Winnebago anticipates lower Q3 revenue amid market pressure

Published 05/06/2025, 12:06
Winnebago anticipates lower Q3 revenue amid market pressure

EDEN PRAIRIE, Minn. - Winnebago Industries, Inc. (NYSE: WGO), a prominent manufacturer of outdoor lifestyle products, announced its preliminary financial results for the third quarter of fiscal year 2025 today. Ahead of its participation at the Baird 2025 Global Consumer Technology & Services Conference, the company provided an earnings preview for the quarter ending May 31, 2025.

Winnebago expects to report net revenues of approximately $775 million, with earnings per diluted share ranging from $0.55 to $0.65 and adjusted earnings per diluted share between $0.75 and $0.85. Despite recent challenges, analysts tracked by InvestingPro remain optimistic, projecting full-year EPS of $2.77. The company will provide a comprehensive update on its full-year outlook during a conference call scheduled for June 25, 2025.

President and CEO Michael Happe cited growing macroeconomic uncertainty and a downturn in consumer sentiment as factors that led to a cautious dealer network and impacted the selling season, particularly in the last two months of the quarter. Happe noted that these pressures were most pronounced within the Winnebago Motorhomes business unit, leading to an expectation of significantly lower net revenue for this division in the second half of fiscal 2025.

In response to the challenging market conditions, Winnebago has implemented strategic actions aimed at reducing costs and improving profitability for the fiscal year 2026. These actions include modifying production schedules, adjusting headcount, and focusing on inventory management to align with market demand.

Despite the near-term challenges, Winnebago remains optimistic about the long-term success of its business transformation initiatives. The company maintains a strong financial position with a healthy current ratio of 2.17, indicating solid liquidity to support its operations. Happe highlighted the market share progress of Grand Design Towables in the travel trailer segment and the anticipated launch of the Winnebago Thrive line of products. Additionally, Newmar’s Class A diesel market share now exceeds 30%, and the company’s marine segment, including Barletta premium pontoons and Chris-Craft luxury runabouts, continues to gain retail market share. InvestingPro data reveals the company has maintained dividend payments for 12 consecutive years, with a current yield of 3.89%, demonstrating its commitment to shareholder returns.

The company’s third-quarter financial results will be reported before the opening of the New York Stock Exchange on June 25, 2025, followed by a conference call at 9:00 a.m. CT. The live webcast of the call will be available on the Investors section of Winnebago’s website and will remain accessible for replay for 90 days.

These preliminary financial results are unaudited and represent the most recent information available to company management. Final results may differ due to the completion of financial closing procedures and adjustments. This article is based on a press release statement from Winnebago Industries.

In other recent news, Winnebago Industries reported its second-quarter fiscal year 2025 earnings, which exceeded expectations. However, the company adjusted its full-year earnings per share guidance downwards, citing macroeconomic challenges and consumer uncertainty. Despite these developments, BMO Capital Markets, Truist Securities, and DA Davidson revised their price targets for Winnebago to $60, $50, and $42, respectively, while maintaining positive ratings, such as Outperform and Buy, or a Neutral stance. Analysts from these firms highlighted Winnebago’s resilience and innovative product strategies as factors supporting its market position.

KeyBanc also adjusted Winnebago’s price target to $40, maintaining an Overweight rating. Analyst Noah Zatzkin pointed to risks related to policy noise and tariff policies but noted the company’s stable market share and affordability initiatives. Winnebago announced its 44th consecutive quarterly dividend, with a payout of $0.34 per share, reflecting its commitment to shareholder returns. The company continues to focus on organic growth, strategic acquisitions, and debt reduction to adapt to changing market conditions.

These recent developments underscore Winnebago’s strategic maneuvers amid a challenging economic landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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