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Winnebago: Winnebago Industries' Strong Q1 Performance and Optimistic Guidance

Winnebago Industries reported a robust financial performance in the first quarter of fiscal 2026, with net revenue growth exceeding 12% and adjusted earnings per diluted share of $0.38, significantly beating estimates of $0.1325. The company's revenue growth was driven by double-digit percentage growth in both the towable RV and motorhome RV segments, while the marine segment saw low single-digit growth. The company's operating expenses declined 3.2% compared to the prior year, primarily due to a cost reduction initiative implemented in 2025. Adjusted EBITDA more than doubled year over year to $30.2 million.

WGO

USD 44.41

1.9%

A-Score: 4.0/10

Publication date: December 19, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth Across Segments: Net revenue grew over 12% YoY, with double-digit growth in towable RV and motorhome segments.
  • Adjusted EPS Improvement: Adjusted EPS surged to $0.38 vs. a $0.03 loss last year, driven by margin expansion and cost cuts.
  • Product Strategy Shift: Lower-priced models (e.g., Transcend, Thrive) gained traction, aligning with affordability-focused consumer demand.
  • EBITDA Growth: Adjusted EBITDA more than doubled to $30.2M, reflecting operational efficiency and pricing discipline.
  • Guidance Raise: Full-year revenue projected at $2.8B–$3B, with adjusted EPS of $2.10–$2.80, supported by share gains and margin recaptures.

Segment Performance

The company's motorhome RV business saw significant growth, with increased market share in Class A gas, Class A diesel, and Class C. The towable RV segment also performed well, driven by the success of new products such as the Transcend series and the Grand Design Imagine. The marine segment, while slightly below prior year due to industry softness, still contributed to the company's overall growth.

Guidance and Outlook

Winnebago Industries raised its fiscal 2026 full-year guidance, with consolidated net revenues expected to be in the range of $2.8 billion to $3 billion and adjusted earnings per diluted share in the range of $2.10 to $2.80. The company expects a modest increase in Q2 sales driven by growth in the Motorhome segment, with EPS expected to be flat to up modestly compared to the prior year. The company's guidance reflects its confidence in its ability to drive market share and expand margins.

Valuation and Metrics

With a P/E Ratio of 33.88 and an EV/EBITDA of 9.39, the company's valuation appears to be reasonable, considering its strong growth prospects and improving profitability. The company's ROE of 2.98% and ROIC of 3.15% indicate a stable return profile. The Net Debt / EBITDA ratio of -1.24 suggests a healthy balance sheet. Analysts estimate next year's revenue growth at 3.9%, which is relatively conservative compared to the company's current momentum.

Operational Highlights

The company is making progress in its transformation initiatives, including the refresh of its flagship Winnebago motorhomes business and the introduction of new products such as the Winnebago Towables line and the ARIA from Barletta. The Grand Design Motorized brand has exceeded $100 million in net revenue and is on track to meet its multi-year plan. As Bryan Hughes noted, the company is monitoring macro indicators and is positioned for an upgrade cycle, with brands that offer innovation, quality, and a great aftermarket customer experience.

Winnebago's A-Score