Loading...
01/10 16:05
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Total Revenue $553 million, a 2% increase year-over-year. This growth was achieved despite challenging market conditions, with the broader industry experiencing declines exceeding 15% in relevant categories.
Same-Store Sales Increased by 2% year-over-year. This growth occurred despite broader industry declines, attributed to strategic positioning and strong execution.
New Boat Sales $326 million, a 2% decrease year-over-year. The decline was due to lower new boat volumes and a challenging promotional environment.
Pre-Owned Boat Sales $126 million, an 18% increase year-over-year. Growth was driven by higher volume and average unit price, offsetting the decline in new boat sales.
Service Parts and Other Sales Revenue $83 million, a 2% decrease year-over-year. The decline was driven by lower production from boat manufacturers, partially offset by growth in the Dealership segment.
Gross Profit $129 million, a decrease from $133 million in the prior year. The decline was primarily due to lower new boat volumes, product mix, and the promotional environment.
Selling, General and Administrative (SG&A) Expenses $92 million, a 6% increase year-over-year. The increase was due to higher personnel and selling expenses to drive sales, as well as inflationary pressures.
Operating Income $30 million, a decrease from the prior year. The decline was attributed to lower gross profit and increased SG&A expenses.
Adjusted EBITDA $33 million, a decrease from the prior year. The decline was due to lower gross profit and increased operating expenses.
Net Income $11 million or $0.65 per diluted share, compared to $17 million or $0.99 per diluted share in the prior year. The decrease was due to lower operating income and higher expenses.
Adjusted Earnings Per Diluted Share $0.79, compared to $1.05 in the prior year. The decline was due to lower operating income and higher expenses.
Total Inventory $517 million as of June 30, 2025, a 14% decrease year-over-year. The decline reflects ongoing strategic inventory positioning and brand rationalization.
Total Long-Term Debt $419 million as of June 30, 2025. Net leverage was 5.8x trailing 12 months adjusted EBITDA, with a focus on reducing leverage as part of the capital allocation strategy.
New boat models: Early customer feedback on new models has been positive. Owners are responding well to the latest innovations, and the company is excited to continue rolling out these new models in the coming months.
Market share: Despite industry declines of over 15%, OneWater Marine's same-store sales grew by 2%, indicating a gain in market share.
Pre-owned boat sales: Pre-owned boat sales grew for the third consecutive quarter, driven by higher volume and average unit price, offsetting the decline in new boat sales.
Inventory management: Total inventory is down 14% year-over-year, with a target to end the fiscal year with a 10%-15% reduction. The company is optimizing its portfolio by exiting selected brands and focusing on high-performing brands.
Cost management: Disciplined cost management is being executed to adapt to the changing retail environment.
Brand rationalization: The company is on track to complete the exit of selected brands by the end of the year, focusing on the most profitable relationships.
Revenue diversification: The company is leveraging diverse revenue streams, including growing pre-owned boat sales and resilient recurring revenue businesses.
Market Conditions: Challenging market conditions with industry declines exceeding 15% in key categories, impacting sales and revenue growth.
Competitive Pressures: Highly competitive environment requiring heightened promotional activity, which pressures gross margins.
Tariff Uncertainty: Ongoing tariff uncertainty causing hesitation among customers and impacting purchasing decisions.
Inventory Management: Efforts to reduce inventory by 10%-15% while maintaining sufficient stock to meet demand, which could strain operational efficiency.
New Boat Sales Decline: Year-over-year decline in new boat unit sales, affecting overall revenue and profitability.
Distribution Challenges: Lower production levels from boat manufacturers impacting the distribution segment and parts and service revenue.
Inflationary Pressures: Higher personnel and selling expenses, along with other inflationary pressures, increasing SG&A costs and reducing operating income.
Debt Levels: High long-term debt of $419 million with a net leverage of 5.8x trailing 12 months adjusted EBITDA, posing financial risk.
Revenue Outlook: For fiscal year 2025, the company has raised its total revenue outlook to be in the range of $1.8 billion to $1.85 billion.
Same-Store Sales: Same-store sales are now anticipated to be up in the low single digits for the year, despite an industry expected to show double-digit declines.
Adjusted EBITDA: The company expects adjusted EBITDA to be in the range of $65 million to $80 million for fiscal year 2025.
Adjusted Earnings Per Share: Adjusted earnings per diluted share are projected to be in the range of $0.50 to $0.75.
Inventory Management: The company aims to end the fiscal year with inventory down 10% to 15%, supported by a brand rationalization strategy and a focus on high-performing brands.
Market Conditions: The outlook considers persistent macroeconomic uncertainty and a competitive selling environment that continues to pressure margins.
Tariff Impacts: The company is cautiously optimistic given additional clarity on tariff impacts.
The selected topic was not discussed during the call.
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.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
