Winnebago Industries, Inc.

Welcome to the Winnebago Industries Third Quarter Fiscal 2026 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question and answer session. Please be advised that today's conference call is being recorded. I would now like to hand the call over to Joanne Andala, Vice President, Treasury and Investor Relations. Ms. Andala, please go ahead.

Thank you, operator. Good morning everyone and thank you for joining us to discuss our fiscal 2026 third quarter results. This call is being broadcast live on our website at investor.wgo.net and an audio replay of the call will be available on our website later today. The news release with our third quarter results was issued and posted to our website earlier this morning. Please note that the earnings slide deck which accompanies our prepared remarks is also available in 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 law. The company cautions you that forward-looking statements involve a number of risks and are inherently uncertain. 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. Hosting today's call are Michael Happe, President and Chief Executive Officer of Winnebago Industries, and Bryan Hughes, Senior Vice President and Chief Financial Officer. Mike will begin with an overview of our third quarter performance as well as the forward view of the market. Bryan will discuss the associated drivers of our financial results and our fiscal year 2026 guidance. Mike will conclude our prepared remarks and then management will be happy to take your questions. And with that, please turn to slide four as I hand the call over to Mike.

Thank you, Joanne, and good morning, everyone. Our fiscal third quarter results reflect a demand environment that remains challenged with limited near-term visibility to stable conditions. Consumers who are drawn to the outdoor lifestyle remain engaged, but continue to navigate affordability pressures from cumulative inflation, elevated interest rates, and the uncertainty and related consequences around geopolitical events, which is influencing the timing of discretionary purchases. Macro demand worsened as our fiscal third quarter progressed, particularly from late March onwards, reflecting a more cautious consumer than we had anticipated heading into the spring selling season. Despite this, underlying interest in our brands and products remains intact. We are focused on both responsibly managing the business through this sustained turbulence and positioning the portfolio to profitably capture that demand as conditions recover. Before I get into the details, let me highlight a few priorities that are shaping our actions across the business. First, we remain disciplined in how we allocate resources across the portfolio, prioritizing investments that strengthen our brands, enhance product differentiation, maintain profitability and Protect the Balance Sheet. Second, we continue to advance both innovation and price accessibility across our portfolio. Our new product pipeline remains active with recent offerings designed to strengthen our competitive position while expanding participation across a broader range of consumers and price points. Third, we remain focused on cost and cash discipline. We are actively managing STNA, improving working capital efficiency, and maintaining a strong focus on cash generation. And finally, we continue to pursue operational efficiencies across the enterprise, including material cost reduction initiatives, manufacturing footprint and capacity optimization, and efforts to reduce complexity where appropriate. While the timing of an outdoor recreation market recovery remains uncertain, these are actions within our control that strengthen the business today and position us to create value over the long term. Turning to slide five. In Motorhome RV, our retail share has increased for the trailing three, six, and 12-month periods through April. That momentum is being driven by Grand Design Motorized, A strong performance for Newmar in continued progress in revitalizing the Winnebago Motorhome brand. The actions we have taken across product, quality, and operational execution are gradually translating into improved share and profitability in the segment as volume, mix, and operational execution move in the right direction. Turning to towables, The environment remains price sensitive and more promotional than what we are seeing in motorized. Volume trends in the quarter reflected both softer retail conditions and continued dealer caution around inventory levels. Grand Design anchors the category and continues to hold a strong competitive position. Winnebago Towables is beginning to build traction. with newer products such as Thrive and Access showing encouraging early retail signals and contributing to emerging share gains. A key focus for us in this environment is expanding affordability, including the recent launch of the Transcend Lite Travel Trailer from Grand Design and continued action to broaden our reach to a wider range of buyers while protecting acceptable profitability. While still early, this progress is an important proof point for our dual brand towable strategy and our ability to expand our reach into broader product segments of the market. In marine, retail conditions remained less volatile than RV. would demand and ordering patterns continuing to be measured across the category. Within that environment, Barletta's performance stands out. The pontoon brand has continued