Winnebago Industries (WGO) 20 Dec 242025 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Winnebago Industries Q1 Fiscal 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ray Posadas, Vice President, Investor Relations and Market Intelligence. Sir, you may begin.

Damon. you, Thank and our everyone, for us joining Good XXXX thank first discuss fiscal quarter to morning, you earnings results. being replay will This investor.wgo.net, website is broadcast our on call website later and today. the available of be call the on our live at website with our this news posted release was and first our The morning. results quarter issued to earlier results. the Please website remarks, is prepared note with along our our the that of available earnings Investor on follows under section slide quarterly deck that Relations also

the X. made statements may cautions statements conference from laws. could a differ which regarding company's results to Slide inherently are risks today's SEC statements. in to these to actual read. operations Turning number company control, many its Winnebago And uncertain. Certain and involve be call number beyond of during cause materially a factors encourage you you forward-looking The filings, Industries under factors, our statements are These we and identified of that forward-looking considered securities are of which

In to measures GAAP press the in addition, earnings GAAP the of measures and will measures comparable non-GAAP our refer management the reconciliation financial are and release. non-GAAP available today's call, on to

X. to turn Slide Please

will the to conclude sharing outlook addition your remarks forward be management Winnebago President President QX call year prepared market in performance and associated Hughes, Bryan an me of our of results Officer. will with guidance. our take Happe, to overview Chief Joining Officer our Mike XXXX of Bryan on the our Financial drivers our are Vice Michael Industries; and Chief happy business questions. today's will of the financial with and Executive Senior will discuss begin and fiscal and view Mike the

to Slide the as With call over that, hand to Mike. please I turn X,

us our be difficult of a would first an and October, you spoke Thanks, to earnings by discuss RV challenging. Ray. quarter face you that a our in Bryan demand XXXX When space the dealer Towable in profitability I and half on lower Motorhome expectation revenues and recreation and cautious resulting in we marked to first continues environment conveyed with retail operating results. segments. network, The and our for joining year-end outdoor soft morning, thank Good call segment

beginning in Our was sequentially revenue Chris-Craft quarter, the delivering segment share anticipate categories. of half Marine continue the generated We've standout growth demand and is second some to recent the we consumer in in performer through the margin respective their year. up, outperforming an retail signs to the Barletta growth seen and October, that and confidence improved market brands pick and landscape industry year-over-year.

Amid These focused future remain dynamics, management liquidity foster orders. half managing tailoring and an robust incentives, to the market confidence with and to sheet, spending and stimulate to our anticipated by strategies production proactive approach position for output inventory second and recovery in complemented healthy programs support execute market partners capital fiscal costs. XXXX. current of the capacity, our our disciplined balance and prudent a us Moreover, dealer continue we on we

commendable a is inventory done managing terms the the balanced in well to recovery. demand are light moderated market positioned for the patterns. consumer has plan allocation The team's of Despite approach job Industries field the soft ordering as business the term. is objectives. primary long we industry industry, for RV Industries a has we capital two within more Winnebago line the levels part, that running Winnebago dealer bottom most levels And challenges of inventory the For in and

positions across is lot our first to and and maintain strengthening portfolio. profitability sustain market share outdoor both and retail sheet a The annual balance while our resilient supporting competitive

overall business. that value of is our investments growth long-term the strategic second and drive The to brands and emphasize

changes operational to leadership On our inefficiencies Motorhome Towables the our Winnebago-branded within year-end call, address Bryan and highlighted the strategic and businesses. I

Towables has been Motorhomes in Chris Don Specialty President leading a to promoted of President Group Design of Brands the Vehicles. RV Winnebago been Towables RVs, and As brand. promoted to addition Clark West to Winnebago division, RV reminder, has the Grand

operational some take will time in it the of Winnebago to and calendar begun effectively we already Chris Don While evaluate and for businesses, these brand be to improved within changes XXXX. half performance back the the growth lay for what groundwork have the to Winnebago-branded expect

industry-wide up perspective, to October. on X.X% X. in Turning a trends recent were year-over-year From RV Slide RV retail shipments

Although trend, comps well. an positive retail are of encouraging XX declines X month sign a make not year-over-year as does after consecutive months

