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01/10 16:03
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary presents a mixed but overall negative outlook. Financial performance shows declining revenue and margins, with industry sales expected to drop significantly. Despite some operational improvements, macroeconomic uncertainties, high debt levels, and lack of shareholder return initiatives weigh heavily. The Q&A section reveals strategic discounting and unclear management responses, adding to concerns. Updated guidance reflecting lower sales and EBITDA due to tariffs and economic conditions further supports a negative sentiment. Given these factors, the stock price is likely to react negatively in the short term.
Revenue $484 million (decreased 1% year-over-year from $488 million in 2024) due to a decline in new boat sales.
New Boat Sales $310 million (decreased 5% year-over-year) attributed to a decrease in overall unit sales in the industry.
Pre-owned Boat Sales $90 million (increased 14% year-over-year) driven by strong demand and increased trade-ins.
Service, Parts & Other Sales $69 million (increased 2% year-over-year) due to growth in the Dealership segment.
Gross Profit $110 million (decreased from $120 million year-over-year) due to lower gross margins on exiting brands and current pricing environment.
Selling General and Administrative Expenses (SG&A) $88 million (increased 1% year-over-year) due to inflationary increases in selling expenses and other fixed costs.
Operating Income $16 million (increased year-over-year) reflecting improved operational efficiency.
Adjusted EBITDA $18 million (increased year-over-year) indicating better operational performance.
Net Loss $375,000 or $0.02 per diluted share (improved from a net loss of $5 million or $0.27 per diluted share in the prior year) due to reduced losses.
Adjusted Income per Diluted Share $0.13 (decreased from $0.67 year-over-year) reflecting the overall financial performance.
Total Liquidity Excess of $74 million (including cash and credit facilities) indicating a strong liquidity position.
Total Inventory $602 million (decreased from $687 million year-over-year) due to inventory reduction strategies.
Total Long-term Debt $427 million (net leverage of 5.4 times trailing 12 months adjusted EBITDA) indicating a focus on reducing leverage.
New Boat Sales: New boat sales decreased by 5% to $310 million in Q2 2025.
Pre-Owned Boat Sales: Pre-owned boat sales increased by 14% to $90 million.
Parts and Service Revenue: Revenue from service, parts & other sales increased by 2% to $69 million.
Same-Store Sales: Same-store sales declined by 2% for the quarter, primarily due to softer sales on the West Coast of Florida.
Industry Unit Sales: Total unit sales for the industry were down in excess of 10% for the quarter.
Market Share: OneWater Marine continues to outperform the industry and take market share.
Inventory Reduction: Inventory was reduced by 12% year-over-year and 5% sequentially.
Cost Savings Initiatives: The company is executing on cost savings initiatives, although higher costs from boat shows and inflation have offset some savings.
Operational Efficiency: The company is focused on cleaning aged inventory and has accelerated brand rationalization efforts.
Brand Rationalization: The company is rationalizing its brand portfolio and expects to end the year with inventory down 10% to 15%.
Flexible Operating Model: The company is adjusting its cost structure to align with retail activity, leveraging a flexible operating model.
Tariff Monitoring: The company is closely monitoring the tariff landscape and does not expect immediate pricing impacts on current inventory.
Macroeconomic Uncertainty: The company is facing considerable macroeconomic uncertainty which is impacting consumer demand.
Sales Decline: Same-store sales declined 2% primarily due to softer sales on the West Coast of Florida, recovering from Hurricanes Helena and Milton.
Industry Performance: Total unit sales for the industry were down over 10%, although the company is outperforming the industry.
Gross Margin Challenges: Gross margins are challenged due to a promotional environment and inflationary pressures on fixed costs.
Tariff Concerns: The company is monitoring the tariff landscape closely, with potential impacts on pricing and supply chain.
Inventory Management: The company is rationalizing its brand portfolio and reducing inventory, which may pose risks if demand does not align.
Cost Increases: Higher costs associated with boat shows and inflation have led to increased selling, general, and administrative expenses.
Debt Levels: Total long-term debt is $427 million, with a net leverage of 5.4 times trailing 12 months adjusted EBITDA, indicating financial risk.
Updated Guidance: The company has updated its fiscal 2025 guidance due to heightened macroeconomic uncertainty and tariff impacts, forecasting lower sales and EBITDA.
Inventory Reduction: We reduced inventory by 12% year-over-year and 5% sequentially, outpacing the industry.
Brand Rationalization: We are focused on keeping a clean slate of inventory that includes our highest performing brands.
Cost Savings Initiatives: We are executing on cost savings initiatives, although higher costs from boat shows and inflation have offset some savings.
Operational Flexibility: Our flexible operating model allows us to adjust our cost structure to align with retail activity.
Monitoring Tariff Impacts: We are closely monitoring the tariff landscape and communicating with manufacturing partners to mitigate impacts.
Total Sales Guidance: Anticipate total sales to be in the range of $1.7 billion to $1.8 billion.
Same-Store Sales Guidance: Expect same-store sales to be flat to down low single-digits.
Adjusted EBITDA Guidance: Forecast adjusted EBITDA to be in the range of $65 million to $95 million.
Adjusted Earnings Per Share Guidance: Expect adjusted earnings per diluted share to be in the range of $0.75 to $1.25.
Industry Sales Outlook: Expect the industry to be down as much as 10% to 15%.
Shareholder Return Plan: The company is focused on reducing leverage as part of its capital allocation strategy, with total long-term debt at $427 million and a net leverage of 5.4 times trailing 12 months adjusted EBITDA.
Share Repurchase Program: None
Dividend Program: None
The earnings report shows mixed results: strong pre-owned sales and same-store sales growth, but significant net losses due to noncash impairments. The raised revenue outlook and improving consumer rates are positives, but unclear management responses and high net leverage pose concerns. The Q&A section reveals stable margins and positive trends in trade-ins, yet lacks specifics on M&A timelines. Given these factors, the stock reaction is likely neutral, as positives are balanced by uncertainties and financial health issues.
The earnings call reveals mixed results: a slight revenue increase despite industry declines, but lower new boat sales and higher expenses. The Q&A highlights positive trends in the premium segment and used boat growth, but concerns persist about competitive pressures and debt levels. The strategic focus on inventory and brand rationalization is positive, yet high leverage and declining margins weigh negatively. Overall, the sentiment is neutral due to offsetting positive and negative factors.
Despite outperforming the industry in unit sales, OneWater Marine Inc. missed EPS expectations and faced declining same-store sales and gross margin challenges. Macroeconomic uncertainty, inflationary pressures, and tariff concerns further cloud the outlook. Although pre-owned sales increased, new boat sales declined, and the company updated its guidance downward. The Q&A session revealed strategic discounting and unclear management responses, adding to investor concerns. The lack of a share repurchase program and high leverage also weigh negatively on sentiment. Overall, these factors suggest a negative stock price reaction in the coming weeks.
The earnings call summary presents a mixed but overall negative outlook. Financial performance shows declining revenue and margins, with industry sales expected to drop significantly. Despite some operational improvements, macroeconomic uncertainties, high debt levels, and lack of shareholder return initiatives weigh heavily. The Q&A section reveals strategic discounting and unclear management responses, adding to concerns. Updated guidance reflecting lower sales and EBITDA due to tariffs and economic conditions further supports a negative sentiment. Given these factors, the stock price is likely to react negatively in the short term.
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