•
May 27, 2023

Winnebago Q3 2023 Earnings Report

Diversified outdoor portfolio demonstrated resiliency and strong profitability amidst challenging market conditions.

Key Takeaways

Winnebago Industries reported a decrease in revenue and earnings for the third quarter of fiscal year 2023, driven by lower unit sales in the RV segments, but highlighted the resilience of its diversified portfolio and strong cash flow from operations. The company also completed the acquisition of Lithionics Battery.

Revenues decreased by 38.2% to $900.8 million due to lower unit sales and higher discounts in the RV market.

Net income decreased by 49.6% to $59.1 million, with earnings per diluted share at $1.71.

Towable RV revenues decreased by 52.3% to $384.1 million, while Marine revenues increased by 1.9% to $129.0 million.

Completed the acquisition of Lithionics Battery to enhance innovation in battery solutions.

Total Revenue
$901M
Previous year: $1.46B
-38.2%
EPS
$2.13
Previous year: $4.13
-48.4%
Gross Profit
$151M
Previous year: $273M
-44.5%
Cash and Equivalents
$226M
Previous year: $238K
+94786.9%
Free Cash Flow
$121M
Previous year: $179M
-32.5%
Total Assets
$2.41B
Previous year: $2.43B
-0.6%

Winnebago

Winnebago

Winnebago Revenue by Segment

Forward Guidance

Winnebago Industries will actively manage production levels, focusing on profitability, market competitiveness, and maintaining a preferred lot position with channel partners. The company is committed to innovation, product differentiation, operational efficiency, and strong cost management.

Positive Outlook

  • Strong balance sheet
  • Completed inorganic and organic investments
  • Sequentially improved inventory and working capital position
  • Share repurchases of $20 million
  • Quarterly dividend payment of $0.27 (50% higher than prior year)

Challenges Ahead

  • Challenging market conditions
  • Actively manage production levels across our business to match dealer appetite
  • Ongoing seasonal retail conditions
  • Market share aspirations
  • Closely tracking and adjusting to market conditions