Winnebago Industries, Inc.

To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ray Posadas, Vice President, Investor Relations and Market Intelligence. Please go ahead.

Thank you, Daniel. Good morning, everyone, and thank you for joining us to discuss our fiscal 2025 second quarter earnings results. This call is being broadcast live on our website at investor.wgo.net, and the replay of the call will be available on our website later today. The news release with our second quarter results was issued and posted to our website earlier this morning. Please note that the earnings slide deck that follows along with our prepared remarks is also available on the investor section of our website under quarterly results. Turning to slide two, certain statements made during today's conference call regarding Winnebago Industries and its operations may be considered forward-looking statements under securities laws. The company cautions you that forward-looking statements involve a number of risks and are inherently uncertain, and a number of factors, many of which are beyond the company's control, could cause the actual results to differ materially from these statements. These factors are identified in our SEC filings, which we encourage you to read. In addition, on today's call, management will refer to GAAP and non-GAAP financial measures. The reconciliation of the non-GAAP measures to the comparable GAAP measures are available in our earnings press release. Please turn to slide three. Joining me on today's call are Michael Happy, the President and Chief Executive Officer of Winnebago Industries, and Brian Hughes, Senior Vice President and Chief Financial Officer. Mike will begin with an overview of our Q2 performance. Brian will then discuss the associated drivers of our financial results, in addition to sharing our forward view of the market and our fiscal year 2025 guidance. Mike will conclude our prepared remarks, and management will be happy to take your questions. With that, please turn to slide four as I hand the call over to Mike.