RV approximately same the shipments side, We up X.X% wholesale year wholesale RV now of approximately XXXX XXXX. at year-to-date the units. October shipments calendar XXX,XXX period in with units, XXX,XXX stood through On compared expect

year forecast in For continue shipments range XXX,XXX the to to of units. calendar wholesale we XXX,XXX XXXX, RV

through Our of mid-XXXX half second projection median Association before XXX,XXX the expects Industry of in slightly conservative the more flat of relatively accelerating XXX,XXX the wholesale remain The units than RV current shipments to is year. units. RVIA

inventory that believe field in positioned, and We terms levels RVs are aging. in quantity well of both gross

to driven of cautious the the anticipated election, new seeing the we early further easing by and stabilizing consumer dealers sentiment. are improving orders, signs interest levels conclusion about committing RV inventory of While remain rates, of optimism,

Slide to X. Turning

RV the XX.X% declined our the to prior basis same period share offerings Linear to development, trailing XX, In our and compared we is and products. ramp. are Design's A months XX two For well. in from high models in Series the XX have points to total additional segment, Motorhome Winnebago year. just expectations Class ended those Grand Class market October the C beginning M Newmar with for And performing

we share specific marketing to to and new Class further have market underway there drive products and maintain share growth double-digit through strong B, actions initiatives. in We continue

has job price points throughout our In business. plays segment, the segment done the in in across and Towables Grand Design majority RV the of which winning great it a indeed

decontenting in product features price range price including without value we or functionality. of truly wide models the to continue on to We lower than be of refining focus process points, in point what portfolio our consumers are Rather categories. quality to product a transforming delivering compromising satisfy many

U.S. the Barletta's pontoon Slide steady aluminum market. in X gains details

October the XX, months in market points compared share period to prior same XXX basis reach increased Over by year. X.X% ending our the to XX the XXXX,

We to product network our providing a continue get resonating dealer from customers. to is related our great end high truly that marks with mutual

Indiana. RVs. highlights brand's recent overwhelmingly to a positive the demand addition on X. approach new to month, Earlier the C the Class lineup. Show award-winning new in F, RV Series month to motorized at M will Series The be XXXX Super to Tampa. Florida Series Design's its of manufactured the this Grand acclaimed Moving Slide new Lineage Motorhome is F debut M Super next addition, Grand facility for Grand The Design motorized confirms The product Lineage Series cutting-edge scheduled announced innovative at motorized response alongside Design's in to

to continues base. are the a product of class the We to line grow Lineage an to bring that across RV iteration next this new partner to and with dealers to to customer introduce excited the country

feature-packed RV floor Hauler XXRK, Winnebago addition the including the series. Design's products, Momentum Towables first single category, Toy axle to plans XXXM, And Access the feature selling show the will Momentum and the XXDBH access latest top super lineup. and In the Grand the functional compact in new all

recently the entering XPt model plan Show. Show Fort propulsion Fish, Sportster year also the debuted XX scheduled the which and February. outboard Sterndrive, for unveiled are Miami at to two Boat An version Lauderdale Sportster the a season, XX in Aria show we the boat Barletta I at highlight new lineup, XXXX Chris-Craft marine want International The is of floor be to Boat As International products.

Bryan the to Now call financial for let me the review. over turn

Thanks, morning, good Mike, everyone. and

remarks, documents our release for As a in performance. our a on earnings supplement will reminder, drivers I our the detailed financial key my overview focus of refer and Please prepared results. to earnings of key

consolidated Starting on with X. our results Slide

couple spend quarter offset recalls mix. reduced product were related soft in Mike to ASPs As retail margin a of fiscal shift volume a unit warranty first environment the down in segments of operational remained demand first the resulting the due reduction and XX% product year-over-year driven deleverage with Motorhome partially quarter was and but towables RV 'XX, lower in in the and to efficiencies. volumes in increased percent, in motorized RV Revenues a compared noted, by gross the by quarter. The mix,

increases and other businesses increased containment QX efforts. were year, related expenses from X.X% Lithionics Barletta These partially cost in capabilities. last reflecting spending to in digital Grand primarily Operating investments our Design and by offset Motorhome,

Our reductions of SG&A by spend sequential driven sequentially, business is down our units. across spending X.X% most

