Winnebago Industries, Inc. reported revenues fell 34.6 percent to $771.0 million for the Fiscal 2023 fourth quarter ended August 26, compared to $1.2 billion for the Fiscal 2022 comparable period. The decline was said to be driven by lower unit sales related to current market conditions and dealer efforts to reduce inventories, and higher discounts and allowances compared to the prior year, partially offset by carryover price increases.

  • Towable RV segment revenues were $341.4 million for the quarter, down 30.9 percent from the prior-year period, primarily driven by a decline in unit volume associated with retail market conditions and a cautious dealer network, as well as higher levels of discounts and allowances compared to the prior year. Backlog decreased to $208.1 million, down 63.9 percent from the prior year due to continued softness in retail conditions and a cautious dealer network.
  • Motorhome RV segment revenues were $317.7 million for the fourth quarter, down 42.8 percent from the prior year, driven by a decline in unit volume associated with retail market conditions and higher levels of discounts and allowances compared to the prior year, partially offset by price increases related to higher chassis costs. Backlog decreased to $688.6 million, down 59.2 percent from the prior year, driven by continued softness in retail conditions and a cautious dealer network.
  • Marine segment revenues were $96.4 million for the fourth quarter, down 21.0 percent from the prior year, driven by lower unit sales related to current market conditions and higher discounts and allowances, partially offset by price increases. Backlog for the Marine segment decreased to $194.7 million, down 38.1 percent from the prior year primarily driven by cautious dealer sentiment related to rising inventory levels.

Gross profit margin decreased 130 basis points in the quarter to 16.5 percent of sales, a result of volume deleverage and higher discounts and allowances compared to the prior-year period.

Operating income was $57.5 million for the quarter, a decrease of 53.4 percent compared to $123.6 million for the fiscal fourth quarter of last year.

Fiscal 2023 fourth-quarter net income was $43.8 million, a decrease of 47.0 percent compared to $82.6 million in the prior-year quarter. Reported earnings per diluted share was $1.28, compared to reported earnings per diluted share of $2.61 in the comparable period last year. Adjusted earnings per diluted share was $1.59, a decrease of 47.4 percent compared to Adjusted earnings per diluted share of $3.02 in the comp period last year.

Consolidated Adjusted EBITDA was $72.9 million for the quarter, compared to $139.2 million last year, a decrease of 47.6 percent.

  • Towable RV segment Adjusted EBITDA was $42.7 million, down 19.7 percent from the prior year period.
  • Motorhome RV segment Adjusted EBITDA was $22.4 million, a decrease of 71.1 percent from the prior year.
  • Marine segment Adjusted EBITDA was $10.3 million, a decrease of $7.3 million from the prior year.

“While the consumer market continues to be challenged and our fourth quarter results reflect a stubborn retail environment, we continued to see the benefits of our diversified portfolio on our results for the fiscal year,” said company President and CEO Michael Happe. “Our team has remained intently focused on rationalizing inventory levels, optimizing our supply chain, and appropriately managing capacity, output, and cost in a strategic manner. Those efforts, combined with disciplined capital allocation, have enabled us to drive sustained profitability in our consolidated results supported by our diverse portfolio of premium brands, allowing us to continue investing in our growth initiatives and return meaningful value to our shareholders.”

Full Year Fiscal 2023 Results

  • Consolidated revenues of $3.5 billion decreased 29.6 percent from $5.0 billion from Fiscal 2022.
    • Towable RV segment revenues were $1.4 billion, down 45.5 percent.
    • Motorhome RV segment revenues were $1.6 billion, down 18.4 percent.
    • Marine segment revenues were $469.7 million, up 10.5 percent from Fiscal 2022.
  • Gross profit margin decreased 190 basis points to 16.8 percent
  • Operating income was $300.7 million for Fiscal 2023 compared to $583.5 million in Fiscal 2022.
  • Net income was $215.9 million compared to $390.6 million in the prior year.
  • Earnings per diluted share was $6.23 compared to earnings per diluted share of $11.84 in Fiscal 2022.
  • Adjusted earnings per diluted share was $7.67 compared to Adjusted earnings per diluted share of $13.81 in Fiscal 2022.
  • Consolidated Adjusted EBITDA was $354.7 million compared to $648.9 million in Fiscal 2022.
    • Towable RV segment Adjusted EBITDA for the full year was $172.1 million, down 55.1 percent.
    • Motorhome RV segment Adjusted EBITDA for the full year was $142.0 million, down 40.3 percent.
    • Marine segment Adjusted EBITDA for the full year was $60.5 million, down 0.6 percent from Fiscal 2022.