Thanks, Ray, and good morning, everyone. Our Q2 performance highlights several positive accomplishments to build on as we enter the all-important selling season. Importantly, profitability for the company increased sequentially, partly reflecting operating, pricing, or cost improvements within our towable and motorhome RV segments. As expected, soft retail and growing macroeconomic uncertainty continue to create a challenging sales environment across the outdoor recreation industry in our second quarter. Consequently, we remain intently focused on the factors in our control. Discipline production, strong dealer relationships, improved operating efficiency and sustained innovation valued by our end customers. These are the strategic pillars that position us for sustainable growth as our end markets gain momentum. Our teams have effectively managed production output. and input product costs in this current environment. We are collaborating closely with our dealer partners to provide market support where necessary. As we head into the prime selling season, the composition of our RV inventory, quality and quantity, is as healthy as it has been in a long time. Additionally, we are leveraging innovation as a strategic differentiating tool to meet available demand and stay ahead of market trends. Now, let me highlight some notable recent achievements across our business units. In the motorhome RV segment, Grand Design's new motorized division is off to a strong start, driven by the successful production ramp-up of the lineage brand's inaugural product, the Series M Class C. The initial response to this award-winning Series M has been outstanding. Consumers and dealers applaud the vehicle's quality, comfort, handling, and meticulous attention to detail. We are pleased with the retail performance to date. That is just the beginning of what we expect to be a successful inaugural year for the Grand Design RV brand in motorized overall. Initial shipments of the new Lineage Series F Super C coach are also getting underway as we speak, with opening shipments of the Series VT Class B product to follow late this third quarter. For those of you who missed it at the Florida RV Super Show in January, the Grand Design Super C is a beautifully designed four-season coach, featuring our own Lithionics 320 amp hour lithium battery, 1,000 watts of solar, a Fox Racing suspension, and the new Sure Slide Out mechanism. The Series F combines exceptional engineering with premium amenities, setting a new standard in the Super C market. We have set a revenue target of $100 million plus for the overall lineage brand lineup in fiscal 25, and I am confident we are on track to achieve it. Our Newmar brand continues to lead in the premium motorhome RV category. particularly in the Class A diesel market, where its flagship Dutch Star has been the number one model for three consecutive years, fueling continuous market share growth for Newmar in that diesel category. On the technology front, Newmar is beginning to leverage advanced 3D product development technology to successfully reduce the time to market for innovative products like its Super C Grand Star. Looking ahead, Newmar is expanding its model year 2026 lineup to broaden our customer base and strengthen dealer relationships. At its recent annual dealer meeting just this week, Newmar announced an entire refresh to its Super C lineup, including the launch of the all-new Summit Air, which combines raw power with refined living. Built on a Freightliner Cascadia chassis, the Summit Air sports a DD16 600 horsepower engine and offers up to 30,000 pounds of towing capacity. Finally, at Winnebago Motorhome under a newly crafted senior executive leadership team there, we are revitalizing the brand with a refreshed multi-generational product plan. Dealers are being engaged on what they need from Winnebago to be successful and showing interest in our renewed product and pricing strategies. The business turnaround plan is expected to begin taking shape in the second half of fiscal 2025 and especially into fiscal 2026, a meaningful organic opportunity for us over the next several years. Notably, our tri-brand strategy in the motorhome sector marks a key milestone in our diversification efforts. By leveraging multiple brands, we can begin to cater to distinct market segments across the whole of the category, mitigate market risks, and unlock greater potential for collective margin expansion. Winnebago Towables is undergoing a strategic transformation under 2024 Industry Hall of Famer Don Clark's leadership. This initiative consolidates our current towables expertise in northern Indiana, leveraging the region's strong design and manufacturing heritage and the overall support ecosystem from the Grand Design towables organization. We are resetting the Winnebago brand towables portfolio with a new pricing strategy, stronger dealer relationships, and an emerging exciting new product strategy, which is already generating significant dealer enthusiasm. By delivering travel trailers that meet evolving customer needs, Winnebago brand towables is positioning itself to expand market share and drive growth. The combination of a powerful one-two brand towables punch from our Grand Design and Winnebago brands makes us a more formidable competitor and lifts our market share ceiling in this segment long term. At the 2025 Miami International Boat Show, Barletta and Chris Craft received customer satisfaction index awards from the National Marine Manufacturers Association. Chris Craft, enjoying a strong spring show season, has also earned innovation recognition for its new Sportster 28 offering, which blends classic design and premium performance with affordability. The Chris Craft team is energized by the Sportster series' success with a fifth model launching soon. The series is driving dealer network expansion and introducing the iconic brand to an even broader audience. Last week at the Palm Beach Boat Show, Chris Craft unveiled the Catalina 31, a redesigned center console luxury day boat and the newest member of the Catalina series. I've seen it firsthand and it is stunning. Looking at recent RV industry data on slide five, It is worth mentioning that from a retail perspective, the winter months in Q2 are seasonally less relevant, with April and May in our third quarter providing a clearer gauge of selling season strength and consumer confidence. For calendar 2025, we continue to forecast wholesale RV shipments of 320,000 to 350,000 units, or a median of 335,000 units. This is about 4% below the RVIA's recent 350,100 unit forecast and reflects our conservative approach as retail conditions remain subdued and increasing consumer uncertainty threatens to dampen the potential of this calendar year. Subsequently, dealers are expected to prioritize leaner inventory levels due to higher carrying costs as compared to past years. driving improved industry inventory turns beyond the current two-time level. Some stability and optimism in future retail sales will be key to reducing dealer uncertainty and refining stocking strategies, though the broader trend will remain focused on increased efficiency. Now, I'll make two key points on the North American RV market share data on slide six. Strong performance exists in our core segments. We are performing well in the towable and motorhome RV price points that align with our strengths. In motorhomes, our Class A gas, Class A diesel, and Class C models gain retail share over the most recent 6- and 12-month periods, driven by new offerings with strong growth potential. In the four price categories where we have the highest mix, Our motorhome market share rose mid single digits in 2024 versus 2023. In towables, we continue introducing affordable, innovative products, expanding into new markets and attracting customers. Our market share in the four towable price categories where we have the highest mix grew low single digits over the same period. We are beginning to see stronger signs of the affordability moves made by the businesses in the last year. stabilizing our overall total share amidst tough competition. Profitability over market share also remains a priority. We are committed to sustainable financial performance versus simply chasing pure volume. We won't engage in a race to the bottom. However, we will ensure a careful balance between profitability and sustainable share all of which guides our strategic market decisions and ensures long-term success. Turning to slide seven, Barletta's market share for the 12 months ended February 2025 increased 140 basis points to 9.5%. The Barletta team has built the fastest growing US aluminum pontoon brand in marine history by listening to their customers and delivering. The performance, safety, and quality of every Barletta model is a testament to their commitment to customer satisfaction and innovative design. This success is further enhanced by their strategic and disciplined approach to inventory management and product development. By working closely with customers, Barletta has carefully managed inventory levels while expanding its channel in introducing new models over the last several years, like the ARIA series, which caters to a wide range of customers. Barletta's future continues to look bright, and we are especially focused on ensuring our dealers are cared for during this more difficult marine market environment. Now, I'll turn the call over to Brian Hughes for the financial review. Brian?