Winnebago’s fourth quarter saw strong growth, with management pointing to higher sales volumes across both motorhome and towable RV segments as key drivers. CEO Michael Happe credited new product introductions, especially in the more affordable Grand Design and Winnebago lines, for broadening the company’s customer base. The company also highlighted disciplined operational execution and improved cost controls, with CFO Bryan Hughes noting a decline in operating expenses and improved working capital. Management acknowledged higher warranty costs, but emphasized that targeted price increases and a focus on product quality helped offset these pressures.
Is now the time to buy WGO? Find out in our full research report (it’s free for active Edge members).
Winnebago (WGO) Q4 CY2025 Highlights:
- Revenue: $702.7 million vs analyst estimates of $633.5 million (12.3% year-on-year growth, 10.9% beat)
- Adjusted EPS: $0.38 vs analyst estimates of $0.14 (significant beat)
- Adjusted EBITDA: $30.2 million vs analyst estimates of $21.28 million (4.3% margin, 41.9% beat)
- The company lifted its revenue guidance for the full year to $2.9 billion at the midpoint from $2.85 billion, a 1.8% increase
- Management raised its full-year Adjusted EPS guidance to $2.45 at the midpoint, a 4.3% increase
- Operating Margin: 2%, up from -0.1% in the same quarter last year
- Market Capitalization: $1.20 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Winnebago’s Q4 Earnings Call
- Craig Kennison (Baird) asked about signals for retail market growth, with CEO Michael Happe pointing to upcoming retail shows and consumer response to new products as key indicators.
- Joe Altobello (Raymond James) questioned market share assumptions in guidance; Happe cited targeted share gains in Grand Design and Barletta brands, stressing controllable execution over external factors.
- Scott Stember (ROTHMKM) probed the scale and discipline of selective price increases; Happe emphasized pricing tied to new features and brand transformations, avoiding broad increases to support market share.
- Mike Albanese (Benchmarkstone X) inquired about the trajectory of Grand Design Motorized; Happe noted outperformance versus plan and a multi-year strategy aimed at continued market share growth.
- Noah Zatzkin (KeyBanc Capital Markets) pressed for details on margin recapture initiatives; Happe said many benefits are still ahead, with future improvements expected from operational changes and new product launches.
Catalysts in Upcoming Quarters
In the coming quarters, we will closely watch (1) consumer and dealer response to new RV and marine product introductions at major retail shows, (2) the extent of margin improvement from operational and supply chain initiatives, and (3) any shifts in industry demand as macroeconomic factors like interest rates and gas prices evolve. Sustained progress in inventory and working capital management will also be important for tracking execution.
Winnebago currently trades at $42.59, up from $40.33 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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