Latest news with #OneWaterMarine
Yahoo
01-05-2025
- Business
- Yahoo
OneWater (NASDAQ:ONEW) Misses Q1 Revenue Estimates, Stock Drops 18%
Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $483.5 million. The company's full-year revenue guidance of $1.75 billion at the midpoint came in 3.8% below analysts' estimates. Its non-GAAP profit of $0.13 per share was 61.2% below analysts' consensus estimates. Is now the time to buy OneWater? Find out in our full research report. Revenue: $483.5 million vs analyst estimates of $497.5 million (flat year on year, 2.8% miss) Adjusted EPS: $0.13 vs analyst expectations of $0.34 (61.2% miss) Adjusted EBITDA: $17.86 million vs analyst estimates of $23.3 million (3.7% margin, 23.4% miss) The company dropped its revenue guidance for the full year to $1.75 billion at the midpoint from $1.78 billion, a 1.4% decrease Management lowered its full-year Adjusted EPS guidance to $1 at the midpoint, a 33.3% decrease EBITDA guidance for the full year is $80 million at the midpoint, below analyst estimates of $88.97 million Operating Margin: 3.4%, in line with the same quarter last year Same-Store Sales fell 2% year on year (-5% in the same quarter last year) Market Capitalization: $240.6 million 'Our teams executed well in a challenging environment. Same store sales decreased 2%, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton,' commented Austin Singleton, Chief Executive Officer at OneWater. A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. With $1.78 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 excellent 17.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) despite not opening many new stores. This quarter, OneWater missed Wall Street's estimates and reported a rather uninspiring 1% year-on-year revenue decline, generating $483.5 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, a deceleration versus the last six years. Still, this projection is above average for the sector and indicates the market is forecasting some success for its newer products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. A retailer's store count influences how much it can sell and how quickly revenue can grow. OneWater has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. Note that OneWater reports its store count intermittently, so some data points are missing in the chart below. 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 provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.4% annual declines. This performance isn't ideal, and we'd be concerned if OneWater starts opening new stores to artificially boost revenue growth. In the latest quarter, OneWater's same-store sales fell by 2% year on year. This performance was more or less in line with its historical levels. We struggled to find many positives in these results. Quarterly results missed across the board, and the company lowered full-year guidance. The stock traded down 18% to $12.30 immediately following the results. OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
3 Reasons ONEW is Risky and 1 Stock to Buy Instead
The past six months haven't been great for OneWater. It just made a new 52-week low of $11.41, and shareholders have lost 46.8% of their capital. This might have investors contemplating their next move. Is there a buying opportunity in OneWater, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons why you should be careful with ONEW and a stock we'd rather own. A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. 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 within its existing locations has barely increased over the last two years as its same-store sales were flat. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. OneWater's full-year EPS dropped 242%, or 35.9% annually, 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. 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 $567.3 million of debt exceeds the $22.71 million of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $77.26 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. OneWater isn't a terrible business, but it doesn't pass our quality test. After the recent drawdown, the stock trades at 7.2× forward price-to-earnings (or $11.41 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're pretty confident there are more exciting stocks to buy at the moment. We'd recommend looking at the most dominant software business in the world. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Associated Press
02-04-2025
- Business
- Associated Press
Boats Group Extends Partnership with OneWater Marine and Denison Yachting, Reinforcing Commitment to Digital Excellence
MIAMI, April 2, 2025 /PRNewswire/ -- Boats Group, the leading online marketplace for buying and selling boats, announced that OneWater Marine, a premier marine retailer, has renewed its multi-year partnership with Boats Group. This renewal reflects OneWater's confidence in Boats Group's ability to drive enhanced customer engagement and ultimately boost boat sales. Bob Denison, President of Denison Yachting, a OneWater Marine company, along with Robert Long, Vice President of Marketing, have led this collaboration. With their deep-rooted expertise in digital marketing and the brokerage industry, Denison and Long have been pivotal in aligning OneWater's utilization of Boats Group's platforms. Their understanding of the evolving digital landscape and its role in the boat-buying experience reinforces why Boats Group remains a key partner. 'Denison Yachting is committed to delivering the best possible experience for boat buyers and sellers, and Boats Group continues to be the gold standard in online marketplaces,' said Bob Denison. 'This partnership ensures that our listings receive maximum visibility, connects us with active customers, and ultimately drives sales.' Over the past two years, Boats Group has introduced significant innovations to improve the online shopping experience, making it easier for consumers to browse listings, compare options, and make confident purchasing decisions. OneWater Marine values these enhancements and will continue to benefit from Boats Group's audience reach, lead generation capabilities, and data-driven marketing strategies. 'This partnership underscores our shared vision of innovation and growth in the boating industry,' said Andreas Madsen, CRO of Boats Group. 'Bob Denison and the OneWater team understand the critical role we play in today's market, and we are proud to be their trusted partner in delivering the tools and technology that accelerate their success.' The renewed agreement between OneWater Marine and Boats Group solidifies their commitment to providing the best experience for boat buyers and sellers. As the industry evolves, this partnership will continue to drive visibility, engagement, and sales—ensuring OneWater Marine remains at the forefront of marine retail. About Boats Group Boats Group operates the world's leading online marketplaces for buying and selling boats, including Boat Trader, YachtWorld, and With a global audience of millions of boat buyers, we provide data-driven marketing solutions, AI-driven tools, financing services, and industry insights to help OEMs, dealers, and brokers maximize their sales potential. 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 98 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.
