OneWater’s fourth quarter was marked by stable revenue and expanding margins, which prompted a positive reaction from the market. Management credited the performance to disciplined inventory management and benefits from recent brand rationalization efforts. CEO Austin Singleton highlighted that the company’s inventory mix and age profile are “healthy,” allowing for improved execution even as same-store sales remained flat. The company’s focus on optimizing its product portfolio and maintaining support from OEM partners helped offset a competitive environment, with margins benefiting from a favorable model mix. Gross profit margin expansion and growth in pre-owned boat sales further contributed to the quarter’s results.
Is now the time to buy ONEW? Find out in our full research report (it’s free for active Edge members).
OneWater (ONEW) Q4 CY2025 Highlights:
- Revenue: $380.6 million vs analyst estimates of $382.2 million (1.3% year-on-year growth, in line)
- Adjusted EPS: -$0.04 vs analyst estimates of -$0.58 (93% beat)
- Adjusted EBITDA: $3.60 million vs analyst estimates of $1.90 million (0.9% margin, 90.1% beat)
- The company reconfirmed its revenue guidance for the full year of $1.88 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $0.50 at the midpoint
- EBITDA guidance for the full year is $75 million at the midpoint, in line with analyst expectations
- Operating Margin: -1.4%, in line with the same quarter last year
- Locations: 100 at quarter end, up from 97.5 in the same quarter last year
- Same-Store Sales were flat year on year (4.2% in the same quarter last year)
- Market Capitalization: $233.2 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 From OneWater’s Q4 Earnings Call
- Joe Altobello (Raymond James) asked whether the shift towards pre-owned sales reflects consumer preference for lower-priced units or improved availability. CEO Austin Singleton pointed to better trade-in availability and an end to pandemic-era delays, rather than a shift in consumer price sensitivity.
- Joe Altobello (Raymond James) inquired about expectations for year-end leverage and inventory levels. CFO Jack Ezzell explained that asset sales would reduce leverage to below four times by year-end, and inventory will be managed based on retail trends.
- Craig Kennison (Baird) followed up on pre-owned market trends, questioning whether trade-ins suggest buyers are upgrading or exiting. Singleton clarified that most trade-ins represent upgrades, with limited evidence of buyers leaving the industry.
- Craig Kennison (Baird) asked about the freshness of inventory. Singleton said the company’s inventory is at its healthiest in years, with dated units largely cleared from core brands.
- Michael Albanese (Bank Smart) questioned the impact of recent severe weather and storms on operations and boat show performance. Singleton and Ezzell responded that there was minimal impact, as affected regions are not key markets for OneWater.
Catalysts in Upcoming Quarters
For upcoming quarters, our team will focus on (1) the pace and magnitude of gross margin improvement as discontinued brands phase out and inventory optimization continues, (2) the trajectory of pre-owned boat sales and whether this segment can sustain growth as availability rises, and (3) progress on asset sales and resulting reductions in leverage. Developments in the broader marine industry, especially any signs of a demand recovery, will also be key to assessing management’s ability to outperform industry trends.
OneWater currently trades at $14.07, up from $13.22 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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