Winnebago Industries said it expects earnings and sales for the fiscal third quarter ended May 31 to come in below analyst targets due to “worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter.”
The maker of motorhomes and towables expects revenues to reach $775 million, reported EPS in the range of 55 cents to 65 cents, and adjusted EPS between 75 cents and 85 cents. Analysts’ consensus estimate had been $1.37 on revenue of $810.4 million.
Winnebago pre-released results ahead of its appearance on June 4-5 at the Baird 2025 Global Consumer Technology & Services Conference.
“What began as an encouraging selling season in March was hampered by growing macroeconomic uncertainty, resulting in worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter,” said Michael Happe, president and chief executive officer of Winnebago. “In this environment, we have maintained our posture of vigilant inventory management to ensure that production is aligned with current market demand and the needs of our dealer partners.”
“While market pressures have been observed across our portfolio, they have been most acute in our Winnebago Motorhomes business unit,” Happe said. “As a result, we expect our net revenue over the last two quarters of fiscal 2025 to be significantly lower in this business unit than previously anticipated. As part of our business transformation of this unit, we have recently taken significant steps to lower field inventory, improve working capital, align our production schedule to market demand, and accelerate stronger product value for our consumers in the future. We have also initiated a range of strategic actions for the remainder of fiscal 2025 to reduce costs and improve profitability over the coming 2026 fiscal year, including aggressively modifying production schedules and adjusting headcount. While the near-term remains challenging, we believe the business transformation underway will allow Winnebago Motorhomes to navigate the market landscape with greater agility, positioning the business for long-term success.”
“During uncertain times, we continue to focus on proactively managing the areas of the business within our control to generate profitable growth over the long term,” Happe said. “Grand Design Towables is exhibiting meaningful signs of market share progress in the important travel trailer segment, and its launch of multiple Grand Design Lineage series motorhome products is resulting in high levels of dealer and consumer demand. The revitalization of a second towables brand, our Winnebago Towables business, is progressing as planned as we prepare to launch a new line of products, beginning with the recently announced Winnebago Thrive. Newmar’s Class A diesel market share now exceeds 30 percent and its expanded product line-up of Super C and new luxury Class C models bodes well for its future. And in the marine segment, both Barletta premium pontoons and Chris-Craft luxury runabouts continue to demonstrate retail market share gains as we carefully manage shipments and field inventory to align with market conditions.”
Image courtesy Winnebago
