OneWater Q1 2026 results: ‘Solid’ quarter as loss narrows
Photo courtesy of OneWater
US marine retailer OneWater Marine Inc. has reported results for its fiscal 2026 first quarter, ended 31 December 2025.
Revenue for the quarter increased 1.3 per cent to $380.6m, compared with $375.8m in the prior-year period. Same-store sales were flat year on year. Gross profit for the quarter totalled $89.4m, with a gross margin of 23.5 per cent, representing an increase of 110 basis points compared with the prior year.
The company reported a GAAP net loss of $7.7m, or $0.47 per diluted share. On an adjusted basis, diluted loss per share was $0.04. Adjusted EBITDA for the quarter was $4m.
“We delivered a solid first quarter supported by a strong inventory position and consistent execution across the business. Gross margins were modestly better than we anticipated, driven by favourable model mix and the benefits of portfolio optimisation efforts, which we expect to be realised in various amounts throughout the year,” says Austin Singleton, executive chairman at OneWater.
“As the first quarter is seasonally our smallest, our focus remains on disciplined execution as industry conditions begin to improve. Supported by a healthy inventory mix and improved ageing profile, we believe we are well-positioned to execute on our priorities of higher profitability and improved balance sheet leverage.”
New boat revenue declines 5.9%
New boat revenue declined 5.9 per cent to $233.3m, primarily reflecting lower unit volumes, partially offset by higher average pricing. Pre-owned boat revenue increased 24 per cent to $70.4m, driven by higher unit sales and pricing. Finance and insurance income decreased slightly as a percentage of total boat sales, while service, parts and other revenue rose 10.3 per cent to $68m.
Selling, general and administrative expenses totalled $81.4m, representing 21.4 per cent of revenue, compared with $79.1m, or 21 per cent, in the prior-year period. The increase as a percentage of revenue was attributed to higher variable personnel costs, including sales commissions.
Net loss for the quarter was influenced by a $7.1m non-cash impairment charge related to the adjustment of assets held for sale to expected fair value, net of costs to sell. During the period, the company classified certain distribution segment assets and liabilities as held for sale following board approval of a divestment plan.
Assets held for sale totalled $52.8m at quarter end and are presented separately on the balance sheet. The company expects the transaction to close before 31 March 2026, with proceeds intended for debt reduction.
As of 31 December 2025, cash and cash equivalents totalled $32.2m. Total liquidity, including cash and availability under credit facilities, was $49.2m. Inventory declined to $601.5m from $636.7m a year earlier, reflecting inventory management actions and reclassification of assets held for sale. Total long-term debt at quarter end was $399.4m, with adjusted long-term net debt of 5.1 times trailing twelve-month adjusted EBITDA.
For fiscal year 2026, OneWater is maintaining its previously issued outlook. The company expects industry conditions to be flat to down low single digits year on year.
Total revenue is expected to be between $1.83bn and $1.93bn, with adjusted EBITDA in the range of $65m to $85m and adjusted diluted earnings per share between $0.25 and $0.75.
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