OneWater’s second quarter results were well received by the market, as the company outperformed Wall Street’s revenue expectations despite ongoing industry headwinds. Management credited its gains to continued growth in preowned boat sales and resilient same-store sales, highlighting a 2% increase even as the broader market saw double-digit declines. CEO Austin Singleton emphasized that proactive inventory management and prioritization of high-performing brands allowed OneWater to capture share in a challenging environment. The company also noted that higher promotional activity and a shift in its new boat model mix contributed to margin pressure during the quarter.
Is now the time to buy ONEW? Find out in our full research report (it’s free).
OneWater (ONEW) Q2 CY2025 Highlights:
- Revenue: $552.9 million vs analyst estimates of $531.7 million (1.9% year-on-year growth, 4% beat)
- Adjusted EPS: $0.79 vs analyst expectations of $1.06 (25.3% miss)
- Adjusted EBITDA: $32.85 million vs analyst estimates of $38.55 million (5.9% margin, 14.8% miss)
- The company lifted its revenue guidance for the full year to $1.83 billion at the midpoint from $1.75 billion, a 4.3% increase
- Management lowered its full-year Adjusted EPS guidance to $0.63 at the midpoint, a 37.5% decrease
- EBITDA guidance for the full year is $72.5 million at the midpoint, below analyst estimates of $74.86 million
- Operating Margin: 5.5%, down from 7.4% in the same quarter last year
- Locations: 105 at quarter end, up from 101 in the same quarter last year
- Same-Store Sales rose 2% year on year (-8% in the same quarter last year)
- Market Capitalization: $266.5 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 Q2 Earnings Call
- Craig R. Kennison (Baird) asked about the impact of tariff clarity and macro factors on customer behavior. CFO Jack Ezzell acknowledged that clarity was limited during the quarter, but post-quarter trends suggest reduced concern and stable pricing for new models.
- Craig R. Kennison (Baird) inquired about the strong growth in preowned sales and whether it reflected a trade-down effect. CEO Austin Singleton clarified that growth was driven by increased trade-ins and buyers upgrading to larger boats, not trading down.
- Craig R. Kennison (Baird) followed up on whether trade-in customers were replacing their boats or exiting the market. Singleton explained the majority of trade-ins are associated with upgrades, with a trickle-down effect across boat sizes.
- Craig R. Kennison (Baird) sought insight on whether the strength in July results could represent a trend. Singleton and Ezzell both noted encouraging early July data but emphasized the need to see sustained improvement before drawing conclusions.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) signs of sustained improvement in same-store sales and dealership traffic, (2) the successful execution of inventory and brand rationalization initiatives, and (3) the trajectory of gross margins as promotional pressures persist. Progress on margin stabilization, cash flow improvement, and responsiveness to macroeconomic changes will also be key markers of performance.
OneWater currently trades at $16.28, up from $14.57 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
