Latest news with #ONEW
Globe and Mail
02-08-2025
- Business
- Globe and Mail
OneWater (ONEW) Q3 Revenue Up 1.9%
Key Points GAAP revenue of $552.9 million for Q3 FY2025 beat expectations and rose 1.9% year-over-year. Adjusted earnings per share of $0.79 for Q3 FY2025 fell well below the analyst estimate of $1.12 and dropped 24.8% year-over-year in Q3 FY2025. Gross margin and profitability declined as intense promotions and brand exits weighed on results, but inventory dropped 13.6% year-over-year in Q3 FY2025. These 10 stocks could mint the next wave of millionaires › OneWater Marine (NASDAQ:ONEW), a leading U.S. marine retailer with a focus on premium boat brands, released its Q3 FY2025 results on July 31, 2025. The company posted GAAP revenue of $552.9 million for Q3 FY2025, exceeding analyst expectations of $532.0 million (GAAP) and reflecting a 1.9% increase from the prior-year quarter. However, Adjusted earnings per share (non-GAAP) reached only $0.79—well below the consensus estimate of $1.12 and down from $1.05 (adjusted, non-GAAP) in Q3 FY2024. The quarter highlighted sales resilience and market share gains relative to broader industry weakness, as OneWater outperformed the industry in Q2 FY2025 with same-store sales down 2% compared to an industry unit sales decline of over 10%, but also revealed margin pressures, lower profits, and ongoing business adjustments as OneWater continued its push to streamline inventory and brand offerings. Metric Q3 2025 Q3 2025 Estimate Q3 2024 Y/Y Change EPS (Adjusted, Non-GAAP) $0.79 $1.12 $1.05 (24.8%) Revenue $552.9 million N/A $542.4 million 1.9% Gross Profit Margin 23.3% 24.4% (1.1) pp Adjusted EBITDA $32.8 million $39.2 million (16.3%) Inventory $517.1 million $598.6 million (13.6%) Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report. Business Overview and Key Growth Drivers OneWater Marine runs a large network of nearly 100 retail dealerships and multiple distribution centers across the U.S. The company's main activities involve the sale of new and pre-owned boats, as well as offering marine parts, service, and insurance products. Its core business involves partnering with top boat manufacturers and serving a wide customer base with a focus on premium and high-demand brands. OneWater also sells related products such as marine parts and accessories and provides repair services at its dealerships. The company's growth strategy relies on expanding its store footprint through acquisitions and diversifying its sources of revenue. Key success factors for OneWater include its ability to manage inventory levels efficiently, maintain competitive pricing, and continually refresh its lineup to target the most profitable market segments. Its significant size gives it negotiating power with manufacturers and the ability to provide value-added services—factors that help it outperform smaller rivals. Quarter in Review: Revenue Resilience, Margin Pressures, and Brand Streamlining During the quarter, OneWater's total revenue (GAAP) rose to $552.9 million for Q3 FY2025—beating expectations and outperforming broader market trends in Q2 FY2025, where industry unit sales fell by more than 10%. Same-store sales were up 2%. The strongest performance came from pre-owned boat sales, where GAAP revenue climbed 17.8% to $125.9 million on both higher unit volumes and average selling prices. The company reported that increased trade-ins and trade-ups supported this growth.—a positive indicator for the market's health and OneWater's position as a destination for upgraders. In new boat sales, revenue slipped 2.1% to $326.1 million (GAAP) as lower unit volume was not fully offset by higher selling prices. The finance and insurance segment, which offers loans and insurance to boat buyers, held steady at $17.8 million, remaining flat as a proportion of total boat sales. Service, parts, and other sales fell 1.7% to $83.0 million (GAAP). The company noted that while dealership-level service and parts sales improved, the distribution segment faced headwinds due to reduced boat production from manufacturers. These shifts highlight OneWater's efforts to balance cyclical retail sales with steady service, repair, and insurance revenues. Profitability metrics highlighted the most notable challenges for the quarter. Gross profit margin (GAAP) dropped to 23.3%, down 1.1 percentage points versus the prior year. Overall gross profit (GAAP) fell 2.9%, while adjusted EBITDA declined 16.2%. The margin decline was linked to ongoing aggressive promotions—especially discounting of non-current and exiting brands—as well as changes in the mix of boats sold. Notably, as a greater mix of trade-in units carried lower margins. CEO commentary confirmed that as OneWater completes the sale of aged and low-performing brands, margins should see improvement in future quarters (as discussed on the Q2 FY2025 earnings call). A significant achievement this period was inventory reduction. Inventory dropped 13.6% year-over-year to $517.1 million as of June 30, 2025. This disciplined management of inventory is part of a broader plan to 'clean