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Winnebago Industries (WGO)
NYSE:WGO
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Winnebago Industries
(NYSE:WGO)
Rating:46Neutral
Price Target:
$29.00
▼(-0.92%Downside)
Positive Factors
Brand Portfolio
Winnebago has a solid brand portfolio and there is confidence in long-term outdoor recreation trends.
Market Share and Product Offering
Winnebago can grow sales and earnings owing to operational improvement, market share gains from Barletta Newmar, and enhanced product offering.
Negative Factors
Earnings Guidance
The guidance range was lowered significantly, falling short of both analyst and market expectations.
Retail Demand
Management commented that retail demand across its end markets remains 'soft', with WGO's implied retail in the quarter down -5.6% y/y.
Tariff Costs
Incremental tariff costs, ongoing motorized margin headwinds, and persistent retail weakness are expected to lead to further inventory destocking.
Winnebago Industries (WGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$820.45M
Dividend Yield4.65%
Average Volume (3M)701.39K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-9.32%
EPS Growth-120.00%
CountryUS
Employees5,700
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.81
Shares Outstanding28,030,540
10 Day Avg. Volume927,778
30 Day Avg. Volume701,387
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.68
Price to Sales (P/S)0.00
P/FCF Ratio-15.72
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit2.36
Enterprise Value/Ebitda2.81
Forecast
1Y Price Target
$37.56Price Target Upside28.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Winnebago Industries Business Overview & Revenue Model
Company DescriptionWinnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhomes, which are self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters; and boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. The company sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Forest City, Iowa.
How the Company Makes MoneyWinnebago Industries generates revenue primarily through the design, manufacturing, and sale of recreational vehicles and marine products. The company's core revenue streams include the sale of motorhomes, travel trailers, and fifth wheels, as well as related parts and services. Winnebago also earns income from its marine segment through the sale of boats and marine accessories. Significant partnerships with dealer networks help distribute its various products across North America, facilitating sales growth. Additionally, the company invests in innovation and quality to maintain its competitive edge, thereby attracting and retaining a loyal customer base, which contributes to its earnings.
Winnebago Industries Earnings Call Summary
Earnings Call Date:Jun 25, 2025
(Q3-2025)
| % Change Since: -6.58%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Negative
The earnings call highlighted notable achievements in product launches and market share gains, especially in the Marine segment. However, these were overshadowed by significant challenges, including a decline in RV sales, ongoing issues in the Motorhome segment, and tariff cost pressures. The lowered fiscal 2025 guidance reflects the company's caution in a challenging economic environment.Q3-2025 Updates
Positive Updates
Marine Segment Growth
The Marine segment experienced a 15% increase in net revenues, driven primarily by higher unit volume and targeted price increases. Unit volume was up more than 11% year-over-year in the quarter. Segment adjusted EBITDA margin also increased.
New Product Launches
Winnebago Towables launched the Thrive travel trailer, Chris-Craft introduced the Catalina 31, and Barletta expanded its lineup with new helm redesigns and premium options. Grand Design RV's Lineage series achieved a 1.6% retail share within a year of debut.
Market Share Gains
Winnebago Industries gained market share in several RV segments, including Class A gas, Class A diesel, and Class C categories for motorhomes. Barletta increased its share of the U.S. aluminum pontoon market from 8.8% to 9.2%.
Recognition of Trustworthiness
Winnebago Industries was recognized by Newsweek as one of America's most trustworthy companies for the second consecutive year, based on an independent survey of over 25,000 U.S. consumers.
Negative Updates
Decline in RV Sales
North America RV retail sales declined by 8.2% in April, marking the third consecutive month of sales dropping by more than 8%. Consumer demand remains pressured due to economic headwinds and higher borrowing costs.
Challenges in Motorhome Segment
The Motorhome segment faced a decline in net revenues due to lower unit volumes, with total Motorhome RV volume declining by 14.8%. Ongoing business transformation is required for the Winnebago-branded Motorhomes.
Tariff Cost Pressures
Winnebago Industries anticipates a potential net risk of $0.50 to $0.75 diluted earnings per share for fiscal 2026 due to escalating tariff costs. Efforts are underway to mitigate these costs through pricing adjustments.
Lowered Fiscal 2025 Guidance
The full-year fiscal 2025 adjusted EPS guidance was reduced to $1.20 to $1.70 per diluted share, with a consolidated revenue forecast of $2.7 billion to $2.8 billion due to market pressures and business transition.
