Company Reports

Winnebago, which reinvented itself under CEO Mike Happe with the 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since the SunnyBrook acquisition in 2010. Winnebago’s North American towables share is approximately 10%, up from under 2% before Grand Design, so we see a long growth runway if it can continue to chip at Thor's and Forest River's roughly 80% combined share. In fiscal 2025, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was 13% of fiscal 2025 sales, and Barletta is now the number-three brand in aluminum pontoons with over 9% share. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago's stock rose over 14% in June 25 trading even though fiscal third-quarter adjusted diluted earnings per share of $0.66 missed the $0.76 LSEG consensus. Management also cut full-year guidance to $1.65-$2.00 in adjusted EPS from $2.10-$2.80 on revenue and input cost pressure.

Winnebago, which reinvented itself under CEO Mike Happe with the 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since the SunnyBrook acquisition in 2010. Winnebago’s North American towables share is approximately 10%, up from under 2% before Grand Design, so we see a long growth runway if it can continue to chip at Thor's and Forest River's roughly 80% combined share. In fiscal 2025, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was 13% of fiscal 2025 sales, and Barletta is now the number-three brand in aluminum pontoons with over 9% share. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago Industries' fiscal 2026 second quarter showed improvement in costs for the motorhome segment while towables felt the impact of consumer demand shifting to lower price points. The company also repaid $100 million of 6.25% 2028 senior secured notes in the quarter.

Winnebago's stock rose over 13% during Dec. 19 trading after adjusted diluted EPS for fiscal 2026's first quarter of $0.38 far surpassed the $0.13 LSEG consensus. The company also raised fiscal 2026 revenue and adjusted EPS guidance, with the latter up $0.10 to $2.10-$2.80.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in, but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is approximately 10%, up from under 2% before Grand Design, so we see a long growth runway if it can continue to chip at Thor's and Forest River's roughly 80% combined share. In fiscal 2025, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was 13% of fiscal 2025 sales, and Barletta is now the number three brand in aluminum pontoons with over 9% share. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in, but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is approximately 10%, up from under 2% before Grand Design, so we see a long growth runway if it can continue to chip at Thor's and Forest River's roughly 80% combined share. In fiscal 2025, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was 13% of fiscal 2025 sales, and Barletta is now the number three brand in aluminum pontoons with 9% share. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago Industries' stock rose over 26% in Oct. 22 trading after reporting fourth-quarter fiscal 2025 results. Adjusted diluted earnings per share of $0.71 beat the $0.53 LSEG consensus, and management introduced fiscal 2026 guidance within consensus that assumes flat industry wholesale volume.

Winnebago's fiscal 2025 third-quarter adjusted diluted EPS of $0.81 fell within the $0.75-$0.85 range guided by the company on June 5. The company also cut fiscal 2025 guidance to adjusted EPS of $1.20-$1.70, down from $2.75-$3.75.

Prior to Winnebago CEO Michael Happe speaking at a June 5 investor conference, the company announced that its fiscal 2025 third-quarter earnings will be reported on June 25, with adjusted EPS in the range of $0.75-$0.85 and revenue of about $775 million.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in, but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is approximately 10%, up from under 2% before Grand Design, so we see a long growth runway if it can continue to chip at Thor's and Forest River's roughly 80% combined share. In fiscal 2024, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was 11% of fiscal 2024 sales, and Barletta is now the number three brand in aluminum pontoons. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago’s fiscal 2025 second quarter saw adjusted diluted EPS of $0.19 beat the $0.13 LSEG consensus but also revealed dealers continue to hesitate to restock motor home inventory. Management cut its fiscal 2025 revenue and adjusted EPS guidance on continued restocking delays as well as from US tariffs, though the exact amount of tariff impact was not specified. We are lowering our fair value estimate to $77 per share from $80 after reducing revenue over our five-year explicit forecast period by 6.7% and lowering our fiscal 2025 adjusted EPS to the low point of guidance of $2.75-$3.75 (prior guidance was $3.10-$4.40) from $3.29 previously modeled. Revenue guidance is now $2.8 billion to $3.0 billion, down from $2.9 billion to $3.2 billion, and we now model about $2.8 billion because we are not optimistic about motor home dealer inventory rebounding much, if at all, in the second half of fiscal 2025. Dealers remain concerned about high interest rates affecting their inventory carrying costs and US tariffs could severely harm US consumer discretionary spending as well as raise Winnebago’s input costs for items such as some of its chassis purchases.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is about 10%, up from under 2% before Grand Design, so we see a long growth runway if it can keep chipping into Thor's and Forest River's roughly 80% combined share. In fiscal 2024, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was about 11% of fiscal 2024 sales and Barletta is now the number three brand in aluminum pontoons. Management wants non-RV revenue to be 15%-20% of total sales.

