OneWater Marine falls despite Q1 earnings beat, flat growth outlook weighs
Marine retailer beats EPS estimates but maintains guidance amid weak new boat demand
OneWater Marine Inc. shares declined in pre-market trading on Thursday after the recreational boat retailer reported fiscal first quarter results that beat earnings expectations but failed to raise guidance, signaling continued weakness in the marine industry.
The Buford, Georgia-based company reported an adjusted loss per share of 4 cents for the quarter ended December 2025, significantly surpassing analyst estimates for a 50-cent loss. Despite the earnings beat, OneWater's stock fell 5.5% to $13.14 in pre-market trading, reflecting investor concerns about top-line growth prospects in a challenging economic environment.
Revenue for the quarter reached $380.6 million, a modest 1.3% increase from $375.8 million in the same period last year. Same-store sales were flat, as weakness in new boat sales offset strength in the pre-owned segment. New boat revenue declined 5.9% due to lower unit volumes, while pre-owned boat sales surged 24% year-over-year, indicating consumers' shift toward more affordable options in a higher interest rate environment.
The company delivered notable margin expansion, with gross margin improving 110 basis points to 23.5%. Adjusted EBITDA jumped 88.9% year-over-year to $3.6 million, demonstrating management's success in controlling costs despite sluggish revenue growth. The adjusted loss narrowed significantly from the prior-year period, though the company remained in the red.
OneWater maintained its fiscal 2026 revenue guidance of $1.83 billion to $1.93 billion, which analysts had hoped would be raised following the earnings beat. The decision to hold steady suggests management remains cautious about the broader marine industry outlook, which faces headwinds from elevated interest rates, economic uncertainty, and consumer spending pressure.
Analysts maintain a consensus "Hold" rating on the stock, with an average price target of $17.00. Six brokerages cover the company, evenly split between "Buy" and "Hold" recommendations, with no "Sell" ratings. The stock has underperformed over the past year, trading down from its 52-week high of $21.00 and currently valued at approximately $225 million.
The marine retail sector has faced a challenging transition following the pandemic boom, which saw explosive demand for recreational boats and inventory shortages. As the industry normalizes, dealers like OneWater are working through elevated inventory levels while contending with higher financing costs that have cooled consumer appetite for big-ticket discretionary purchases.
Pre-owned boat strength represents a potential bright spot for OneWater, as trade-ins and value-seeking customers drive that segment. The company's acquisition strategy and national footprint position it to benefit from industry consolidation, though growth will likely remain measured until macroeconomic conditions improve.
OneWater's performance reflects broader trends in recreational discretionary spending, where consumers remain selective despite relatively healthy household balance sheets. The flat same-store sales indicate a stabilization in demand, but the lack of new boat volume growth suggests the recovery remains nascent.
Investors will be watching for signs of sustained improvement in the quarters ahead, particularly as the spring selling season approaches. Any upward revision to guidance or sequential improvement in new boat orders could provide the catalyst needed to reverse the stock's recent weakness.