Winnebago Industries (NYSE:WGO) Announces Quarterly Earnings Results

Winnebago Industries (NYSE:WGO) issued its earnings results on Wednesday. The RV manufacturer reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.02, Zacks reports. Winnebago Industries had a return on equity of 4.16% and a net margin of 1.28%. The company had revenue of $645.10 million during the quarter, compared to analyst estimates of $660.07 million. During the same quarter last year, the business posted $0.71 EPS. The firm’s quarterly revenue was down 17.0% on a year-over-year basis.

Here are the key takeaways from Winnebago Industries’ conference call:

• Demand remained subdued, with affordability pressures, elevated financing costs and macroeconomic uncertainty weighing on RV and marine purchases. Fourth-quarter revenue fell to approximately $645.1 million, while lower unit volume and unfavorable mix pressured profitability.
• Winnebago reported market-share gains in several categories despite declining industry demand, including Newmar’s Class A diesel business, Grand Design Motorized, Winnebago travel trailers and Barletta pontoons. Dealer inventory turns also improved, with consolidated RV turns reaching 1.8 times and Grand Design Towables reaching 2 times.
• Management expects fiscal 2027 adjusted EPS of $1.65 to $2.25, with the $1.95 midpoint representing approximately 9% growth, despite assuming no broad recovery in RV or marine retail demand. The company expects structural cost reductions and operational efficiencies to drive the improvement.
• Manufacturing consolidations, sourcing initiatives, SG&A reductions and other restructuring actions are expected to generate $70 million to $80 million of cumulative gross savings from fiscal 2027 through 2029. Net leverage declined to 2.2 times from 3.1 times a year earlier, while full-year free cash flow increased to $144.6 million.
• Winnebago plans to invest in longer-term growth opportunities, including aftermarket parts and services, portable power through Lithionics, and specialty vehicles. Management expects these initiatives to build gradually, with aftermarket benefits primarily emerging in fiscal 2028 and beyond.

Winnebago Industries Stock Up 11.5%

WGO stock opened at $28.60 on Friday. The firm has a market cap of $808.52 million, a PE ratio of 21.03 and a beta of 1.18. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.92 and a current ratio of 2.17. The firm’s fifty day moving average is $27.80 and its 200 day moving average is $29.63. Winnebago Industries has a one year low of $21.95 and a one year high of $50.16.

Winnebago Industries Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 23rd. Investors of record on Wednesday, September 9th were issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 5.0%. This is a boost from Winnebago Industries’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Wednesday, September 9th. Winnebago Industries’s payout ratio is currently 105.88%.

Insiders Place Their Bets

In other news, SVP Bret A. Woodson sold 2,414 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $32.66, for a total transaction of $78,841.24. Following the sale, the senior vice president directly owned 31,274 shares of the company’s stock, valued at $1,021,408.84. This represents a 7.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Happe sold 12,045 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $32.68, for a total value of $393,630.60. Following the completion of the transaction, the chief executive officer directly owned 349,349 shares of the company’s stock, valued at $11,416,725.32. The trade was a 3.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 15,694 shares of company stock valued at $511,658 in the last ninety days. 4.88% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

WGO has been the topic of a number of recent research reports. Citigroup upped their target price on Winnebago Industries from $24.00 to $28.00 and gave the company a “neutral” rating in a research report on Thursday. BMO Capital Markets reduced their price target on shares of Winnebago Industries from $38.00 to $33.00 and set an “outperform” rating for the company in a research report on Thursday. Raymond James Financial restated a “market perform” rating on shares of Winnebago Industries in a research note on Wednesday. Truist Financial dropped their price objective on shares of Winnebago Industries from $43.00 to $35.00 and set a “buy” rating on the stock in a report on Wednesday, July 8th. Finally, Seaport Research Partners started coverage on shares of Winnebago Industries in a research note on Monday, July 27th. They issued a “neutral” rating on the stock. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $35.56.

About Winnebago Industries

Winnebago Industries, Inc is a manufacturer of recreational vehicles and marine products. The company designs and produces motorhomes, travel trailers, fifth-wheel trailers and other outdoor recreation vehicles under brands including Winnebago, Grand Design, Newmar and Barletta.

Its marine operations produce boats and related products through brands such as Chris-Craft and Barletta. Winnebago’s portfolio serves consumers seeking products for travel, camping, boating and other outdoor recreational activities.

Founded in 1958, the company is headquartered in Forest City, Iowa.