EBITDA was year adjusted prior from margin down consolidated expected, the QX period. As

lower unit product Turning and to our volume market year's inventory year, but lower shift by by in product decrease The managing to with price in efforts. quarter offset deleverage mix Slide attributable was revenues on lower tightly by intentionally XX. Towables was reflecting driven a field mix, unit last our EBITDA segment, and by in versus The adjusted during quarter. challenging and containment Segment last models. partially starting the also towards lowering volume was point from volume first RV conditions, cost part down performance capacity

segment related XX. year, from was adjusted reflecting down from year. period volume were conditions. also unit to to lower attributable EBITDA Slide Segment higher Turning RV market In has marks revenues last same period which This volume Motorhome year. mind compared partially last allowances change the in was first to segment year-over-year incorporated into been and deleverage, in Motorized offset Grand Keep warranty experience by discounts increased to This our results. prior efficiencies. the RV QX Motorhome Design and operational that the decreased

segment's achieving contributions. near-term As is anticipated, pressure exerting it of in meaningful advance on revenue margins the

targeted basis product and in expense. last by higher unit X.X%, segment on targeted related XXX reflecting price to partially per Looking Adjusted first increases points margin offset our EBITDA partially mix. a Marine XX. warranty product and to increases higher by Revenue year-over-year to unit from mix price improved ASP year's increased related volume, Slide to reduction quarter offset

targeted sheet XX. $XX.X net ratio Winnebago the Moving Xx, approximately range Industries had million. In QX, year-end, now reported of free balance to X.Xx. debt-to-EBITDA our At X.Xx cash a on we flow of above to fiscal negative of Slide

of because on I have our noted the of not historically, seasonal business. for second first the been As nature and calls, have year us prior quarters of cash-generating the quarters

a month, $X.XX paid will pay a we quarterly that Winnebago consecutive Next quarter has Industries the XXnd dividend of share per cash dividend. marking

$XXX million approximately quarter, repurchase the on And During our we remaining our XX, stock. program. November had million as $XX worth of repurchased of

XX. Slide to Turning

are revenues $X.X our We expectation $X.X billion XXXX in fiscal reaffirming consolidated of the for range to billion. year

$X.XX per $X of range diluted to our the $X.XX now while the fiscal slightly range, also revising midpoint top unchanged. Based and on quarter communicated our adjusted of EPS results of to outlook diluted for first of expect our share XXXX year, we are prior bottom adjusted per with balance and guidance share. leaving the our the previously We $X.XX EPS $X.XX compared of

Looking near-term season. the ahead, are as ability the anticipated and capitalize markets marine to in challenging, we in outlook our spring on RV although rise enter remains demand confident selling the the

to sequential QX, in For QX be with a with sales basis modest profitability. line on expecting a improvement we to are

We communicated historically. will have sheet to mindful the priorities allocation of our capital balance we continue prudence, manage being that with always

Slide please closing for turn XX the Now over Mike? turn to as comments. Mike call his to I

Thank you, Bryan.

ahead, our discipline is with challenges Winnebago laser-focused long-term while Industries positioning Looking growth on for current and strategy agility. the navigating

the introducing Motorhome demand, and more same aligning and C Design. family Newmar spend sharpening our we're affordable, efficiency, of to the variable adjustments our needs production tightening and focus model, meet aggressively across from are workforce. to our RVs Grand on segments evolving operational expanding such SG&A innovative managing new as to our entering rates At We more including portfolio the customer products Super Lineage time,

drive costs To performance. creating operational fixed to ensure stronger are investments, step sustained plants critical to success, and change a prioritizing consolidating lower we

the consolidation and reflect manufacturing this financial cost-effective such While operations. had they more our recent as commitment building actions, Iowa even a in certain quarter, to some operations of implications leader

quality improvements emerge a every company. product as our more ensuring our bring processes, from on that underscore down doubling competitive determination period the in our confidence we delivers product we're to Additionally, this to These to market initiatives customer expectations. stronger, and our future

Q&A. please open happy Now I line be your for will Operator, the Bryan take to questions. and

[Operator from with Baird. Our first Kennison Instructions] question Craig comes

hit health. a stress including to of dealer been been dealer have There's And of to there. and I'm and as dealers. Winnebago the RV you if A and hard relates of RV pressure and your risk large where health marine prominent Really on of any dealer lot some industries. networks lot there? frame result you wondering a marine just networks? see could your dealers

majority industry. Broadly, speak might Mike. what difficult is high, and the have. financially of dealer this years any I'll a our marine businesses couple I managing both strategic RV have our on that he been more at of Bryan then level the financial health dealers insight Craig, through a around believe, high concerning comment has a and are

specifically, financial We in dealers monitor health related last the very expressing implications in overall including we other only reports to health their any as some other level continue not the have well floor we really on we are but dealers that contact a X, key In perspective their about in Bryan, but this with on of financial around turbulence. situation future, you stated, as some there might sources, with some of to knowing quarter, that plan view lenders regular had contact, carefully, any and health. low the inventory quarter have do channel also dealer been are financial trends thoughts? a

there financial a dealer is example, doors. is that is if there add are shut would for muted pretty needs location, their I a to thing only the struggling or because the body Craig, impact or

