Winnebago Industries, Inc. reported sales grew 7.8 percent in the fiscal fourth quarter ended August 30, marking its first increase in 13 quarters. Gains in its Motorhome and Marine segments offset a decline in Towables. Earnings on an adjusted basis surged 154 percent.

Winnebago’s brands include Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta.

Fourth Quarter Fiscal 2025 Financial Summary

  • Net revenues of $777.3 million, an increase of 7.8 percent from the fourth quarter of Fiscal 2024
  • Gross profit of $99.2 million, representing 12.8 percent gross margin
  • Net income of $13.7 million, or $0.49 per diluted share; adjusted earnings per diluted share of $0.71, up 153.6 percent year-over-year
  • Adjusted EBITDA of $38.2 million, up 33.1 percent year-over-year
  • Net cash flow from operations of $181.4 million
  • Net leverage ratio improves to 3.1x at quarter-end

Full Year Fiscal 2025 Financial Summary

  • Net revenues of $2,798.2 million, a decrease of 5.9 percent from Fiscal 2024
  • Gross profit of $365.1 million, representing 13.0 percent gross margin
  • Net income of $25.7 million, or $0.91 per diluted share; adjusted earnings per diluted share of $1.67
  • Adjusted EBITDA of $121.9 million, representing a 4.4 percent adjusted EBITDA margin
  • Net cash flow from operations of $128.9 million

Michael Happe, president and chief executive officer of Winnebago Industries said, “I am proud of our team’s efforts in delivering solid overall results in the fourth quarter, especially given the challenging operating environment. We drove stronger revenue, improved profitability, gained share in key segments and delivered solid operating cash flow and an improved leverage position. Our performance clearly reflects the advantages of a diversified product portfolio, as strong momentum across our brands and product lines helped offset the operating margin pressure stemming from the ongoing turnaround of our Winnebago-branded businesses, which is proceeding positively.

“While industry conditions continue to reflect higher competitive discounts and allowances, we remain disciplined in how we manage production schedules and inventory levels,” Happe said. “Our focus on aligning our shipments with retail demand has positioned us well to support our dealer partners, maintain inventory health, and keep our brands strong in the eyes of consumers.

“We were delighted with the enthusiasm at September’s RV Open House, where we debuted a range of exciting new products across our three RV brands. We also showcased the tremendous progress being made via the refreshed Winnebago-branded RV lineup and the ongoing rollout of our Grand Design motorized strategy. The positive feedback from our dealers and the interest in our newest models showcase the hard work our product teams are putting into innovating for today’s outdoor recreation customers.”

Fourth Quarter Fiscal 2025 Results
Net revenues were $777.3 million, an increase of 7.8 percent compared to $720.9 million in the fourth quarter of Fiscal 2024, primarily due to favorable product mix and targeted price increases, partially offset by higher discounts and allowances.

Gross profit was $99.2 million; an increase of 5.2 percent compared to $94.2 million in the fourth quarter of Fiscal 2024. Gross profit margin decreased 30 basis points in the quarter to 12.8 percent, primarily due to costs associated with the transformation of the Winnebago-branded businesses, partially offset by targeted price increases.

Operating expenses were $79.1 million, a decrease of 29.5 percent compared to $112.0 million in the fourth quarter of Fiscal 2024, primarily due to prior year goodwill impairment and cost reduction initiatives in Fiscal 2025, which more than offset Winnebago Industries’ investments in its Grand Design motorhome business. As a percentage of net revenues, selling, general, and administrative expenses decreased by 100 basis points to 9.5 percent in the fourth quarter of Fiscal 2025 from 10.5 percent of net revenues in the fourth quarter of Fiscal 2024.

Operating income was $20.1 million compared to an operating loss of $17.8 million in the fourth quarter of Fiscal 2024, which included a previously disclosed $30.3 million goodwill impairment charge.

Net income was $13.7 million, compared to a net loss of $29.1 million in the fourth quarter of Fiscal 2024. Reported net income per diluted share was $0.49, compared to a reported net loss per diluted share of $1.01 in the fourth quarter of Fiscal 2024. Adjusted earnings per diluted share were $0.71, an increase of 153.6 percent compared to adjusted earnings per diluted share of $0.28 in the fourth quarter of Fiscal 2024.

Consolidated Adjusted EBITDA was $38.2 million, an increase of 33.1 percent, compared to $28.7 million in the fourth quarter of Fiscal 2024.

