OneWater Marine (ONEW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue decreased 8.7% year-over-year to $542.4 million, with net income at $16.7 million ($0.99 per diluted share) and adjusted EBITDA of $39.2 million, down 36.6% year-over-year, driven by lower new boat sales and a weaker market environment, including severe weather in Texas.

• Same-store sales fell 8% for the quarter, but July sales trended flat to slightly positive, providing cautious optimism for Q4.

• Inventory was reduced 13% sequentially to $598.6 million, and cost optimization initiatives began to yield benefits.

• The company completed the acquisition of Garden State Yacht Sales and now owns 100% of Quality Assets and Operations, LLC.

Financial highlights

• New boat sales declined 10.4% to $333.2 million; pre-owned boat sales decreased 4.1% to $106.9 million year-over-year.

• Service, parts, and other sales dropped 8.4% to $84.5 million; finance and insurance revenue decreased 6% to $18 million.

• Gross profit declined 16.8% to $132.6 million, with gross margin at 24.4%, down 240 basis points year-over-year.

• SG&A expenses decreased 6.2% to $87.1 million, but rose as a percentage of revenue to 16.0%.

• Net income was $16.7 million ($0.99 per diluted share), with adjusted EPS of $1.05, both down from the prior year.

Outlook and guidance

• Full-year guidance lowered due to industry-wide declines and weather impacts; now expecting unit and same-store sales down mid-single digits.

• Adjusted EBITDA expected between $90 million and $100 million; adjusted EPS between $1.50 and $2.00.

• No formal guidance for fiscal 2025, but management expects a rebound supported by right-sized inventory and potential industry tailwinds.