Yahoo
31-01-2025
- Business
- Yahoo
OneWater Marine First Quarter 2025 Earnings: Beats Expectations
Revenue: US$375.8m (up 3.2% from 1Q 2024). Net loss: US$12.0m (loss widened by 67% from 1Q 2024). US$0.81 loss per share (further deteriorated from US$0.49 loss in 1Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 7.3%. Looking ahead, revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Specialty Retail industry in the US. Performance of the American Specialty Retail industry. The company's shares are up 5.2% from a week ago. We don't want to rain on the parade too much, but we did also find 1 warning sign for OneWater Marine that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Q1 2025 OneWater Marine Inc Earnings Call
Jack Ezzell; Chief Financial Officer; One Water Marine Inc Philip Austin Singleton; Chief Executive Officer & Director; OneWater Marine Inc Anthony Aisquith; President, Chief Operating Officer, Director; OneWater Marine Inc Fred Wightman; Analyst; Wolfe Research Joseph Altobello; Analyst; Raymond James Financial Services Mike Swartz; Analyst; Truist Securities Noah Zatzkin; Analyst; KeyBanc Capital Markets Operator Good morning. My name is Chloe, and I will be your conference operator today. (Operator Instructions)I would now like to turn the conference over to Jack as well. Chief Financial Officer. Please go ahead. Jack Ezzell Good morning, and welcome to OneWater Marine's Fiscal First Quarter 2025 Earnings Conference Call. I'm joined on the call today by Austin Singleton, Chief Executive Officer; and Anthony Aisquith, President and Chief Operating Officer. Before we begin, I'd like to remind you that certain statements made by management in this morning's call regarding OneWater Marine and its operations may be considered forward-looking statements under the securities laws and involve a number of risks and 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 company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that may occur after the date the forward-looking statements are made, except as required by law. Please also note that all comparisons to our fiscal first quarter 2025 results are made against our fiscal first quarter 2024, unless otherwise with that, I'd like to turn the call over to Austin who will begin with a few opening remarks. Austin? Philip Austin Singleton Margins also vary by product. Current model year margins are holding up well while brands we are exiting were discounted to close sales. Given the impact of Hurricane Helene and Milton had on the West Coast of Florida, I am pleased with our top line growth in the you may recall, we temporarily closed several stores in the fall in preparation for the storm affecting Florida and the Gulf Coast. While it is difficult to quantify lost sales that we recouped during the quarter, sales in the impacted area were down mid-single digits compared to the prior we are making good progress on managing inventory, which is down 10% goal is to have cleaner inventories each quarter, striking the right balance of brand make and model ensuring that we are well positioned to meet customer needs while maintaining operational efforts are starting to pay off as highlighted by our lower carrying cost on floor plan interest expense versus the prior year are also seeing the benefits of our ongoing cost reduction initiatives taking effect selling general and administrative expenses declined on both a dollar basis and as a percentage of total revenue between our inventory position and cost actions, we are setting one water up for success in the quarters to come despite better than expected results in the first quarter, which is historically our smallest quarter. We remain cautiously optimistic about industry continues to face uncertainty after a challenging 2024 and we have not seen any significant market changes that would alter our outlook for the year as a result. We are reaffirming our guidance range for 2025. Our focus remains on executing our inventory strategy as we prepare for the summer selling season while remaining nimble to respond to any changes in market dynamics. With that, I will turn it over to Anthony to discuss the business operations. Anthony Aisquith Thanks Austin sales in the quarter. Benefit from higher unit volumes offset by the lower average unit price as we work to drive sales during the slower winter months with all of our stores operational again after hurricane related closures, we developed promotional strategies and actions to give customers additional reasons to buy. I am proud of the team's effort to achieve the increase in sales in the quarter that seasonally experiences the slowest attention now shifts to the Boat Show season region shows have been mixed results. Some facing challenges like unprecedented cold weather and snow in Atlanta and significant rain at the Saint Petersburg Outdoor these adversities, customers have been active when weather permitted, and overall sentiment has been positive. The premium category has done well and is in line with recent trends. All in all. We are ready to serve customers at upcoming a year marked by high inventory levels. Our focused approach to inventory management has put us in a strong position as the industry works to clear out excess and non current inventory. While this push caused some near-term discounting, we