Winnebago Earnings Surprise Raises Guidance

Winnebago Industries (WGO) reported fiscal first-quarter results on Dec. 19, 2025, showing a swing to profit driven by stronger motorhome and towable RV demand. Management raised fiscal-2026 guidance following the earnings beat.

Quarter Results and Drivers

For the fiscal first quarter ended Nov. 29, 2025, Winnebago posted net revenues of $702.7 million, up 12.3% from $625.6 million a year earlier and above the Street consensus of $636.2 million. The company said the quarter reflected broad strength across its vehicle businesses.

Gross profit rose 15.9% to $89.0 million, with gross margin expanding to 12.7% from 12.3%. Volume leverage drove margin gains despite higher warranty expenses. Operating income turned positive at $13.8 million, compared with an operating loss of $0.9 million a year earlier.

Net income was $5.5 million, or $0.19 per diluted share, reversing a net loss of $5.2 million in the prior-year period. Adjusted earnings per share reached $0.38, up from an adjusted loss of $0.03 and beating the Street’s expectation of $0.13.

Adjusted EBITDA more than doubled to $30.2 million from $14.4 million a year earlier. Cash provided by operations improved to $25.4 million from an outflow of $16.7 million. These shifts indicate a marked operational turnaround.

Momentum centered on motorhome and towable RV segments, driven by higher unit volumes, new products, and pricing. Marine revenues increased modestly. Executives attributed the quarter’s gains to product mix and recent launches.

Balance Sheet and Outlook

At quarter end, Winnebago held $181.7 million in cash and $541.0 million in total debt, reducing net leverage to 2.7 times from 3.1 times at fiscal 2025 year-end. Working capital stood at $488.1 million. The leverage decline followed improved earnings and operating cash flow.

The company raised fiscal 2026 guidance, projecting consolidated net revenues of $2.8 billion to $3.0 billion, up from a prior range of $2.75 billion to $2.95 billion. Reported EPS guidance increased to $1.40 to $2.10 from $1.25 to $1.95, while adjusted EPS was raised to $2.10 to $2.80 from $2.00 to $2.70.

Winnebago updated its industry outlook, setting North American wholesale RV shipments for calendar 2025 at 335,000 to 345,000 units, with a midpoint of 340,000 versus a prior midpoint of 330,000. The 2026 shipment range remains unchanged at 315,000 to 345,000 units.

Management said second-quarter fiscal 2026 results would be seasonally lower than the first quarter but stronger year over year, assuming current tariffs, competition, and macroeconomic conditions.

The quarter’s revenue growth, margin expansion, and improved cash flow prompted the guidance raise, reflecting management’s confidence in sustained demand and operating leverage across core RV lines.