Winnebago Swings to Profit on Strong RV Sales, Revenue Jumps 12.3%

TL;DR

**WGO is back in the black with solid revenue growth, signaling a strong recovery in RV demand.**

AI Summary

Winnebago Industries Inc. (WGO) reported a significant turnaround in its first fiscal quarter ended November 29, 2025, achieving net income of $5.5 million, a substantial improvement from a net loss of $5.2 million in the prior-year period. Revenue increased by 12.3% to $702.7 million, up from $625.6 million in the same quarter last year. This growth was primarily driven by the Towable RV segment, which saw net revenues rise to $293.4 million from $254.0 million, and the Motorhome RV segment, which increased to $308.5 million from $271.7 million. Operating income swung to a positive $13.8 million from an operating loss of $0.9 million year-over-year. The company also reduced selling, general, and administrative expenses to $69.8 million from $72.1 million. Cash and cash equivalents increased to $181.7 million from $174.0 million at the end of the previous fiscal year, while total assets decreased slightly to $2,127.2 million from $2,154.4 million. The company's strategic outlook includes evaluating new FASB accounting standards, such as ASU 2025-06 for internal-use software and ASU 2024-03 for expense disaggregation, which could impact future financial reporting.

Why It Matters

This strong performance indicates a potential rebound in consumer demand for recreational vehicles and marine products, which is crucial for WGO's investor confidence. The shift from a net loss to a net income of $5.5 million, coupled with a 12.3% revenue increase, suggests effective cost management and market penetration, potentially outperforming competitors in a challenging economic environment. For employees, this signals job security and potential growth opportunities. Customers may see continued innovation and product availability. The broader market could interpret this as a positive indicator for the leisure and outdoor recreation sectors, potentially influencing investment decisions in related industries.

Risk Assessment

Risk Level: medium — While Winnebago reported a positive net income, the company's total assets decreased from $2,154.4 million to $2,127.2 million, and current liabilities remain substantial at $289.5 million. Furthermore, the company holds $541.0 million in long-term debt, which could pose a risk if interest rates rise or economic conditions deteriorate, impacting consumer discretionary spending on RVs and boats.

Analyst Insight

Investors should consider WGO's improved profitability and revenue growth as a positive signal, but also monitor the company's long-term debt and overall asset base. A deeper dive into segment-specific growth drivers, particularly the Towable RV and Motorhome RV segments, is warranted to assess sustainability. Consider initiating a small position or adding to an existing one, while keeping an eye on macroeconomic indicators affecting consumer discretionary spending.

Financial Highlights

debt To Equity

0.44

revenue

$702.7M

operating Margin

1.96%

total Assets

$2,127.2M

total Debt

$541.0M

net Income

$5.5M

eps

$0.19

gross Margin

12.66%

cash Position

$181.7M

revenue Growth

+12.3%

Revenue Breakdown

Key Numbers

• $702.7M — Net Revenues (Increased 12.3% from $625.6M in Q1 2024)
• $5.5M — Net Income (Swung from a net loss of $5.2M in Q1 2024)
• $0.19 — Diluted EPS (Improved from ($0.18) in Q1 2024)
• $13.8M — Operating Income (Turned positive from an operating loss of $0.9M in Q1 2024)
• $181.7M — Cash and Cash Equivalents (Increased from $174.0M at August 30, 2025)
• $541.0M — Long-term Debt, net (Slightly increased from $540.5M at August 30, 2025)
• 28.2M — Basic Weighted Average Common Shares Outstanding (Slightly decreased from 28.6M in Q1 2024)

Key Players & Entities

• WINNEBAGO INDUSTRIES INC (company) — registrant
• WGO (company) — ticker symbol
• SEC (regulator) — United States Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $702.7 million (dollar_amount) — net revenues for Q1 2025
• $625.6 million (dollar_amount) — net revenues for Q1 2024
• $5.5 million (dollar_amount) — net income for Q1 2025
• $5.2 million (dollar_amount) — net loss for Q1 2024
• $13.8 million (dollar_amount) — operating income for Q1 2025
• $0.9 million (dollar_amount) — operating loss for Q1 2024

FAQ

Industry Context

The recreational vehicle (RV) industry is experiencing a rebound, with Winnebago's performance reflecting this trend. Growth in both Towable and Motorhome segments indicates strong consumer demand. The competitive landscape includes other major RV manufacturers, and success hinges on product innovation, manufacturing efficiency, and adapting to evolving consumer preferences.

Regulatory Implications

Winnebago is actively evaluating new FASB accounting standards, including ASU 2025-06 for internal-use software and ASU 2024-03 for expense disaggregation. These pronouncements could alter future financial reporting practices, particularly concerning the capitalization of software costs and the level of detail in expense disclosures.

What Investors Should Do

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Glossary

ASU 2025-06

An Accounting Standards Update from the FASB concerning the capitalization of internal-use software costs, requiring capitalization to begin when management has authorized and committed to funding the project. (This standard, expected to be adopted by Winnebago, will change how software development costs are recognized, potentially impacting the timing of expense recognition.)