are encouraged by our solid financial and insurance performance which helped offset some of the impact and highlighted the benefits of our diverse business finance and insurance revenue grew 50 basis points as a percentage of total revenue compared to the prior period and finance penetration remains diverse brand portfolio continues to be a key advantage enabling us to deliver boats and to meet the varied wants and needs of our customers across different markets. Meanwhile, the promotional environment has continued with our manufacturing partners actively supporting sales initiatives and helping clear aged we typically build inventories in the winter months, we've added inventory from the fourth quarter at a slower pace compared to the prior year being mindful of the volume and model of 2025 boats we are taking in and with that,I'll turn the call over to Jack to go over the financials in more detail. Jack Ezzell Thanks, Anthony. The first quarter was a solid start to the year with revenue increasing 3% to $376 million from $364 million in the prior year. New boat sales were up 3% to $248 million in the first quarter while pre-owned boat sales increased 7% to $57 million. Overall, same-store sales were up 4%, driven by an increase in new unit sales despite the industry unit sales being down approximately 14% in the categories we participate in. Revenue from service parts and other sales for the quarter decreased 1% to $62 million, as we have seen in the last several quarters, reduced production schedules from boat manufacturers drove lower sales in our distribution segment, which were partially offset by increases in our dealership and insurance revenue increased 28% to $9 million in the first quarter and was higher as a percentage of total boat sales. Gross profit decreased 8% to $84 million in 2025 compared to $91 million in 2024. This was driven by lower margins on the brands we are exiting in addition to new and pre-owned boat pricing. First quarter 2025 selling, general and administrative expenses decreased 1% to $79 million. SG&A as a percentage of sales was 21%, down 90 basis points as a percentage of revenue due in part to lower personnel costs in the quarter, previous cost reduction actions and ongoing expense savings were partially offset by certain inflationary increase in fixed and administrative expenses. Operating loss decreased to $2 million and adjusted EBITDA was $2 million. Net loss for the first quarter totaled $14 million or $0.81 per diluted share compared to a net loss of $8 million or $0.49 per diluted share in the prior year. Adjusted loss per diluted share was $0.54 compared to an adjusted loss per diluted share of $0.38 in the prior year. Now turning to the balance 31, 2024, total liquidity was in excess of $40 million, including $23 million of cash and additional availability under our credit facilities. Total inventory at December 31, 2024, was $637 million compared to $707 million at December 31, 2023. We continue to improve our current mix in aging while we execute on our brand rationalizations. We expect to see some incremental benefits from further inventory reductions as we progress throughout the year. Total long-term debt as of December 31, 2024, was $428 million, net of $23 million in cash, results in net leverage of 5.2x trailing 12-month adjusted are focused on reducing leverage in the latter half of 2025. Looking ahead, we are maintaining our previously issued fiscal 2025 guidance and anticipate total sales to be in the range of $1.7 billion to $1.85 billion, with same-store sales up in the low single digits. We continue to expect adjusted EBITDA to be in the range of $80 million to $110 million and adjusted earnings per diluted share to be in the range of $1 to $2. Our capital allocation priorities remain the same, driving organic growth, expanding our presence through strategic acquisitions in key boating markets. The pipeline is active, but we will continue to deploy cash where it creates the greatest value for concludes our prepared remarks. Operator, will you please open the line for questions. Operator (Operator Instructions) Fred Whiteman from Wolf research. Your line is open. Fred Wightman Hey, guys, good morning. I was hoping you could just talk about the cadence of the quarter. Austin. I think when you reported last or held a call last, you talked about some encouraging October trends. So I'm wondering if you could just update us on what you saw from sort of month to month basis. Philip Austin Singleton I think it was a pretty solid quarter on every month if you were comparing it, over last year. But I would say if anything, December is the one month that you really can't pinpoint because, it starts to get really cold in some then people get caught up and, Thanksgiving into November and, and running into, just the year end, New year and Christmas is just, I would say October and November were pretty DGU strong in December was probably, on average or flat Anthony, you probably have a better feel for that than I do. Anthony Aisquith Yeah, I think you just, you described it exactly. I mean, our October and November were very strong, with the December just being what it normally is in normal times. Jack Ezzell The thing I would point. Out to you. Right, is that, October in particular, especially the first