Winnebago Industries Inc (NYSE:WGO) stock fell 0.43% (As on June 26, 11:24:41 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY25. Gross profit was $106.0 million, a decrease of 10.3% compared to $118.2 million in the third quarter of last year. Gross profit margin decreased 130 basis points in the quarter to 13.7%, primarily as a result of higher warranty experience and product mix, partially offset by operational efficiencies compared to prior year. Operating income was $30.2 million, a decrease of 30.7% compared to $43.5 million in the third quarter of last year. Net income was $17.6 million, compared to net income of $29.0 million in the third quarter of last year. Consolidated Adjusted EBITDA was $46.5 million, a decrease of 19.8%, compared to $58.0 million in the third quarter of last year.
Moreover, As of May 31, 2025, cash and cash equivalents totaled $10.5 million. The Company had total outstanding debt of $539.9 million ($550.0 million of debt, net of debt issuance costs of $10.1 million) and working capital of $444.2 million. Cash flow used in operations was $25.3 million in the fiscal 2025 third quarter.
WGO in the third quarter of FY25 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 1.4 percent to $775.1 million in the third quarter of FY25, missing the analysts’ estimates for revenue by 0.03%. This is driven by a reduction in average selling price per unit related to product mix, partially offset by targeted price increases. Volume growth in the Towable RV and Marine segments was partially offset by volume reductions in the Motorhome RV segment, as dealers continue their efforts to right-size field inventories in this segment.
Winnebago Industries has updated its fiscal 2025 guidance, projecting net revenues in the range of $2.7 billion to $2.8 billion. The company anticipates reported earnings per diluted share to fall between $0.50 and $1.00, with adjusted earnings per diluted share expected to range from $1.20 to $1.70.
Looking ahead, Winnebago plans to implement a comprehensive margin recapture plan for its motorhome business, focusing on refreshing the product line and boosting operational efficiency. As the appeal of outdoor lifestyles continues to grow, particularly among younger and more diverse consumers, the company is optimistic about its potential for meaningful growth across its portfolio once market conditions stabilize.