ASU 2024-03

An Accounting Standards Update from the FASB related to expense disaggregation, aiming to improve the transparency and comparability of financial reporting by requiring more detailed disclosure of expenses. (Winnebago is evaluating this standard, which could lead to more granular reporting of operating expenses in future filings.)

Operating Income (Loss)

Profitability measure calculated by subtracting total operating expenses (cost of goods sold, SG&A, amortization) from net revenues. (A key indicator of the company's core business performance, which swung from a loss of $0.9M to a profit of $13.8M year-over-year.)

Accumulated other comprehensive loss

A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translations that have not been included in net income. (This account remained stable at ($0.4M), indicating no significant unrealized gains or losses impacting equity outside of net income.)

Year-Over-Year Comparison

Winnebago Industries Inc. demonstrated a significant financial turnaround in the first fiscal quarter ended November 29, 2025, compared to the prior year. Net revenues surged by 12.3% to $702.7 million from $625.6 million, while the company swung from a net loss of $5.2 million to a net income of $5.5 million. Operating income also turned positive, reaching $13.8 million from a loss of $0.9 million, supported by a reduction in selling, general, and administrative expenses from $72.1 million to $69.8 million.

Key Financial Figures

• $0.50 — ange on which registered Common Stock, $0.50 par value per share WGO New York Stock

Filing Documents

• wgo-20251129.htm (10-Q) — 910KB
• a2026q1exh311.htm (EX-31.,1) — 11KB
• a2026q1exh312.htm (EX-31.2) — 12KB
• a2026q1exh321.htm (EX-32.1) — 5KB
• a2026q1exh322.htm (EX-32.2) — 6KB
• wgo-20251129_g1.jpg (GRAPHIC) — 34KB
• 0000107687-25-000047.txt ( ) — 5595KB
• wgo-20251129.xsd (EX-101.SCH) — 31KB
• wgo-20251129_cal.xml (EX-101.CAL) — 68KB
• wgo-20251129_def.xml (EX-101.DEF) — 128KB
• wgo-20251129_lab.xml (EX-101.LAB) — 474KB
• wgo-20251129_pre.xml (EX-101.PRE) — 334KB
• wgo-20251129_htm.xml (XML) — 834KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION 27 Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 5. Other Information 27 Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Winnebago Industries, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended (in millions, except per share data) November 29, 2025 November 30, 2024 Net revenues $ 702.7 $ 625.6 Cost of goods sold 613.7 548.8 Gross profit 89.0 76.8 Selling, general, and administrative expenses 69.8 72.1 Amortization 5.4 5.6 Total operating expenses 75.2 77.7 Operating income (loss) 13.8 ( 0.9 ) Interest expense, net 5.5 5.8 Non-operating income ( 0.1 ) — Income (loss) before income taxes 8.4 ( 6.7 ) Income tax provision (benefit) 2.9 ( 1.5 ) Net income (loss) $ 5.5 $ ( 5.2 ) Earnings (loss) per common share: Basic $ 0.19 $ ( 0.18 ) Diluted $ 0.19 $ ( 0.18 ) Weighted average common shares outstanding: Basic 28.2 28.6 Diluted 28.3 28.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements. 3 Table of Contents Winnebago Industries, Inc. Consolidated Balance Sheets (in millions, except per share data) November 29, 2025 August 30, 2025 (Unaudited) Assets Current assets Cash and cash equivalents $ 181.7 $ 174.0 Receivables, less allowance for credit losses ($ 0.5 and $ 0.5 , respectively) 149.1 192.0 Inventories, net 415.1 396.4 Prepaid expenses and other current assets 31.7 29.8 Total current assets 777.6 792.2 Property, plant, and equipment, net 327.9 333.0 Goodwill 484.2 484.2 Other intangible assets, net 451.5 456.9 Investment in life insurance 27.3 27.1 Operating lease assets 40.2 41.6 Other long-term assets 18.5 19.4 Total assets $ 2,127.2 $ 2,154.4 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 109.9 $ 129.3 Accrued expenses: Accrued compensation 31.8 41.1 Product warranties 73.8 72.9 Self-insurance 14.5 16.2 Promotional 26.0 31.0 Accrued interest and dividends 9.3 13.4 Other current liabilities 24.2 23.2 Total current liabilities 289.5 327.1 Non-current liabi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (All amounts are in millions, except share and per share data, unless otherwise designated) Note 1. Basis of Presentation The consolidated financial statements include the accounts of Winnebago Industries, Inc. and its wholly-owned subsidiaries. Intercompany account balances and transactions have been eliminated in consolidation. The use of the terms "Winnebago Industries," "Winnebago," "we," "our," and "us" in this Quarterly Report on Form 10-Q, unless the context otherwise requires, refers to Winnebago Industries, Inc. and its wholly owned subsidiaries. The interim unaudited consolidated financial statements included herein are prepared pursuant to the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"). The information furnished in these consolidated financial statements includes normal recurring adjustments, unless noted otherwise in the Notes to Consolidated Financial Statements, and reflects all adjustments that are, in management's opinion, necessary for a fair presentation of such financial statements. The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). GAAP requires us to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The consolidated financial statements included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 30, 2025 filed with the SEC. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year ending August 29, 2026. Comprehensive Income Comprehensive i