half was, was in the Florida, locations were impacted by the storms. So that that kind of geography was a little bit light compared to the rest of the rest of the country. Fred Wightman Okay. That makes sense. And then just on the front end grosses, it was down a little down year over year and then down a little bit sequentially. I know you guys are exiting some brands. So can you maybe just give us some, some guide posts for what that looked like? Maybe on a like for like basis versus the exited brands? Have to think about that margin profile going forward. Thanks. Philip Austin Singleton Jack, do you want to I'll just say, look, let me just say this and then you can kind of fill in what I don't wherever. Fred, when we get to those exiting brands, we want those things gone. I mean there's no support from the manufacturer. The sales guys don't like them because there's no real long-term future and so they gravitate for the other thing. So I mean it's a tough sledding, and we've done a really good job of pushing those those are coming at margin or either a negative margin so it's having a pretty good impact. I think we mentioned in the script up there that the New Year model stuff has got a much better, healthier margin. And the further we get into this year, the better off that's what gives us a little bit of confidence in what we said last quarter on the earnings call was one of those green shoots that we saw as we get rid of these exiting brands, we do feel like we'll get some margin lift because the new boats are bringing a higher margin. Jack Ezzell Yes, Fred, I think next quarter, we'll see some margin pressure continue as we get through the rest of them. But I would expect, once we get past our second quarter kind of get into the heat of the season that margins may tick up a little bit. But we're focused on sure we keep our inventory in check, and we're balancing that with our model year '25s are coming a little bit slower than model year '24s did. You'll notice that by inventory decline year-over-year, and we're going to continue to focus on bringing those numbers down. Fred Wightman And Jack just to be clear when you say pressure in two Q. Is that a sequential comment, year over year? Comment both. What do you, what do you mean? Jack Ezzell Yeah, it's a year-over-year, I would say sequentially, it's flattish, maybe even a little bit better, again, it's really hard to move a lot of products in those winter months. You know, especially, outside of Florida. And the, and the team did an outstanding job outside of Florida moving product. Fred Wightman Perfect. Thanks a lot guys. Operator Our next question comes from the line of Joseph Altobello from Raymond James. Your line is open. Joseph Altobello Good morning. This is Martin on for Joe. I just first wanted to touch on the comp. Do you have an idea of where COMP was excluding Florida? Jack Ezzell Yeah, it's going to move up. You know, I'd say it's probably, it was probably in the range of 6%, 7%. Joseph Altobello Okay. And then I just quickly on the cop again. Do you have a breakdown between units Jack Ezzell Yeah, I mean, its, larger units were up double digits. So I think it was in the.12% 13% range. Joseph Altobello Perfect, appreciate it guys. Thank you. Operator Bye. Our next question comes from the line of Mike Swartz from Truist Securities. Your line is open. Mike Swartz Hey, hey guys, good morning. Maybe just starting with inventory jack. Is there, is there, I guess an inventory level you guys are actually in terms of new boat. Is there an inventory level you guys are targeting for fiscal year end? And maybe, what does that look like relative to where we are today? Jack Ezzell Yeah. No, we made a good, concerted effort with the sales push as well as with how we're managing our orders this quarter. And our target for September '25 is to be down year-over-year. 10-plus percent. I think again, we while we're down 9% a little over 9% this quarter, I think that could flex in next quarter as we take some additional those in advance of the that will be a little fluid throughout the year, but our goal is to be down in excess of 10%. Philip Austin Singleton Well, yes, our goal is to be down Mike, our goal is to be down a little bit just because we've exited nine brands. But I mean, we're also going to continue to do what we do every day, and let's monitor the market. I mean we feel pretty good about this year as we move into the back half.I don't know if that means that we're going to see a big push on the retail side. But if retail comes out better than expected, then that will probably not be the case.I mean we'll have to plan accordingly based off what demand is and what we're seeing out there, and we watch that on a weekly really on almost a daily basis. Mike Swartz Yeah, it, and, and just, sticking on the subject of inventory, is there a way to think about maybe what, what used inventory or sorry, not used, what aged inventory looks like today, maybe, versus a typical, whatever, typical means a year. And then also what, I guess, how much inventory do you still have kind of wrapped up with some of these brands you're exiting? I'm just trying to get a sense of, how impactful that headwind is over the next couple of quarters relative to, what we've seen in the last six months or so. Philip Austin Singleton