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Feb 24, 2024

Winnebago Q2 2024 Earnings Report

Winnebago's financial performance aligned with expectations, navigating ongoing softness in the RV and marine markets, while demonstrating resilient profitability and commitment to operational discipline.

Key Takeaways

Winnebago Industries reported Q2 fiscal year 2024 results with revenues of $703.6 million and a net loss of $12.7 million, or $0.43 per share, which includes a charge of $32.7 million related to refinancing convertible senior notes. Adjusted earnings per share were $0.93. The company is navigating softness in the RV and marine markets while focusing on product diversification and cost management.

Revenues reached $703.6 million.

Gross profit was $105.3 million, representing a 15.0% gross margin.

Net loss amounted to $12.7 million, or $0.43 per share, including a $32.7 million charge related to debt refinancing.

Adjusted diluted earnings per share stood at $0.93.

Total Revenue
$704M
Previous year: $867M
-18.8%
EPS
$0.93
Previous year: $1.88
-50.5%
Adjusted EBITDA
$49.8M
Adj. EBITDA Margin
7.1%
Gross Margin
15%
Gross Profit
$105M
Previous year: $147M
-28.3%
Cash and Equivalents
$266M
Previous year: $229M
+15.9%
Free Cash Flow
$14.2M
Previous year: -$34.7M
-140.9%
Total Assets
$2.43B
Previous year: $2.45B
-0.5%

Winnebago

Winnebago

Winnebago Revenue by Segment

Forward Guidance

Winnebago Industries announced future mid-cycle organic growth targets, anticipating net revenues of $4.5 billion to $5.0 billion, a gross margin of 18.0% to 18.5%, and an adjusted EBITDA margin of 11.0% to 11.5%.

Positive Outlook

  • Net revenues of $4.5 billion to $5.0 billion
  • Gross margin of 18.0% to 18.5%
  • Adjusted EBITDA margin of 11.0% to 11.5%
  • Free cash flow of $325 million to $375 million
  • North American RV market share of more than 13%

Challenges Ahead

  • General economic uncertainty in key markets
  • Worsening of domestic and global economic conditions
  • Availability of financing for RV and marine dealers
  • Competition and new product introductions by competitors
  • Ability to manage inventory to meet demand

Revenue & Expenses

Visualization of income flow from segment revenue to net income