Our high demand. really in brands are

so And on relocate for to lot to it's units us a an we relatively any over troubled It's a it's easy dealer's or efficient competing process. repurpose dealer. have

our is pretty really strong muted. the in of that impact financial because of marketplace, position transaction the So

as elevation inventory move seen described? you to a in need And around the conditions based your Bryan, have on an follow-up, you

Greg. stage, this at not No,

next with Our question Truist from Securities. comes Michael Swartz

to significantly. the quarter, share industry I'm having RV the think market mean, you Do your the in Maybe just undershipped wondering pretty on just implications for retail you any strategy maybe start, brands? that's there. I

the we our levels sure X the turns the months. the they and making right. level the but next RV quantity conditions, very future, reaching appropriate appropriate, each given think in inventory view brands in Really, of the in segments Marine of field and foreseeable quality to are both is XX focused also been that of is on have the We current market both how on focused that

to whether ship retail. We field, at you or pressure always as share the are be certainly pressure, share cognizant competitively it's stated, product the it's in of needed competitive

as are of results the is not field we in the of the compete believe are macro enough we want making in the in correlating good continues on sure trends We for at very share, retail shipment within the inventory that versus focused the direction level that this quality and any market dealers aging field share right We to business. what retail in the in trend to time particularly our shape well. inventory, have any to but inventory

we inventory aged what completely our to pre-COVID, on taken ago, is this improve a basis. a that While from was it time not a has back to monthly it and quarterly major step forward continue year and

So our trends this any share. time do share no, link retail not to at shipment performance we

ourselves the to balance I dealers. best the best think do just our and inventory trying in levels can we're to interest of we the

better the line just maybe a then think versus revenue that, into production with deeper little in a the I And Bryan, for nature. XQ down some directionally gave are helpful. XQ maybe the That's profitability. perspective, of quarter puts costs, dig think what second us takes little quarter, that to things a from . Okay. for maybe about you just the Could commentary you mix, first in some of

Yes.

think will I we of couple expect sequentially, a impacts margin. on would be there that

into improvements First, we then warranty second there we QX. associated calendar I think year marketplace the some now, finally, did here as some that should discounting sequentially. warranty that in And practice slightly to specifically seen in continue ongoing our ease will competitive of quarter. And out start productivity new hold have and have first recall very the right in it's a get quarter. just some I take the in improve to then expect with costs we

sequentially a are And experiencing through. we the see call obviously, the those in lot of the things QX probably both in sales seasonality of greater main as QX and I'd back our year fiscal flowing and ease our we're to out. start will half leverage start improves So then to

Capital Markets. Thomas-Martin with Tristan from comes question next our BMO And

some expecting And sorry the production be? million will going of still Motorized is Could you -- contribution Series metrics start maybe that maybe we with Grand to to ramp Lineage, then $XXX Design in expect of F provide when we ramp sales timing what annual us maybe around are kind wise?

Mike. this Tristan, is

the referenced, product the at a Super Florida that C being announced a just showcase Motorized the will Tampa few weeks. super next the you lineup, Grand we As in we recently F in Design RV Supershow on in here that

Grand is out very very line first F has should Grand received that market. on other Motorized we in following feedback information most market shared in couple too the solid will in I that which how Class in the the Design product, we'll will C to ramping optimistic how you quarter. quarters don't and a the terms far QX on expand $XXX share The last that the what few shipments be pleased we begin in of think the also Retail in fiscal The here models million Design than we the C gate, that the the the about more say was You specific distance positive. 'XX. put thing of hear see about back But financial product fiscal about, production F of will Series opportunity Design are only impact line. of that are with here 'XX. continue will Bryan opportunity all Motorized Grand Super revenue -- has I a of of the any not to in around that the and been in been other call, has plus up Series very on

this at 'XX Motorized Grand point. are So all fiscal things on with track Design in

assuming initial last was one guidance in quick quarter. just Brian's Maybe F Series included clarification. I'm

was, It Tristan.