up' the product portfolio by exiting 15 low-performing brands and focusing on higher-quality, high-demand offerings. The company made it clear that only a small portion of boats in inventory remain from these exiting brands, suggesting that most promotional pricing and zero-margin sales should be completed soon. Meanwhile, operating expenses rose. Selling, general, and administrative spending increased to $92.1 million, or 16.7% of total revenue. Management cited increased expenses to drive same-store sales results and inflationary costs related to administrative and fixed expenses. Leverage remains high, with adjusted net debt at 5.8 times trailing twelve-month adjusted EBITDA—a level that signals potential limitations on future financial flexibility if profits do not recover. Through these changes, OneWater's strategic efforts were clear: prioritize higher-margin, premium brands; manage inventory tightly; and increase efficiency through portfolio rationalization. No major acquisitions or structural changes were reported this period, but the company continues to rank as a top-three customer with 25 brands, bolstering its negotiation leverage with suppliers. Looking Ahead: Guidance and Investor Watch Points Management updated its guidance for FY2025. The new outlook calls for full-year revenue between $1.80 billion and $1.85 billion, reflecting an upward revision from prior targets. However, profitability expectations were trimmed: adjusted EBITDA is forecast at $65 million to $80 million and adjusted diluted EPS is now expected to fall between $0.50 and $0.75, down from a prior range of $0.75 to $1.25 for adjusted diluted EPS and up to $95 million for adjusted EBITDA. Guidance for same-store sales moved from "flat to down low single digits" to "up low single digits". The lowered profitability guidance was framed as a response to ongoing price competition, margin pressures, and careful inventory clean-up. For the remainder of fiscal 2025, leverage and liquidity levels are also important, as the company works to restore earnings and cash flow. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
01-08-2025
- Business
- Yahoo
OneWater's (NASDAQ:ONEW) Q2 Sales Beat Estimates, Full-Year Sales Guidance is Optimistic
Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 1.9% year on year to $552.9 million. The company's full-year revenue guidance of $1.83 billion at the midpoint came in 3.2% above analysts' estimates. Its non-GAAP profit of $0.79 per share was 25.3% below analysts' consensus estimates. Is now the time to buy OneWater? Find out in our full research report. OneWater (ONEW) Q2 CY2025 Highlights: Revenue: $552.9 million vs analyst estimates of $531.7 million (1.9% year-on-year growth, 4% beat) Adjusted EPS: $0.79 vs analyst expectations of $1.06 (25.3% miss) Adjusted EBITDA: $32.85 million vs analyst estimates of $38.55 million (5.9% margin, 14.8% miss) The company lifted its revenue guidance for the full year to $1.83 billion at the midpoint from $1.75 billion, a 4.3% increase Management lowered its full-year Adjusted EPS guidance to $0.63 at the midpoint, a 37.5% decrease EBITDA guidance for the full year is $72.5 million at the midpoint, below analyst estimates of $74.86 million Operating Margin: 5.5%, down from 7.4% in the same quarter last year Same-Store Sales rose 2% year on year (-8% in the same quarter last year) Market Capitalization: $237.5 million 'The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins,' commented Austin Singleton, Chief Executive Officer at OneWater. Company Overview A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $1.79 billion in revenue over the past 12 months, OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, OneWater's sales grew at an impressive 16.5% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new stores and expanded its reach. This quarter, OneWater reported modest year-on-year revenue growth of 1.9% but beat Wall Street's estimates by 4%. Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Store Performance Number of Stores A retailer's store count influences how much it can sell and how quickly revenue can grow. OneWater opened new stores quickly over the last two years, averaging 2.3% annual growth, faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that OneWater reports its store count intermittently, so some data points are missing in the chart below. Same-Store Sales A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.1% annual declines. This performance is concerning - it shows OneWater artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, OneWater's same-store sales rose 2% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum. Key Takeaways from OneWater's Q2 Results We enjoyed seeing OneWater beat analysts' revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street's estimates. On the other hand, its EBITDA missed and its gross margin fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 1.8% to $14.31 immediately following the results. OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
24-07-2025
- Business
- Yahoo
