Gross Margin Expansion
Gross profit margin expanded 110 basis points to 23.9% year-over-year, driven by favorable mix, brand portfolio optimization and pricing discipline.
OneWater Marine
· ONEW
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +20.45%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
NeutralThe call presented a mixed picture: meaningful operational progress (110 bps gross margin expansion, inventory improvement, debt reduction, pre-owned growth, cost actions, and maintained guidance) offset by notable top-line weakness (revenues down 9%, same-store sales down 8%, new boat revenue down 12%), a quarterly net loss including a $6M impairment, and ongoing industry headwinds. Management emphasized strategic portfolio optimization (sale of Ocean Bio-Chem), improved balance sheet metrics and encouraging early selling‑season activity, but acknowledged that divestiture-related lost revenue and macro uncertainty will pressure comparables and near-term results.
Company Guidance
OneWater reiterated its fiscal 2026 guidance (unchanged since the February Ocean Bio‑Chem divestiture), expecting total revenue of $1.78–$1.88 billion, adjusted EBITDA of $60–$80 million, adjusted diluted EPS of $0.20–$0.70, and dealership same‑store sales to be flat year‑over‑year while the industry is expected to be flat to down low single digits. Management said year‑to‑date results are consistent with its forecast and emphasized a target to reduce net debt-to-EBITDA below 4.0x by year‑end (current net debt-to-EBITDA 4.1x), after repaying $57 million of debt this quarter; Q2 metrics included $442 million revenue (‑9% YoY), $106 million gross profit with a 23.9% gross margin (+110 bps), $16 million adjusted EBITDA, a $13 million net loss (including a $6 million noncash trade name impairment), $68 million cash (~$73 million total liquidity), $551 million inventory (down from $602 million), SG&A of $86 million (‑$2 million), and a continued focus on margin expansion, cost savings (~$6 million annualized actions) and disciplined inventory positioning.
Inventory Position and Mix Improvement
Dealership inventory down 3% year-over-year and down 19% versus two years ago; overall inventory reported at $551 million (from $602 million prior year), with management describing mix and aging profile as the best in years.
Debt Reduction and Leverage Improvement
Repaid $57 million of debt during the quarter; long-term debt $354 million; net debt-to-EBITDA improved to 4.1x sequentially and year-over-year, and management remains on track to reduce leverage below 4.0x by year-end.
Liquidity and Cash Position
Ended the quarter with $68 million cash and total liquidity of approximately $73 million.
Pre-Owned and Parts/Service Strength
Pre-owned boat revenue increased 5% year-over-year driven by higher unit sales and average price; excluding Ocean Bio-Chem (OBCI) contribution in the prior year, service, parts and other sales increased year-over-year.
Cost Actions and SG&A Discipline
SG&A declined $2 million to $86 million versus prior year; management implemented additional cost actions expected to deliver approximately $6 million in annual savings (about half to be realized in back half of fiscal year).
Strong Boat Show Results and Timing Benefit
Palm Beach International Boat Show produced high‑teens percentage growth in units and dollars versus prior year; timing shifted approximately $16–$17 million of sales into the June quarter, providing near-term pickup potential.
Completed Strategic Divestiture
Completed sale of Ocean Bio-Chem as part of portfolio optimization; proceeds used to reduce debt and focus business on core assets and long-term value creation.
Guidance Maintained
Management reiterated fiscal 2026 outlook: total revenue $1.78B–$1.88B, adjusted EBITDA $60M–$80M, adjusted diluted EPS $0.20–$0.70, and industry assumption of flat to down low single digits.
Operator
Good morning. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to the OneWater Marine Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Jack Ezzell, Chief Financial Officer and Chief Operating Officer. Jack, please go ahead.
Jack Ezzell
Good morning, and welcome to OneWater Marine's Fiscal Second Quarter 2026 Earnings Conference Call. I am joined on the call today by Austin Singleton, Executive Chairman; and Anthony Aisquith, Chief Executive Officer. Before we begin, I'd like to remind you that certain statements made by management in this morning's conference call regarding OneWater Marine and its operations may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. Factors that might affect future results are discussed in the company's earnings release, which can be found in the Investor Relations section on the company's website and in its filings with the SEC. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. Please note that all comparisons of our second quarter 2026 results are made against second quarter ...
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