Winnebago Industries saw its stock decline Wednesday after the recreational vehicle (RV) manufacturer reported weaker third-quarter results and slashed its full-year forecast due to ongoing economic headwinds.
According to an article by Investopedia, CEO Michael Happe acknowledged the complexity of current market conditions, stating the company faced the “diverse dynamics of our business segments and the challenges posed by an uncertain economic environment.”
For its fiscal third quarter of 2025, Winnebago posted adjusted earnings per share (EPS) of $0.81, down from $1.10 a year earlier.
Revenue dipped 1.4% year-over-year to $775.1 million. Both figures fell short of analysts’ expectations and were in line with the preliminary ranges the company had issued earlier in the month.
The results reflect a broader slowdown in consumer demand for RVs. Sales of towable RVs dropped nearly 4% to $371.7 million, a decline attributed to a shift toward more affordable product lines.
Motorhome sales also fell 2.6% to $291.2 million due to lower volumes. However, the company’s marine segment saw a 15% boost, reaching $100.7 million, driven by increased pricing.
As economic uncertainty continues to weigh on discretionary spending, Winnebago has lowered its full-year guidance. It now expects adjusted EPS of $1.20 to $1.70, sharply down from its previous range of $2.75 to $3.75.
Revenue is projected between $2.7 billion and $2.8 billion, compared to the prior forecast of $2.8 billion to $3.0 billion. “The macroeconomic backdrop presents near-term challenges,” Happe added.
Shares of Winnebago (WGO) were down nearly 3% in early trading following the earnings release and have declined 36% since the start of 2025.
This development holds significant weight for the RV industry, as Winnebago is one of its most recognized players.
The lowered outlook highlights the sensitivity of RV sales to economic cycles, particularly in times of inflation, high interest rates, or reduced consumer confidence.