OneWater Marine Inc. (ONEW) Q4 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 15 2024
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Should l Buy ONEW?
Source: SeekingAlpha
Fiscal Fourth Quarter Revenue $378 million, a decrease of 16% from $451 million in 2023 due to disruptions caused by Hurricane Helene.
New Boat Sales $217 million, down 18% from the previous year.
Pre-Owned Boat Sales $73 million, a decrease of 20% year-over-year.
Service Parts and Other Sales $76 million, down 7% from the prior year.
Finance and Insurance Revenue $11 million, a decrease of 12% in the fourth quarter.
Gross Profit $91 million, down 24% from $119 million in 2023, impacted by return to pre-COVID margins and restructuring charges.
Selling, General and Administrative Expenses (SG&A) $80 million, down from $85 million, representing 21% of sales, up 220 basis points due to lower sales.
Operating Income Increased by $4 million from a loss of $117 million in the previous year.
Adjusted EBITDA $8 million, down from $30 million in the prior year.
Net Loss for Fiscal Fourth Quarter $10 million or $0.63 per diluted share, compared to a net loss of $111 million or $6.89 per diluted share in 2023.
Adjusted Loss per Diluted Share $0.36 compared to an adjusted earnings per diluted share of $0.42 in the previous year.
Full Year Revenue $1.8 billion, an 8% decrease compared to the prior year.
Same-Store Sales Decreased 7% for fiscal 2024, impacted by softer retail environment and weather-related closures.
Service Parts and Other Revenue for Fiscal 2024 $291 million, down 10% year-over-year.
Full Year Gross Profit $435 million, a decrease of 19% from the previous year.
Gross Profit Margin for Fiscal 2024 24.5%.
Full Year SG&A Expenses $333 million, or 18.8% of revenue, down from $346 million or 17.8% of revenue in 2023.
Full Year Operating Income $65 million, compared to $18 million in the prior year.
Net Loss for Fiscal Year 2024 $6 million or $0.39 per diluted share, compared to a net loss of $39 million or $2.69 per diluted share in the prior year.
Adjusted EBITDA for Fiscal Year 2024 $82 million, down from $5.10 per diluted share in 2023.
Total Liquidity as of September 30, 2024 $30 million, including $17 million in cash.
Total Inventory as of September 30, 2024 $591 million, down from $599 million on June 30, 2024.
Total Long-Term Debt as of September 30, 2024 $423 million, resulting in a net leverage of 4.9 times trailing 12-month adjusted EBITDA.
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Analyst Views on ONEW
About ONEW
OneWater Marine Inc. is a premium marine retailer in the United States. The Company operates a total of approximately 95 retail locations, six distribution centers/warehouses and multiple online marketplaces in 18 different states. The Company's segments include Dealerships and Distribution. The Dealership segment is engaged in the sale of new and pre-owned boats, arranges financing and insurance products, performs repairs and maintenance services, offers marine related parts and accessories and offers slip and storage accommodations in certain locations. The Distribution segment is engaged in the manufacturing, assembly and distribution primarily of marine-related products to distributors, big box retailers and online retailers through a network of warehouses and distribution centers. It offers a range of branded parts and accessories including jack plates, bilge pumps, rigging parts, plumbing components, LED lighting, storage systems and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OneWater Marine Misses Q1 Revenue Expectations
- Revenue Shortfall: OneWater Marine reported Q1 revenue of $442.3 million, an 8.5% year-over-year decline that fell short of analyst expectations of $482.1 million, indicating challenges in the retail environment and lower demand for new boats.
- Adjusted EPS Loss: The company posted an adjusted loss of $0.34 per share, significantly below the consensus estimate of $0.07, reflecting a substantial decline in profitability that could negatively impact investor confidence.
- Guidance Downgrade: Management lowered its full-year revenue guidance to $1.83 billion from $1.88 billion, a 2.7% decrease, while also reducing adjusted EPS expectations by 10%, signaling a cautious outlook on market conditions.
- Inventory Management Strength: Despite the sales decline, OneWater's gross margin improved by 110 basis points due to a richer mix of premium brands and disciplined pricing strategies, with management emphasizing that healthy inventory levels will support future sales performance.
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OneWater (ONEW) Q2 2026 Earnings Transcript
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- Sales Decline: OneWater Marine reported Q2 revenue of $442 million, falling short of analysts' expectations of $478 million, primarily due to a 12% decrease in new boat sales and an 8% drop in same-store sales, reflecting challenges in the retail environment and portfolio changes.
- Margin Improvement: Despite the revenue decline, gross profit margin improved to 23.9%, indicating progress in cost control and operational efficiency, which is expected to support future profitability.
- Debt Reduction and Liquidity: The company repaid $57 million of debt during the quarter, ending with $68 million in cash and total liquidity of approximately $73 million, demonstrating ongoing efforts to reduce financial leverage with a target of below 4x by fiscal year-end.
