Latest news with #Winnebago
Axios
a day ago
- Business
- Axios
Backlash grows as Iowa closes historic research center
The State Historical Society of Iowa (SHSI) is closing its historic Centennial Building research center in Iowa City, will no longer edit the Annals of Iowa journal, and has ended its popular mobile museum. Why it matters: The decisions were made without public input and risk abandoning a core SHSI mission to safeguard the state's heritage, according to an online petition from the Save Iowa History Coalition. Catch up quick: SHSI staff made the decisions in the last six weeks with the help of the Iowa Department of Administrative Services (DAS) as the agency faces a projected $800,000 budget shortfall. The staff had only a few weeks to close a budget gap for the fiscal year that starts in July 2026, Valerie Van Kooten, administrator of the SHSI, told the SHSI Board of Trustees in a meeting last week. The decisions did not require the board's approval, DAS director Adam Steen told trustees who asked why they hadn't been informed about the research center closure prior to a June 17 press release. State of play: The SHSI has used the Centennial Building as a research center for nearly 70 years, providing public access to tens of thousands of one-of-a-kind documents, photos and newspaper articles. The building needs at least $750,000 in maintenance, which factored into the decision to close it, Van Kooten told the board last week. A $5 million revamp of archival storage at the State Historical Building in DSM will be completed in 2028 and will accommodate the Centennial Building's collections, SHSI said in a news release. Zoom in: Annals of Iowa, which has been part of the government for more than 160 years, will no longer be edited by the state starting in July 2026. SHSI staff are seeking a collaboration with a state university to take over the work. Meanwhile, SHSI recently ended its Mobile Museum — a 38-foot custom-built Winnebago that had traveled to every county in the state multiple times since 2017 — because of costly repairs, Van Kooten said. What they're saying:"You're not being transparent," Mary Bennett, a retired special collections coordinator at the Iowa City site, told SHSI staff in a contentious public meeting last week. "Gov. Reynolds and your office made this decision unilaterally, relying on a very small handful of people, and I'm sorry, but this is erasing our history," Bennett said. The other side: Historical items will be protected and the service decisions will ultimately position the SHSI to grow, Steen said at last week's meeting.
Yahoo
5 days ago
- Automotive
- Yahoo
1 Industrials Stock for Long-Term Investors and 2 to Ignore
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. Thankfully, industrial end markets were stable over the past six months as the industry's 1.5% gain has nearly mirrored the S&P 500. Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Taking that into account, here is one industrials stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $25.06 billion Spun off from Danaher in 2023, Veralto (NYSE:VLTO) provides water analytics and treatment solutions. Why Are We Out on VLTO? 3.6% annual revenue growth over the last two years was slower than its industrials peers Estimated sales growth of 3.6% for the next 12 months is soft and implies weaker demand Earnings per share fell by 1.7% annually over the last two years while its revenue grew, partly because it diluted shareholders Veralto's stock price of $101.12 implies a valuation ratio of 27.2x forward P/E. Check out our free in-depth research report to learn more about why VLTO doesn't pass our bar. Market Cap: $802.5 million Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles. Why Do We Avoid WGO? Products and services are facing significant end-market challenges during this cycle as sales have declined by 16.1% annually over the last two years Diminishing returns on capital suggest its earlier profit pools are drying up Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $28.77 per share, Winnebago trades at 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than WGO. Market Cap: $6.06 billion Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Why Is ROAD a Good Business? Exciting sales outlook for the upcoming 12 months calls for 40.5% growth, an acceleration from its two-year trend Earnings per share have massively outperformed its peers over the last two years, increasing by 91% annually Historical investments are beginning to pay off as its returns on capital are growing Construction Partners is trading at $108.09 per share, or 45.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today 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
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
Yahoo
25-06-2025
- Business
- Yahoo
Compared to Estimates, Winnebago (WGO) Q3 Earnings: A Look at Key Metrics
Winnebago Industries (WGO) reported $775.1 million in revenue for the quarter ended May 2025, representing a year-over-year decline of 1.4%. EPS of $0.81 for the same period compares to $1.13 a year ago. The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $775.32 million. With the consensus EPS estimate being $0.79, the EPS surprise was +2.53%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Unit deliveries - Total Motorhome RV: 1,431 versus 1,368 estimated by three analysts on average. Unit deliveries - Total Towable RV: 9,495 versus 10,218 estimated by three analysts on average. Unit deliveries - Marine - Boats: 1,254 versus 1,303 estimated by two analysts on average. Net Revenues- Motorhome RV: $291.20 million versus $273.52 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change. Net Revenues- Marine: $100.70 million compared to the $97.21 million average estimate based on four analysts. The reported number represents a change of +14.6% year over year. Net Revenues- Towable RV: $371.70 million versus $410.07 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -3.8% change. Adjusted EBITDA- Towable RV: $35.40 million versus $40.40 million estimated by two analysts on average. Adjusted EBITDA- Marine: $11.60 million compared to the $10.49 million average estimate based on two analysts. Adjusted EBITDA- Motorhome RV: $3 million compared to the $11.21 million average estimate based on two analysts. View all Key Company Metrics for Winnebago here>>>Shares of Winnebago have returned -8.8% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