Sean comes question Citi. from with Wagner next Our

have that in to point been new you can there prolonged dealer dealer or to an for that? kind recent demand in you appetite of translating orders see for how into anything Is you do Kind regard improvement on you tangible behind kind consumer in touched yet? And of retail months. as that with uptick strong of the need second sentiment half seen will to see they more a recovery? Or has

question to many retail dealer Sean, ordering. consumer elements your sentiment, there,

part Let response me this my way. first the maybe of wrap

and for ways beginning be would some we what calendar us that give multiple shoots year remained what consider in are 'XX in We to about could optimism green important across fiscal the business see our business. possible

Let things. of me those few list a

bit all, fact, of was from know, things time positive. is dealers more XXXX, November We elections since little the promising. believe side, of RV remain its October rate while wholesale least a an a in December, third our highest RV The October -- low at December first turned we for they XX their a is some within the of basis most internal -- us. you by From industry happened ratio here, industry improved very straight retail the in behind in restocking sign in segments, rate of levels. are this in begin industry. inventory positive on some cuts point the but XXXX. I conservatism And has there Fed be the not XX on side. believe, a RV the holding in points inventory some prospects First Towables month, through Fed And macro around lower RV did saw retail all that already signaled that months does may week. signaled outpaced November which the in at actually to of couple The overall of and standpoint. Consumer we data standpoint, funds particularly as on We view This XXXX. levels. another at appetite reaching comp the think, motorized XX, retails, a historically side, confidence X:X I Towables that seeing the for stabilization in

further the data retail data for X versus RV October, our showed December months improved internal November November. improvement of RV internal RV first internal and Our actually was for retail, data from our retail

seasonal trends December we that some least first been X our very retail place. data, also to well. but I to solid comp date retail will beginning the from Again, the a volume numbers are see, in the for overall to our increasingly comp as low positive. has note standpoint, in weeks the month marine are brands right at have two continued trend So in an it's very internal

some questions and remainder for of the the our year to things why we to the to are that has as asked good about of that hold community some it mentioned midpoint nice trend just reasons a from So financial continue continuing $X.XX, guidance been. the a have chance could XXXX the feel I would upward XXXX where to there's why we a be of of

was helpful. That very

from Just to December the November year-over-year on and improvement clarify, October a is basis.

a each is dealer each i.e., first month, I your of on One element ordering. X to other to year-over-year December. then and around is November for It the question answer basis failed weeks for period,

industry both in because and positively improving We the the have backlog the for across a ordering doing good Grand but of trend, business, all a work that the of in as not dealer from to. standpoint, an except that line are seen RV recently quite from team yet has dealers businesses standpoint, robust the increases their of seen positive points presence affordable on that models Design view reacting uptick price specifically our an our we really which here is in our backlogs Towables also

next comes Our Research. with Wolfe from question Wightman Fred

of just the sort I to wanted guidance. contextualize

encouraged it by sounds if should XQ numbers like came we versus you're How first just green below of evaluate it So the have think numbers, but than shape in start? that right? full at a down it numbers Street need thought, is sort been some you based So unchanged, bit of -- mentioned? just the year Brian's Street about commentary. did wrong? first how the little sort the come on thought we half the the shoots guys of setup year of would Has weaker Mike you to those but up the quarter,

we all particularly Street your guidance did wanted acknowledge off -- shoots top the about were the earnings trim tell that week's a do does all is first the I the optimism X that right bit expected tell end can the of I regularly walked you the of bottom be through about ago we want not on note whether bit to been that can quarter confidence or estimates. and revise that we quite -- considered. on with minutes bottom a have this of that. reflect of their narrow and before little well the the Time range thoughtfully what for forecast detailed I We back comment provided particularly did wrong just has his end, a we it part not tell next little guidance that the will won't team with squeeze I and But rest Fred, year. release then X be. our optimistic results signal of that on as good because of year. end. quarters, should range to capture scenario, we which think for specifically the guidance the our you process a is the I X. green to things just do especially businesses we which as as a you, the that quite through can And And Bryan and a not quarters about we the half go from very

a you at. estimate happen, that looking of what scenarios could So range that captures adequately could be is that for that we midpoint but believe the fair range the the

are Okay. is Understood. kind Motorized, And the your that's there. of inefficiencies the this first quarter, on shifting start-up, then Grand Design to point,

in is worse, think unchanged that given So could or on you was help think that numbers about margin I previously, quarter? better some but drag that corporate versus of last quarter? the us you've saw Motorized what the sort it drag we

the marketplace The of holistic in segment far out seeing margin speak by there. those X performance is we're in to the year-over-year. out Yes. the That's warranty it, did sales. were a margin to impact activity impact. deleverage impacts The that worth impacting had good for Motorized. by have call point some by the that improvements I lower operational X.X negative. to are the points Motorhome. driven I'll at in the of biggest impact EBITDA seeing called And recall we points we That was, some primarily good We discounting that points X.X kind some is the X from quarter.

