Revenue decrease for OneWater Marine as 2025 Q2 highlights released
OneWater Marine has announced its fiscal second quarter 2025 highlights. Among those, the company says, revenue has decreased 1 per cent to $484 million, same-store sales have decreased 2 per cent and the gross profit margin is 22.8 per cent.
“When you look at an industry that’s down 10 per cent plus and we’re down somewhere around 2 per cent, that’s pretty positive,” says Austin Singleton, CEO, OneWater Marine. “I wouldn’t say [we’re] excited about being down two, but compared to where the industry is, it makes us feel pretty good. And it’s kind of in line with where we thought we’d be.”
Singleton says the company’s executed itself well in a challenging environment. “Same store sales decreased 2 per cent, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton. We continue to benefit from our strategic approach to inventory management and strong operational execution, which led to a 12 per cent inventory reduction year over year and 5 per cent sequentially.”
Shares dropped 14.26 per cent to $12.87 in premarket trading yesterday, according to investment data available online. The stock has declined over 31 per cent in the past six months, with current trading levels near its 52-week low of $12.02 says InvestingPro – the latter’s analysis indicates the stock is currently fairly valued based on its comprehensive Fair Value model.
OneWater describes itself as a premium marine retailer. It operates 98 retail locations, nine distribution centres / warehouses and multiple online marketplaces. Operating in 19 states in the USA, it 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.
No material impact from announced tariffs
“From where we stand today, we do not expect the announced tariffs to have a material impact on our current model year product and [we] will work closely with our manufacturing partners as we prepare for the upcoming model year boats,” continues Singleton (pictured below). “However, we are taking a more cautious approach to the selling season given the impact of considerable macroeconomic uncertainty on consumer demand. Consequently, we are updating our outlook for the remainder of the year. As we navigate this difficult environment, we remain focused on executing our strategic priorities, rationalising our brand portfolio and accelerating cost reduction initiatives to position OneWater for long-term success.
“We do not expect an impact to pricing on our current inventory. We are communicating with our manufacturing partners who are doing their best to mitigate tariff impacts and temper pricing increases for the upcoming model year. While the direct impacts to the supply chain are still being determined, we are taking a more cautious view on the demand environment and consequently we are updating our outlook. While April results are in line with the prior year, the macro environment remains uncertain.”
Brand rationalisation delivers tangible benefits
Singleton says the inventory and brand rationalisation strategies the company’s employed are showing tangible benefits.
“Through strategic planning and a strong push to close sales, we reduced inventory by 12 per cent year over year … This not only improves working capital, but also strengthens our long term position. We continue to be focused on keeping a clean slate of inventory that includes our highest performing brands as we make our way through the selling season. Gross margins remain challenged largely due to the current promotional environment within the industry.”
Recently, when announcing 2024 as its most challenging year, Michael Dickerson, chief financial & administrative officer of Twin Vee Powercats noted that “the industry faced an overhang of excess OneWater boats, which were being sold at deep discounts, further intensifying market pressures. As a result, our {Twin Vee] revenues declined sequentially throughout the year.” A month before, in February 2025, Twin Vee entered into an agreement to acquire BoatsForSale.com and YachtsForSale.com – both digital platforms, owned by OneWater Marine.
Singleton continues: “We are being thoughtful with our pricing, striking a balance between closing the deal and maintaining margin integrity and brand value. We are also continuing to execute on our cost savings initiatives. However, higher costs associated with boat shows and inflationary pressures on our fixed costs more than offset savings, leading to higher selling, general and administrative expenses as compared to the prior year period. Moving forward, we expect further benefits from our initiatives as we accelerate cost actions in our distribution segment at the end of the quarter. We will continue to adjust our cost structure to align with retail activity given our flexible operating model.”
Now the company is focusing on factors within its control. Singleton cites rationalising the brand portfolio, streamlining operations and meeting the needs of customers. “These efforts are positioning us to not only weather the challenges of today, but to emerge stronger and more competitive over the long term.”
Trades mark exciting time
The biggest thing that OneWater has got in front of it right now is not demand coming through the door, it’s how to start making money on that, Singleton continues. “And as the inventory continues to correct itself and that outdated stuff runs through, we should be in a pretty good spot to go into the bulk of the season . . . and continue to get our inventory leaner.”
Plus, he says: “we’re taking more trades today than we have in the past, which is good. That means people are moving-up, either moving into a different segment or they’re moving-up in both sides. And so as that trade continues to come in, that’s a positive sign. He says the company has been waiting for five or six years to start being able to get more trades in. “So that’s an exciting, really more of a tailwind than anything for us.”