Yes. I wouldn't say it's that impactful over the next couple of quarters. I think we'll as Jack said a little while ago, we feel the pressure of it a little bit this quarter. But when we I look at it just from a total dated standpoint because all those brands that we're exiting are really in my dated box. So you've got current 2025 and then you've got dated typically, in a normal year, pre-COVID for 2 decades pre-COVID, you really went into the off-season wanting somewhere around 20% or not warning, but the industry usually ended up going in there somewhere around 20%, 25%. Of carryovers going into the new year, calendar new year, and we always wanted to be slightly under that, Jack. I don't know if you have that in front of you, but I mean we're probably less than 20% right now. We're right at that. Jack Ezzell Yeah, I don't have that right in front of me. I would agree with your comment. I did, I did hear from, some data I've gotten from. Wells that suggested the industry as a whole was kind of getting to that point. Philip Austin Singleton It's the inventory story to me, not just on water, but for the industry per wells is that inventory is cleaning up pretty dadgum good I don't really get into total inventory out there from a wells perspective versus what's the dated and they seem to be a lot happier today than they were a month ago, three months ago, six months ago, especially forecasting going into the selling season. So the inventory itself from a dating perspective is continuing on the trend that it's been on the last months cleaning itself up slowly but surely, and that's some of the green shoots that we see in the back half of the year. Mike Swartz Okay. Okay. That's, that's helpful. Thanks Austin. And maybe just philosophically, right. Your, your quarter came in plus four and comp despite a lot of the headwinds and challenges that we had with some of the, some of the dislocation in the Florida market and you're, you're maintaining your outlook for the full year despite having some pretty easy comps going forward. I mean, can you just give us a sense of, what, maybe what that discussion was like internally, you know, in terms of just maintaining that, that outlook? Jack Ezzell Yeah. Yeah. I mean, I think, look, a lot of it has to do with, you know, when you think about Q4 or excuse me, the December quarter, right? It's the slowest quarter of the year. You know, when I go out and I look also at consensus has Q3 at even a $50 million which, which seems, feels a little strong. And, and so I think if you layer in and in Q2 and Q4 tend to be pretty close to one another. And so I think if you bring down Q3 a little bit, and, and level out Q2 and Q4, I think that kind of keeps you around that 95-consensus number, which is, is the midpoint. Of the range. Okay. Thanks. Philip Austin Singleton I'm, Jack, I'm a little bit more of an optimist and, and I'm starting to really kind of, you can see some of these green shoots, but I mean, we, we've, we've, we thought we've seen some green shoots in the past have been throwing curveballs. And so, we really want to watch out and, and, and be a little bit more, cautious until we get a little bit further into the selling season, in the back half of Miami. You know, after that Miami Show, I think we'll have a little bit more confidence in what's in front of us versus where we are today coming out of the, like Jack said, the slowest quarter of the year. Jack Ezzell Yeah, I'll just point out too, right. What, what once felt like a tailwind of interest rates, you know, from the fed and whatnot, it feels like rates. You know, the latest forecast suggests that we're not going to get as many cuts as you know, we thought, three or six months ago and, and so, I don't feel like it's you know, necessarily a headwind coming at us, but it just doesn't feel like we're going to get the, some of that relief we maybe we were expecting. In the back half of the year. Mike Swartz Got you. Okay, helpful. Thanks guys. Operator Our next question comes from the line of Noah Zatzkin from KeyBank Capital Markets. The line is open. Noah Zatzkin This is Ryan on for Noah. And I know you just kind of briefly touched on it, but it would be great to hear your perspective on the industry nowhere in a difficult environment, and it seems like that rate cut conversation has changed and has maybe kind of put on pause for now. But it would be great to hear if you're seeing any other kind of green shoots or changes in confidence coming out of this quarter. Philip Austin Singleton I don't know if there's a change in confidence. I think that Jack and Anthony talk about it a lot. I mean, the green shoots that we kind of laid out last earnings call are still out there and they still look reasonably achievable. And when you get into what really will be one of the biggest drivers of that and that inventory cleaning up because as inventory cleans itself up from a dated perspective, I think if you just if you took the total industry and took all the 2024s out and older, the dated inventory out, and you just looked at what the industry has just in 2025, the industry is super healthy. I mean the manufacturers have been disciplined on cutting back dealers are taking the right amount of inventory going into 2025. So when you look at that, you're like, okay, that's