OneWater Marine misses Q3 estimates as divestiture impact weighs

Overview

• U.S. marine retailer's fiscal Q3 revenue fell 4%, missing analyst expectations

• Adjusted EPS for fiscal Q3 missed analyst expectations

• Company attributed revenue decline to OBCI divestiture and strategic brand exits

Outlook

• OneWater Marine sees full-year 2026 revenue between $1.75 bln and $1.80 bln

• Company expects 2026 adjusted EBITDA of $68 mln to $78 mln

• Company expects adjusted diluted EPS for 2026 between $0.35 and $0.55

Result Drivers

• OBCI DIVESTITURE - Co said revenue and service, parts & other sales declined primarily due to the impact of the Ocean Bio-Chem divestiture

• STRATEGIC BRAND EXITS - New boat revenue fell due to lower unit volumes, primarily attributable to strategic brand exits completed during the prior year

• MARGIN EXPANSION - Gross profit margin increased 70 bps to 24.0%, driven by favorable product mix and execution of strategic priorities to enhance boat gross profit

Company press release: ID:nBw5LFHNTa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy"

• Wall Street's median 12-month price target for OneWater Marine Inc is $13.00, about 2.4% above its July 29 closing price of $12.70

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 30 - Brunswick Q2 sales beat on steady OEM orders

• July 28 - Polaris Q2 sales rise 9%, lifts 2026 outlook

• July 29 - Camping World cuts 2026 adjusted EBITDA outlook on weaker RV industry trends

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)