Earnings

Winnebago's Fourth-Quarter Revenue Decline Steepens

The Tip Desk · November 8, 2026 · 4 min read

Net revenues fell to $645.1 million as Towable RV deliveries dropped 23.6% and Motorhome RV swung to a $7.9 million operating profit.

Winnebago Industries, Inc. (WGO), a manufacturer of outdoor recreation products, reported fourth-quarter fiscal 2026 net revenues of $645.1 million, down 17.0% from $777.3 million a year earlier. The year-over-year revenue decline widened from 9.9% in the third quarter. The company said the year-over-year decline was driven primarily by lower unit volume and product mix, partially offset by selective price adjustments.

Gross profit was $80.7 million, and gross margin compressed 30 basis points to 12.5% from 12.8% a year earlier, after 13.6% in the third quarter. Winnebago attributed the year-over-year margin decline primarily to volume deleverage, partially offset by operational efficiencies from Motorhome segment transformation initiatives. Operating expenses were $63.1 million, down 20.1% from $79.1 million, primarily due to cost reduction initiatives. Operating income was $17.6 million.

Net income was $9.7 million, or $0.34 a share, compared with $13.7 million, or $0.49 a share, a year earlier. Adjusted earnings per diluted share fell 31.0% to $0.49 from $0.71. Consolidated adjusted EBITDA was $32.6 million, a 5.1% margin, after $37.8 million, or a 5.4% margin, in the third quarter.

Towable RV was the largest drag. Segment net revenues fell 28.1% to $220.3 million on lower unit volume and a shift toward lower price-point models. Operating income fell 56.5% to $9.3 million, and operating margin compressed 280 basis points to 4.2% from 7.0%. Unit deliveries dropped 23.6% to 5,985, with fifth-wheel units down 39.0% to 1,314 and travel trailers down 17.8% to 4,671. The company said the margin decline reflected volume deleverage and higher discounts and allowances, partially offset by cost containment and selective price adjustments.

Motorhome RV net revenues fell 10.4% to $323.6 million, but operating income swung to a $7.9 million profit, a 2.4% margin, from a $0.3 million loss a year earlier. Winnebago said the margin increase came from operational efficiencies from transformation initiatives, lower discounts and allowances, and cost containment, partially offset by volume deleverage. Unit deliveries fell 10.0% to 1,570, with Class A down 53.6% to 187, Class B down 1.1% to 518, and Class C up 5.7% to 865.

Marine net revenues were $92.3 million, down 2.7% on a mix shift toward lower price-point models, partially offset by selective price adjustments. Operating income was $6.6 million, and operating margin held at 7.1%.

Cash and cash equivalents were $181.4 million at quarter end, compared with $57.1 million at the end of the third quarter. Cash flow from operations was $142.5 million. Net leverage improved to 2.2x from 3.0x at the end of the third quarter. Total outstanding debt was $443.3 million. Working capital was $419.1 million. The board approved a 3% increase in the quarterly cash dividend to $0.36 a share, paid September 23, 2026.

President and Chief Executive Officer Michael Happe said fiscal 2026 highlighted portfolio resilience in a persistently challenging retail environment and that the company began to see early signs in the Winnebago Motorhome transformation, stabilizing share trends and improving market share at Grand Design Towables, growing market penetration for Grand Design Motorized, and share growth at Winnebago Towables. He said the company took actions to rationalize capacity and better align its manufacturing footprint with market demand, and that those initiatives remain at different stages of development, with financial contribution expected to build gradually.

For calendar 2026, Winnebago now expects North American RV wholesale shipments of 275,000 to 295,000 units. For calendar 2027, it anticipates 265,000 to 295,000 units. For fiscal 2027, the company expects consolidated net revenues of $2.65 billion to $2.80 billion, reported earnings of $0.90 to $1.50 a share, and adjusted earnings of $1.65 to $2.25 a share. Adjusted EPS guidance primarily excludes about $22 million of pretax intangible amortization and about $6 million of restructuring and related costs. Happe said the fiscal 2027 outlook reflects a market where the timing and pace of recovery remain difficult to predict.

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