3 Reasons to Sell ONEW and 1 Stock to Buy Instead
Over the last six months, OneWater's shares have sunk to $15.75, producing a disappointing 7.7% loss - a stark contrast to the S&P 500's 4.3% gain. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in OneWater, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Why Is OneWater Not Exciting? Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why ONEW doesn't excite us and a stock we'd rather own. 1. Shrinking Same-Store Sales Indicate Waning Demand Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.4% annual declines. 2. EPS Trending Down We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. OneWater's full-year EPS dropped significantly over the last four years. In a mature sector such as consumer retail, we tend to steer our readers away from companies with falling EPS because it could imply changing secular trends and preferences. If the tide turns unexpectedly, OneWater's low margin of safety could leave its stock price susceptible to large downswings. 3. High Debt Levels Increase Risk Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. OneWater's $566.1 million of debt exceeds the $67.46 million of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $66.82 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. OneWater could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope OneWater can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Final Judgment OneWater isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 8.7× forward P/E (or $15.75 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better stocks to buy right now. We'd suggest looking at the Amazon and PayPal of Latin America. Stocks We Would Buy Instead of OneWater Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Why OneWater (ONEW) Stock Is Trading Up Today
What Happened? Shares of boat and marine products retailer OneWater Marine (NASDAQ:ONEW) jumped 3.3% in the afternoon session after strong economic data pointed to a resilient U.S. consumer, lifting stocks in the consumer discretionary sector. The broader market rallied after new data showed unexpected strength in the U.S. economy, easing investor concerns about a potential recession. A key report from the Commerce Department revealed that U.S. retail sales jumped 0.6% in June, rebounding from the prior month and significantly beating economists' forecasts. For a premium marine retailer like OneWater, whose business relies on high-ticket recreational purchases, signs of robust consumer health are particularly encouraging. The positive data suggests shoppers are weathering economic pressures, which supports demand for discretionary items like boats. The consumer discretionary sector was among the market's leaders for the session. After the initial pop the shares cooled down to $14.31, up 2.2% from previous close. Is now the time to buy OneWater? Access our full analysis report here, it's free. What Is The Market Telling Us OneWater's shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 20.8% on the news that the company reported weak second-quarter earnings. Its revenue and EPS missed analysts' expectations, and its full-year earnings forecast fell short of Wall Street's estimates. Notably, revenue declined by 8.7%, mostly due to weaknesses in the New boat segment (sales down 10.4%). Overall, this quarter could have been better. OneWater is down 16.7% since the beginning of the year, and at $14.31 per share, it is trading 53.1% below its 52-week high of $30.48 from July 2024. Investors who bought $1,000 worth of OneWater's shares 5 years ago would now be looking at an investment worth $623.80. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Globe and Mail
17-07-2025
- Business
- Globe and Mail
OneWater Marine Inc. Announces Fiscal Third Quarter 2025 Earnings Release Date and Conference Call Information
OneWater Marine Inc. (NASDAQ: ONEW) (the 'Company' or 'OneWater') announced today that it will release its third quarter 2025 financial results on Thursday, July 31 st, 2025, before the market opens. Following the release, the Company's management team will host a conference call to discuss the results at 8:30 a.m. Eastern Time that day. To access via phone, participants can use the dial in below: Event: OneWater Marine Inc. Fiscal Third Quarter 2025 Conference Call Date: Thursday, July 31 st, 2025 Time: 8:30 a.m. Eastern Time Live Call: (+1) 646 564 2877 or (+1) 800 549 8228 (North America Toll Free) OneWater Marine will offer a live webcast of the conference call, accessible from the Investor Relations section of the company's website, at where it will be archived for one year. A telephonic replay will also be available through August 7 th, 2025 by dialing (+1) 646 517 3975 (US), (+1) 289 819 1325 (Canada), or (+1) 888 660 6264 (North America Toll Free), and entering access code 25911 #. About OneWater Marine Inc. OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 97 retail locations, 9 distribution centers / warehouses and multiple online marketplaces in 19 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair and other services.
