There aren’t a bunch of happy campers over at Winnebago Industries. The company has lowered its financial outlook for fiscal 2026 after reporting weaker third-quarter sales, citing slowing retail demand, cautious dealer ordering and continued pressure in the towable RV market.
The company now expects full-year revenue of $2.65 billion to $2.75 billion, down from its previous forecast of $2.8 billion to $3 billion. It also reduced its adjusted earnings forecast to $1.65 to $2 per share from an earlier estimate of $2.10 to $2.80.
Third-quarter revenue fell 9.9% from a year earlier to $698.7 million. Net income declined to $14.5 million, or 51 cents per diluted share, compared with $17.6 million, or 62 cents per share, during the same period last year. Adjusted earnings were 66 cents per share, down from 81 cents a year earlier.
The biggest drag came from the company’s towable RV segment, where revenue dropped 26.1% to $274.7 million. Operating income for the segment fell 46.3% as dealers continued to limit inventory and consumers pulled back on higher-priced trailers and fifth wheels. Marine sales also declined 8.3%.
Motorhome business was a bright spot
One bright spot was the motorhome business. Revenue in that segment increased 10.1% to $320.7 million, and the division returned to operating profitability after posting a loss in the same quarter last year.
President and CEO Michael Happe said the retail environment remained difficult throughout the quarter. He said dealers continue to place conservative orders while maintaining lean inventories because of elevated fuel prices, geopolitical uncertainty and weak consumer confidence. He also noted that promotional pricing remains intense, particularly in higher-priced towable RVs.
Despite the softer sales environment, Winnebago reported stronger operating cash flow during the first nine months of the fiscal year. The company generated $26.2 million in operating cash flow, compared with negative cash flow during the same period a year earlier. It ended the quarter with $57.1 million in cash and cash equivalents.
Winnebago also revised its outlook for the North American RV market. The company now expects industry wholesale shipments in calendar year 2026 to total between 290,000 and 310,000 units, reflecting a more cautious view of demand than earlier this year.
The revised forecast comes as the RV industry continues to face affordability concerns, higher borrowing costs and cautious consumer spending. While motorhome sales have shown signs of improvement, towable RV demand remains under pressure, especially in premium price categories.
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