to see didn't that as good earnings from release, then and Design -- and welcomed were my efforts. Motorhome the And out less in the team's than remarks. still I of call in think we specifically those X it in to So was the X.X its Grand prepared recognition. stages of in early as point the the sales But impact point is output that X did

segment earlier that, expect we we accretive as Motorhome the as be some fiscal So wrap we said, to in calls to up year 'XX.

question Our next comes from Bret Jefferies. Jordan with

underlying seeing Or outperformance greater inflecting green rate Is just outperformance? otherwise guess, still a in within you're helping that in sluggish that the segment? shoots more is at really is the that you're in than segment, an your in portfolio, improvement something space? I seeing there Marine what On these gain the share it dramatically RV

overall at One, expected marine with industry on considered on for thoughts all business then subsequently our X conditions. backs two about current was both for the quarter the The retail retail of a where dealers able been we have things decent to brands marine there. fair Bret, to brands. pace ship

marine weeks weeks, mentioned, As the on internal the I of X of some with last really the first been data we've couple pleased the side. December, of

brand X-, improve step their their and higher-end volume standpoint as bigger aluminum largest affordable product is XX-month share both continues month. and X- the taking around brand trailing in taking brands. market. businesses, line, of the report team are pontoon from the Barletta the retail points brands, share Barletta to take The lower a on more showed to Chris-Craft, third last with It forward last certainly, smaller continues continues volume a period. luxury especially take to also share that in price within is We than SSI for now Chris-Craft. much Marine another share the the U.S. retail

not So corners segments turning I industry compete in classify would the that in. as we any two the marine

just that we're the of those level decent in think executing expectations at businesses. had I internally both we a hitting within

is then give any on on on quick the guess going that you updates are And legislation. any And Great. signs Okay. there of you that what's kind Motorhome break I give could in the us CARB some rescripting? that that they'll is up set around guess Design sell freightliner C, chassis And somebody Grand else with does that you in state? a a is the restriction? CARB I a how could Or that supplier Super that

we this: we regulations. current the anticipate it to very clarity glove many been portion Air as have with Board to And of how the advanced At we frank, time, to CARB further hand a the changes in RV and the very And the our situation. navigate business, there have industry respectful pertains Industry on can with Resources continue on regulations to There California allies are honest, this this around discussions working personnel. two CARB consortium portion. truck omnibus really really been the engaged get don't topic. aspects from We other Association the as and clean

and any manufacturers our impact now are to on that. Our have year incorporate to provided believe XXXX chassis forward. going so manage that does the it's most able to and impact to aware 'XX of we different motorized serve our regulation navigate fiscal to what suppliers, Each fiscal around end mix CARB any the and on The mitigate We calendar through business our be next we guidance products, our our a for serious will issue we solution, their And their in to OEM will of engine business. the find working are months. from negative would customers. and to working we less own given But to while teams rules, of of XX speak, and prefer are teams products. we manage XXXX have our with the dealers sale plan hard continue have

Grand solution that do a requirements. specific referenced, Design for And that CARB Motorhome C, the Bret, Super to well with complies have we as you the

Our comes James. Altobello Raymond from question next with Joe

if on questions of couple I a Just affordability, could.

the moved of on optimism the the recent feel cutting the You through the has in But as yield cuts Fed for retail like year. I since mentioned some at rates. higher the the XX-year example, for rate started half XX-year, Fed back offering

first guys borrowing terms buyers that seeing market in typical are are the you guess question I the in So is, rate what today? of paying

Joe. right, XX-year, movements context retail shoots those we what is rate talked I of that terms about yet rates out Mike tied environment. guess seeing and to. are that current seeing We're that exactly are most you're I are retail the the Yes, environment current in earlier, point green what all in the in the not of which would

is hypothesize be been for to could guess, have before nonetheless, those it retail which are in on perhaps good consumers But some shoots flattish some what waiting much that, retail the lending green mentioned we which improvements I that think seeing encouraged of and we're rates XXXX, the buying. stabilization, of activity trends towards counting year-over-year and I Mike earlier. performance retail a by we're as

well confidence consumer one retail on as Fed and another them, And hinting there's language out many of other about that. I many XXXX. talk of that's rates cuts using, impact couple is So the being in the variables current based certainly, we interest demand, think impacting factors

with I guidance expectations I for okay? two think we're cuts guidance our environment. -- versus said, that correlate versus us more of the three appropriately think impact cuts. the more as I into rate to our very But captures hard two current environment, more rates that our building rate It's accuracy capture

buyers a have loan. a or very That's say, of be a who unit Bryan. still on upside let's down that. may seeing helpful, XXXX their bought you just follow-up might I that Are amount on fair guess 'XX in,

from that them so trading might And up. discourage

We there, anecdotal. you hear as instance of some imagine, can that

we on. us which of then make metrics doesn't a give it can conclusions broad lot so And

fair say anecdotally trade-in with down in overcome is incentives dealer think where it's other that And that where certain there trade I continue are situations to I them also situations they're note helping that forms there's that to transaction. situation of upside equity. a

think of I considered, where indeed are industry all bit ways out make So we're those figuring hear, it's things that OEMs a we storyline happen of dealers but to combined transactions to and an some as underwater. a they continue

