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01/10 16:07
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Fiscal fourth quarter 2025 revenue $460 million, a 22% increase year-over-year, driven by higher new boat sales and recovery from hurricane-related disruptions in the prior year.
New boat sales (Q4 2025) $275 million, a 27% increase year-over-year, attributed to recovery from hurricane-related disruptions in the prior year.
Pre-owned sales (Q4 2025) $91 million, a 25% increase year-over-year, reflecting strong performance in pre-owned sales.
Same-store sales (Q4 2025) 23% increase year-over-year, driven by higher new boat volumes and recovery from prior year disruptions.
Revenue from service parts and other sales (Q4 2025) $81 million, a 7% increase year-over-year, supported by steady retail service activity and modest growth in the distribution segment.
Gross profit (Q4 2025) $104 million, up from $91 million in the prior year, primarily due to higher new boat volumes.
Selling, general and administrative expenses (Q4 2025) $84 million, a 6% increase year-over-year, but down 270 basis points as a percentage of sales due to higher revenues.
Operating loss (Q4 2025) $130 million, impacted by noncash goodwill and intangible asset impairments.
Adjusted EBITDA (Q4 2025) $18 million, reflecting operational performance.
Net loss (Q4 2025) $113 million or $6.90 per diluted share, compared to a net loss of $10 million or $0.63 per diluted share in the prior year, largely due to noncash impairments.
Total revenue (Fiscal Year 2025) $1.9 billion, a 6% increase year-over-year, driven by higher unit sales and increased average selling prices for new and pre-owned boats.
Same-store sales (Fiscal Year 2025) 6% increase year-over-year, outperforming the industry which saw a 13% decline in relevant categories.
Service parts and other revenue (Fiscal Year 2025) $295 million, a 2% increase year-over-year, driven by growth in the dealership segment.
Gross profit (Fiscal Year 2025) $427 million, a 2% decrease year-over-year, impacted by market dynamics and the exit of select brands.
Selling, general and administrative expenses (Fiscal Year 2025) $343 million, up from $333 million in the prior year, but down as a percentage of revenue due to higher revenues and targeted cost actions.
Net loss (Fiscal Year 2025) $116 million or $7.22 per diluted share, compared to a net loss of $6 million or $0.39 per diluted share in the prior year, driven by noncash impairments.
Adjusted EBITDA (Fiscal Year 2025) $70 million, reflecting operational performance.
Total inventory (as of September 30, 2025) $540 million, down from $591 million in the prior year, due to strategic inventory positioning and brand rationalizations.
Total long-term debt (as of September 30, 2025) $412 million, with a net leverage of 5.1x trailing 12-month adjusted EBITDA.
New boat sales: Strong performance in Q4 with a 27% increase to $275 million. Pre-owned sales also increased by 25% to $91 million.
Pre-owned sales: Remained a standout throughout the year, contributing to solid full-year results.
Innovative new features and fresh models: Early boat show feedback highlighted strong customer interest in new features and models from manufacturing partners.
Same-store sales growth: Achieved 6% growth for the year, outperforming the broader industry.
Market share gains: Continued to gain market share despite challenging marine market conditions.
Inventory management: Exited the year with the cleanest inventory levels in years, providing a competitive advantage for 2026.
Cost management: Took thoughtful cost actions and aligned expenses with demand to protect margins.
Finance and insurance penetration: Remained healthy and continues to be a key strength.
Exit from discontinued brands: Completed strategic exit from discontinued brands, sharpening focus on high-performing brands.
Capital allocation strategy: Prioritized reducing leverage, with total long-term debt at $412 million and net leverage at 5.1x trailing 12-month adjusted EBITDA.
Hurricane-related disruptions: Multiple hurricanes created disruptions in key Florida markets, impacting sales and operations.
Normalization of retail demand: Retail demand has normalized from pandemic highs, leading to increased promotional activity and potential pressure on margins.
Exit from discontinued brands: The strategic exit from discontinued brands caused margin pain during the year, though it is expected to improve margins in the long term.
Reduced OEM production: Lower production levels from boat manufacturers impacted sales in the distribution segment.
Interest rate fluctuations: Higher interest rates could affect customer affordability and unit economics for financed boats.
Goodwill and intangible asset impairments: Noncash impairments of $146 million were recorded due to a decline in market capitalization relative to book value, impacting financial results.
Leverage and debt levels: Total long-term debt of $412 million and net leverage of 5.1x trailing 12-month adjusted EBITDA pose financial risks.
Market uncertainty: Uncertainty in the market could temper the positive effects of improved inventory levels, reduced discounting, and lower interest rates.
Inventory Management: The company exited 2025 with the cleanest inventory levels in years, providing a competitive advantage for 2026. This allows for quick responses to shifting retail conditions and supports a healthier balance between price and volume.
Industry Trends: Channel inventories across the industry are returning to healthier levels, and OEM production is beginning to normalize. These factors are expected to drive profitable growth as the industry stabilizes.
Boat Show Performance: Early boat show feedback has been positive, with strong customer interest in innovative new features and fresh models. Sales at the Fort Lauderdale Boat Show were up year-over-year, despite lower unit sales due to brand exits and prior-year inventory liquidation.
New Boat Gross Margins: Improvements in overall new boat gross margins are beginning to be observed, with momentum expected to continue through the Winter Boat Show season.
Financial Projections for 2026: The company expects total sales to range between $1.83 billion and $1.93 billion, adjusted EBITDA to range between $65 million and $85 million, and adjusted diluted earnings per share to range between $0.25 and $0.75. Same-store sales are expected to remain flat, with the impact of exited brands offsetting other growth factors.
Cost Management: The company will maintain a disciplined approach to cost management and inventory positioning, which is expected to provide a clear advantage as market conditions evolve.
Interest Rates and Financing: Further interest rate cuts are anticipated to support customer affordability and enhance unit economics for boats financed through OneWater.
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.
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