OneWater’s third quarter results were met with a negative market reaction, as revenue growth outpaced Wall Street expectations but profitability metrics fell short. Management attributed the higher sales to a rebound in both new and pre-owned boat demand, especially in markets recovering from weather disruptions last year. Pre-owned activity was particularly strong, supported by improved trade-in dynamics and disciplined inventory management. The company also noted that the exit from certain brands created short-term margin headwinds, but said it provided a cleaner operational focus for the business. CEO Anthony Aisquith emphasized, “Our focus on serving customers drove another year of positive same-store sales growth and continued market share gains.”
Is now the time to buy ONEW? Find out in our full research report (it’s free for active Edge members).
OneWater (ONEW) Q3 CY2025 Highlights:
- Revenue: $460.1 million vs analyst estimates of $409 million (21.8% year-on-year growth, 12.5% beat)
- Adjusted EPS: $0 vs analyst estimates of $0.21 (significant miss)
- Adjusted EBITDA: $17.5 million vs analyst estimates of $19.93 million (3.8% margin, 12.2% miss)
- Adjusted EPS guidance for the upcoming financial year 2026 is $0.50 at the midpoint, missing analyst estimates by 59.1%
- EBITDA guidance for the upcoming financial year 2026 is $75 million at the midpoint, below analyst estimates of $86.44 million
- Operating Margin: -28.3%, down from 1.2% in the same quarter last year
- Locations: 95 at quarter end, down from 98.3 in the same quarter last year
- Same-Store Sales rose 23% year on year (-17% in the same quarter last year)
- Market Capitalization: $182.1 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 Q3 Earnings Call
- Craig Kennison (Baird) asked about year-over-year inventory reductions and expectations for 2026. CFO Jack Ezzell explained inventory was down $50 million and would likely rise modestly due to price increases and timing of new model year boats.
- Joe Altobello (Raymond James) inquired about the impact of declining interest rates on consumer demand. Executive Chairman Austin Singleton said lower rates are beginning to help with customer confidence, though the effect has been gradual so far.
- Joe Altobello (Raymond James) also asked about sales performance at the Fort Lauderdale Boat Show. Singleton noted sales were up nearly 20%, with margin pressures beginning to ease, though promotional activity is expected to continue.
- Noah Zatzkin (KeyBanc Capital Markets) questioned the sustainability of strong pre-owned sales and trade-in activity. Singleton said improved manufacturer lead times have supported dealer-facilitated trades, with trends expected to continue into next year.
- Noah Zatzkin (KeyBanc Capital Markets) sought an update on M&A strategy. Singleton emphasized OneWater is being disciplined, prioritizing debt reduction over acquisitions in the near term, with no rush to pursue deals.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) whether OneWater can sustain strong pre-owned sales as trade-in activity normalizes, (2) improvements in new boat gross margins as inventory discipline takes hold, and (3) the company’s ability to offset headwinds from discontinued brands through operational efficiency and cost control. Monitoring the impact of industry-wide inventory normalization and potential interest rate changes will also be important.
OneWater currently trades at $11.17, down from $15.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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