- Operating Loss Improvement: Fiscal 2025 operating loss narrowed to $16.2M, down from $29.9M in 2024.
- Fishing Segment Success: Humminbird’s XPLORE Series and MEGA Live 2 fishfinders drove demand, winning awards at ICAST.
- Camping & Watercraft Performance: Segment declined due to Eureka! inventory closeout, but jetboil and Old Town kayaks showed strong growth, excluding Eureka! sales (2% growth).
- Diving Sales Growth: Sales increased from regional market improvements, aided by the successful launch of Hydros Pro 2 buoyancy control device.
- Financial Strength: Gross margin improved to 35.1%, operating expenses reduced by $20.2M (8%), and positive cash flow sustained for three consecutive years with a debt-free balance sheet.
Segment Performance
The company's fishing segment drove growth, with demand exceeding expectations for Humminbird's new XPLORE Series and MEGA Live 2 fishfinders. The Camping and Watercraft segment saw a 2% growth, excluding the impact of Eureka! inventory closeout, driven by strong demand for JetBoil's new fast boil cooking systems and Old Town's fishing kayak line. The Diving segment also reported sales growth, fueled by modest regional market improvements and the successful launch of the Hydros Pro 2 buoyancy control device.
Operational Highlights and Outlook
The company made significant progress in inventory management and achieved operational efficiencies. As CFO Dave Johnson reviewed the financial highlights, it was clear that the company's focus on new product innovation and cost management paid off. With a robust product pipeline and a healthy cash position, Johnson Outdoors is poised for future success. Analysts estimate revenue growth of 10.0% for the next year, indicating a positive outlook.
Valuation and Return Metrics
With a P/S Ratio of 0.76 and a P/B Ratio of 1.08, Johnson Outdoors' valuation appears reasonable. However, the EV/EBITDA ratio of 23.22 suggests that the market is pricing in significant future growth. Return metrics, such as ROIC and ROE, are negative due to the company's recent losses, but the improving trend is encouraging. The Dividend Yield of 3.0% and Free Cash Flow Yield of 17.46% are attractive, indicating a potentially undervalued stock.