Latest news with #GrandDesign
Yahoo
6 days ago
- Business
- Yahoo
WGO Q2 Deep Dive: Margin Pressures Persist as Guidance Cut Amid Weak RV Demand
RV Manufacturer Winnebago (NYSE:WGO) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 1.4% year on year to $775.1 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $2.75 billion at the midpoint. Its non-GAAP profit of $0.81 per share was 2.2% above analysts' consensus estimates. Is now the time to buy WGO? Find out in our full research report (it's free). Revenue: $775.1 million vs analyst estimates of $781.4 million (1.4% year-on-year decline, 0.8% miss) Adjusted EPS: $0.81 vs analyst estimates of $0.79 (2.2% beat) Adjusted EBITDA: $46.5 million vs analyst estimates of $44.72 million (6% margin, 4% beat) The company dropped its revenue guidance for the full year to $2.75 billion at the midpoint from $2.9 billion, a 5.2% decrease Management lowered its full-year Adjusted EPS guidance to $1.45 at the midpoint, a 55.4% decrease Operating Margin: 3.9%, down from 5.5% in the same quarter last year Market Capitalization: $791.4 million Winnebago faced a challenging Q2, with the market responding negatively to its results as ongoing softness in consumer demand and dealer ordering weighed on performance. Management attributed the year-on-year revenue decline and margin compression to a mix shift toward lower-priced travel trailers and continued operational inefficiencies, particularly in its Winnebago-branded Motorhome business. CEO Michael Happe cited "notable downshift in RV activity from consumers and dealers" as a headwind, while also noting that targeted cost actions and a renewed focus on operational discipline are underway. The company also experienced higher warranty costs, which further pressured gross margins during the quarter. Looking ahead, Winnebago's revised full-year outlook reflects cautious expectations around continued market headwinds, including persistent consumer uncertainty and tariff-related cost pressures. Management is prioritizing margin recapture efforts through a refreshed product lineup and operational improvements, with an eye toward stabilizing profitability into 2026. CFO Bryan Hughes emphasized that "modest price increases" are planned to offset tariff impacts, but acknowledged that the volume effect of these actions remains uncertain. The company is also closely monitoring dealer inventory health and expects a slow recovery in wholesale shipments, indicating a measured approach to production and cost management in the coming quarters. Management focused on operational turnaround efforts, product development, and inventory management as key responses to ongoing industry weakness and margin pressures. Product mix shift: The introduction of more affordable Grand Design travel trailers drove higher unit volumes but lowered average selling prices, impacting both revenue and gross margin. Operational inefficiencies: The Winnebago-branded Motorhome business continued to experience margin pressure due to excess inventory, higher discounts, and production challenges, prompting decisive actions to reduce output and improve working capital. Marine segment outperformance: While the RV business struggled, the Barletta and Chris-Craft marine brands posted higher unit sales and gained retail market share, benefiting from disciplined inventory management and new product introductions, such as the Catalina 31 and refreshed Aria lineup. Tariff management strategies: Leadership outlined active efforts to mitigate tariff costs by working with suppliers and adjusting sourcing, but acknowledged a remaining risk of $0.50–$0.75 per share in earnings exposure for the next year if further pricing or mitigation steps fall short. Market share dynamics: Despite weak industry demand, Winnebago gained share in key RV categories, especially with the Grand Design Lineage series, and saw continued momentum in towables and marine, supporting long-term brand positioning. Winnebago's outlook is shaped by expectations for continued industry weakness, targeted margin improvement initiatives, and ongoing tariff uncertainty. Margin recapture plan: Management is implementing a comprehensive strategy to improve profitability, including refreshing the Winnebago Motorhome product line, optimizing the manufacturing footprint, and streamlining operations. These actions are expected to drive margin recovery beginning in 2026, though near-term headwinds remain. Tariff and pricing impacts: The company plans modest price increases across product lines to offset residual tariff costs but warns that further escalation could pressure earnings if not fully mitigated. The effect of these price increases on sales volumes is uncertain, with management monitoring for potential demand elasticity. Dealer inventory health: Maintaining disciplined production and inventory management is a priority, with a long-term goal of achieving a two-times inventory turnover ratio for dealers. This approach may limit revenue growth in the near term but is intended to support long-term channel health and reduce competitive discounting. Looking forward, the StockStory team will be monitoring (1) the pace and effectiveness of operational improvements in the Winnebago-branded Motorhome turnaround, (2) the impact of tariff-driven price increases on both dealer and consumer demand, and (3) ongoing market share trends in marine and RV segments as new products are launched. Updates on cost mitigation efforts and inventory discipline will also be key indicators of progress. Winnebago currently trades at $28.87, down from $31.29 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
7 days ago
- Business
- Yahoo
Winnebago Industries Inc (WGO) Q3 2025 Earnings Call Highlights: Navigating Market Challenges ...
