OneWater Marine Inc. reported fiscal 2025 results that included a revenue beat and an earnings miss. Total revenue rose 21.8% to $460.1 million in the fourth quarter and 5.6% to $1.872 billion for the full year, driven by a 26.7% increase in new‑boat sales and a 24.6% jump in pre‑owned sales. Same‑store sales grew 23% in the quarter, a sharp acceleration from the 6% growth seen in the full year. Gross profit reached $103.9 million, up $13.2 million YoY, but the gross‑margin contracted to 22.6% from 24.8% in 2024, reflecting pricing on exiting brands and a higher mix of lower‑margin new models. The company posted a net loss of $113 million, largely due to a $145.8 million non‑cash goodwill and intangible asset impairment. Adjusted EBITDA climbed 123% to $17.5 million, while adjusted EPS fell to less than $0.01, missing consensus estimates of $0.19–$0.21.
The revenue beat was largely a result of strong demand in the core new‑boat and pre‑owned segments, which outpaced the broader marine industry’s modest growth. The 23% same‑store sales increase indicates that existing dealer locations are capturing a larger share of customer spending, offsetting the headwinds from competitive pricing on legacy brands. In contrast, the EPS miss was driven almost entirely by the one‑time impairment charge; without the $145.8 million write‑down, the company would have reported a modest adjusted EPS of roughly $0.02, still below analyst expectations but closer to the consensus.
Margin compression in the quarter was a direct consequence of the company’s strategic brand exit program. As OneWater phased out lower‑margin legacy brands, it had to price aggressively on those models to clear inventory, which pulled the overall gross margin down. Additionally, the shift toward newer, higher‑margin models increased the cost of goods sold relative to revenue, further tightening the margin. The company’s management noted that the clean inventory levels achieved through the exit program position it for margin expansion in 2026 as the market normalizes.
Looking ahead, OneWater guided fiscal 2026 revenue to $1.83 billion–$1.93 billion and adjusted EBITDA to $65 million–$85 million. Management emphasized that the completion of brand exits and healthier industry inventories create a window for margin improvement. The guidance reflects confidence in sustaining the same‑store sales momentum while managing costs, but it also signals caution given the lingering impact of the impairment charge and the need to maintain disciplined inventory levels.
Market reaction to the results was mixed. Some investors highlighted the revenue beat and the company’s disciplined inventory management as positives, while others focused on the significant EPS miss and the large impairment write‑down. Analysts noted that the revenue beat was a strong indicator of demand resilience, but the earnings miss underscored the short‑term impact of the impairment and the need for continued focus on profitability. Overall, the market’s response reflected a balance between optimism about future margin expansion and concern over the one‑time charge’s effect on earnings.
"We delivered a solid finish to what was a challenging fiscal 2025 for our industry, outperforming the market and continuing to advance our strategic priorities," said Austin Singleton, Executive Chairman. "With our strategic brand exits complete and industry inventories approaching healthier levels, we see opportunity for margin expansion in fiscal 2026 as we sharpen our focus on our portfolio of strong core brands."
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