Winnebago Stock Takes Off As Turnaround Gains Speed
Winnebago Industries, Inc. (NYSE:WGO) stock rose Friday after delivering a strong quarterly performance and upbeat outlook.
The recreational vehicle maker pointed to improving demand trends, more substantial margins, and disciplined execution across its core segments.
The company reported first-quarter adjusted earnings per share of 38 cents, beating the Street view of 13 cents.
Quarterly sales of $702.700 million outpaced the Street view of $629.919 million.
Segment Performance
Towable RV sales gained 15.5% to $293.4 million. Net revenues increased primarily due to higher unit volume and selective price increases.
Motorhome RV sales increased 13.5% to $308.5 million, primarily due to a favorable product mix and selective price increases, partially offset by lower unit volume.
Marine sales inched up by 2.2% to $92.5 million due to selective price increases.
Metrics
In the quarter under review, gross profit reached $89.0 million (+12.7% year over year), reflecting improved operating performance.
Gross margin expanded to 12.7% from 12.3% in the prior fiscal quarter, primarily due to volume leverage, partially offset by higher warranty expense.
Winnebago reported adjusted EBITDA of $30.2 million, up 109.7% year-over-year.
“Although the retail demand environment is dynamic and dealer order patterns remain highly seasonal, we delivered meaningful top-line growth and margin expansion in both our Motorhome and Towable RV segments,” said Michael Happe, President and Chief Executive Officer.
Operating income was $13.8 million compared to an operating loss of $0.9 million in the first quarter of fiscal 2025.
At the end of the first quarter, cash and cash equivalents totaled $181.7 million compared to $174.0 million at the end of the fourth quarter. Total outstanding debt was $541.0 million, which included $550.0 million of debt, net of debt issuance costs of $9.0 million.
Winnebago approved a quarterly cash dividend of 35 cents per share payable on January 28.
Outlook
The firm raised its fiscal 2026 adjusted EPS guidance to $2.10 to $2.80 from $2.00 to $2.70, compared with the $2.37 analyst estimate.
Winnebago also increased its fiscal 2026 sales outlook to $2.800 billion to $3.000 billion from $2.750 billion to $2.950 billion, versus the $2.860 billion consensus estimate.
“As industry demand gradually recovers, the margin and efficiency improvements we are executing, together with new product offerings, enhance our competitive position and provide a solid foundation for second-half success in fiscal 2026, which is reflected in our positive, but still disciplined guidance outlook,” Happe added.
WGO Price Action: Winnebago Industries shares were up 11.51% at $44.97 during premarket trading on Friday, according to Benzinga Pro data.
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