Our Scott next ROTH MKM. with Stember question comes from

Motorized. Going over to

walk Can being through operations guess, some some maybe You Iowa having the that done. things North mentioned you I us the of are challenges. just

talk going product margins You talked facility help anything about about here consolidations. that about development maybe could talk and improve expect forward. some to the else that Maybe and we

in some from crack Winnebago Mike. Scott, were this the Motorized well. can at that particular, X, In in first that add quarter Bryan as is very I'll marketplace. were business, the elements pressure take the perspective and competitive financial my view, around discounts under particular

Winnebago share price very and the within of of market our of sales more covers X quarter had quite motorized much that saw match in shipment from the discounts at see to as does, sustain Winnebago doesn't segments we this We brand presence market. points. fierce as some that competition to brand Motorized the felt in team more Newmar a times,

So initially working saw business, have unfortunately Motorized in financial increased quarter Winnebago-branded have than to that X X. been through segment some level that's our there and that issues expense particularly Number quality And one. more we two, had we been quarter the anticipated. of Motorhome an some impact you number in of in have saw we been warranty specific expensive and

Lastly, from last continue of Iowa leader in an campus, to within the under Productivity standpoint, The operational the North efficiency operations new the strong very improving. throughputs is particularly leadership a improving. make year. strides we

closed well. Iowa had change one quarter that when few the X of ago a financial North significant We as we there to will around drive and those did few make well. transaction costs and of a officially the rationalize operations business Charles in Iowa waste, remains remnants quarters there However, City, review and to out and opportunity fixed a as the we facilities of inefficiency continue

on I those particularly at X. Newmar not the Winnebago business above line in expectations, albeit the right around the the the a main side. of if difficult performed Motorized being So segment candidly, of around because little are facing our business, pressure themes Newmar say will the now, quarter pressure the top business, A some Class

managed it, we call fixed would trough as we the both businesses costs, have Newmar and the are Yes. through. going their And that Winnebago given fixed cost accordingly, structure

Are quarters then your second last we But at question cash it. sheet. the to that Got in so in down. anything pick Xx than guess, free before want We're levered balance few might things up. quarter, a or go the now, I believe about or little we commentary there that next Xx flow the higher And the go quarter expecting, on consider? restrictions back to covenant we any the bit next need to

No, there really aren't.

maintenance of covenants, correct it year-over-year is of see And QX that incurrence-based a maybe we a higher the covenants. QX. from as I recovery have issues denominator path we that nudge nice but your will still bit with the EBITDA assessment get in there up anticipate We little any think erosion in don't But we type with or equation. through

comes KeyBanc Zatzkin Noah question with next Our Markets. from Capital

first, could as just rest the kind on from or you dynamics ASPs, out we about industry up for the when shaping in of thoughts be in year, you around kind is kind you're of of the Any that thinking RV good an the of through good the a would think guys green perspective state how across rest of XQ look Marine helpful And guess, second, well. out terms looking shoots segment? Any shaping year? marker share up. I of anecdotes about the of marine gave industry by then to how ASPs color

the take continue notably most towables preference market. impacted they in are Mike Noah, customer part then and on by ASPs, to I'll the end can comment first ASPs a marine towards have on the affordability. as

and continue of towards to of is decline. that. ship very Most notably, the affordable a result that part success, lineup the And Transcend overweighted some tilts as having strong we and Grand ASP our that an so Design

don't the bit I broader a a will as Not of and expect in continue decline side. side, you see think the meaningful Motorhome some ASP or selling Mike, ease on season lot I ASP ease start the pickup to the marine decline. QX should in a start that and in note market, side decline likely to which a want of marine through do comment? the of or whole to the into anything then we there. get

conditions. offer of in sort environment a of continues marine From really most to probably across marine standpoint, I'm any Yes. not meaningful No. to It challenging change recently be retail here a from going segments. very signs

