OneWater Marine Inc. ONEW reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line fell from the prior year's quarter levels.
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During the quarter, the company reported benefits from higher unit sales in both new and pre-owned categories. Strategic inventory management and strong operational execution enabled the company to outperform industry trends while effectively reducing inventory levels. Although these efforts put pressure on margins, increased finance and insurance penetration helped offset the impact, underscoring the resilience of OneWater’s business model. Going forward, the company is cautiously optimistic, courtesy of a healthy inventory position and ongoing cost-reduction initiatives.
Following the results, the company shares gained 13.8% during trading hours yesterday.
ONEW Q1 Earnings & Revenues
During the fiscal first quarter, the company reported an adjusted loss per share of 54 cents, narrower than the Zacks Consensus Estimate of a loss of 94 cents. In the prior-year quarter, ONEW reported an adjusted loss per share of 38 cents.
OneWater Marine Inc. Price, Consensus and EPS Surprise
OneWater Marine Inc. price-consensus-eps-surprise-chart | OneWater Marine Inc. Quote
Quarterly revenues of $375.8 million beat the Zacks Consensus Estimate of $335 million. The top line increased 3.2% year over year. The upside was backed by an increase in new unit sales and same-store sales growth of 4%.
During the quarter, new boat revenues increased 2.9% year over year to $248 million. The upside was driven by an increase in units sold. Finance & insurance income increased 27.7% year over year to $9.4 million.
Pre-owned boat revenues in the fiscal first quarter increased 6.6% year over year to $56.8 million. The upside was backed by an increase in units sold and average price per unit. Service, parts and other sales declined by 1.1% year over year to $61.6 million.
OneWater Marine Operating Highlights
During the fiscal first quarter, selling, general and administrative expenses (as a percentage of total revenues) came in at 21%, compared with 21.9% reported in the year-ago quarter. The downside was driven by lower personnel costs, prior cost-reduction initiatives and ongoing expense management efforts.
Gross profit during the quarter came in at $84.1 million compared with $91.4 million reported in the prior-year quarter. The decrease was primarily attributed to lower margins on discontinued brands, as well as pricing dynamics in the new and pre-owned boat segments. Gross margins during the quarter contracted 270 basis points year over year to 22.4%.
Adjusted EBITDA during the quarter came in at $1.9 million compared with $7.1 million reported in the prior-year quarter.
ONEW’s Balance Sheet
Cash as of Dec. 31, 2024, totaled $22.7 million compared with $44.6 million on Dec. 31, 2023.
Inventory during the quarter came in at $636.7 million compared with $706.8 million reported in the prior year quarter.
As of Dec. 31, 2024, net long-term debt stood at $412.6 million compared with $433.7 million reported in the prior quarter.
ONEW’s Fiscal 2025 Outlook
For fiscal 2025, the company expects revenues to be in the range of $1.7 billion to $1.85 billion. It expects dealership same-store sales to be up in the low single digits. Adjusted EBITDA is projected to be between $80 million and $110 million. The company expects adjusted earnings per share (EPS) to be between $1 and $2 in fiscal 2025.
ONEW’s Zacks Rank
OneWater Marine currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
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The Zacks Consensus Estimate for TCOM’s 2025 sales and EPS indicates growth of 15.1% and 7.4%, respectively, from the year-ago levels.
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The Zacks Consensus Estimate for JAKK’s 2025 sales indicates growth of 1.9% from the year-ago levels.
Carnival Corporation & plc CCL currently carries a Zacks Rank #2 (Buy). CCL has a trailing four-quarter earnings surprise of 326.4%, on average. The stock has surged 29.9% in the past three months.
The Zacks Consensus Estimate for CCL’s 2025 sales and EPS indicates growth of 4% and 23.9%, respectively, from the year-ago levels.
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