OneWater Marine Reports $375.8 Million Revenue with Increased Losses in Latest Quarter

OneWater Marine Inc. reported a total revenue of $375.8 million for the three months ended December 31, 2024, marking a 3.2% increase from $364.0 million in the same period of the previous year. The growth was driven by a $6.9 million increase in new boat sales, which reached $248.0 million, and a $3.5 million rise in pre-owned boat sales, totaling $56.8 million. Additionally, finance and insurance income rose by 27.7% to $9.4 million. However, the company experienced a decline in gross profit, which fell to $84.1 million, an 8.1% decrease compared to $91.4 million in the prior year, primarily due to reduced margins on new and pre-owned boats.

The company's operational performance showed significant changes compared to the previous fiscal period. OneWater Marine recorded a loss from operations of $1.97 million, a stark contrast to the income of $6.47 million reported in the same quarter of 2023. This shift was attributed to a decrease in gross profit and an increase in depreciation and amortization expenses. The net loss attributable to OneWater Marine Inc. was $11.97 million, compared to a loss of $7.17 million in the prior year, reflecting a 70.8% increase in net loss.

Strategically, OneWater Marine has continued to expand its footprint, operating 96 retail locations across 19 states as of December 31, 2024. The company also completed the acquisition of the remaining 20% interest in Quality Assets and Operations, LLC, bringing its ownership to 100%. This acquisition is expected to enhance OneWater's distribution capabilities and product offerings. The company has focused on improving its finance and insurance sales, which have become a significant revenue stream.

Operationally, the company reported a decrease in customer engagement metrics, with a noted decline in service, parts, and other sales, which fell to $61.6 million from $62.3 million year-over-year. The company’s inventory levels increased to $636.7 million, up from $590.8 million, indicating a strategic focus on maintaining stock levels amid fluctuating demand. The employee headcount remained stable, supporting the operational needs of the expanded dealership network.

Looking ahead, OneWater Marine anticipates continued challenges due to economic conditions, including rising interest rates and consumer spending patterns. The company remains committed to its growth strategy through acquisitions and enhancing its service offerings. Management expressed confidence in the company's ability to navigate these challenges and capitalize on market opportunities, although they acknowledged the potential for adverse impacts from external economic factors.