mean of focused moving at If go price state some during are likely They particularly months sure an that now on a there will in brands dealers. dealers customer, our this into that do as the season. best these industry especially their northern making to be years work and But the of lifestyle. is some spring and multiple think boat to noise marine a that go the for inventory dealers of in that in softer the many on in I through working hot we good again, is end selling to are working right noise inventory, what product working quarters. that by aging willing the it a as model time with couple that year, to inventory possibly shape sure right into of lineup of look product in And be freshwater next be and are through in you're for related some pretty make through really the can boating dealers two have price them points. customer field But I to get anticipate And the environment. will is the cases, for inventory we is some aggressive

about in know, February. evidence we be shows and in As for marine 'XX here might up boat shaping And show of January better some boat is to market way. some the you after think and all marine the to RV we'll I get a have January launch significant be how in season to able

Albanese Our question The with from Michael next Benchmark comes Company.

X Just ones. quick

premiums, color any insurance insurance could Obviously, about rates relates it and consumer provide in terms you of stabilizing, costs. as inflationary to affordability. helpful. around borrowing are be talked that First, and Really seeing decelerating? you What we would pressures

little make been candidly, I has changes. Coast insurance I Florida hit one that that in RV been is multiple think any a ensure hearing Michael, Florida. have the the working are on are might you industry parts that that stretch years. in through There's notable Bryan some of and boats a of they've can tell of chatter probably I some is can't the now its particularly around seen storms insurance on note we bit in new row hit a as recently, with of side of the and boat West in losses years sold to appetite the that past

there into probably question I look to that us Your bit. developments for spurs from can't think an affordability pressure a this morning, standpoint. new this But call any of little

the a brand Barletta appreciate Certainly referenced, the that Marine far Gulf the to material impact part not Coast the not which our can brand, our as along That is material insurance Mike business. Marine portfolio of just Florida. of you by the on side challenges our biggest a is

in about And performance. so financial of certainly our seeing hearing not ensuring worth like incidents Mike or we're calling out having challenges RVs. not And said,

but brands? are clarifying That's Barletta helpful. unit taking I'm across question than if business, And of bigger Chris-Craft and sorry, Marine. the but... bigger Were missed a share. Obviously, both other? one Barletta is it. volumes -- just a both then units is on piece Obviously, -- this, Got driver a I our the Or positive

in earnings deliveries quarter X release, unit in if total. deliveries, you Unit the look at

is both share in that projections quarter brands building yes, quarter to said, of back X quarters we're get the X X 'XX Barletta fiscal than of just slightly I -- combining of the and that So suggest that any piece replenishment to retail I obviously increases. would is the Marine We gains it right XXXX, in as fiscal significant know around to And Bryan X:X our ratio steady it's X that. for 'XX. there. were bigger next positive don't pretty financial trying dealers now.

volume steady. overall is So pretty

that well. of year as a by driven mode to Yes. destocking that was certainly the prior in X.X% in comparison units, increase And part

So comparison. you've year-over-year that might that the influence got impact

within Yes, it. few into kind cetera. that's what saltwater, data, at of Got wake, you et there's out right, trying looking ski stories how depending boating, a down pontoons, helpful. recreational was the mean, you're different really, break to was, I I whether parse on

a to get sense around So helpful. I That's was just that. trying

question with David from comes next Morningstar. Whiston Our

what focusing you're a made earlier you're de-contenting, Mike, you not comment how consumers on about value.

de-contenting? So I'm do then most different And is value how just they curious now? what right from features not that

from and we within in are cut it an a de-contenting, this leading a leaders redefine value. is We really definition from our to standpoint, as taking features meaningful unit way. businesses -- really doing is our value opinion, ask in our the really product David, to ask and a our existing businesses opposed

end is we trailer may find features And on But example, some well. what so do up seeing side deemphasized. coach, or some value you the way try same RV for that to to within as a add

our creatures then of while outdoors. ago, one. outdoor RV, in important. the industry, best So and price all inside few sure comfort And really number years teams lot inside been RV point saw and that on entertainment functionally the you aesthetically, the of the porches on finish elements focusing outdoors remains of kitchens, making that sort emphasis Right And the to end the now a coach comfort candidly, have seem a high coaches, be most and is the on of the is here. better around fit lot outdoor of a present still emphasis lighting

think the about you points to ask making in that. But this teams being met I to focused be addressed are and need that very that lineup So would are environment sure that's on on. how price our in delivered

just here. Operator, interject I'll

our audience limiting in and our at the to hour. this of the We hour are top of commitment an to

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turn call This to back of I'd Posadas. conference. the like concludes to the over portion today's Mr. Q&A

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