Winnebago Industries, Inc. slashed its earnings outlook after reporting results for the fiscal third quarter ended May 30 fell short of expectations due to cautious ordering from dealers. Sales fell 9.9 percent in the third quarter as a 26.1 percent tumble in towable RVs and an 8.3 percent decline in its  powerboats and pontoon boats segment offset a gain in motorhomes.

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

Third Quarter Fiscal 2026 Financial Summary

  • Net revenues of $698.7 million compared to $775.1 million in the third quarter of Fiscal 2025 and below analysts’ consensus estimate of $758.6 million 
  • Gross profit of $94.9 million, representing 13.6 percent gross margin, compared to $106.0 million in the third quarter of Fiscal 2025
  • Net income of $14.5 million, or 51 cents per diluted share; adjusted earnings per diluted share of 66 cents compared to adjusted earnings per diluted share of 81 cents in the third quarter of Fiscal 2025. Analysts consensus estimate on an adjusted basis was 80 cents.
  • Adjusted EBITDA of $37.8 million, representing 5.4 percent adjusted EBITDA margin

CEO Commentary
“Our teams continue to execute in a retail environment that remained challenging through the third quarter,” said President and Chief Executive Officer Michael Happe. “Industry retail demand was pressured by broader macro factors, including elevated fuel costs, geopolitical uncertainty, and weak consumer confidence which continued to drive cautious dealer ordering and tighter inventory management across the channel. In response, we stayed disciplined, aligning production closely with retail while continuing to advance our key product, operational and cost initiatives.

“We’re seeing a mixed demand environment across the portfolio. In Motorhome RV, sales, profitability and market presence continue to improve, supported by sustained performance at Grand Design Motorized and solid execution at Newmar. New product introductions, expanding brand presence and improved profitability continue to strengthen our standing in the segment. In Towables RV, category demand remained muted during the quarter, particularly at higher price points where competitive and promotional activity remained elevated. At the same time, our newer, more accessible offerings such as Thrive and Access contributed to improved retail dollar share and stronger year-over-year financial performance within our Winnebago-branded portfolio. These results reflect both dealer commitment to our strategy and the positive reception to our refreshed product lineup.

In Marine, Barletta continues to perform well, maintaining consistent market share gains, reaching 9.3 percent on a trailing twelve-month basis through April, despite softer volumes in the quarter. This performance reflects continued consumer interest in its premium pontoons and an expanding product lineup, including the recent Sanza introduction.

“We delivered solid SG&A improvement year-over-year, while continuing to invest in Grand Design Motorized, and advancing footprint rationalization and capacity alignment actions within our RV businesses. While industry retail pressure in the quarter slowed the pace of improvement in field inventory turns, our focus remains on driving sustainable progress, which will require continued discipline around shipments and production.

“One of the most encouraging aspects of our performance this quarter was the stability of our gross margins despite a challenging retail environment, reflecting the strength of our product mix, pricing discipline and operational execution. We have remained focused on profitable market share, while our higher average selling prices continue to support a more resilient retail dollar share position. We are executing against the levers we control including product, brand, cost structure, and inventory discipline, positioning the business to deliver improved performance as conditions evolve.”

Third Quarter Fiscal 2026 Results

  • Net revenues were $698.7 million, a decrease of 9.9 percent compared to $775.1 million in the third quarter of Fiscal 2025, driven primarily by lower unit volume, partially offset by selective price adjustments and product mix. Unit volume trends reflected growth in the Motorhome RV segment, partially offset by declines in the Towable RV and Marine segments, as dealer ordering remained measured and production levels were closely aligned to retail demand.
  • Gross profit was $94.9 million, a decrease of 10.5 percent compared to $106.0 million in the third quarter of Fiscal 2025. Gross profit margin was consistent with prior year as higher input costs and deleverage were largely offset by selective price adjustments.
  • Selling, general and administrative expenses were $66.5 million, a decrease of 5.4 percent compared to $70.3 million in the third quarter of Fiscal 2025, primarily due to cost reduction initiatives.
  • Operating income was $23.0 million, a decrease of 23.9 percent compared to $30.2 million in the third quarter of Fiscal 2025.
  • Net income was $14.5 million, compared to $17.6 million in the third quarter of Fiscal 2025. Reported earnings per diluted share was 51 cents, compared to 62 cents in the third quarter of Fiscal 2025. Adjusted earnings per diluted share was 66 cents a share, a decrease of 18.5 percent compared to 81 cents in the third quarter of Fiscal 2025.
  • Consolidated Adjusted EBITDA was $37.8 million, a decrease of 18.7 percent, compared to $46.5 million in the third quarter of Fiscal 2025.

Third Quarter Fiscal 2026 Segments Summary

Towable RV

  • Net revenues decreased primarily due to lower unit volume and a shift in product mix toward lower price-point models, partially offset by selective price adjustments.
  • Operating income margin decreased primarily due to higher input costs, volume deleverage, and product mix, partially offset by selective price adjustments and cost containment initiatives.

Motorhome RV

  • Net revenues increased primarily due to higher unit volume and selective price adjustments.
  • Operating income margin increased primarily due to higher unit volume driven by new products and selective price adjustments, partially offset by higher input costs.

Marine

  • Net revenues decreased primarily due to lower unit volume and product mix, partially offset by selective price adjustments.
  • Operating income decreased primarily due to higher input costs and volume deleverage, partially offset by selective price adjustments.

Balance Sheet and Cash Flow
As of May 30, 2026, cash and cash equivalents totaled $57.1 million. The company had total outstanding debt of $442.9 million ($450.0 million of debt, net of debt issuance costs of $7.1 million) and working capital of $411.6 million. Cash flow provided by operating activities during the nine months ended May 30, 2026 was $26.2 million compared to cash flow used in operating activities of $52.5 million during the same period last year. Operating cash flow improved by $78.7 million year over year, shifting from a use of cash in the prior-year period to a source of cash in the current year.

Quarterly Cash Dividend
On May 15, 2026, the company’s Board of Directors approved a quarterly cash dividend of $0.35 per share payable on June 24, 2026, to common stockholders of record at the close of business on June 10, 2026.

Outlook
For calendar year 2026, Winnebago Industries now expects North American RV wholesale shipments in the range of 290,000 to 310,000 units. Based on this outlook, the current business environment, and results through the first nine months of the fiscal year, Winnebago Industries is updating its Fiscal 2026 revenue and EPS guidance as follows:

  • Consolidated net revenues in the range of $2.65 billion to $2.75 billion;
  • Reported earnings per diluted share in the range of $1.05 to $1.40 compared to the company’s prior expectations for reported earnings per diluted share in the range of $1.50 to $2.20; and
  • Adjusted earnings per diluted share guidance in the range of $1.65 to $2.00 compared to a prior range of $2.10 to $2.80.

The company’s outlook takes into account prevailing trends in the RV sector, including the impacts from current policy and trade environment, competitive dynamics, shifts in consumer preferences, and key macroeconomic factors that may influence overall demand.

“Our outlook reflects a measured view of the environment,” Happe said. “We expect demand conditions to remain challenged in the near term, with continued variability across segments. The actions we are taking across our portfolio, cost structure and product roadmap position us to manage through the cycle and improve the earnings profile of the business over time, including further operational and capacity initiatives expected to begin benefiting performance as we move through fiscal 2027.”

Image courtesy Winnebago