Winnebago's stock rockets to biggest gain in 45 years as younger buyers eye RVs

By Steve Gelsi

The RV maker's stock, which has been bouncing around multiyear lows for months, appears to have finally broken out from a long downtrend

Winnebago's stock is rallying after its comments about RVs and marine products appealing to younger buyers.

Winnebago Industries Inc.'s stock rocketed to its biggest one-day gain in more than four decades on Wednesday, after the company said it's been attracting more youthful buyers for its recreation vehicles and boats.

While Winnebago (WGO) has long been an attractive option for retirees and older people who can afford an RV - which can cost hundreds of thousands of dollars - the company said it's now seeing a wider range of buyers.

When asked in a conference call with analysts to compare the demographics of the RV buyer with those who are buying boats and other marine products, Chief Executive Michael Happe said "the RV consumer, candidly, is probably younger and more diversified."

Overall, the RV industry has "done a good job attracting consumers from all walks of life and in keeping the products as affordable as possible, given some of the cost pressures we've seen, to make sure that younger consumer are participating," Happe said on the call, which followed the company's reporting of its fiscal fourth-quarter results.

Winnebago's stock blasted 28.5% higher Wednesday to close at $40.64, an eight-month closing high. That marked its biggest one-day gain since Feb. 1, 1980, when it rallied a record 31.6%, according to FactSet data.

Since March, the stock had bounced around within a range between about $28 - roughly the lowest prices seen since April 2020 - and around $37. Wednesday's rally marks a upside breakout from that range, which some Wall Street chart watchers would say suggests that the downtrend from the March 17, 2021, record close of $87.53 may have finally ended.

The company is expecting "healthy growth" in its recreational-vehicle business in 2026 by expanding its Grand Design RV lineup that includes premium models, as well as its more entry-level Transcend series, which it said is "resonating" with new consumers, and the Winnebago Sunflyer Class C product, which it described as "affordable."

In its smaller, towable RV unit, it's projecting flat-to-modest growth next year after a drop in fourth-quarter sales, as it focuses on a product refresh and faces headwinds in the market for a "preference for affordability," the company said.

Winnebago said it's expecting 2026 adjusted earnings of $2 to $2.70 a share, with the midpoint of the range ahead of the FactSet analyst consensus estimate of $2.28 a share.

It's projecting fiscal 2026 revenue of $2.75 billion to $2.95 billion, compared with the FactSet consensus estimate of $2.87 billion.

For the quarter through Aug. 31, Winnebago said it earned $13.7 million, or 49 cents a share, after it reported a loss of $29.1 million, or $1.01 a share, in the same period a year ago.

Winnebago's adjusted fourth-quarter earnings of 71 cents a share, which excludes nonrecurring items, handily topped the FactSet consensus estimate of 53 cents a share.

The company's fourth-quarter revenue rose about 8% to $777.3 million, well ahead of the analyst projection of $727.8 million.

"Results showed improving fundamentals across segments, with towable stabilizing and motor and marine delivering standout growth driven by new products, favorable mix and disciplined pricing," Benchmark analyst Michael Albanese said in a research note.

Among the highlights in the fourth quarter, Winnebago said its motor-home RV segment grew its revenue by 17% to $361.2 billion, well ahead of the FactSet consensus estimate of $293.6 million.

Revenue for its towable RV unit dropped 3.4% to $306.3 million, but its operating margin in the business increased to 7%, from 4.9%, as it worked to contain costs.

Revenue in its marine business jumped 17.9% to $94.9 million due to higher unit volume and price increases.

Including Wednesday's gains, Winnebago's stock has still lost 14.9% in 2025, while the S&P 500 SPX has advanced 13.9%.

-Steve Gelsi

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10-22-25 1651ET