OneWater Marine (ONEW) Q1 2025 earnings summary

Executive summary

• Revenue increased 3.2% year-over-year to $375.8 million in fiscal Q1 2025, driven by same-store sales growth and higher new and pre-owned unit sales, despite industry headwinds and weather disruptions in Florida.

• Gross profit margin declined to 22.4%, impacted by deliberate discounting, promotional activity, and the exit of select brands, though cost reduction initiatives helped offset some margin pressure.

• Net loss widened to $13.6 million ($0.81 per diluted share) from $8 million prior year, primarily due to lower gross profit and higher depreciation and amortization; adjusted diluted loss per share was $0.54.

• Adjusted EBITDA declined to $1.9 million from $7.1 million year-over-year, reflecting margin pressures and restructuring costs.

• No acquisitions were completed during the quarter; focus remained on operational execution, inventory management, and cost reduction.

Financial highlights

• Revenue increased 3.2% to $375.8 million; new boat sales up 2.9% to $248 million, pre-owned sales up 6.6% to $56.8 million, and service/parts revenue down 1.1% to $61.6 million year-over-year.

• Gross profit decreased 8.1% to $84.1 million, with gross margin down to 22.4% from 25.1% year-over-year.

• SG&A expenses were $79.1 million (21.0% of revenue), down as a percentage of revenue due to cost actions and higher sales.

• Finance and insurance revenue rose 27.7% to $9.4 million, with penetration up 50 basis points.

• Net loss per diluted share was $(0.81) compared to $(0.49) year-over-year; adjusted loss per share was $(0.54) versus $(0.38).

Outlook and guidance

• Fiscal 2025 guidance reaffirmed: total sales expected at $1.7–$1.85 billion, same-store sales up low single digits, adjusted EBITDA $80–$110 million, and adjusted EPS $1–$2.

• Cautious optimism for 2025 due to ongoing industry uncertainty and lack of significant market changes; focus remains on inventory strategy and nimble response to market dynamics.

• Management expects continued focus on inventory management, operational efficiency, and strategic acquisitions.