Winnebago Industries, Inc.

Winnebago reported third-quarter consolidated net revenues of $698.7 million, down 9.9% from $775.1 million a year ago. Gross profit was $94.9 million versus $106 million last year, with gross margin of 13.6%; adjusted EPS was $0.66 versus $0.81, and reported EPS was $0.51 versus $0.62. Operating income was $23 million, down 23.9% from $30.2 million, and adjusted EBITDA was $37.8 million, down 18.7% from $46.5 million. By segment, towables revenue was $274.7 million and operating income $16 million; motorhome revenue was $320.7 million and operating income $9.6 million; marine revenue was $92.4 million and operating income $5.3 million. For fiscal 2026, management now expects consolidated revenue of $2.65 billion to $2.75 billion, reported EPS of $1.05 to $1.40, and adjusted EPS of $1.65 to $2.00. Management also said Q4 sales are expected to be down sequentially and down double digits year over year, while gross and EBITDA margins should be flattish to last year, helped by cost savings and working capital improvement.

Mike Happe said demand worsened late in the quarter as consumers stayed cautious because of affordability pressure, higher interest rates, and geopolitical uncertainty. He emphasized that the company is focused on what it can control: share gains, new product launches, affordability, cost discipline, and operational efficiency. His tone was cautious but constructive, repeatedly saying the business is being positioned to profitably capture demand when conditions improve.

Bryan Hughes said the quarter reflected lower unit volume, selective price actions, and mix shifts, with gross margin at 13.6% and SG&A down 5.4% to $66.5 million. He highlighted cash and balance-sheet metrics at quarter end: $57.1 million of cash and cash equivalents, $450 million of debt, $411.6 million of working capital, $25.6 million of operating cash flow, and net leverage of 3.0x versus 2.9x in Q2. He said the company is finalizing plans to further reduce excess capacity across both RV segments heading into fiscal 2027 and expects more working-capital improvement in Q4.

Analysts focused on excess capacity, dealer inventory and turns, pricing for model year 2027, and whether demand weakness reflects consumer affordability issues or a broader slowdown. Management said it is addressing capacity in both motorhome and towables, that dealers are disciplined and focused on improving turns, and that Q4 wholesale shipments will remain measured to help dealers work down inventory. On pricing, management said 2027 price actions vary widely by brand, from 0% to low single digits in some cases to high single digits or low double digits in others, depending on input-cost pressure and competitiveness.