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Feb 25, 2023

Winnebago Q2 2023 Earnings Report

Winnebago Industries' Q2 2023 results reflected resilience in its diversified portfolio, with marine segment growth offsetting RV demand softening and disciplined cost management maintaining competitive margins.

Key Takeaways

Winnebago Industries reported a decrease in revenue for the second quarter of fiscal year 2023, driven by lower unit volume, partially offset by price increases. The marine segment showed continued growth, while the towable and motorhome segments experienced declines. Despite the revenue decrease, the company maintained competitive margins through cost management and efficiency improvements.

Revenues decreased by 25.6% to $866.7 million compared to the prior year, driven by unit volume decreases.

Marine segment revenues increased by 16.1%, offsetting softening RV demand.

Net income decreased by 42.1% to $52.8 million, with earnings per diluted share at $1.52.

The company focused on disciplined execution and cost management to maintain competitive margins across segments.

Total Revenue
$867M
Previous year: $1.17B
-25.6%
EPS
$1.88
Previous year: $3.14
-40.1%
Gross Profit
$147M
Previous year: $217M
-32.2%
Cash and Equivalents
$229M
Previous year: $135K
+169963.5%
Free Cash Flow
-$34.7M
Previous year: -$30.6M
+13.6%
Total Assets
$2.45B
Previous year: $2.31M
+105787.5%

Winnebago

Winnebago

Winnebago Revenue by Segment

Forward Guidance

Winnebago Industries will actively manage a dynamic demand environment, focusing on profitability through disciplined production, cost management, and close collaboration with dealer partners to optimize inventory levels and product mix. The company's strong balance sheet and cash flow generation will facilitate strategic investments in the business and its future.

Positive Outlook

  • Continued focus on profitability.
  • Disciplined production and cost management.
  • Leveraging highly variable cost structure.
  • Close collaboration with dealer partners.
  • Strategic investments in the business.

Challenges Ahead

  • Dynamic demand environment.
  • Need to balance and optimize inventory levels.
  • Potential for continued softening in consumer demand for RVs.
  • Ongoing navigation of supply disruptions.
  • Management of material and input costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income