Winnebago Industries, Inc. (NYSE: WGO) is a prominent American manufacturer of outdoor lifestyle products, including motorhomes, travel trailers, and marine vessels. The company has reported its financial results for the second quarter of fiscal 2025, which ended on March 1, 2025.

In this quarter, Winnebago reported net revenues of $620.2 million, a decline of 11.8% compared to $703.6 million in the same quarter of the previous year. The decrease in revenue is attributed to a reduction in average selling prices per unit linked to product mix, though it was partially offset by targeted price increases and higher unit volume in the company’s Towable RV and Marine segments.

Gross profit for the quarter was $83.1 million, reflecting a gross margin of 13.4%, down from 15.0% a year earlier, leading to a 21.1% decline year-over-year. Operating income reached $7.8 million, representing a 78.0% decrease from $35.4 million in the prior year. The net loss was calculated at $0.4 million or $0.02 per diluted share, an improvement from a net loss of $12.7 million or $0.43 per diluted share in the same quarter of the prior year. Adjusted earnings were $0.19 per diluted share, a 79.6% decrease from the previous year’s $0.93.

Adjusted EBITDA was reported at $22.8 million, which translates to an adjusted EBITDA margin of 3.7%, down from 6.9% in the prior year. This represents a decline of 54.2% year-over-year.

Winnebago’s Towable RV segment exhibited modest revenue growth, generating $288.2 million, up 1.2% from $284.7 million in the previous year, but with adjusted EBITDA falling to $17.0 million, a decline of 36.5%. Conversely, the Motorhome RV segment reported revenues of $235.6 million, a significant drop of 30.4% compared to $338.4 million last year, with adjusted EBITDA also decreasing to $5.2 million, down 79.8%. The Marine segment, however, showed growth, with revenues of $81.7 million, a 17.1% increase, and adjusted EBITDA rising to $7.7 million, a 75.7% increase year-over-year.

On the balance sheet, Winnebago ended the quarter with total outstanding debt of $598.7 million. The company implemented a cash tender offer to repurchase $100 million of its senior secured notes due in 2028. Cash flow used in operations for the quarter amounted to $27.2 million.

Looking ahead, Winnebago revised its fiscal 2025 guidance downwards, estimating consolidated revenues between $2.8 billion to $3.0 billion, down from a prior forecast of $2.9 billion to $3.2 billion. The adjusted earnings per share guidance was updated to a range of $2.75 to $3.75, down from $3.10 to $4.40. The impacted guidance reflects concerns regarding consumer confidence and a challenging retail environment in the outdoor products market.