Winnebago Industries Stock

Winnebago Industries, Inc. operates as a North American manufacturer of recreation vehicles (RVs) and marine products with a diversified portfolio used primarily in leisure travel and outdoor recreational activities.

The company also designs and manufactures advanced battery solutions that deliver house power, supporting internal electrical features and appliances for a variety of outdoor products, including RVs, boats, specialty and other low-speed vehicles, as well as other industrial applications. The company produces its towable RV units in Indiana; its motorhome RV units in Iowa and Indiana; its marine units in Indiana and Florida; and its battery solutions in Florida. The company distributes its RV and marine products primarily through independent dealers throughout the U.S. and Canada, who then retail the products to the end consumer. The company also distributes its marine products internationally through independent dealers, who then retail the products to the end consumer. The company's battery solutions are primarily sold to customers in the U.S.

Principal Products and Segments

The company operates through three segments: Towable RV, Motorhome RV, and Marine.

Towable RV segment

A towable RV is a non-motorized vehicle that is designed to be towed by automobiles, pickup trucks, SUVs, or vans and is used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles. The Recreation Vehicle Industry Association (RVIA) classifies towable RVs into four types: conventional travel trailers, fifth wheels, folding camper trailers, and truck campers. The company manufactures and sells conventional travel trailers and fifth wheels under the Winnebago and Grand Design brand names.

Travel Trailer: The company's Winnebago product offerings include HIKE, Micro Minnie, Minnie, and Voyage. Its Grand Design product offerings include Imagine, Momentum, Reflection, and Transcend.

Fifth Wheel: The company's Grand Design product offerings include Momentum, Reflection, and Solitude.

The company's travel trailer and fifth wheel towable RVs are sold by dealers in the retail market.

Motorhome RV segment

A motorhome RV is a self-propelled mobile dwelling used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles. The RVIA classifies motorhome RVs into three types, all of which the company manufactures and sells under the Winnebago and Newmar brand names.

Class A

The company's Winnebago product offerings: Gas: Adventurer, Sunstar, and Vista; and Diesel: Forza and Journey.

The company's Newmar product offerings: Gas: Bay Star and Bay Star Sport; and Diesel: Canyon Star, Dutch Star, Essex, King Aire, Kountry Star, London Aire, Mountain Aire, New Aire, and Ventana.

Class B

The company's Winnebago product offerings: Gas: Solis and Travato; and Diesel: Boldt, Era, Revel, and Roam.

Class C

The company's Winnebago product offerings: Gas: Ekko, Minnie Winnie, and Spirit; and Diesel: Navion, Porto, View, and Vita. Its Newmar product offerings: Diesel: Super Star and Supreme Aire.

The company's Class A, Class B, and Class C motorhome RVs are sold by dealers in the retail market. Its motorhome RVs range in length from 18 to 45 feet.

Motorhome RV parts and service activities represent revenues generated by service work the company performs for retail customers at its Forest City, Iowa and Nappanee, Indiana facilities, as well as revenues from the sale of unit parts. The company's competitive strategy is to provide proprietary manufactured parts through its dealer network, which increases customer satisfaction and the value of its motorhome RVs.

Marine segment

The company manufactures and sells premium quality recreational boats under its Chris-Craft and Barletta brands through an established network of independent authorized dealers.

Boats

The company's Chris-Craft product offerings include Calypso, Catalina, Launch, and Launch GT. Its Barletta product offerings include Aria, Cabrio, Corsa, Lusso, and Reserve.

The company's boats are sold by dealers in the retail market.

Winnebago Specialty Vehicles

The company manufactures accessibility enhanced motorhomes under the Winnebago brand name, which are vehicles with a wheelchair lift to allow individuals with physical disabilities access to the motorhome. In addition, the company manufactures other specialty commercial vehicles custom designed for the buyer's specific needs and requirements, such as law enforcement command centers, mobile medical clinics, and mobile office space. The company also provides commercial vehicles as bare shells to third-party upfitters for conversion at their facilities. These specialty commercial vehicles are manufactured in Forest City, Iowa and sold through the company's dealer network.

Lithionics

On April 28, 2023, the company acquired Lithionics Battery, LLC and Lithionics LLC (collectively, Lithionics), a premier lithium-ion battery solutions provider to the recreational equipment and specialty vehicle markets. Using a proprietary battery management system called NeverDie Technology, Lithionics offers a broad range of standard and custom-designed battery configurations delivering 'house power' and supporting internal electrical features and appliances for a variety of outdoor products, including RVs, boats, specialty and other low-speed vehicles, as well as other industrial applications. These batteries are manufactured in Clearwater, Florida.

Distribution

The company distributes its RV and marine products primarily through independent dealers throughout the U.S. and Canada, who then retail the products to the end consumer. The company also distributes its marine products internationally through independent dealers, who then retail the products to the end consumer.

As of August 26, 2023, the company's RV and marine dealer network in the U.S. and Canada included approximately 750 physical dealer locations, many of which carry more than one of its brands.

The company has sales and service agreements with most dealers, which are subject to annual review. Many of the dealers are also engaged in other areas of business, including the sale of automobiles, trailers, or boats, and most dealers carry one or more competitive lines of products. The company continues to place high emphasis on the capability of its dealers to provide complete service for its products. Dealers are obligated to provide full service for owners of its products or, in lieu thereof, to secure such service from other authorized providers.

The company advertises and promotes its products through national trade magazines, product brochures, the Go RVing national advertising campaign sponsored by RVIA, its websites, social media, direct-mail advertising campaigns, various national promotional opportunities, and on a local basis through trade shows, television, radio, and newspapers, primarily in connection with area dealers.

Seasonality

The primary use of RVs and marine products for leisure travel and outdoor recreation has historically led to a peak retail selling season concentrated in the spring and summer months and lower sales during fall and winter months. The company's sales are generally influenced by this pattern in retail sales, but sales can also be impacted by the level of dealer inventory. As a result, the company's sales are historically lowest during its second fiscal quarter (year ended August 2023), which ends in February.

Governmental Regulations

The company is subject to a variety of federal, state, local, and, to a limited extent, international laws and regulations, including the federal Motor Vehicle Act (MVA), under which the National Highway Traffic Safety Administration (NHTSA) may require manufacturers to recall RVs that contain safety-related defects, and numerous state consumer protection laws and regulations relating to the operation of motor vehicles, including so-called Lemon Laws.

The company is also subject to regulations established by the Occupational Safety and Health Administration (OSHA). Its facilities are periodically inspected by federal and state agencies, such as OSHA. The company is a member of the Recreation Vehicle Industry Association (RVIA), a voluntary association of RV manufacturers, which promulgates RV safety standards.

Trademarks

The company's products are marketed under a variety of valuable trademarks. Some of the more important trademarks used in the company's business include Winnebago, Grand Design, Newmar, Chris-Craft, Barletta and Lithionics. The company protects these trademarks as appropriate through registrations in the U.S. and other jurisdictions.

History

Winnebago Industries, Inc. was founded in 1958. The company was incorporated in 1958.