Management will align production with retail demand, aiming for ~2x turns; selective undershipping may support channel health and profitability .
Guidance credible but macro-sensitive: FY2026 outlook assumes flat industry volumes; upside hinges on internal initiatives; downside risks include tariffs and marine retail softness .
Cash generation and capital allocation: Strong Q4 operating cash flow; dividend raised to $0.35; focus on reaching ~2x net leverage by FY2026 year-end .
Trading lens: Near-term catalysts include evidence of motorhome margin improvement and continued Lineage momentum; monitor tariff headlines and marine retail trends for volatility .

Footnote: Values retrieved from S&P Global.

WINNEBAGO INDUSTRIES INC (WGO)·Q4 2025 Earnings Summary