OneWater Marine (ONEW) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue declined 4% year-over-year to $530.7 million, mainly due to the Ocean Bio-Chem divestiture, lower unit sales, and strategic brand exits.

• Gross margin expanded by 70 basis points to 24.0%, reflecting favorable product mix, pricing actions, and portfolio optimization.

• Net income rose to $11.7 million from $10.7 million in the prior year quarter, driven by improved margins, cost controls, and lower interest expenses.

• Adjusted EBITDA increased 15% to $37.8 million, up from $32.8 million in the prior year.

• Achieved leverage target ahead of schedule, with adjusted net debt leverage ratio improving to 3.7x from 5.8x year-over-year, enhancing financial flexibility.

Financial highlights

• Revenue: $530.7 million, down 4% year-over-year; same-store sales decreased 2%.

• Gross profit: $127.5 million; gross margin up to 24.0%.

• Net income: $11.7 million ($0.69 per diluted share, adjusted $0.73), up from $11 million ($0.65 per share) last year.

• Adjusted EBITDA: $37.8 million, up from $32.8 million.

• SG&A expenses declined 5.3% to $87.2 million, or 16.4% of revenue.

Outlook and guidance

• FY2026 revenue expected between $1.75 billion and $1.80 billion; adjusted EBITDA guidance: $68 million to $78 million; adjusted diluted EPS: $0.35 to $0.55.

• Same-store sales projected to decline low to mid-single digits year-over-year.

• Industry anticipated to be down high-single digits for the year.

• Anticipates a $2 million adjusted EBITDA headwind in Q4 due to Ocean Bio-Chem sale.

• Guidance reflects cautious optimism amid macroeconomic uncertainty and continued focus on cost controls and margin improvement.