OneWater Marine (NASDAQ:ONEW) reported fiscal first-quarter 2026 results that management said were “solid” and in line with expectations, as improved margins and a shift toward pre-owned boat sales helped offset softer new-boat unit volumes. Executives also discussed ongoing portfolio actions, including a plan to divest certain distribution segment assets, and reiterated full-year guidance while describing an industry backdrop expected to be flat to down low single digits.
Management highlights: inventory progress, brand actions, and portfolio simplification
Executive Chairman Austin Singleton said the company entered the year with inventory levels it is “pleased with,” emphasizing a healthy inventory mix and age profile even in what he described as a highly competitive environment. Singleton added that OneWater’s OEM partners have remained supportive while maintaining disciplined production schedules.
As part of portfolio optimization, Singleton said OneWater decided to sell certain distribution segment assets it views as no longer core to its long-term strategy. He framed the decision as an opportunistic move intended to sharpen the company’s focus and strengthen the balance sheet rather than a reflection of operational performance.
Sales mix: new boats down, pre-owned up; service and parts grew
CEO Anthony Aisquith said lower unit volumes during the quarter were offset by pricing and mix, resulting in an improved margin profile. He added that during customer purchase discussions, the company saw “less price resistance,” which he attributed in part to a more stable news environment around tariffs and interest rates.
On the call, management said the early boat show season has started and has been “pretty good” but generally “flat,” with enthusiasm still present among consumers. Executives also said industry inventory is normalizing and highlighted improved availability of trade-ins, which has supported pre-owned sales.
CFO Jack Ezzell provided the quarter’s sales details:
- Revenue: $381 million, up 1% from $376 million a year earlier.
- New boat sales: down 6% year over year.
- Pre-owned boat sales: up 24%, driven by higher unit sales and higher average unit price.
- Service, parts and other revenue: up 10%, which Ezzell said reflected improvements in the distribution segment, strength in service operations, and customer loyalty.
- Finance and insurance income: decreased slightly as a percentage of total sales due to product mix.
In response to analyst questions about the pre-owned outperformance, management attributed the shift primarily to better used-boat availability driven by increased trade-ins, rather than consumers moving to lower-priced units. Singleton said that as new-boat availability has improved versus the pandemic period, buyers have been able to obtain new boats faster, which has contributed to more trade-ins coming through dealerships rather than person-to-person transactions.
Margins improved; impairment charge recorded
Gross profit increased to $89 million from $84 million in the prior-year quarter. Gross margin expanded to 23.5%, up 110 basis points year over year. Ezzell said the margin expansion was driven by gross margins on new boats sold, pre-owned volumes, and benefits from portfolio optimization efforts.
Selling, general and administrative expenses rose to $81 million from $79 million, which Ezzell attributed to higher variable costs such as sales commissions tied to higher gross margins.
During the quarter, the company recorded a $7 million impairment charge related to certain distribution assets classified as held for sale.
Bottom line and balance sheet: narrower loss, liquidity and inventory reductions
OneWater posted a net loss of $8 million, or $0.47 per diluted share, compared with a net loss of $14 million, or $0.81 per diluted share, in the prior-year quarter. Ezzell said the variance was largely driven by a $13 million income tax benefit in the quarter versus a $5 million benefit a year earlier. Adjusted loss per diluted share was $0.04, compared with an adjusted loss of $0.54 in the prior-year period. Adjusted EBITDA increased to $4 million from $2 million.
On the balance sheet, Ezzell said the company classified certain distribution segment assets and liabilities as held for sale following a board-approved plan to divest those operations. The company expects the transaction to close prior to March 31, 2026, and said it intends to use net proceeds to repay borrowings under its credit facility. Ezzell said there was no impact to first-quarter revenue or adjusted EBITDA from the held-for-sale classification and noted the company had not entered into a definitive agreement at the time of the call.
As of Dec. 31, 2025, OneWater reported total liquidity of about $46 million, including $32 million of cash and cash equivalents plus availability on its credit facilities. Total inventory was $602 million, down from $637 million as of Dec. 31, 2024, reflecting inventory reclassified as held for sale and inventory optimization efforts. Long-term debt was $399 million, and net debt was 5.1x trailing twelve-month adjusted EBITDA.
Reducing leverage remains the company’s top capital allocation priority, management said. In Q&A, Ezzell added that the planned sale of distribution assets could bring leverage to “almost 4x” by the end of the March quarter and under 4x by fiscal year-end.
Guidance maintained; outlook calls for flat-to-down industry environment
Based on its first-quarter performance and market visibility, management maintained fiscal 2026 guidance ranges and said it remains “cautiously optimistic.” The company’s outlook assumes the industry will be flat to down low single digits year over year. OneWater expects to outperform the industry, but also expects same-store sales to be impacted by brand rationalization headwinds, resulting in flat same-store sales overall.
- Total sales: $1.83 billion to $1.93 billion
- Adjusted EBITDA: $65 million to $85 million
- Adjusted earnings per diluted share: $0.25 to $0.75
In discussing margin cadence, management said there may be quarter-to-quarter variability, including potential offsets as promotional support from manufacturers changes with industry inventory conditions. Aisquith said the company expects new-boat margins to improve by 100 basis points for the year as a whole.
Executives also said they did not see an adverse impact from a government shutdown during the quarter. Regarding weather events, management said storms and cold weather were not a material issue for the company given its geographic exposure and the time of year.
About OneWater Marine (NASDAQ:ONEW)
OneWater Marine Inc (NASDAQ: ONEW) is a leading U.S.-based recreational boat retailer offering a comprehensive range of marine products and services. Since its public debut in 2018, the company has built a broad network of locations that serve both coastal and inland markets. OneWater Marine focuses on delivering a full-service customer experience, from initial boat selection to long-term maintenance and support.
Through its dealership network, OneWater Marine markets new and pre-owned powerboats and personal watercraft from top manufacturers.
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