- Unchanged Outlook: Management reiterated full-year revenue guidance of $1.78 billion to $1.88 billion, despite facing industry demand pressures and portfolio changes, reflecting confidence and stability in the company's market position.
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- Revenue Expectations Decline: The anticipated revenue for Q2 stands at $478.56 million, down 1.1% year-over-year, which suggests weakening market demand and increasing competition that could hinder future growth prospects for the company.
- Historical Performance Review: Over the past two years, OneWater Marine has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, highlighting uncertainty in the company's ability to meet earnings forecasts.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and four downward revisions, while revenue estimates have experienced no upward revisions and five downward revisions, indicating a declining market confidence in the company's future performance.
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- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing transparency for investors regarding the company's operations.
- Webcast Availability: The conference call will be available via live webcast on the company's investor relations webpage and archived for one year, ensuring that investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services, which underscores its strong competitive position in the marine retail market.
See More
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- Earnings Release Schedule: OneWater Marine will announce its Q2 2026 financial results on April 30, 2026, before market opening, reflecting the company's performance in the rapidly growing marine retail sector.
- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing investor understanding of the company's performance.
- Webcast Availability: The conference call will be available via live webcast on the company's Investor Relations section and archived for one year, ensuring investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services including new and pre-owned boat sales, finance, insurance, and maintenance services.
See More
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- Adjusted EPS Loss: The company posted an adjusted loss of $0.34 per share, significantly below the consensus estimate of $0.07, reflecting a substantial decline in profitability that could negatively impact investor confidence.
- Guidance Downgrade: Management lowered its full-year revenue guidance to $1.83 billion from $1.88 billion, a 2.7% decrease, while also reducing adjusted EPS expectations by 10%, signaling a cautious outlook on market conditions.
- Inventory Management Strength: Despite the sales decline, OneWater's gross margin improved by 110 basis points due to a richer mix of premium brands and disciplined pricing strategies, with management emphasizing that healthy inventory levels will support future sales performance.
See More
OneWater (ONEW) Q2 2026 Earnings Transcript
See More
OneWater Marine Inc. Q2 2026 Earnings Call Insights
- Sales Decline: OneWater Marine reported Q2 revenue of $442 million, falling short of analysts' expectations of $478 million, primarily due to a 12% decrease in new boat sales and an 8% drop in same-store sales, reflecting challenges in the retail environment and portfolio changes.
- Margin Improvement: Despite the revenue decline, gross profit margin improved to 23.9%, indicating progress in cost control and operational efficiency, which is expected to support future profitability.
- Debt Reduction and Liquidity: The company repaid $57 million of debt during the quarter, ending with $68 million in cash and total liquidity of approximately $73 million, demonstrating ongoing efforts to reduce financial leverage with a target of below 4x by fiscal year-end.
- Unchanged Outlook: Management reiterated full-year revenue guidance of $1.78 billion to $1.88 billion, despite facing industry demand pressures and portfolio changes, reflecting confidence and stability in the company's market position.
See More
OneWater Marine Set to Announce Q2 Earnings on April 30
- Earnings Announcement Date: OneWater Marine is scheduled to release its Q2 earnings on April 30 before market open, with a consensus EPS estimate of $0.07, reflecting a significant 46.2% year-over-year decline, indicating profitability challenges ahead.
- Revenue Expectations Decline: The anticipated revenue for Q2 stands at $478.56 million, down 1.1% year-over-year, which suggests weakening market demand and increasing competition that could hinder future growth prospects for the company.
- Historical Performance Review: Over the past two years, OneWater Marine has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, highlighting uncertainty in the company's ability to meet earnings forecasts.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and four downward revisions, while revenue estimates have experienced no upward revisions and five downward revisions, indicating a declining market confidence in the company's future performance.
See More
OneWater Marine to Release Q2 2026 Financial Results on April 30
- Earnings Release Schedule: OneWater Marine Inc. will announce its second quarter financial results for 2026 before the market opens on April 30, showcasing the company's performance in the rapidly growing marine retail sector.
- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing transparency for investors regarding the company's operations.
- Webcast Availability: The conference call will be available via live webcast on the company's investor relations webpage and archived for one year, ensuring that investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services, which underscores its strong competitive position in the marine retail market.
See More
OneWater Marine to Release Q2 2026 Financial Results on April 30
- Earnings Release Schedule: OneWater Marine will announce its Q2 2026 financial results on April 30, 2026, before market opening, reflecting the company's performance in the rapidly growing marine retail sector.
- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing investor understanding of the company's performance.
- Webcast Availability: The conference call will be available via live webcast on the company's Investor Relations section and archived for one year, ensuring investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services including new and pre-owned boat sales, finance, insurance, and maintenance services.
See More
