OneWater Marine Navigates Growth Amidst Shifting Consumer Spending

TL;DR

**OneWater Marine's diversified revenue and aggressive acquisition strategy make it a compelling long-term play in a fragmented, yet resilient, marine retail market.**

AI Summary

OneWater Marine Inc. reported a diversified revenue profile for the fiscal year ended September 30, 2025, with non-boat sales contributing approximately 18.7% of total revenue and 41.7% of gross profit. The company operates 95 dealership locations and 9 distribution centers/warehouses across 17 states, with the Dealerships segment accounting for 92% of revenues. In fiscal year 2025, OneWater sold over 9,500 new and pre-owned boats. Consumer spending on boats, engines, services, parts, and accessories in the U.S. reached $55.6 billion in 2024, a 2.6% decrease from 2023, while new powerboat sales were $15.5 billion. OneWater has expanded significantly through acquisitions, completing 35 since 2014, adding 83 dealerships and 12 distribution centers/warehouses. The company aims for organic growth through enhanced non-boat sales, digital platform expansion, and strategic acquisitions in a fragmented market.

Why It Matters

OneWater Marine's strategy of diversifying revenue streams, particularly with non-boat sales contributing 41.7% of gross profit in fiscal year 2025, provides a buffer against the cyclical nature of boat sales, which saw a 2.6% decline in consumer spending in 2024. For investors, this indicates a more resilient business model compared to competitors heavily reliant on new boat sales. Employees benefit from a stable company with a strong acquisition strategy that often retains local management and branding, fostering continuity. Customers gain from OneWater's extensive inventory and personalized sales experience across 95 dealerships, while the broader marine market sees continued consolidation and professionalization, potentially driving innovation and service improvements.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its reliance on consumer discretionary spending, which saw a 2.6% decline in overall U.S. consumer spending on marine products in 2024. Additionally, the highly fragmented boat dealership market, with approximately 4,000 dealerships nationwide, presents intense competition, although OneWater holds less than 4% of total industry sales, indicating significant growth potential but also exposure to competitive pressures.

Analyst Insight

Investors should consider OneWater Marine's strategic focus on high-margin non-boat sales, which comprised 41.7% of gross profit in fiscal year 2025, as a key differentiator. Monitor the company's continued acquisition pace and integration success, as its ability to consolidate the fragmented marine retail market will be crucial for sustained growth and market share expansion.

Revenue Breakdown

Key Numbers

• $55.6 billion — U.S. consumer spending on marine products (Down 2.6% from 2023 in 2024)
• $15.5 billion — New powerboat sales (In 2024, with 10% average annual growth since 2012)
• 95 — Dealership locations (As of September 30, 2025, across 17 states)
• 9 — Distribution centers/warehouses (As of September 30, 2025)
• 92% — Revenue from Dealerships segment (For the year ended September 30, 2025)
• 18.7% — Non-boat sales as percentage of revenue (In fiscal year 2025)
• 41.7% — Non-boat sales as percentage of gross profit (In fiscal year 2025)
• 9,500 — New and pre-owned boats sold (In fiscal year 2025)
• 35 — Acquisitions completed (Since 2014, adding 83 dealerships and 12 distribution centers)
• 8% — Revenue from Distribution segment (For the year ended September 30, 2025)

Key Players & Entities

• OneWater Marine Inc. (company) — Registrant and holding company
• One Water Marine Holdings, LLC (company) — Principal operating subsidiary
• T-H Marine Supplies, LLC (company) — Acquired business expanding marine parts and accessories
• Ocean Bio-Chem, LLC (company) — Acquired business expanding marine parts and accessories
• Singleton Marine (company) — Founding company in 2014 combination
• Legendary Marine (company) — Founding company in 2014 combination
• Grant Thornton LLP (company) — Auditor
• Nasdaq Global Market (regulator) — Exchange for Class A common stock
• SEC (regulator) — Securities and Exchange Commission
• Buford, Georgia (location) — Principal executive offices address

