OneWater Marine Inc.

Good morning. My name is Sergio, and I will be your conference operator today. At this time, I would like to welcome everyone to the One Water Marian Inc. Fiscal Third Quarter 2025 Conference Call. Call lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. Thank you. I will now like to turn the conference over to Jack Kiesel, Chief Financial Officer. Please go ahead.

Good morning, and welcome to One Water Marine's fiscal third quarter 2025 earnings conference call. I am joined on the call today by Austin Singleton, Chief Executive Officer, and Anthony Asquith, President and Chief Operating Officer. Before we begin, I'd like to remind you that certain statements made by management in this morning's conference call regarding One Water Marine and its operations may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. Factors that might affect the future results are discussed in the company's earnings release, which can be found in the investor relations section of the company's website and in its filings with the SEC. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. Please also note that all comparisons of our third quarter 2025 results are made against the third quarter 2024, unless otherwise noted. And with that, I'd like to turn the call over to Austin, who began with a few opening remarks. Austin? Thank you all for joining us today.

OneWater delivered solid results in the third quarter with total revenue increasing 2% to $553 million. Our chain store sales also grew by 2% despite the challenging market conditions facing our broader industry, which saw declines in excess of 15% in the categories where we participate. In a highly competitive environment, we continue to deliver for our customers, win business, capture market share, and outperform the broader industry. Although May and June are typically peak selling months, the industry saw double-digit declines while our strategic positioning and strong execution led to positive results. This resilience highlights our team's ability to adapt and succeed in a dynamic operating environment. Gross margins remain under pressure mainly due to the heightened promotional activity across the industry. The declines also reflect the impact of our strategic brand exits and shifts in new boat model mix. Despite these headwinds, we are being intentional in our pricing strategy, which is aimed at driving sales while preserving margin where we can. Our strategy will continue to adapt to market conditions, and we are confident in our current positioning. With all of the tariff uncertainty we saw in the quarter, We are pleased that price increases from our manufacturing partners for model year 2026 have been moderate and are within the normal levels. Early customer feedback on new models has also been positive. Voters are responding well to the latest innovations, and we are excited to continue rolling out these new models in the coming months. Turning to our inventory management initiatives, I am pleased to report on the significant progress we have made year to date in our strategic efforts to optimize the portfolio. Total inventory is down 14% year over year as we continue to prioritize healthy inventory levels. We remain on track to end the fiscal year with inventory down 10 to 15%, a target we had increased last quarter. Supporting this inventory reduction is our brand rationalization strategy, where we are also on schedule to complete the exit of selected brands by the end of the year. This allows us to focus our efforts on our highest performing brands and most profitable relationships, strengthening our foundation. As we push towards these inventory goals, we also look to have sufficient inventory to meet anticipated market demand. This balanced approach remains central to our long-term strategy, enabling us to capture sales while optimizing our working capital efficiency. As the marine industry continues to face headwinds, we are centered on three key areas. First, working towards a healthy inventory of high-performing brands and completing our brand rationalization strategy. Second, executing disciplined cost management as we monitor the changing retail environment. And third, leveraging our scale and operational expertise to continue outperforming broader industry trends. Looking ahead, we are confident in our long-term positioning. We have built a flexible operating model with diverse revenue streams, including our growing pre-owned boat sales and our resilient, reoccurring revenue businesses. Our teams are working hard to close deals, and we are managing factors within our control. With that, I will turn it over to Anthony to discuss business operations.