ONEW — OneWater Marine Inc.

OneWater Marine Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: $442 million, down 9% year-over-year.
• Same-Store Sales: Decreased 8%, primarily due to event timing and portfolio changes.
• New Boat Revenue: Declined 12%, impacted by the timing of the Palm Beach International Boat Show.
• Pre-Owned Boat Revenue: Increased 5%, supported by higher unit sales and average prices.
• Gross Profit: $106 million, down from $110 million; however, gross margin improved to 23.9%, up 110 basis points.
• Net Loss: $13 million, compared to a net loss of $375,000 in the prior year, influenced by lower sales and a noncash trade name impairment charge.
• Adjusted EBITDA: $16 million.
• Cash and Liquidity: $68 million in cash, total liquidity of approximately $73 million.
• Long-Term Debt: $354 million, with net debt-to-EBITDA improving to 4.1x.

2. Strategic Updates and Business Highlights:

• Completed the sale of Ocean Bio-Chem as part of a portfolio optimization strategy.
• Focus on enhancing profitability and reducing balance sheet leverage, with a significant reduction in inventory levels (down 3% year-over-year).
• Positive inventory positioning with a healthy mix and age profile.
• Continued focus on margin expansion and disciplined cost control, including a $6 million expected annual savings from recent cost actions.

3. Forward Guidance and Outlook:

• Revenue expected to be in the range of $1.78 billion to $1.88 billion for the fiscal year.
• Adjusted EBITDA projected between $60 million and $80 million.
• Anticipated dealership same-store sales to be flat year-over-year.
• Confidence in maintaining guidance due to early season activity and customer engagement.

4. Bad News, Challenges, or Points of Concern:

• Revenue decline attributed to timing shifts and the impact of exited brands, leading to challenging year-over-year comparisons.
• Industry retail demand remains pressured, with double-digit declines in key categories.
• Ongoing macroeconomic uncertainties, including potential impacts from rising fuel prices on consumer confidence and spending.
• The net loss reflects the challenges faced in the current retail environment.

5. Notable Q&A Insights:

• Management confirmed that the Palm Beach Boat Show's timing shift impacted sales, with an estimated $16-$17 million in sales pushed to the next quarter.
• April trends showed positive customer engagement and sales activity, but management remains cautious about external economic factors.
• Discussions on cost actions indicated a focus on personnel and administrative cuts to align with current retail activity.
• Inventory levels are well-positioned, but management is in a wait-and-see mode regarding future orders, depending on market demand trends in the coming months.

Overall, OneWater Marine is navigating a challenging retail environment while focusing on strategic initiatives to enhance profitability and reduce leverage, with cautious optimism for the upcoming selling season.