Company Guidance
During the Q3 fiscal 2025 earnings call, Winnebago Industries reported a challenging market environment with macroeconomic uncertainties impacting RV activities and resulting in reduced fiscal guidance. The company revised its fiscal year 2025 adjusted EPS guidance to a range of $1.20 to $1.70 per diluted share and consolidated revenue forecast to $2.7 billion to $2.8 billion. Unit volume showed mixed results, with a 2.5% increase in the Towable segment and a 14.8% decline in the Motorhome segment. Gross margin declined by 130 basis points, influenced by higher warranty costs and product mix changes. The Marine segment, however, outperformed with a 15% increase in net revenues and improved EBITDA margin. The company is focused on strategic turnaround initiatives, particularly in the Winnebago-branded Motorhome business, and aims to achieve a 2x turn ratio for better inventory management. Winnebago is also addressing tariff challenges, projecting a potential $0.50 to $0.75 EPS impact for fiscal 2026 if mitigation strategies are insufficient.Winnebago Industries Financial Statement Overview
Summary
Winnebago Industries is facing financial headwinds with declining revenue and profitability. The income statement reflects a significant revenue drop, negative net income, and reduced margins. The balance sheet shows improved debt management but decreased equity. Cash flow is under stress with negative operating cash flow.Income Statement
Winnebago Industries has experienced significant revenue decline, with a drop from $4.96 billion in 2022 to $2.74 billion in TTM (Trailing-Twelve-Months). This led to a negative net income, reflected by a net profit margin of -0.62% in TTM. The gross profit margin also decreased, signaling challenges in maintaining profitability. The company faces a downturn in core revenue metrics, with a substantial drop in EBIT and EBITDA margins to 0.70% and 1.71% respectively.55
Neutral
Balance Sheet
The debt-to-equity ratio improved significantly due to reduced total debt, showing prudent debt management. However, equity has decreased alongside total assets, impacting the equity ratio, which stands at 57.02%. The balance sheet remains relatively stable, but there is potential risk from reduced total assets and equity figures.65
Positive
Cash Flow
Cash flow metrics indicate stress, with operating cash flow turning negative and free cash flow significantly decreasing in TTM. The operating cash flow to net income ratio is negative due to losses, and free cash flow growth turned negative compared to 2024, indicating cash management issues.40
Negative
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74B | 2.97B | 3.49B | 4.96B | 3.63B | 2.36B |
| Gross Profit | 360.10M | 433.50M | 586.10M | 929.34M | 650.36M | 312.93M |
| EBITDA | 46.90M | 118.10M | 346.60M | 609.69M | 440.70M | 152.84M |
| Net Income | -17.10M | 13.00M | 215.90M | 390.60M | 281.90M | 61.44M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 2.38B | 2.43B | 2.42B | 2.06B | 1.71B |
| Cash, Cash Equivalents and Short-Term Investments | 10.50M | 330.90M | 309.90M | 282.17M | 434.56M | 292.57M |
| Total Debt | 41.00M | 741.80M | 634.40M | 586.28M | 555.30M | 539.68M |
| Total Liabilities | 916.80M | 1.11B | 1.06B | 1.15B | 1.01B | 886.23M |
| Stockholders Equity | 1.22B | 1.27B | 1.37B | 1.26B | 1.06B | 827.47M |
Cash Flow | ||||||
| Free Cash Flow | -52.20M | 98.90M | 211.30M | 312.65M | 192.39M | 238.06M |
| Operating Cash Flow | -11.80M | 143.90M | 294.50M | 400.62M | 237.28M | 270.43M |
| Investing Cash Flow | -35.00M | -45.90M | -170.00M | -315.67M | -33.01M | -293.08M |
| Financing Cash Flow | -260.80M | -77.00M | -96.80M | -237.34M | -62.28M | 277.79M |
Winnebago Industries Technical Analysis
Negative
29.27
Price Trends
32.75
Negative
34.89
Negative
44.16
Negative
Market Momentum
-1.12
Positive
36.38
Neutral
14.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGO, the sentiment is Negative. The current price of 29.27 is below the 20-day moving average (MA) of 31.93, below the 50-day MA of 32.75, and below the 200-day MA of 44.16, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WGO.
Winnebago Industries Risk Analysis
Winnebago Industries disclosed 23 risk factors in its most recent earnings report. Winnebago Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Winnebago Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.32B | 15.05 | 11.44% | 5.00% | 1.04% | 65.90% | |
73 Outperform | $4.77B | 21.53 | 5.42% | 2.23% | -6.41% | -15.85% | |
68 Neutral | $2.87B | 8.82 | 10.84% | 3.05% | -17.15% | -40.76% | |
67 Neutral | $3.65B | 45.83 | 5.16% | 3.09% | -15.42% | -77.50% | |
62 Neutral | $16.72B | 10.85 | -7.48% | 3.11% | 1.66% | -24.52% | |
60 Neutral | $2.30B | 57.59 | 3.09% | 6.55% | -17.86% | -89.55% | |
46 Neutral | $820.45M | ― | -1.35% | 4.65% | -9.32% | -120.00% |
* Consumer Cyclical Sector Average
Performance Comparison
WGO
Winnebago Industries
29.27
-22.32
-43.26%
BC
Brunswick
55.59
-13.42
-19.45%
LCII
LCI Industries
91.95
-5.36
-5.51%
HOG
Harley-Davidson
23.62
-7.96
-25.21%
PII
Polaris
40.94
-30.72
-42.87%
THO
Thor Industries
89.72
-0.92
-1.02%
Winnebago Industries Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Winnebago Industries Strengthens Board with New Appointment
Positive
Jan 8, 2025
Winnebago Industries announced the appointment of Mike Pack, a senior executive from Oshkosh Corporation, to its Board of Directors, following Richard Moss’s retirement. Pack’s financial and manufacturing expertise is expected to support Winnebago’s strategic goals and enhance its leadership in the outdoor recreation industry.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.