FAQ

Risk Factors

• Dependence on Marine Industry and Economic Conditions [high — market]: The company's performance is heavily tied to the overall health of the marine industry and consumer discretionary spending. A downturn in U.S. consumer spending on marine products, which decreased by 2.6% to $55.6 billion in 2024, could negatively impact sales of boats, engines, services, parts, and accessories.
• Reliance on Key Boat Manufacturers and Brands [medium — operational]: OneWater Marine has relationships with over 35 manufacturers and more than 50 brands. While no single brand accounts for more than 7% of total sales volume, the company is a top-three customer for 24 brands and the single largest for its top five highest-selling brands. Disruptions in these relationships or supply chain issues from manufacturers could impact inventory and sales.
• Integration of Acquired Businesses [medium — operational]: The company has a history of significant growth through acquisitions, completing 35 since 2014. Successfully integrating these 83 dealerships and 12 distribution centers is crucial for realizing synergies and maintaining operational efficiency. Failure to integrate effectively could lead to disruptions and impact financial performance.
• Competition in a Fragmented Market [medium — market]: The marine retail market is described as fragmented, implying significant competition. While OneWater Marine has achieved scale with 95 dealerships, it faces competition from other retailers and potentially direct-to-consumer models, impacting market share and pricing power.
• Seasonality of Business [medium — financial]: The marine industry is inherently seasonal, with sales typically peaking during warmer months. This seasonality can lead to fluctuations in revenue and cash flow throughout the year, potentially impacting working capital management and financial planning.
• Compliance with Environmental and Safety Regulations [low — regulatory]: The sale and operation of boats and marine products are subject to various federal, state, and local environmental and safety regulations. Non-compliance could result in fines, penalties, and reputational damage.

Industry Context

The U.S. marine retail market is substantial, with consumer spending reaching $55.6 billion in 2024, though it saw a slight decrease of 2.6% from the prior year. New powerboat sales were $15.5 billion in 2024, showing a historical average annual growth of 10% since 2012. The market is characterized by fragmentation, with OneWater Marine leveraging acquisitions to build scale and market leadership in key regions.

Regulatory Implications

OneWater Marine operates within a regulated industry that is subject to various federal, state, and local laws concerning consumer protection, environmental standards, and safety. Compliance with these regulations is essential to avoid penalties and maintain operational continuity.

What Investors Should Do

1. Monitor non-boat sales growth
2. Assess acquisition integration success
3. Analyze impact of economic conditions on consumer spending
4. Evaluate brand concentration risk

Key Dates

• 2025-09-30: Fiscal Year End — Reporting period for the 10-K, providing financial and operational data for the year.
• 2025-02-11: Corporate Reorganization and IPO — Established OneWater Inc. as the holding company and OneWater LLC as the principal operating subsidiary, marking its entry into the public market.

Glossary

Dealerships Segment

The primary operating segment of OneWater Marine, encompassing the retail sale of new and pre-owned boats, along with related services and products. (This segment is the largest contributor to revenue, accounting for 92% of total revenues in FY2025.)

Distribution Segment

A segment focused on the sale of marine-related parts and accessories, bolstered by strategic acquisitions. (This segment represents 8% of total revenues and is key to the company's strategy of expanding non-boat sales.)

Same-store sales growth

A measure of sales growth for stores that have been open for a year or more, indicating organic growth trends. (This metric is used by the company to demonstrate the health and performance of its established dealership locations.)

IPO

Initial Public Offering, the process by which a private company first sells shares of stock to the public. (The IPO in February 2020 was a significant event that restructured the company and provided capital for growth.)

Year-Over-Year Comparison

The provided text does not contain comparative data from the previous fiscal year's 10-K. Therefore, a direct comparison of key metrics like revenue growth, margin changes, or new risks cannot be made based solely on this excerpt.

Key Financial Figures

• $0.01 — stered Class A common stock, par value $0.01 per share ONEW The Nasdaq Global Market
• $55.6 billion — cessories and related purchases reached $55.6 billion in 2024, down 2.6% from 2023, and has,
• $15.5 billion — s have driven market growth and reached $15.5 billion in 2024, resulting in an 10% average an
• $9.7 billion — onal powerboat sales were approximately $9.7 billion in 2024, which represents a decrease of
• $9.2 billion — in excess of the pre-pandemic level of $9.2 billion in 2019. With the exception of 2020 - 2
• $1,158.2 million — boat sales accounted for approximately $1,158.2 million or 61.9% of our consolidated revenue, a
• $363.9 million — boat sales accounted for approximately $363.9 million or 19.4% of our consolidated revenue.

Filing Documents

• onew-20250930.htm (10-K) — 2455KB
• onew-20250930xex191xinside.htm (EX-19.1) — 60KB
• onew-20250930xex211.htm (EX-21.1) — 16KB
• onew-20250930xex231.htm (EX-23.1) — 2KB
• onew-20250930xex311.htm (EX-31.1) — 10KB
• onew-20250930xex312.htm (EX-31.2) — 10KB
• onew-20250930xex321.htm (EX-32.1) — 5KB
• onew-20250930xex322.htm (EX-32.2) — 5KB
• onew-20250930_g1.jpg (GRAPHIC) — 66KB
• 0001772921-25-000085.txt ( ) — 11913KB
• onew-20250930.xsd (EX-101.SCH) — 75KB
• onew-20250930_cal.xml (EX-101.CAL) — 118KB
• onew-20250930_def.xml (EX-101.DEF) — 439KB
• onew-20250930_lab.xml (EX-101.LAB) — 954KB
• onew-20250930_pre.xml (EX-101.PRE) — 711KB
• onew-20250930_htm.xml (XML) — 1508KB

Risk Factors

Item 1A. Risk Factors 15 Item 1B. Unresolved Staff Comments. 38 Item 2. Properties. 41 Item 3. Legal Proceedings. 41 Item 4. Mine Safety Disclosures. 41 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 42 Item 6. [Reserved] 43 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 43 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 67 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 68 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 102 Item 9A.