we're in great shape from an industry perspective. It's getting the other stuff cleaned up and the quicker we clean it up, that leads to several things from a OneWater perspective that we look up. It leads to higher margins on new boat sales. It leads to more turns on new boats, which saves us money that we can count because we know what our interest savings is when you increase your turns but there's dollars that are hard to quantify, like if you move about 25x around the lot versus 1x, there's a cost associated with then you look at interest savings, even if the rates don't move, the more turns, the less interest you pay. And so but then as inventory cleans itself up, the manufacturers are going to get ready to increase production going into 2026, which swaps over and helps TH because TH doesn't have to do anything today to increase its revenue and bottom we need to do is have the manufacturers increase production 10%, and we'll get a 10% lift on what we sell to those a 10% increase in sales there for those manufacturers that are increasing sales because they have to have the parts in order to build the boat. So there's all these little things that kind of are starting to really take shape, but a lot of it has to do with getting that inventory cleaned I would just say every at the end of every quarter, really at the end of every month and now really on a weekly basis that I'm talking to wells, we're headed in the right haven't the train hasn't come off the track and that's starting to build confidence as we go into the selling season, and which is just a little bit of a wait and see. We just need that to continue Noah Zatzkin Yes. And maybe just pivoting a little bit, it would be helpful to hear any thoughts around the state of preowned market? What you're kind of seeing there and how you're thinking about used in 2025. Philip Austin Singleton Yes, it's the same old broken record that we've been saying for the last 25 years, we don't have enough of them. It's that preowned market is still extremely limited on inventory. It's still extremely limited on from an industry perspective, there's just not enough out there. And I don't see that getting better anytime soon thanks. Operator Our next question comes from the line of Ali Strickland from Baird. your line is open. Yeah, good morning, gentlemen. Thanks for taking my questions on for Craig this morning. You know, maybe a little bit related to the pre-owned question, but a little more focused on new, curious if you have a way to measure first time buyers versus trade in buyers and some markets like auto, we're seeing some would be trading consumers sitting out because the monthly payment math just doesn't make sense given inflation rates and trade in value. So wondering if you're seeing anything on that and how it's playing out in the Marine category. Philip Austin Singleton Jack Anthony, I'll let you all take that. I mean, you can speak really to the Atlanta Boat show probably on that. Just what we saw there. Anthony Aisquith Yes. I think we are seeing the amount of trades starting to reach up where prior in the COVID period where the trades really went dropped down significantly in this whole fiscal year has already started off with more of a demand in trades people are trading boats in where they weren't blessed to be tied to a lot of manufacturers that continue to be innovative that gives people a reason to trade whereas 20-some-odd years ago, the new boat came out and it was just a different color where today, every year, our manufacturers are bringing some incredible things. So its making people want to trade. So the percentage I don't Jack, I don't know if you have that in front of you with the actual percentage, but it has gone up dramatically where it was our. Jack Ezzell Sales, again, right. This what, what Austin was getting at. Our, our biggest challenge is supply when it comes to selling trades or selling used boats. And so I think, we've, we've seen some indicators of supply coming in at the shows like Anthony referred to when you, when you break down our sales, our pre-owned sales which are up, six and 6.5% trades are up double digits in that, countered by a little bit of people shifting from a little downward trending consignment. Right. So people go ahead trading their boats, you know, to get that new product, it's a, was it easier, more efficient process for them where they can, you know, just hand over their trade and we'll take care of the paperwork and everything else with getting them in a new boat. Philip Austin Singleton Well, but one other thing, too, though, that we need to kind of, it's really hard for us to get really good clarity on this because we have, we've been pushing for years in some of the states that we operate in and that have now gone to basically a title. So a lot of boats in the past went from consumer to consumer, and never went through the dealership because there was no tax advantage. And the way that if you sold it from person to person, you didn't pay sales started to change because when you go and get the it was like that probably half the states we operated in. And we've slowly been getting that pushed through from a legislation standpoint to get it once you go get a boat, if you get a new time, you pay sales tax if you haven't you don't prove that you paid it