Winnebago Industries Reports Decline in Revenue and Net Income for Q3 and Nine Months of Fiscal 2025

Winnebago Industries, Inc. reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended May 31, 2025, the company recorded net revenues of $775.1 million, a decrease of 1.4% from $786.0 million in the same period last year. The nine-month figures also reflected a significant drop, with revenues totaling $2.02 billion, down 10.3% from $2.25 billion in the prior year. The company's net income for the quarter was $17.6 million, a 39.1% decline from $29.0 million, while net income for the nine months fell to $12.0 million from $42.1 million, marking a 71.4% decrease.

The decrease in revenue and profitability was attributed to a combination of factors, including a reduction in average selling prices due to product mix shifts and lower unit volumes, particularly in the Motorhome RV segment. The company noted that dealers were managing their inventory levels cautiously in response to macroeconomic conditions, which included inflation and elevated interest rates. This cautious approach led to a decline in unit deliveries, particularly in the Motorhome RV segment, which saw a 23.3% drop in total units delivered compared to the previous year.

In terms of operational developments, Winnebago has made strategic moves to enhance its product offerings. The company established a new operating segment for Grand Design motorhomes in the first quarter of fiscal 2025, which is expected to contribute positively to its Motorhome RV segment in the long term. Additionally, the company reported an increase in revenues from its Marine segment, which rose 14.6% to $100.7 million, driven by higher unit volumes and targeted price increases.

Winnebago's balance sheet showed total assets of $2.13 billion as of May 31, 2025, down from $2.38 billion at the end of the previous fiscal year. The company’s cash and cash equivalents significantly decreased to $10.5 million from $330.9 million, primarily due to cash used in financing activities, including the repurchase of senior secured notes. The company also reported a total debt of $550.0 million, down from $709.3 million, reflecting its ongoing efforts to manage its capital structure effectively.

Looking ahead, Winnebago anticipates that as consumer demand stabilizes, dealers will return to more stable ordering patterns. The company remains focused on aligning production schedules with market demand and improving working capital management. Despite the current economic challenges, Winnebago expresses confidence in the long-term health of consumer demand for RV and marine products, indicating a commitment to adapt and innovate in response to market conditions.