OneWater Marine (ONEW) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 decreased 1% year-over-year to $483.5 million, with same-store sales down 2% and net loss narrowing to $0.4 million ($0.02 per diluted share) from $4.5 million loss in Q2 2024; adjusted diluted EPS was $0.13, down from $0.67.

• Adjusted EBITDA for Q2 2025 was $17.9 million, down from $28.3 million in Q2 2024; gross margin declined to 22.8%, impacted by pricing pressure, product mix, and brand exits.

• Inventory reduced by 12% year-over-year and 5% sequentially, improving working capital and positioning for the selling season.

• Brand rationalization accelerated, with 15 brands exited and a focus on premium segments to drive future competitiveness.

• The company completed the acquisition of American Yacht Group in February 2025, expanding its dealership footprint in Florida.

Financial highlights

• Q2 2025 revenue was $483.5 million, with new boat sales down 5.4% to $309.5 million and pre-owned boat sales up 14.1% to $89.7 million.

• Service, parts & other sales increased 2.4% to $69.3 million; finance & insurance income up 1.9% to $15.0 million.

• Gross profit was $110.4 million, down from $120.4 million; SG&A expenses rose to $87.8 million (18.2% of revenue).

• Operating income increased to $16 million; adjusted net income for Q2 was $2.0 million ($0.13/share), down from $9.8 million ($0.67/share) in Q2 2024.

• Cash and cash equivalents stood at $67.5 million; total liquidity exceeded $74 million at quarter-end.

Outlook and guidance

• Fiscal 2025 revenue expected between $1.7 billion and $1.8 billion; same-store sales projected to be flat to down low single digits.

• Adjusted EBITDA guidance set at $65 million to $95 million; adjusted EPS expected between $0.75 and $1.25.

• Management is cautious for the selling season due to macroeconomic uncertainty, with flexibility to respond to evolving conditions and a focus on cost reduction.

• Sufficient liquidity is expected to fund operations, capital expenditures, and acquisitions for the next twelve months and beyond.

• The company anticipates ongoing margin pressure from product mix and competitive pricing.