“Our second quarter was highlighted by continued improvement in boat margins and a significant reduction in leverage,” says Austin Singleton, executive chairman of OneWater.
The company’s fiscal second quarter 2026 highlights show revenue decreased 9 per cent to $442 million and same-store sales decreased 8 per cent while gross profit margin of 23.9 per cent increased 110 bps.
“Margin expansion reflects the benefits of a more focused portfolio and the deliberate actions taken to reduce complexity, optimise inventory, and manage costs,” continues Singleton.
Debt reduction strengthens balance sheet
“In addition, proceeds from the sale of Ocean Bio-Chem (OBCI) and operating cash flows enabled a meaningful reduction in debt, further strengthening our balance sheet and maintaining progress toward our leverage target. As a result, we are well positioned for a market recovery, with greater focus and an improved ability to accelerate growth and drive higher profitability.”
OneWater reports a GAAP net loss of $(13) million, or $(0.78) per diluted share; adjusted diluted loss per share was $(0.34) and adjusted EBITDA of $16 million. The company repaid $57 million of debt, supported by proceeds from the sale of OBCI.
Fiscal second quarter 2026 results detailed
Revenue for fiscal second quarter 2026 was $442.3 million, a decrease of 8.5 per cent compared to $483.5 million in fiscal second quarter 2025. OneWater says the decrease was primarily driven by the timing of this year’s Palm Beach International Boat Show, as well as the impact of the OBCI divestiture. Same-store sales were down 8 per cent.
New vs pre-owned sales trends diverge
New boat revenue decreased 12.1 per cent, with approximately half of the decline attributable to the timing of the boat show, and the remainder driven by lower unit volumes, partially offset by higher average price per unit as the company continued to prioritise margin discipline and product mix optimisation.
Pre-owned boat revenue increased 5.2 per cent, driven by an increase in units sold and average price per unit. Finance & insurance income increased slightly as a percentage of total boat sales, and service, parts & other sales were down 10.7 per cent compared to the prior year quarter. Service, parts & other sales were impacted by the OBCI divestiture.
Gross profit totaled $105.5 million for fiscal second quarter 2026, down $4.9 million from $110.4 million for fiscal second quarter 2025. Gross profit margin increased 110 basis points to 23.9 per cent, driven by favourable new and pre-owned boat model mix and continued execution of strategic priorities to enhance boat gross profit.
Selling, general and administrative expenses for fiscal second quarter 2026 were $85.7 million, or 19.4 per cent of revenue, compared to $87.8 million, or 18.2 per cent of revenue, in fiscal second quarter 2025. Selling, general and administrative expenses declined 2.4 per cent reflecting the impact of prior cost reduction actions and ongoing expense management. The increase as a percentage of revenue was primarily driven by lower revenue in the current period.
Net loss for fiscal second quarter 2026 totalled $(12.9) million, compared to net loss of $(0.4) million in fiscal second quarter 2025. The increase in net loss was primarily driven by lower sales, a $5.8 million non-cash charge related to a trade name impairment following an internal realignment of certain retail locations under a different brand, and the tax impacts associated with the OBCI disposition. Net loss per diluted share for fiscal second quarter 2026 was $(0.78) compared to $(0.02) in fiscal second quarter 2025. Adjusted diluted loss per share1 for fiscal second quarter 2026 was $(0.34), compared to adjusted diluted earnings per share1 of $0.13 in fiscal second quarter 2025.
Fiscal second quarter 2026 adjusted EBITDA totalled $16.3 million compared to $17.9 million for fiscal second quarter 2025.
As of 31 March 31 2026, the company’s cash and cash equivalents balance was $68.4 million and total liquidity, including cash and availability under credit facilities, was $72.9 million. Total inventory as of 31 March 2026, decreased to $551.4 million, compared to $602.4 million on 31 March 2025, primarily reflecting disciplined inventory management and the sale of OBCI.
Total long-term debt as of 31 March 2026 was $353.6 million, and adjusted long-term net debt (net of $68.4 million cash) was 4.1 times trailing twelve-month adjusted EBITDA. During the quarter, the company repaid $56.6 million in debt, supported by proceeds from the sale of OBCI.
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