at a that wave more trades are probably starting to come to us, too. So it's a little hard to really to gauge that. But I agree with what Anthony and Jack both said, I do believe trades are up. Great. That's, that's helpful color. Just switching gears a little bit. I mean, you called out higher F&I penetration mitigating some of the margin pressure from working down inventory. Maybe let's dig into that a little bit. What's driving that? And is it something that's sustainable, through the balance of the year? Jack Ezzell Yeah, it's definitely, you know, again, it's, it's a concerted effort by the team. I think it's, it's one of those areas if you're not pushing as hard as you can to, get that finance, you won't get it. And so I think, the team executed on some strategies, We had some price points and some, you know, special finance options for some of those discontinued brands that, that help kind of drive a little we'll continue to be very competitive in the F&I department kind of looking to, expand and increase, increase our penetration and increase our income there. Great. And then, I think that just want to touch on the M&A pipeline. I think you called it active. Maybe frame a little bit more what that looks like today. Philip Austin Singleton Yes. We're in no hurry to do anything right now. I mean time every day, time works in our favor. And I think we're just we're being cautious kind of waiting to see how things pan out over the next 30, 90 days getting into the season. There's a lot of dealers out there that it's been a hard winter for we're just kind of wait and see how numbers react and how they come down and what they look like going into the selling season compared to a year ago, especially since most of the deals that we buy on a trailing 12. Just going to be very selective and be a little bit disciplined on timing right now and just wait for stuff to kind of fall in our lap. Great. Thanks guys. That's all for me. Operator (Operator Instructions) Our next question comes from the line of Brian Griffin from day eight. If Davidson, your line is open. Yeah, thanks guys. Good morning. So what have you guys been seeing from a promotional aspect of these shows so far? Right? I'm assuming it's still competitive, but maybe just some high level comments on what you've seen so far by category, maybe other dealers. Philip Austin Singleton I think it's a bit Anthony, you know what they did at the Atlanta Boat Show and what we've been doing at the boat shows. But I think it's been pretty much steady Eddy for the last year. I mean, manufacturers are still being very supportive, moving know they've got to be out their help and especially pushing the stated inventory through, and I think they're all still doing that. basically on the same level that they had that's why we weren't expecting a whole lot last quarter or this past fall because there was really no incentive to buy in October when you could buy in January at the boat shows and still be ready for the boat show I think it's just been pretty much on par with what it's been like for over the last year, 1.5 years of promotion. I think the manufacturers are very committed to helping retail clean up the field inventory because that benefits us all moving forward Anthony Aisquith Yeah, I think it's been across the board. Austin, I mean, it's every manufacturer, not just our manufacturers, our competitors, manufacturers, all of them are, are, are digging in with everybody. So I haven't, I don't see it slowing down at this point. But they are all very helpful to help facilitate putting deals together. Got you. And what are you guys hearing from o Ems on potential tariffs and how that may impact demand and margins overall? Philip Austin Singleton Well, I mean, we need, go ahead, Jack. Jack Ezzell Think, I think a lot of them, have, have a wait and see sort of standpoint. I mean, I think there's too much, there's too much noise around exactly what things look like to try to do anything to prepare or to, counteract. And I know through the, over the course of time, a number of manufacturers have worked to diversify their, their sources of product. But, you know, a lot of products are manufactured in the United States which, which certainly helps. But I think it just kind of remains to be seen on that. Philip Austin Singleton It's I don't want to say it's not impactful or meaningful or say that it's going to have nothing to no effect at all because it will depending on where the tariffs are and what they're on. But if you look at a boat, whether you're looking at a pontoon boat, a ski-boat or center console fishing boat or run about, the majority of that pricing is in the engine and in the raw materials to make the aluminum, the fiberglass, all that stuff. That's where the majority of your pricing is. So it's just not like we're going to see a tariffs on all this stuff from all these different countries and all of a sudden, boats are going to go up 20% because all the materials to build it went up 20%.It's just not 1 billion a piece of the boat to me where it's going to have that big of an impact. I mean, in hell, they're already so expensive now and it doesn't seem to be bothering people. Understood. Thanks guys. Operator There are no further question at this time. 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