OneWater Marine reports improved margins and lower debt leverage

OneWater Marine has reported a 4 per cent decline in third-quarter revenue, but improved margins, higher adjusted EBITDA and a sharp reduction in debt leverage as the US recreational boating market continues to face challenging retail conditions.

Margins improve despite softer sales

Austin Singleton (executive chairman) notes the measured retail environment and says: “Solid third quarter results reflected the benefits of the actions we have taken over the past year to strengthen the business. We expanded margins, reduced leverage, and continued to maintain disciplined inventory levels.

“Importantly, we achieved our balance sheet leverage target for the fiscal year ahead of schedule. With structural improvements to the business and enhanced financial flexibility, we believe we are well positioned to deliver outsized growth as industry conditions improve.”

• Revenue for fiscal third quarter 2026 was $530.7m, a decrease of 4.0 per cent compared to $552.9m in fiscal third quarter 2025.
• Same-store sales were down 2 per cent.
• New boat revenue decreased 1.9 per cent, driven by lower unit volumes, partially offset by higher average price per unit. The decline in new boat revenue was primarily attributable to the impact of strategic brand exits completed during the prior year; excluding those brands, new boat sales increased year over year.
• Pre-owned boat revenue decreased 3.9 per cent, reflecting a challenging comparison against a strong prior year period which saw 18 per cent growth.
• Finance & insurance income decreased 2.7 per cent.
• Service, parts & other sales were down 12.8 per cent compared to the prior year quarter, primarily reflecting the impact of the OBCI divestiture. Excluding the impact of the divestiture, underlying service, parts & other sales increased year over year.
• Gross profit totalled $127.5m for fiscal third quarter 2026, down $1.2m from $128.7m for fiscal third quarter 2025. Gross profit margin increased 70 basis points to 24.0 per cent, driven by favourable product mix and the execution of strategic priorities to enhance boat gross profit.

Inventory levels continue to fall

Selling, general and administrative expenses for fiscal third quarter 2026 were $87.2m, or 16.4 per cent of revenue, compared to $92.1m, or 16.7 per cent of revenue, in fiscal third quarter 2025. Selling, general and administrative expenses declined 5.3 per cent, reflecting the impact of prior cost reduction actions and ongoing expense management. Selling, general and administrative expenses were modestly improved over the prior year period as a percentage of revenue.

Net income for fiscal third quarter 2026 totalled $11.7m, compared to net income of $10.7m in fiscal third quarter 2025. The increase in net income was primarily driven by higher income from operations and lower interest expenses. Net earnings per diluted share for fiscal third quarter 2026 was $0.69 compared to $0.65 in fiscal third quarter 2025. Adjusted diluted earnings per share for fiscal third quarter 2026 was $0.73, compared to adjusted diluted earnings per share of $0.79 in fiscal third quarter 2025.

Fiscal third quarter 2026 Adjusted EBITDA totalled $37.8 million compared to $32.8m for fiscal third quarter 2025.

As of June 30, 2026, the company’s cash and cash equivalents balance was $68.7m and total liquidity, including cash and availability under credit facilities, was $73.3m. Total inventory as of June 30, 2026, decreased to $485.5m, compared to $517.1m on June 30, 2025, primarily reflecting disciplined inventory management and the sale of OBCI.

Company updates 2026 outlook

For fiscal full-year 2026, OneWater anticipates the industry to be down high-single digits year over year based on recent industry trends. When factoring in the lost revenue from exited brands, the divestiture of OBCI, and industry retail performance, the company expects dealership same-store sales to be down low to mid-single digits year over year and total revenue to be in the range of $1.75bn to 1.80bn. Adjusted EBITDA is expected to be in the range of $68m to 78m. The revised outlook reflects year-to-date results, while maintaining a cautiously optimistic view of fourth quarter demand trends amid continued macroeconomic uncertainty.

Over the past five years, OneWater Marine has expanded through acquisitions and built out its US dealership network, while navigating the post-covid market correction, falling boat demand and elevated inventory levels. Its strategy has increasingly shifted towards portfolio optimisation, exiting selected brands and reducing costs and inventory as margins came under pressure. In 2025, the company acquired American Yacht Group, while 2026 has seen it sell Ocean Bio-Chem for $50m and use the proceeds to reduce debt.

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