Winnebago Industries Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 25 March 2026: press release. Guidance figures: 1 raised, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net revenues grew six percent: Revenue rose on selective price adjustments and product mix, partly offset by lower unit volume. Gross profit was $85.6 million, up 2.9 percent. Source
• Adjusted EPS rose 42 percent: Adjusted diluted EPS was $0.27 against $0.19 a year earlier. Reported diluted EPS was $0.17, compared with a $0.02 loss. Source
• Adjusted EBITDA rose seven percent: Consolidated Adjusted EBITDA was $24.4 million. First-half Adjusted EBITDA was $54.6 million, against $37.2 million a year earlier. Source
• Towable revenue fell nine percent: Towable RV net revenues fell 9.0% to $262.4 million, reflecting a shift toward lower price-point models and lower unit volume, partly offset by price. Source
• Motorhome revenue rose 29 percent: Motorhome RV net revenues rose 29.3% to $304.7 million. Operating margin was 2.4%, against a loss margin of 0.3% a year earlier, attributed to volume leverage. Source
• Gross margin eased 40 basis points: Gross profit margin was 13.0%, down from 13.4%, mainly on product mix, partly offset by selective price adjustments. Source
• $100 million notes redeemed: The company redeemed $100 million of its Senior Secured Notes during the quarter, which management described as strengthening the balance sheet. Source

“Our team delivered a solid quarter and executed with diligence in a challenging market,”

Michael Happe, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Reported diluted EPS guidance was raised to $1.50 to $2.20 from $1.40 to $2.10. Source
• Guidance kept: Revenue and adjusted diluted EPS guidance were maintained at the prior ranges. Source

Results and growth drivers

• Net revenues grew six percent: Revenue rose on selective price adjustments and product mix, partly offset by lower unit volume. Gross profit was $85.6 million, up 2.9 percent. Source
• Adjusted EPS rose 42 percent: Adjusted diluted EPS was $0.27 against $0.19 a year earlier. Reported diluted EPS was $0.17, compared with a $0.02 loss. Source
• Operating income rose 50.7 percent: Operating income was $11.8 million, with selling, general and administrative expenses lower on cost reduction initiatives. Source
• Adjusted EBITDA rose seven percent: Consolidated Adjusted EBITDA was $24.4 million. First-half Adjusted EBITDA was $54.6 million, against $37.2 million a year earlier. Source
• Net income positive after prior loss: Net income was $4.8 million, or $0.17 per diluted share, compared with a net loss of $0.4 million a year earlier. Source

Segments and operating margins

• Towable revenue fell nine percent: Towable RV net revenues fell 9.0% to $262.4 million, reflecting a shift toward lower price-point models and lower unit volume, partly offset by price. Source
• Motorhome revenue rose 29 percent: Motorhome RV net revenues rose 29.3% to $304.7 million. Operating margin was 2.4%, against a loss margin of 0.3% a year earlier, attributed to volume leverage. Source
• Marine margin fell on warranty: Marine net revenues fell 3.0% to $79.2 million. Operating margin dropped 300 basis points to 3.7%, on higher warranty expense and volume deleverage. Source

“Dealers remain focused on profitable cash flow and disciplined inventory, and we are managing the business with that sentiment in mind.”

Michael Happe, President and Chief Executive Officer

Product mix and dealer stock

• Class B deliveries rose 127 percent: Class B motorhome deliveries rose 126.9% to 642 units, while Class A deliveries fell 25.9% and Class C deliveries rose 14.9%. Source
• Fifth wheel deliveries fell 29 percent: Fifth wheel towable deliveries fell 29.2%, while travel trailer deliveries rose 1.8%, lifting travel trailers to 74.3% of towable mix. Source
• Dealer stock moved by segment: Dealer-reported stock rose in Towable and was roughly flat in Marine, while Motorhome stock declined, based on dealer partner data subject to reporting timing. Source

Costs, margins and pricing

• Gross margin eased 40 basis points: Gross profit margin was 13.0%, down from 13.4%, mainly on product mix, partly offset by selective price adjustments. Source
• SG&A fell on cost reduction: Selling, general and administrative expenses were $68.4 million, down 1.9%, and fell to 10.4% of revenue from 11.2%. Source
• Adjusted EBITDA excluded property gain: Adjusted EBITDA excluded a $2.8 million gain on sale of property, plant and equipment, and a $0.8 million loss on note repurchase. Source
• Towable margin held on price, cost: Towable operating margin fell on volume deleverage and product mix, largely offset by selective price adjustments and cost containment initiatives. Source

“We believe this approach positions the business for healthier, more resilient growth in the future.”

Michael Happe, President and Chief Executive Officer

Demand and dealer conditions

• Dealers focused on cash and inventory: Management said dealers are focused on profitable cash flow and disciplined inventory, and the company is managing the business with that in mind. Source
• Winter weather tempered retail activity: Seasonal factors and winter weather reduced retail activity in the quarter. Management said several segments still showed resilience. Source

Cash, debt and shareholder returns

• $100 million notes redeemed: The company redeemed $100 million of its Senior Secured Notes during the quarter, which management described as strengthening the balance sheet. Source
• Gross leverage fell to 3.2x: Gross leverage ratio improved to 3.2x at February 28, 2026, from 4.0x at November 29, 2025. Source
• Net leverage at 2.9x: Net leverage ratio was 2.9x at February 28, 2026, compared with 2.7x reported at the end of the first quarter. Source
• Cash fell after note redemption: Cash was $47.4 million at quarter end, down from $181.7 million at the end of the first quarter. Total debt was $442.3 million. Source
• First-half operating cash flow positive: Cash flow provided by operations was $0.6 million in the first half, compared with $27.2 million used in the same period last year. Source
• Share repurchases slowed sharply: Repurchases of common stock totaled $1.7 million in the first half, against $53.6 million a year earlier. Source

Strategy and investment priorities

• Motorhome margin and retail share focus: Management said it is meaningfully improving the margin profile and retail share trends of the Motorhome RV segment. Source
• Capital spending dropped in first half: Purchases of property, plant and equipment were $9.9 million in the first half, down from $18.4 million, and property sales brought in $4.0 million. Source

Management view and priorities

• Portfolio navigates category variability: Management said the premium branded diversified portfolio continues to help it navigate variability across product categories. Source
• Focus on controllable actions: Management said its focus remains on disciplined execution in fiscal 2026 and on the actions within its control. Source

Coming up, as management said on 25 March 2026

• Second-half performance expected from new products: Management expects new products and cost management actions implemented this year to support performance anticipated in the second half. Source
• Spring and summer selling months ahead: Management described spring and summer as the seasonal months following the winter selling season. Source
• Quarterly dividend payable April 29: The board approved a $0.35 per share quarterly dividend, payable April 29, 2026 to holders of record April 15, 2026. Source

Figures management reported

Risks management discussed

• External: Management said the guidance remains subject to macro events, with uncertain duration and severity and possible effects on commodity prices and consumer demand. Source
• Demand: Seasonal factors and unfavorable winter weather tempered retail activity during the quarter. Source
• Operational: Marine operating income declined on higher warranty expense and lower volume absorption. Source

Earlier plans management reported on

• Not stated: The company said the note redemption was taken consistent with its capital allocation framework. Source
• Not stated: In the prior quarter release, management expected second-quarter performance to exceed the same period of the prior year.

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.