OneWater Marine Q2 Earnings Call Highlights

OneWater Marine NASDAQ: ONEW reported fiscal second-quarter 2026 results that management said reflected a “challenging retail environment,” improved boat margins, continued portfolio optimization, and progress reducing leverage. Revenue declined 9% year-over-year to $442 million, while same-store sales fell 8%.

Executive Chairman Austin Singleton attributed part of the quarter’s softness to calendar effects, noting the Palm Beach International Boat Show occurred at the end of March this year, shifting a “meaningful amount” of new boat sales into the June quarter. Singleton also pointed to portfolio actions, including the sale of Ocean Bio-Chem, which affected reported comparisons against the prior year.

Retail demand pressured, but margins improve

Chief Executive Officer Anthony Aisquith said industry retail demand “remains pressured,” citing SSI data indicating double-digit declines in the categories where OneWater competes. Within the company, lower new boat volumes were “partially offset by disciplined pricing and favorable mix in a slightly less promotional environment,” which he said supported higher gross margin.

Gross profit in the quarter decreased to $106 million from $110 million a year earlier, but gross margin expanded to 23.9%, a 110-basis-point improvement. Chief Financial Officer and Chief Operating Officer Jack Ezzell said the margin expansion was driven by “favorable mix shift, brand portfolio optimization, and continued execution of our strategic priorities to enhance boat gross profit.”

Singleton said the company is working to expand margins through a more streamlined portfolio of brands and assets, and characterized inventory as being in the “best condition it has been in years” due to a healthy mix and age profile and disciplined production by OEM partners.

New boat revenue falls; pre-owned grows

Ezzell said new boat revenue decreased 12%, driven by the Palm Beach show timing shift and lower unit volumes, “partially offset by higher average unit price.” Pre-owned boat revenue increased 5%, supported by “solid used boat activity” and improved availability, which Aisquith called a “bright spot.”

During the Q&A, Raymond James asked for more detail on same-store sales declines. Management said units were down in the “mid to upper single digits,” while the majority of the same-store sales decline was “led by price,” reflecting a shift toward more affluent, higher-ticket purchases. Management added that roughly half of the decline was driven by the Palm Beach show timing, with “maybe a quarter” attributable to exited brands.

Management also discussed the expected timing of sales shifted from the show. In response to a question about whether approximately $19 million in sales was pushed out of the quarter, Ezzell said that estimate was high, placing the shift closer to “$16 million-$17 million.” Management said the “majority” of that activity should fall into the next quarter, though some larger transactions could lag further.

Parts and service stable; Ocean Bio-Chem sale affects comparisons

Service, parts, and other revenue declined 11%, which Ezzell said was “primarily due to contributions from Ocean Bio-Chem in the prior year period.” Aisquith said parts and service continue to provide stability, and that “excluding OBCI,” service, parts, and other sales increased in both the dealership and distribution segments.

Finance and insurance income decreased in absolute dollars due to lower new boat sales, but increased slightly as a percentage of total boat sales. Ezzell said the change was supported by an improving interest rate environment, adding that interest rate cuts enhanced unit economics for boats financed through OneWater. Aisquith highlighted that finance penetration remained within the company’s target range, with “over 60%” of customers choosing to finance a portion of their purchase through the company.

Cost actions and leverage reduction

Selling, general, and administrative expenses declined $2 million year-over-year to $86 million. Ezzell said the reduction reflected prior cost reductions, the company’s variable cost structure, and ongoing expense management, while SG&A rose as a percentage of revenue due to lower sales. He added that additional steps taken in late March and early April are expected to deliver about $6 million in annual savings.

In response to a question from Baird about the cost measures, management said the actions were “mostly in and around personnel, administrative,” and included reorganizations to operate leaner. Management said it expects to capture about half of the $6 million in savings in the back half of the year, with some reductions coming from dealerships and “big chunks” from distribution.

The quarter resulted in a net loss of $13 million, compared with a net loss of $375,000 a year earlier. Ezzell attributed the larger loss to lower sales, a $6 million non-cash trade name impairment charge, and tax impacts tied to the Ocean Bio-Chem disposition. Adjusted EBITDA was $16 million.

On the balance sheet, OneWater ended the quarter with $68 million of cash and total liquidity of about $73 million. Inventory was $551 million, down from $602 million in the prior-year period, reflecting disciplined inventory management and the Ocean Bio-Chem sale. Long-term debt was $354 million, and net debt to EBITDA improved to 4.1x. Ezzell said the company repaid $57 million of debt during the quarter using sale proceeds and operating cash flow, and reiterated a target to reduce leverage below 4x by fiscal year-end.

Guidance reiterated; early season activity cited

Ezzell said year-to-date results were “largely consistent” with the company’s forecast for the first half of fiscal 2026, and management kept expectations unchanged from the February update following the Ocean Bio-Chem sale. The company continues to assume the industry will be flat to down low single digits year-over-year.

• Total revenue: $1.78 billion to $1.88 billion
• Dealership same-store sales: flat year-over-year (factoring lost revenue from exited brands and the divestiture of Ocean Bio-Chem)
• Adjusted EBITDA: $60 million to $80 million
• Adjusted EPS (diluted): $0.20 to $0.70

Management also discussed demand indicators heading into the core selling season. Asked by Wolfe Research about April trends excluding the boat show benefit, management pointed to “door swings,” internet leads, and “the amount of deals that flowed through in April,” calling April “a good month” and saying the company is maintaining a trend of higher gross margin. At the same time, management said it remains cautious about macro-related headlines and their potential impact on consumer confidence.

On fuel prices, management said it was not seeing an impact in current trend lines among its customer base, though it acknowledged that higher fuel costs could affect demand at some point.

Looking ahead, management said its focus remains on margin expansion, disciplined cost control, and continued leverage reduction, while it monitors retail conditions through the peak selling weeks leading into summer.

About OneWater Marine NASDAQ: ONEW

OneWater Marine Inc NASDAQ: ONEW is a leading U.S.-based recreational boat retailer offering a comprehensive range of marine products and services. Since its public debut in 2018, the company has built a broad network of locations that serve both coastal and inland markets. OneWater Marine focuses on delivering a full-service customer experience, from initial boat selection to long-term maintenance and support.

Through its dealership network, OneWater Marine markets new and pre-owned powerboats and personal watercraft from top manufacturers.

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