Net Revenues: Declined modestly due to product mix, with lower ASP Grand Design Transcend series travel trailers outpacing broader portfolio. Gross Margin: Declined 130 basis points year-over-year, primarily due to higher warranty experience and product mix. Adjusted EBITDA Margin: Decreased 140 basis points year-over-year, mainly due to lower gross margin. Towable RV Segment Unit Volume: Increased 2.5% due to new Grand Design travel trailers. Motorhome RV Segment Net Revenues: Decreased due to lower unit volume, partially offset by product mix. Motorhome RV Segment Volume: Declined 14.8% year-over-year. Marine Segment Net Revenues: Increased 15% driven by higher unit volume and targeted price increases. Marine Segment Unit Volume: Increased over 11% year-over-year. Free Cash Flow: Negative $81.7 million for the nine-month period. Net Debt-to-EBITDA Ratio: 4.8 times at the end of Q3. Shareholder Returns: Nearly $80 million returned, including $50 million in share repurchases and $29.3 million in dividends. Fiscal 2025 Adjusted EPS Guidance: Reduced to a range of $1.20 to $1.70 per diluted share. Fiscal 2025 Revenue Forecast: Adjusted to a range of $2.7 billion to $2.8 billion. Warning! GuruFocus has detected 4 Warning Signs with WGO. Release Date: June 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Winnebago Industries Inc (NYSE:WGO) has introduced new products, such as the Newmar Freedom Aire and the Grand Design VT Class B van, which are expected to drive future growth. The company has been recognized by Newsweek as one of America's most trustworthy companies for the second consecutive year, highlighting its strong corporate responsibility initiatives. Winnebago Industries Inc (NYSE:WGO) has taken decisive steps to lower field inventory and improve working capital, aligning production schedules with market demand. The Marine segment showed a 15% increase in net revenues, driven by higher unit volume and targeted price increases. Winnebago Industries Inc (NYSE:WGO) continues to gain market share in several core product segments, including Class A gas and diesel motorhomes. The RV market is experiencing a decline, with North America RV retail sales dropping by 8.2% in April, marking the third consecutive month of decline. Winnebago Industries Inc (NYSE:WGO) has lowered its full-year fiscal 2025 adjusted EPS guidance due to market pressures and ongoing business transitions. The company is facing challenges in the Winnebago-branded motorhome business, with a significant decrease in adjusted EBITDA margin due to higher discounts and operational inefficiencies. Tariff-related costs pose a potential risk to fiscal 2026 earnings, with an estimated impact of $0.50 to $0.75 per diluted share. Free cash flow was negative $81.7 million for the nine-month period, driven by operational inefficiencies and excess inventory in the Winnebago-branded motorhome segment. Q: Can you discuss the steps being taken to address challenges in the Winnebago-branded motorhome business? Are there considerations to exit or consolidate parts of this business? A: Michael Happe, President and CEO, explained that the turnaround plan includes reducing production to avoid pushing units with high discounts, improving the value proposition of legacy products, and evaluating the overall cost structure. The company is committed to the Winnebago brand and is exploring strategic options for future business plans. Q: What factors contributed to the 500 basis points decline in motorized business profitability year-to-date? A: Bryan Hughes, CFO, noted that the decline is due to deleverage and increased discounting and allowances necessary to move products in the current market. Q: How do you view the retail environment for the back half of calendar 2025, and what are your expectations for fiscal year 2026? A: Michael Happe stated that the company has tempered its outlook for the remainder of 2025 due to market pressures. While they hoped for a stronger recovery, the inflection point has not occurred. They will provide more guidance for 2026 in future communications. Q: Can you break down the potential $0.50 to $0.75 EPS impact from tariffs in fiscal 2026? A: Michael Happe explained that the tariff impact varies by component, such as motorized chassis and other materials. The company is working to mitigate these costs through supply chain strategies and pricing adjustments. Q: What is the strategy for the Winnebago motorhome segment regarding pricing and innovation? A: Michael Happe emphasized the importance of improving the value proposition and innovation in the Winnebago motorhome lineup. The company is focusing on product development and speed to market to enhance competitiveness. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Rhyl Journal
23-04-2025
- Entertainment
- Rhyl Journal
Grand Designs: Kevin McCloud revisits hypoallergenic house
The Channel 4 show is now entering its 25th series, with previous episodes seeing everything from giant curved glass homes to mansions built out of clay and former water towers. Now, more keen builders are ready to take on the task, not for the faint-hearted, as Kevin travels around the UK to see the new builds in Grand Designs. The latest series kicked off with Sarah and Howard in Worthing, who built their dream "floating home". Tomorrow night, we return to one of the most ambitious building projects we've ever witnessed 👀#GrandDesigns They were followed by Sarah and Pip in Bedfordshire, who brought a "rickety" old barn back to life. In week three, Kevin met 82-year-old Kathryn, who wanted to build an accessible, ultra-sustainable home. Last week saw a revisit to Graeme and Melanie, who completed their 'unapologetically modern' in London. This week sees Kevin return to London as he catches up with Elinor and Born. In the latest episode of the Channel 4 show, Kevin returns to Elinor and Born, whom he last saw in 2017. The couple are building a clean-air, hypoallergenic house in south-west London for them and their three children. The pair wanted to build the home to help with the extreme allergies and serious asthma their sons suffer from. The plan is to build a "partially submerged, shed-like building constructed with low-toxin materials and a powerful ventilation", according to the Radio Times. Recommended Reading From water towers to caves - The best 7 Grand Design builds ever Q&A with Kevin McCloud as he talks all things Grand Designs Grand Designs' 'saddest ever' home had a happy ending Kevin McCloud reveals The 'unusual' back-garden site results in mass access issues on top of the tight schedule, budget and tough decisions. Seven years on from the house being completed, Kevin is back to see if the home has helped the family's health. Grand Designs is on Channel 4 on Wednesday evenings at 9pm and is available to stream on All4.
