Winnebago Industries (WGO) Q2 2026 earnings summary

Executive summary

• Net revenues rose 6% year-over-year to $657.4 million in Q2 FY26, driven by strong Motorhome RV performance, selective price adjustments, and product innovation, despite softness in Towable RV and Marine segments.

• Operating income increased 51% to $11.8 million, with adjusted EPS up 42% to $0.27 and net income reaching $4.8 million, reversing a prior year loss.

• Maintained a broad, premium brand portfolio and continued product innovation, supporting resilience and future share gains.

• Balance sheet strengthened by redeeming $100 million of Senior Secured Notes, improving leverage and reducing interest expense.

• Operational discipline, cost control, and capital allocation priorities supported performance amid challenging market conditions.

Financial highlights

• Q2 FY26 net revenues were $657.4 million, up 6% year-over-year, with six-month net revenues at $1,360.1 million, up 9.2%.

• Operating income rose 50.7% to $11.8 million; adjusted EBITDA margin was 3.7%.

• Gross margin was 13.0%, down 40 bps year-over-year due to product mix.

• Free cash flow for TTM FY26 Q2 was $125.8 million, up from $72.3 million in TTM FY25 Q2.

• Cash and cash equivalents at quarter-end were $47.4 million, with $350 million in unused credit facility.

Outlook and guidance

• Fiscal 2026 revenue guidance maintained at $2.8–$3.0 billion; adjusted EPS guidance held at $2.10–$2.80, with reported EPS guidance raised to $1.50–$2.20.

• North American RV wholesale shipments expected in the range of 315,000 to 345,000 units for 2026.

• Guidance reflects cautious wholesale planning, disciplined production pacing, and current market trends.

• Management expects dealer ordering patterns to stabilize as consumer demand recovers, with long-term confidence in RV and marine markets.

• The company is monitoring the impact of a recent Supreme Court decision on tariffs, with financial effects yet to be determined.