TDA was $38.2 million, an increase of 33.1 percent, compared to $28.7 million in the fourth quarter of Fiscal 2024.

Full Year Fiscal 2025 Results
Net revenues were $2.8 billion, a decrease of 5.9 percent compared to $3.0 billion in Fiscal 2024, primarily due to a reduction in average selling price per unit related to product mix and lower unit volume, partially offset by targeted price increases.

Gross profit was $365.1 million, a decrease of 15.8 percent compared to $433.5 million in Fiscal 2024. Gross profit margin decreased 160 basis points year-over-year to 13.0 percent, primarily due to deleverage and slightly higher warranty experience.

Operating expenses were $307.9 million, compared to $333.3 million in Fiscal 2024. The decrease was primarily due to the prior year goodwill impairment and cost reduction initiatives in the current year, partially offset by investments to support the growth of the Grand Design motorhome and Barletta marine businesses.

Operating income was $57.2 million, a decrease of 42.9 percent compared to $100.2 million in Fiscal 2024.

Net income was $25.7 million, compared to net income of $13.0 million in Fiscal 2024. Reported earnings per diluted share were $0.91, an increase of 106.8 percent compared to reported earnings per diluted share of $0.44 in Fiscal 2024. Adjusted earnings per diluted share were $1.67, a decrease of 50.9 percent compared to adjusted earnings per diluted share of $3.40 in Fiscal 2024.

Consolidated Adjusted EBITDA was $121.9 million, a decrease of 36.0 percent, compared to $190.6 million in Fiscal 2024.

Fourth Quarter and Fiscal 2025 Segments Summary

 

Towable RV

 

  • Net revenues decreased primarily due to a shift in product mix towards lower price-point models and lower unit volume, partially offset by targeted price increases.
  • Operating income margin increased primarily due to targeted price increases and transformation efforts resulting in operating efficiencies in the Winnebago towables business, partially offset by higher warranty experience and deleverage.

Motorhome RV

 

  • Net revenues increased primarily due to higher unit volume and favorable product mix, partially offset by higher discounts and allowances.
  • Operating income margin decreased primarily due to costs associated with the transformation of the Winnebago motorhome business and higher discounts and allowances, partially offset by leverage and lower warranty expense.

Marine

 

  • Net revenues increased primarily due to higher unit volume and targeted price increases.
  • Operating income margin increased primarily due to prior year goodwill impairment, leverage, and targeted price increases.

Balance Sheet and Cash Flow
At the end of the fourth quarter of Fiscal 2025, cash and cash equivalents totaled $174.0 million compared to $10.5 million at the end of the Fiscal 2025 third quarter and $330.9 million at the end of Fiscal 2024. Total outstanding debt was $540.5 million, which included $550.0 million of debt, net of issuance costs of $9.5 million. Working capital improved to $465.1 million, reflecting disciplined balance sheet management and stronger operating efficiency. Cash flow provided by operations was $181.4 million in the Fiscal 2025 fourth quarter. The company’s net leverage ratio improved to 3.1x at the end of the Fiscal 2025 fourth quarter compared to 4.8x at the end of the Fiscal 2025 third quarter.

Quarterly Cash Dividend and Share Repurchases
On August 14, 2025, the company’s Board of Directors approved a 3 percent increase in the quarterly cash dividend of $0.35 per share. The dividend was paid on September 24, 2025, to common stockholders of record at the close of business on September 10, 2025.

Business Outlook and Financial Guidance
For calendar year 2025, Winnebago Industries anticipates total North American RV wholesale shipments in the range of 320,000 to 340,000 units. For calendar year 2026, the company anticipates total North American RV wholesale shipments in the range of 315,000 to 345,000 units. Based on this outlook and the current business environment, the company expects Fiscal 2026 consolidated net revenues in the range of $2.75 billion to $2.95 billion, reported earnings per diluted share of $1.25 to $1.95 and adjusted earnings per diluted share of $2.00 to $2.70. The company’s outlook takes into account prevailing trends in the RV sector, including the current tariff structure and rates, competitive dynamics, shifts in consumer preferences, and key macroeconomic factors that may influence overall demand.

“Winnebago Industries enters fiscal 2026 from a position of strength, driven by robust new product momentum, disciplined inventory management, and a clear pathway for driving profitable revenue across the portfolio,” Happe said. “Although a full return to mid-cycle demand across the industry will take time, we are confident that the decisive actions underway will strengthen margins, enhance operational efficiency, and create long-term value for our shareholders.”

Image courtesy Winnebago