The recreational vehicle industry continues to be in a holding pattern as dealers remain uneasy about restocking inventory, especially motorhomes. High—though recently falling—interest rates and the slow winter selling months make dealers unwilling to use capital for units they may not sell until the spring. Winnebago’s fiscal 2025 first-quarter results reflect that sentiment, with total revenue down 18% year over year on lower RV volume in motorized and towables as well as lower price points. Consumers continue to trade down. CEO Michael Happe cited competitors' fierce discounting that at times the company felt compelled to match for Winnebago brand motorhomes.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is about 10%, up from under 2% before Grand Design, so we see a long growth runway if it can keep chipping into Thor's and Forest River's roughly 80% combined share. In fiscal 2024, towables were about 44% of total revenue compared with just 9% in fiscal 2016. Marine was about 11% of fiscal 2024 sales and Barletta is a top five pontoon brand. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago finished fiscal 2024 by reporting fourth-quarter results on Oct. 23 that showed recreational vehicle dealers continue to wait on restocking inventory. That continuing problem for RV makers plus consumer affordability concerns led to adjusted diluted earnings per share of $0.28 badly missing the $0.89 LSEG consensus. The EPS miss, along with the company giving fiscal 2025 guidance (a practice it’s never done before) that badly missed LSEG consensus, led to the stock falling over 10% during Oct. 23 trading. We are leaving our fair value estimate unchanged but will reassess all modeling inputs after the 10-K is filed.

Winnebago’s fiscal 2024 third-quarter results showed dealers continue to be unwilling to build inventory as they wait for interest rates to decline. Adjusted diluted EPS of $1.13 missed the $1.32 LSEG consensus and fell 46.9% year over year while revenue fell 12.7%. We are lowering our per share fair value estimate to $82 from $86, mostly on modeling 8.8% less revenue over our five-year explicit forecast period.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is in the teens, up from under 2% before Grand Design, so we see a long growth runway if it can keep chipping into Thor's and Forest River's roughly 80% combined share. In fiscal 2023, towables were about 41% of total revenue compared with just 9% in fiscal 2016. Marine was about 13.5% of fiscal 2023 sales and Barletta is a top five pontoon brand. Management wants non-RV revenue to be 15%-20% of total sales.

Winnebago’s second-quarter fiscal 2024 adjusted diluted EPS of $0.93 beat the $0.85 LSEG consensus despite continued hesitation by its dealers to increase inventory. Management expects fiscal third-quarter results to be better than fiscal second quarter, mostly on towable segment growth, but it also stressed uncertainty on if the normal seasonal demand of robust spring and summer sales will happen this year. We have lowered our fiscal 2024 revenue projection for this reason, but we are increasing our fair value estimate to $86 from $81 on time value of money and from raising our midcycle operating margin by 50 basis points to 8.5%. The margin increase results from management announcing midcycle organic growth targets, including revenue of $4.5 billion to $5 billion and gross margin of 18%-18.5%. Timing is uncertain, but CEO Michael Happe said in roughly at least three years time it hopes to achieve these levels. Our midcycle fiscal 2028 gross margin is 14.5% to capture upside and downside profit levels over time, per our methodology, but we model 18% in fiscal 2027.

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is in the teens, up from under 2% before Grand Design, so we see a long growth runway if it can keep chipping into Thor's and Forest River's roughly 80% combined share. In fiscal 2023, towables were about 41% of total revenue compared with just 9% in fiscal 2016. Marine was about 13.5% of fiscal 2023 sales and Barletta is a top five pontoon brand. Management wants non-RV revenue to be 15%-20% of total sales.