Key Highlights

  • WGO shares rose 7.29% pre-market to $24.86 from a $23.17 prior close.
  • Adjusted EPS of $0.49 beat the $0.47 estimate, but revenue of $645.1 million missed.
  • Fiscal 2027 adjusted EPS guidance of $1.65 to $2.25 sits below the $2.33 estimate.
  • Net leverage improved to 2.2x from 3.0x on $142.5 million of operating cash flow.

Relief Rally After the Fiscal Q4 Report

Winnebago Industries (NYSE:WGO) shares rose 7.29% pre-market today to $24.86, up $1.69 from the prior close of $23.17. The bounce follows fiscal fourth-quarter results released before the open. The stock had fallen about 16% over the past month and sits near its 52-week low of $21.95, which set a low bar going into the print.

Adjusted EPS of $0.49 topped the $0.47 estimate but fell 31% from $0.71 a year earlier. Net revenues of $645.1 million fell 17.0% on lower unit volume and missed the roughly $660 million consensus. Gross margin was 12.5%, versus 12.8% a year ago, on volume deleverage. Net income was $9.7 million, or $0.34 per diluted share, and adjusted EBITDA was $32.6 million.

Segment Trends and Cash Flow

Towable RV revenue fell 28.1% to $220.3 million, with operating margin down 280 basis points to 4.2%. Motorhome revenue fell 10.4% to $323.6 million, but operating income swung to $7.9 million from a $0.3 million loss on transformation efficiencies. Marine revenue slipped 2.7% to $92.3 million. Operating expenses fell 20.1% on cost reductions.

Operating cash flow was $142.5 million in the quarter. Cash stood at $181.4 million against total debt of $443.3 million, and net leverage improved to 2.2x from 3.0x at the end of the third quarter. The quarterly dividend is $0.36 per share, up 3%, for a 6.09% yield.

Fiscal 2027 Guidance Falls Short of Estimates

For fiscal 2027, the company expects net revenues of $2.65 billion to $2.80 billion against a $2.809 billion consensus, and adjusted EPS of $1.65 to $2.25 against a $2.33 consensus. Reported EPS is expected at $0.90 to $1.50. It sees 2026 North American RV wholesale shipments of 275,000 to 295,000 units and 2027 shipments of 265,000 to 295,000. Management said the timing and pace of recovery remain difficult to predict.

For the full fiscal year, net revenues were $2.7 billion, down 3.4%, while adjusted EPS rose 7.2% to $1.79. The shares carry a forward P/E of 10.50 and a trailing P/E of 11.14, with a 52-week range of $21.95 to $50.16. The company builds Winnebago, Grand Design, Newmar, Chris-Craft and Barletta products.

Next Up: 10 AM ET Call

Management hosts the earnings call at 9:00 a.m. Central Time, or 10:00 a.m. ET, today. Investors will look for detail on the motorhome transformation, towable share trends and cost actions.