Winnebago Industries Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Hardiman - Citibank Cameroon SA - Analyst : Hey, good morning. So I wanted to dig into the guidance a little bit, let's start with the industry numbers. I'm having a tough time getting the full year shipment numbers to foot. I guess what are your assumptions for retail for '25 and '26? I think you said flattish for '26, but where do you expect that to finish in 2025? It seems like, based on your wholesale assumption, that we're still going to be looking at a pretty meaningful inventory reduction at the industry level in '25. Is that -- is that right?

Question: James Hardiman - Citibank Cameroon SA - Analyst : That makes sense. But then I guess, if -- putting Marine aside for the second -- for a second, if I just think about 2025 in which there was significant destock and then a 2026 where if we assume 1:1 wholesale to retail, that would seem to suggest material growth in wholesale if retail is in fact flat. And so help me understand like RVIA, for example, has a meaningfully higher shipment number at their midpoint. I just want to make sure I'm not missing something. And maybe one way to talk about it is in the context of your business. I think you finished at 1.9 times for the fiscal year. Do you expect that number to go higher next year? Or how should I think about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 2:00PM, WGO.N - Q4 2025 Winnebago Industries Inc Earnings Call

Question: James Hardiman - Citibank Cameroon SA - Analyst : Okay. And just -- sorry, just to put a finer point on it, if 330,000 is the expectation for wholesale and retail next year, what do you have penciled in for retail this year? Because at least based on my numbers, that would suggest a much bigger decline than where we've been year-to-date. Do you expect the last, I don't know, four or five months of the year to be down significantly in terms of retail? Or is my math off here somewhere?

Question: James Hardiman - Citibank Cameroon SA - Analyst : Got it. That's really helpful. Thanks guys.

Question: Craig Kennison - Robert W. Baird & Co Inc - Analyst : I had a question around market share. You've had a really good story in the last five years with respect to market share in RVs and in Marine, but at least in RVs that appeared to take a step back in fiscal 2025, and that's probably due to a mix shift favoring some low-end units where you just don't play aggressively. I guess I'm wondering what's your view on market share trends for your brand, especially if this trend towards low-end RV units persist?

Question: Craig Kennison - Robert W. Baird & Co Inc - Analyst : And I wondered if you would also just compare the RV consumer versus the Marine consumer today? And then how those dealer bodies view the market differently?

Question: Joseph Altobello - Raymond James & Associates Inc - Analyst : Mike, that was actually a good segue into my question. But if we think about the guidance for '26, and I think at the midpoint, it implies about $0.70 of earnings improvement, call it. Based on my math, the improvement in motorhome margins is all of that and then some. So I guess my first question there is how much visibility or line of sight do you have into those cost improvements for this year?

Question: Joseph Altobello - Raymond James & Associates Inc - Analyst : Got it. Very helpful. Is there pricing involved here, too, particularly with tariffs? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 2:00PM, WGO.N - Q4 2025 Winnebago Industries Inc Earnings Call Bryan Hughes - Winnebago Industries Inc - Chief Financial Officer, Senior Vice President - Finance, IT and Strategic Planning Yeah. Pricing is some of the story, but that really is an offset to the increased cost as you referenced, as it pertains to tariffs. So I wouldn't call that out as a margin improvement in terms of pricing through tariffs. I think it's more the better position product lineup and the reduction in the incentives that are required.

Question: Patrick Buckley, CFA - Jefferies LLC - Analyst : This is Patrick Buckley on for Bret. Could you talk a bit more about any takeaways from the RV open house? Anything notable as far as recent retail demand or year-over-year sales trends? And I guess, how did that general sentiment from the open house factor into the '26 outlook?

Question: Patrick Buckley, CFA - Jefferies LLC - Analyst : Got it. That's helpful. Thank you. And then just following up on the tariff questions. Are you expecting any specific or maybe incremental chassis impact from the most recent tariffs on medium-duty trucks?

Question: Patrick Buckley, CFA - Jefferies LLC - Analyst : Got it. That's all for us. Thanks, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 2:00PM, WGO.N - Q4 2025 Winnebago Industries Inc Earnings Call

Question: Patrick Scholes - Truist Securities - Analyst : Any color on ASP expectations for the upcoming year by segment category that you might be able to provide? Thank you. Bryan Hughes - Winnebago Industries Inc - Chief Financial Officer, Senior Vice President - Finance, IT and Strategic Planning Yeah, I'll take that one, Mike. Generally speaking, we'll have some favorability in the Motorhome business just from a perspective of declining incentives that are required to move that product. I mentioned that earlier. For the most part, that's the story in motorized. In Towables, I think we'll have a couple of different stories. I think we'll have pricing that will be a natural lift to ASPs in the coming year. That will be offset in many respects by continued mix shift towards affordability-minded consumers. And then on the Marine side, we expect, again, some negative mix. We've got growth that's occurring at the lower end of Barletta's offering. And then we also have, within the Chris-Craft business, the Sportster which is showing high receptivity and that drives an unfavorable mix, those being offset by some modest pricing activity. So not as much volatility downward, I'd say, as what we've experienced in the past, call it, 18 months, more stability, still some negative mix impacts offset by some pricing.

Question: Noah Zatzkin - KeyBanc Capital Markets Inc - Analyst : I guess most of my questions have been asked and answered, but maybe just one on warranty expense. Any way we should be thinking about warranty expenses in FY26 relative to '25? And just anything to be aware of there?

Question: Noah Zatzkin - KeyBanc Capital Markets Inc - Analyst : Very helpful. Thank you.