OneWater Marine Inc.

Third-quarter revenue was $531 million, down 4% year over year, with same-store sales down 2% versus an industry down high single digits in the categories where the company competes. Gross profit was $127 million and gross margin expanded 70 basis points to 24%; net income was $12 million, or $0.69 per diluted share, versus $11 million, or $0.65 per diluted share last year, while adjusted diluted EPS was $0.73 versus $0.79 and adjusted EBITDA was $38 million versus $33 million. For the full year, the company now expects same-store sales to be down low- to mid-single digits, revenue of $1.75 billion to $1.8 billion, adjusted EBITDA of $68 million to $78 million, and adjusted diluted EPS of $0.35 to $0.55; it also noted a roughly $2 million fourth-quarter adjusted EBITDA headwind from the Ocean Bio-Chem sale.

Management emphasized that the quarter reflected continued execution of strategic priorities rather than a strong retail backdrop. The CEO commentary focused on optimizing inventory, expanding margin, strengthening the balance sheet, and making structural improvements that should support stronger long-term performance. Tone was constructive but measured: they said the business is now better positioned to accelerate when the market recovers.

The CFO highlighted the hard numbers behind the quarter: $531 million of revenue, $127 million of gross profit, $87 million of SG&A, $38 million of adjusted EBITDA, and $69 million of cash. He said inventory declined to $486 million and long-term debt was $348 million, bringing adjusted net leverage to 3.7x from 5.8x a year ago, ahead of the company’s under-4x target. He also said the company is actively exploring debt refinancing options and used proceeds from the Ocean Bio-Chem sale to help pay down debt.

On gross margin, management said the expansion was largely driven by price and mix, plus the absence of prior-year exiting brands that had weighed on margins; they also said tighter industry inventory, especially in premium boats, is reducing panic pricing and helping margin stability. On near-term demand, Jack Ezzell said July is trending positive and expected to be “flattish to slightly positive” for the month, while noting industry data is still slightly negative but improving. Management sounded cautiously optimistic that the market is stabilizing, but they stopped short of calling a clear inflection.