Yahoo
16-04-2025
- Entertainment
- Yahoo
Kevin McCloud revisits 'unapologetically modern' home in new Grand Designs
Grand Designs is back on screens as Kevin McCloud travels around the UK meeting new ambitious individuals building their dream homes. The Channel 4 show is now entering its 25th series, with previous episodes seeing everything from giant curved glass homes to mansions built out of clay and former water towers. Now, more keen builders are ready to take on the task, not for the faint-hearted, as Kevin travels around the UK to see the new builds in Grand Designs. The latest series kicked off with Sarah and Howard in Worthing, who built their dream "floating home". They were followed by Sarah and Pip in Bedfordshire, who brought a "rickety" old barn back to life. Tomorrow night Kevin revisits Graeme and Mel, whose hugely ambitious Hackney build was hampered by a basement bombshell. Have they finally got out of the red and into their modernist home?#GrandDesigns | Channel 4, Wednesday at 9pm 📺 — granddesigns (@granddesigns) April 15, 2025 In week three, Kevin met 82-year-old Kathryn, who wanted to build an accessible, ultra-sustainable home. This week, it's a Grand Designs revisit to Graeme and Melanie in London. On the latest episode of Grand Designs, Kevin will return to Graeme and Melanie, who had huge ambitions for their new home in Hackney. Architect Graeme planned for the home to be a comfortable haven for themselves and their teenage daughters. However, the build was met with issues when they chose a tiny twin garage plot on a traditional Victorian terraced road for £275,000. Graeme wanted the home to be "an unapologetically modernist bright red design" with a smart interior to maximise space vertically. The couple were soon met with challenges when they had to excavate four metres down in a tight urban site while having a tight 12-month schedule and a tight budget. Recommended Reading From water towers to caves - The best 7 Grand Design builds ever Q&A with Kevin McCloud as he talks all things Grand Designs Grand Designs' 'saddest ever' home had a happy ending Kevin McCloud reveals The build faced more trouble when the basement contractor withdrew from the project due to skyrocketing material costs. 18 months on from Kevin's last visit, the Grand Designs host is back to see if Graeme and Melanie completed their dream home. Grand Designs is on Channel 4 on Wednesday evenings at 9pm and is available to stream on All4.
Yahoo
27-03-2025
- Entertainment
- Yahoo
Grand Designs' 'ugliest home ever' leaves Channel 4 viewers disgusted
Viewers of Channel 4 have been left disgusted following the latest episode of Grand Designs. The show, hosted by Kevin McCloud, returned for its 25th series on Wednesday, March 26, as Sarah and Howard hoped to build their dream home. The couple planned to build a "sleek, angled, metallic floating home" on the estuary near Worthing by dismantling a Second World War landing craft. The 'Grand Design' was built to look like a boat to fit within the local houseboat community. Floating architecture at its finest ⚓️#GrandDesigns | @Kevin_McCloud — granddesigns (@granddesigns) March 26, 2025 Despite Kevin and the brave couple loving the build, Channel 4 viewers at home have branded it the "ugliest home ever". Taking to X, formerly Twitter, one Channel 4 viewer said: "Could this be the ugliest home ever on #GrandDesigns? I think so . . ." Another viewer added: "#granddesigns this could be one of the ugliest and most hideous ever. interior designer, you're having a laugh." Others said the home didn't look "homely", writing: "Doesn't look very homely. All the comfort of a visitor centre." One more viewer opposed to the home said: "Not my thing, and wouldn't be my choice. "Going by the comments tonight, I don't think it would be anyone else's either." Although not everyone was fond of the Grand Designs build, some didn't mind the look: "The outside looks meh, the inside looks amazing." Recommended Reading Couple build dream 'floating' home from WWII landing craft in new Grand Designs Another fan added: "Loved tonight's #granddesigns refreshingly bold brilliant attention to detail and problem solving. "Loved the use of timber to soften interior spaces." Grand Designs is on Channel 4 on Wednesday evenings at 9pm and is available to stream on All4.
