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Nov 26, 2022

Winnebago Q1 2023 Earnings Report

Winnebago's Q1 2023 results reflected a strong brand portfolio amidst a dynamic macroeconomic environment.

Key Takeaways

Winnebago Industries reported a decrease in revenue by 17.6% to $952.2 million, driven by unit volume decreases. Net income decreased by 39.6% to $60.2 million, with reported earnings per diluted share at $1.73 and adjusted earnings per diluted share at $2.07.

Motorhome and Marine revenues increased by 10.1% and 65.7%, respectively.

Reported diluted EPS was $1.73, and adjusted diluted EPS was $2.07.

Pontoon market share reached 6.7% on a trailing 12 months basis.

Strong liquidity, leverage, and cash position were maintained.

Total Revenue
$952M
Previous year: $1.16B
-17.6%
EPS
$2.07
Previous year: $3.51
-41.0%
Gross Profit
$160M
Previous year: $229M
-30.1%
Cash and Equivalents
$272M
Previous year: $211K
+128433.9%
Free Cash Flow
$2.1M
Previous year: $33.3M
-93.7%
Total Assets
$2.39B
Previous year: $2.21M
+108404.5%

Winnebago

Winnebago

Winnebago Revenue by Segment

Forward Guidance

Winnebago Industries expects some supply chain issues and the normalization of outdoor retail demand to continue through the rest of fiscal year 2023, but is focused on maintaining solid profitability.

Positive Outlook

  • Leveraging highly variable cost structure.
  • Maintaining strong relationships with dealers and suppliers.
  • Capitalizing on the appeal of an increasingly diverse portfolio of premium brands.
  • Investing strategically in long-term initiatives.
  • Maintaining momentum and financial health.

Challenges Ahead

  • Uncertain market conditions are expected to persist into calendar year 2023.
  • Supply chain issues are expected to continue.
  • Normalization of outdoor retail demand is expected to continue.
  • Global recall related to an electronic parking brake defect affecting model years 2019 through 2022 Sprinter chassis.
  • The recall had a negative impact of approximately $50 million in net sales, as well as corresponding impacts to profitability and cash flow.

Revenue & Expenses

Visualization of income flow from segment revenue to net income