Winnebago’s Q3 results prompted a significant positive market response, reflecting management’s successful execution of product and operational initiatives. CEO Michael Happe credited the quarter’s growth to the company’s “resilience and the strength of our diversified portfolio,” noting that standout motorized RV models like Newmar’s Summit Air and Grand Design’s Lineage Series M outperformed expectations. The marine segment’s performance was also a highlight, with Barletta’s ARIA model gaining traction in the affordable luxury pontoon market. Management emphasized strategic actions such as production footprint optimization and targeted pricing, which helped return operating cash flow to positive territory and supported improvements in working capital and leverage.
Is now the time to buy WGO? Find out in our full research report (it’s free for active Edge members).
Winnebago (WGO) Q3 CY2025 Highlights:
- Revenue: $777.3 million vs analyst estimates of $731.5 million (7.8% year-on-year growth, 6.3% beat)
- Adjusted EPS: $0.71 vs analyst estimates of $0.53 (33.5% beat)
- Adjusted EBITDA: $38.2 million vs analyst estimates of $35.89 million (4.9% margin, 6.4% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.35 at the midpoint, beating analyst estimates by 4.7%
- Operating Margin: 2.6%, up from -2.5% in the same quarter last year
- Market Capitalization: $1.15 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Winnebago’s Q3 Earnings Call
- Scott Stember (Roth): Asked about the impact and variability of tariffs on profitability. CEO Michael Happe responded that the full anticipated tariff impact is included in guidance and highlighted ongoing mitigation efforts.
- James Hardiman (Citi): Probed assumptions around retail and wholesale shipment trends. Happe explained that guidance assumes flat retail and wholesale, with inventory turns targeted closer to two times, and acknowledged continued dealer discipline.
- Craig Kennison (Baird): Queried market share trends, especially in light of increased competition in Class B motorhomes. Happe noted share pressures from new entrants but emphasized plans to stabilize and grow share through product launches and dealer engagement.
- Joe Altobello (Raymond James): Sought clarity on the visibility of margin improvement actions. CFO Bryan Hughes stated that many cost actions have already been executed and that improvements should be trackable, especially in the motorhome segment.
- Patrick Buckley (Jefferies): Inquired about takeaways from the RV dealer open house and recent retail demand. Happe reported record order activity for Winnebago Towables and strong reception for new products, with retail trends remaining stable.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) the pace of operational efficiencies and cost savings, particularly in the motorhome segment, (2) the success of new product introductions and their impact on dealer order momentum, and (3) the ongoing effectiveness of tariff mitigation strategies amid a changing trade environment. We will also track marine retail trends as a potential headwind or opportunity.
Winnebago currently trades at $40.60, up from $31.60 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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