Onewater Marine Inc ((ONEW)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for OneWater Marine Inc. painted a picture of resilience and strategic progress amidst challenging industry conditions. The company reported strong revenue growth and successful inventory management, which were positive highlights. However, concerns arose due to a significant net loss and a decline in gross profit. Despite these challenges, the company expressed optimism about future growth and market stabilization.
Revenue Growth in Fiscal Q4 2025
OneWater Marine Inc. reported a notable increase in revenue for the fiscal fourth quarter of 2025, with a 22% rise to $460 million compared to the previous year’s $378 million. This growth underscores the company’s ability to navigate a tough market environment and capitalize on opportunities.
Strong New and Pre-Owned Boat Sales
The company saw impressive sales figures in both new and pre-owned boats. New boat sales surged by 27% to $275 million, while pre-owned sales increased by 25% to $91 million in the fourth quarter. These results reflect strong consumer demand and effective sales strategies.
Same-Store Sales Growth
OneWater Marine achieved a 6% growth in same-store sales for the year, a significant achievement given the broader industry’s decline of over 13% in the same categories. This performance highlights the company’s competitive edge and effective market positioning.
Improved Inventory Management
The company ended the year with the cleanest inventory levels seen in years, reducing inventory to $540 million from $591 million the previous year. This strategic management of inventory positions OneWater Marine well for future operations.
Positive Customer and Market Feedback
Feedback from early boat shows and strong customer interest in innovative features and new models have been positive. This indicates a healthy market reception and potential for future sales growth.
Significant Net Loss in Fiscal Q4 2025
Despite the positive revenue growth, OneWater Marine reported a net loss of $113 million for the fiscal fourth quarter, primarily due to non-cash goodwill and intangible asset impairments totaling $146 million. This loss highlights the financial challenges the company faces.
Full-Year Gross Profit Decline
For the full year 2025, gross profit declined by 2% to $427 million, impacted by market dynamics and the company’s exit from select brands. This decline underscores the need for strategic adjustments moving forward.
Operating Loss in Fiscal Q4 2025
The fourth quarter also saw an operating loss of $130 million, further emphasizing the financial hurdles the company must overcome.
Guidance for 2026
Looking forward, OneWater Marine provided guidance for 2026, anticipating flat same-store sales, with total sales projected between $1.83 billion and $1.93 billion. Adjusted EBITDA is expected to range from $65 million to $85 million. The company remains optimistic about potential tailwinds from reduced discounting and lower interest rates, while maintaining a disciplined approach to inventory and cost management.
In conclusion, OneWater Marine Inc.’s earnings call revealed a mixed bag of strong revenue growth and strategic inventory management against the backdrop of significant financial losses. The company remains hopeful for future growth, with a focus on market stabilization and strategic management to navigate the challenges ahead.