to take retail share consistently in the aluminum pontoon segment, even as overall marine demand has been soft. This is a reflection of the strength of Barletta's dealer network. A product lineup that continues to resonate with pontoon buyers, supported by one of the strongest customer service reputations in the industry. The Sansa is now shipping and retailing in the market, creating a more accessible entry point into the Barletta brand and serving as another example of how we are expanding participation across our portfolio without compromising brand positioning. Chris Craft maintains its premium luxury positioning, serving a buyer who has shown more resilience through the cycle. Moving to key RV trends on slide six, the consumer demand picture through the spring reflected a buyer who is engaged but not yet ready to commit. That hesitancy is showing up in extended purchase timelines, more deliberate dealer ordering, and retail trends that remain below where we would expect them to be at this point in the selling season. Consumer participation with an outdoor lifestyle remains solid, but the environment for new RV and boat purchases remains more constrained. Shipment patterns remain measured as both OEMs and dealers continue to manage the channel with discipline, keeping field inventory in check with true retail demand. We believe the quality of dealer inventory and the pace of retail sell-through matters more than incremental wholesale, and that conviction shapes how we are running the business right now. Field inventory turns were stable quarter over quarter. The slower aggregate turn rate is driven in part by recent new product introduction stocking orders, including Grand Design's motorized new vans, Winnebago's Thrive and Access towable platforms, and Berletta's Sansa line. which are still building their retail velocity as dealer teams get up to speed and consumer awareness grows. We view this as an expected and healthy part of the product introduction cycle. We remain focused on driving motorized and marine turns towards two times over the coming quarters, while towables will require a more stable retail environment to reach that threshold. particularly as we continue to build out the Winnebago towable portfolio. As shown on slide seven, I want to spend a moment on RV market share because it highlights both where we are performing well today and where we are focused on improving. On the motorized side, we continue to grow Enterprise Motorhome unit share with gains across key categories on a trailing 12-month basis through April. Importantly, retail results in the quarter showed positive momentum across all three motorized brands, an encouraging signal that the investments we have made in product and complementary brand strategy are translating at the retail level. On the towable side, Grand Design continues to face targeted pressure. particularly in fifth wheels where the competitive environment remains intense. At the same time, the Winnebago towables brand is delivering results with the thrive and access demonstrating encouraging positive early retail momentum. We believe this dual brand strategy can lift our towable retail share meaningfully over time. I also want to introduce a metric we are sharing for the first time this quarter, retail dollar share using the SSI data pool. While unit share remains the conventional industry measure, we believe retail dollar share provides additional context of where brands are competing and winning. By that measure, our industry profile is stronger than our unit share would suggest. This reflects the higher average selling prices across our RV portfolio, which results in our dollar share being recently more resilient than our unit share. We believe it is an important indicator of the competitive strength of our portfolio and one that demonstrates a resilience in our market position that unit share alone does not capture. Turning to slide eight, Barletta continues to perform very well, maintaining consistent and accelerating market share gains, reaching 9.3% on a trailing 12-month basis through April, despite softer volumes in the quarter. This performance reflects continued consumer interest in its premium pontoons and an expanding product lineup, including the recent Sanza introductions. Slide nine reflects our new product highlights. We are excited about the recent introduction of the Arca, an all-new off-grid adventure truck that joins Revel and Echo in Winnebago Brand's Backcountry series. Built to extend our presence in the growing adventure segment, Arca broadens the appeal of the Winnebago Motorhome brand with a product that combines purpose-built capability Thank you. Thank you. and ongoing focus on innovation. And they continue to support the premium positioning of our motorized portfolio. On the technology innovation front, Grand Design recently expanded its worry-free roof to the Momentum and Momentum G-Class lineups, building on its earlier introduction across Solitude, Influence and the Foundation product lines. engineered as a single seamless piece using marine-grade fiberglass and automotive-grade gaskets, the worry-free roof eliminates the seams and exposed sealants that are common failure points in traditional roof designs. This helps reduce long-term maintenance and reinforces Grand Design's reputation for building products that enhance the ownership experience. I'll now turn the call over to Bryan Hughes for the financial review. Bryan?