What Happened?
Shares of RV Manufacturer Winnebago (NYSE: WGO) jumped 8% in the afternoon session after the company reported strong second quarter 2025 results, which beat analysts' sales, EBITDA, and EPS expectations. In addition, its full-year EPS guidance exceeded Wall Street's estimates. However, the company trimmed its full-year revenue outlook, citing inventory reductions and soft consumer sentiment, which slightly undercut the broader optimism.
The real story this quarter was the continued market share expansion in its Marine segment. Though, looking at the whole picture, sales declined nearly 12% year-on-year, weighed down by lower selling prices and volume softness in the Motorhome RV business, where deliveries dropped sharply. Still, sales in the Towable RV and Marine units helped cushion the fall.
A noteworthy market dynamic is the shift in dealer behavior, particularly in the Motorhome segment, where inventory drawdowns continued as a hedge against higher rates. This pattern, while painful in the short term, may set the stage for a leaner supply chain when demand rebounds.
Overall, this was a decent quarter for the company.
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What The Market Is Telling Us
Winnebago’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock dropped 10.9% on the news that the company reported disappointing third-quarter earnings results, with revenue, EPS, and adjusted EBITDA falling below Wall Street's estimate. Management highlighted various headwinds, including "uncertain retail conditions, higher inventory carrying costs, and slightly elevated inventories in the motorhome segment, leading to continued dealer hesitancy and increased promotional efforts." Similarly, revenue and EPS guidance for FY'2025 fell below consensus estimates. Overall, it was a weaker quarter for the company.
Winnebago is down 22.4% since the beginning of the year, and at $37.38 per share, it is trading 49.5% below its 52-week high of $74 from March 2024. Investors who bought $1,000 worth of Winnebago’s shares 5 years ago would now be looking at an investment worth $1,232.
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