Clearing ‘aged’ inventory ahead of schedule
Singleton is bullish about the company’s inventory position. OneWater has been exiting brands – fifteen in total. He says where it was sitting with 3,000 plus boats in inventory, it’s now left with 56 units. “We are getting to the point where we won’t have those boats going out at zero or a negative margin once we can sell about 50 more boats. And that’s going to have an impact as we move forward into the selling season and as we prepare for 2026. So that’s definitely a green shoot that we have out in front of us.”
Anthony Aisquith (pictured below), president and COO notes that the company’s teams remain focused on cleaning ‘aged’ inventory. He says those efforts are tracking ahead of schedule. “The selling environment is competitive and we continue to receive support from our manufacturing partners helping to drive robust traffic at our dealership level. Wet traffic was up year over year which is positive given that March 2024 was one of our strongest months in our history.
“Demand for premium models is holding up well, reflecting our ability to deliver on the performance features and design customers are looking for on the high end market. Pre-owned boat sales were strong, where higher volumes were supported by an increase in trade-ins — and importantly — trade-ups. After several years of limited pre-owned inventory, we’re seeing a healthy turnover of boats for upgraded models. Financing and insurance revenue continues to be a strength of our business model.”
He continues: “In our parts and service business, revenue was up 2 per cent, a modest increase driven by solid performance from our dealership segment, partially offset by the distribution segment that continues to see headwinds stemming from the reduced boat manufacturing production schedules and now tariff concerns. We continue to view the business as a valuable source of re-occurring revenue and customer engagement. On inventory, we remain thoughtful about our order intake. Brand rationalisation efforts have been accelerated with additional brands added to our plan.
“We expect to clear this inventory as part of our broader strategy over the balance of the selling season and we are well on track to exceed our initial full year goal of a 10 per cent reduction in inventory. We now expect to end the year with inventory down 10 per cent to 15 per cent, which will leave us better positioned with tighter and more productive lineups of brands.”
Fiscal second quarter 2025 results in detail
Revenue for fiscal second quarter 2025 (for the three months ending 31 March 2025) was $483.5 million, a decrease of 1.0 per cent compared to $488.3 million in fiscal second quarter 2024. Same-store sales decreased 2 per cent. New boat revenue decreased 5.4 per cent, driven by a decrease in units sold. Pre-owned boat revenue increased 14.1 per cent, driven by the increase in units sold and average price per unit. Finance and insurance income increased as a percentage of total boat sales, and service, parts and other sales were up 2.4 per cent compared to the prior year quarter. Dealership service, parts, and other sales increased in the quarter, while distribution segment sales were lower due to reduced production by boat manufacturers.
Gross profit totalled $110.4 million for fiscal second quarter 2025, down $10.0 million from $120.4 million for fiscal second quarter 2024. Gross profit margin of 22.8 per cent decreased 180 basis points compared to the prior year period, driven by the impact of select brands the company is exiting, new boat model mix and pricing on continuing brands.
Fiscal second quarter 2025 selling, general and administrative expenses totalled $87.8 million, or 18.2 per cent of revenue, compared to $86.5 million, or 17.7 per cent of revenue, in fiscal second quarter 2024. The increase in selling, general and administrative expenses as a percentage of revenue was driven by increased cost of boat shows and inflationary costs related to administrative and fixed expenses.
Net loss for fiscal second quarter 2025 totalled $(0.4) million, compared to net loss of $(4.5) million in fiscal second quarter 2024. The company reported net loss per diluted share for fiscal second quarter 2025 of $(0.02), compared to net loss per diluted share of $(0.27) in 2024. Adjusted diluted earnings per share1 for fiscal second quarter 2025 was $0.13, compared to adjusted diluted earnings per share1 of $0.67 in 2024.
Fiscal second quarter 2025 Adjusted EBITDA decreased to $17.9 million compared to $28.3 million for fiscal second quarter 2024.
As of 31 March 2025, the company’s cash and cash equivalents balance was $67.5 million and total liquidity, including cash and availability under credit facilities, was in excess of $74.0 million. Total inventory as of same date decreased 12.4 per cent to $602.4 million, compared to $687.5 million on 31 March 2024, primarily driven by the company’s inventory management.
Total long-term debt as of 31 March 2025 was $427.2 million.
Fiscal year 2025 guidance
The company is updating its previously issued fiscal full year 2025 outlook. For fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.7 billion to $1.8 billion and dealership same-store sales to be flat to down low single digits. Adjusted EBITDA is expected to be in the range of $65 million to $95 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $0.75 to $1.25.