Controls and Procedures

Controls and Procedures. 102 Item 9B. Other Information. 103 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 103 PART III Item 10. Directors, Executive Officers and Corporate Governance. 104 Item 11.

Executive Compensation

Executive Compensation. 104 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 104 Item 13. Certain Relationships and Related Transactions, and Director Independence. 104 Item 14. Principal Accounting Fees and Services. 104 PART IV Item 15. Exhibits, Financial Statement Schedules. 105 Item 16. Form 10-K Summary 109 i Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS The information in this Annual Report on Form 10-K includes "forward-looking statements." All statements, other than statements of historical fact included in this Annual Report on Form 10-K, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Annual Report on Form 10-K, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading "Risk Factors," "Business," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in this Annual Report on Form 10-K. These forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and timing of future events.

Forward-looking statements may include statements about

Forward-looking statements may include statements about: general economic conditions, including changes in employment levels, rates of inflation, consumer demand and preferences, consumer confidence levels, fuel prices, levels of discretionary income, and consumer spending patterns, and tariff, duty rates or other uncertainties with respect to trade policies; economic conditions in certain geographic regions in which we primarily generate our revenue; credit markets and the availability and cost of borrowed funds; our business strategy, including acquisitions and Dealership same-store growth; our ability to integrate acquisitions or conduct dispositions; competition; our ability to maintain our relationships with manufacturers, including meeting the requirements of our dealer agreements and receiving the benefits of certain manufacturer incentives; changes in industry seasonality and changes in demand for our products and our ability to maintain acceptable pricing for our products and services, including financing, insurance and extended service contracts; effects of an inflationary environment on the cost of the products we sell and personnel and other expenses that are incurred within our operations; our ability to finance working capital and capital expenditures; our operating cash flows, the availability of capital and our liquidity; our future revenue, Dealership same-store sales, income, financial condition, and operating performance; our ability to sustain and improve our utilization, revenue and margins; seasonality and inclement weather such as hurricanes, tornadoes, other severe storms, fire and floods, generally and in certain geographic regions in which we primarily generate our revenue; any potential tax savings we may realize as a result of our organizational structure prior to the Final Redemption (defined below); our future operating results and profitability; and plans, objectives, expectations and intentions contained in this Annua

Business

Item 1. Business. OneWater Marine Inc. ("OneWater Inc.") is a holding company and the sole managing member of One Water Marine Holdings, LLC ("OneWater LLC"), which became the principal operating subsidiary of OneWater Inc. on February 11, 2020 in the corporate reorganization (the "Reorganization") completed in connection with OneWater Inc.'s initial public offering (the "IPO"), which closed on February 11, 2020. Except as otherwise indicated or required by the context, all references in this Annual Report on Form 10-K to the "Company," "OneWater," "we," "us" or "our" relate to OneWater Inc. and its consolidated subsidiaries. Overview We believe that we are one of the largest and fastest-growing marine retailers in the United States with 95 dealership locations, 9 distribution centers/warehouses and multiple online marketplaces as of September 30, 2025. Our retail locations are located in highly attractive markets throughout the Southeast, Gulf Coast, Mid-Atlantic and Northeast, many of which are in the top twenty states for marine retail expenditures. We believe that we are a market leader by volume in sales of premium boats in many of the markets in which we operate. Additionally, the acquisitions of T-H Marine Supplies, LLC ("T-H Marine") and Ocean Bio-Chem, LLC (f/k/a Ocean Bio-Chem, Inc. ("Ocean Bio-Chem")) significantly expanded our sales of marine-related parts and accessories. The combination of our significant scale, diverse inventory, access to premium boat brands, access to a broad array of parts and accessories, and meaningful group brand equity enables us to provide a consistently professional experience as reflected in the number of our repeat customers and Dealership same-store sales growth. We report our operations through two reportable segments: Dealerships and Distribution. As of September 30, 2025, the Dealerships segment includes operations of 95 dealerships in 17 states including Florida, Texas, Alabama and Georgia, among others, and repr

View Full Filing

View this 10-K filing on SEC EDGAR