OneWater Marine’s first quarter results were met with a significant negative market reaction, as the company fell short of Wall Street’s revenue and profit expectations. Management attributed the flat year-on-year sales to persistent macroeconomic headwinds and a competitive promotional environment, particularly in key markets like West Florida. CEO Austin Singleton pointed to ongoing challenges in same-store sales and lingering effects from recent hurricanes, but noted that OneWater continued to outperform broader industry trends in unit sales declines. The company’s strategy of inventory and brand rationalization was highlighted as a key operational focus, with Singleton emphasizing, “Our teams across the country continue to execute on our inventory and brand rationalization strategies, where we are seeing tangible benefits.”
Is now the time to buy ONEW? Find out in our full research report (it’s free).
OneWater (ONEW) Q1 CY2025 Highlights:
- 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
- Locations: 103 at quarter end, up from 98.5 in the same quarter last year
- Same-Store Sales fell 2.1% year on year (-5% in the same quarter last year)
- Market Capitalization: $215.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions OneWater’s Q1 Earnings Call
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Joe Altobello (Raymond James) asked about post-tariff demand trends in April. CEO Austin Singleton said April was in line with last year, with units and dollars slightly up, and early May tracking ahead—though he emphasized margin recovery remains the key challenge.
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Altobello (Raymond James) pressed on softer used boat margins. Singleton explained that increased trade-ins and model mix changes weighed on margins, but viewed higher trade volume as a positive indicator of customer upgrades. CFO Jack Ezzell added that the blend of trade, brokerage, and consignment sales impacted the margin profile.
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Mike Albanese (Benchmark) questioned where OneWater is gaining market share. Singleton responded that gains are concentrated in premium segments, where the company focuses its efforts, and said outperforming an industry down 10% is a relative positive.
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Albanese (Benchmark) asked about discounting strategy. Singleton confirmed heavy discounting on older inventory was strategic to remain competitive, particularly given high interest costs, but said margins on current-year models are holding up better.
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Craig Kennison (Baird) inquired about long-term industry structure and brand rationalization. Singleton predicted ongoing consolidation and margin pressure for lower-tier brands, with OneWater aiming to concentrate on premium brands for long-term stability.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of OneWater’s inventory and brand rationalization strategy, (2) whether gross margins stabilize as promotional activity eases and inventory mix improves, and (3) the impact of tariff developments and cost reduction actions, especially within the Distribution segment. Progress in premium segment sales and recurring service revenues will also be key to tracking operational health.
OneWater currently trades at $12.88, down from $15 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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