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Winnebago's Q3 Earnings Beat Expectations, Guidance Revised

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Winnebago Industries (WGO - Free Report) reported adjusted earnings of 81 cents per share in the third quarter of fiscal 2025 (ended May 31, 2025), beating the Zacks Consensus Estimate of 79 cents. WGO reported earnings of $1.13 per share in the year-ago period. The recreational vehicle (RV) maker reported revenues of $775.1 million for the quarter under review, missing the Zacks Consensus Estimate of $788 million. The top line also declined 1.39% year over year.

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. Price, Consensus and EPS Surprise

Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote

Segmental Performance

Towable RV: Revenues in the Towable RV segment fell 3.8% year over year to $371.7 million on customers transitioning toward lower price-point models. The metric also missed our estimate of $428.5 million. Total deliveries from the segment came in at 9,495 units, which increased 2.5% year over year but missed our estimate of 10,066 units. Adjusted EBITDA declined 15.7% to $35.4 million owing to high warranty expenses and lower efficiency from selling more lower-margin products. The figure fell short of our estimate of $43.5 million.

Motorhome RV: Revenues in the Motorhome RV segment decreased 2.6% year over year to $291.2 million, mainly because fewer units were sold. The top line, however, beat our estimate of $239.6 million. Total deliveries from the Motorhome RV segment came in at 1,431 units, falling 14.8% year over year, but topped our estimate of 1,309 units. The segment recorded an adjusted EBITDA of $3 million, down 77.7% due to higher discounts and allowances, volume deleverage and operational inefficiencies. The metric also missed our estimate of $16.3 million.

Marine: Revenues from the segment totaled $100.7 million, up 14.6% year over year, primarily due to increased volume and targeted price. The metric topped our estimate of $93.9 million. The total deliveries from the segment came in at 1,254 units, up 11.3% year over year, and topped our estimate of 1,196 units. The segment recorded an adjusted EBITDA of $11.6 million, up 37% year over year due to targeted price increases and leverage. It also surpassed our expectation of $9.8 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Financials & Outlook

Winnebago had cash and cash equivalents of $10.5 million as of May 31, 2025. Long-term debt (excluding current maturities) totaled $539.9 million.

WGO now expects its fiscal 2025 consolidated revenues in the band of $2.7-$2.8 billion, down from the prior expectation of $2.8-$3 billion. Adjusted EPS is now estimated between $1.20 and $1.70 compared with the prior guided range of $2.75-$3.75.

WGO’s Zacks Rank

WGO currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Key Releases from the Auto Space

Autoliv Inc. (ALV - Free Report) reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter. The figure beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.

Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million, and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.

Mobileye Global Inc. (MBLY - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of 8 cents. The figure was in line with the Zacks Consensus Estimate. The company reported a loss of 7 cents per share in the year-ago quarter. Total revenues amounted to $438 million, beating the Zacks Consensus Estimate of $434 million. The metric also rose 83% year over year.

MBLY had cash and cash equivalents of $1.51 billion as of March 29, 2025, compared with $1.43 billion as of Dec. 28, 2024. Operating cash flow for the three months ended March 29, 2025, was $109 million. Capex was $14 million during the same time frame.

Group 1 Automotive (GPI - Free Report) reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks

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