OneWater Marine Reports Revenue Growth in Fiscal Third Quarter

US marine retailer OneWater Marine has reported its financial results for the fiscal third quarter ended 30 June 2025, with revenue rising 1.9 per cent year-on-year to $552.9m. Same-store sales also increased 2 per cent for the quarter.

The Georgia-based dealer network reports that new boat revenue declined 2.1 per cent, primarily due to a lower volume of units sold, though this was partially offset by a higher average price per unit.

Pre-owned boat revenue rose by 17.8 per cent, driven by increases in both unit sales and average pricing. Finance and insurance income remained flat as a proportion of total boat sales. Service, parts, and other revenue decreased 1.7 per cent, with dealership revenue up but distribution segment sales down due to lower production levels among boat manufacturers.

Gross profit for the quarter was $128.7m, a decline from $132.6m the previous year. The gross profit margin of 23.3 per cent was down by 110 basis points. OneWater attributes this to pricing and model mix changes in continuing brands, as well as the effect of selected brand exits.

Selling, general, and administrative expenses rose to $92.1m, or 16.7 per cent of revenue, up from $87.1m or 16 per cent a year ago. The increase was linked to costs associated with supporting same-store sales and higher fixed and administrative expenses due to inflation.

Net income for the quarter was $10.7m, down from $16.7m the year prior. Earnings per diluted share stood at $0.65, compared to $0.99 in the same quarter of 2024. Adjusted diluted earnings per share were $0.79, down from $1.05. Adjusted EBITDA decreased to $32.8m from $39.2m.

As of 30 June 2025, the company had $70.1m in cash and cash equivalents. Total liquidity, including credit availability, exceeded $85m. Inventory declined 13.6 per cent year-on-year to $517.1m, reflecting OneWater’s ongoing efforts to manage inventory levels.

Total long-term debt stood at $419.5m, while adjusted long-term net debt (excluding cash) was 5.8 times trailing 12-month adjusted EBITDA.

Adapting to Market Conditions and Tariff Uncertainty

CEO Austin Singleton says: “The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins. Our focus on serving our customers, executing our strategy, and taking market share remains unwavering.

“We continue to position the business for long-term success through a disciplined and thoughtful approach to inventory management, which includes strategic brand exits that are progressing as planned. By staying focused on factors within our control, we remain well-equipped to navigate this dynamic environment and drive results.

One Water’s Inventory Management Reaps Results

Singleton says that early customer feedback on new models has been positive with owners responding well to the latest innovations. Strategic efforts to optimize the portfolio are also working. “Total inventory is down 14 per cent year over year as we continue to prioritize healthy inventory levels. We remain on track to end the fiscal year with inventory down 10 per cent to 15 per cent, a target we had increased last quarter.

“Although May and June are typically peak selling months, the industry saw double-digit declines while our strategic positioning and strong execution led to positive results. This resilience highlights our team’s ability to adapt and succeed in a dynamic operating environment,” he says.

One Water is on schedule to exit selected brands by the end of the year.

Now the company’s centered on three key areas. Those are working towards a ‘healthy’ inventory of high-performing brands and completing the brand rationalization strategy; executing disciplined cost management within the changing retail environment; and leveraging scale and operational expertise to continue outperforming broader industry trends.

Premium Market Pushes Up Average Selling Price

Anthony Asplith, president, and COO notes that “while the customer purchase cycle has normalized post-COVID, tariff uncertainty continues to raise questions in the mind of some boaters. However, customers are actively visiting our dealerships and are shopping for their next boat. Our sales teams remain proactive, working hard to convert interest into sales.

“Although new boat unit sales declined year over year, the average selling price increased highlighting continued strength in the premium segment. Pre-owned boat sales grew for the third consecutive quarter driven by higher volume and average unit price more than offsetting the decline in new boat sales.

“As we’ve noted in recent quarters, customers are trading-in and trading-up as availability in the pre-owned market continues to improve. We’re encouraged to see buyers moving into new categories and larger boats. While the strength in higher value units across both new and pre-owned sales adds some pressure on margins, it’s a healthy level of churn and a positive indicator for the business.”

Trade-Ins Allow Buyers into New Categories

“More people are coming in that are trading their boats in,” says Singleton. “Trade-ins are higher today than they were six months ago and than they were twelve months ago.

“It’s because there’s an adequate amount of field inventory out there, so the consumer doesn’t have these huge lead times or lags when they come in to get a new boat. We’re being super aggressive (like we always have been) on purchasing boats outright, but it’s really a function of more people trading-in today, versus selling on their own.

Singleton clarifies that a trade-in is against purchasing a new boat and upgrading. “Most people are, especially in that premium space, upgrading to bigger stuff.”

For the full fiscal year 2025, OneWater forecasts revenue between $1.8bn and $1.85bn. Dealership same-store sales are expected to rise in the low single digits.