OneWater Marine Inc. (NASDAQ:ONEW) reported financial results for its fiscal first quarter of 2026, delivering a mixed performance against analyst expectations. The company, a major U.S. marine retailer, posted a narrower-than-expected loss but fell slightly short on the top line, as the market for new boats continues to face headwinds.
Earnings and Revenue Versus Estimates
For the quarter ended December 31, 2025, OneWater reported total revenue of $380.6 million, representing a modest 1.3% increase over the prior year period. This figure came in below the analyst consensus estimate of approximately $387.9 million.
The more notable beat came on the bottom line. The company reported an adjusted diluted loss per share of $(0.04). This significantly outperformed the analyst forecast, which anticipated a much deeper loss of $(0.60) per share.
- Revenue: $380.6M reported vs. $387.9M estimated (Miss)
- Adjusted EPS: $(0.04) reported vs. $(0.60) estimated (Beat)
This divergence highlights a quarter defined by disciplined execution on profitability, even as overall sales growth remained muted. The market reaction in pre-market trading, with shares rising over 6%, suggests investors are rewarding the company's ability to manage margins and control losses more effectively than anticipated in a challenging environment.
Key Takeaways from the Quarterly Report
The earnings release revealed several important dynamics within OneWater's business during the seasonally slow first quarter.
Revenue Mix Shift: Total revenue growth was driven by a 24% surge in pre-owned boat sales and a 10.3% increase in service, parts, and other revenue. These gains were partially offset by a 5.9% decline in new boat revenue, which the company attributed to lower unit volumes as it prioritized margin discipline and product mix optimization. Same-store sales for the dealership segment were flat.
Margin Improvement and Profitability Focus: A central theme of the quarter was improved profitability. Gross profit increased to $89.4 million, with the gross margin expanding by 110 basis points to 23.5%. Management cited favorable model mix and portfolio optimization efforts as key drivers. This focus is further reflected in the 88.9% year-over-year increase in Adjusted EBITDA, which rose to $3.6 million.
Balance Sheet and Strategic Actions: The company is actively working to strengthen its financial position. Inventory decreased by $35 million from the prior year to $601.5 million, aided by disciplined management and the reclassification of certain assets as held for sale. OneWater announced a plan to divest certain Distribution segment operations, with assets totaling $52.8 million now classified as held for sale. The company expects to close the transaction before March 31, 2026, and use the proceeds for debt reduction. Total long-term debt stood at $399.4 million.
Forward Outlook and Analyst Comparisons
Looking ahead, OneWater maintained its full-year fiscal 2026 guidance. The company expects the overall marine industry to be flat to down low single digits. For its own performance, it anticipates:
- Total revenue between $1.83 billion and $1.93 billion.
- Adjusted EBITDA between $65 million and $85 million.
- Adjusted diluted earnings per share between $0.25 and $0.75.
This revenue guidance range brackets the current analyst consensus estimate for full-year 2026 sales of approximately $1.91 billion. The midpoint of the EPS guidance, $0.50, sits above the current analyst consensus for the full year, which stands at $0.63. For the upcoming second quarter, analysts are currently modeling for revenue of about $500.6 million.
Market Reaction and Conclusion
The positive pre-market movement indicates that investors are interpreting these results as a sign of resilience. While the revenue miss points to ongoing softness in consumer demand for big-ticket items like new boats, the substantial earnings beat and reaffirmed guidance demonstrate that management's strategies around cost control, inventory management, and higher-margin sales channels are gaining traction. The planned divestiture and focus on debt reduction are also likely being viewed as prudent steps to navigate the current market cycle.
The quarter underscores OneWater's ongoing transition from the post-pandemic boom to a more normalized, and currently softer, marine retail environment. The company's ability to significantly curb losses and improve operational metrics suggests it is managing this transition with a focus on financial health.
For a detailed look at upcoming earnings dates and a complete history of analyst estimates, visit the OneWater Marine earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
