OneWater Marine Inc.

What they do

OneWater reports through two segments: Dealerships and Distribution. The Dealerships segment sells new and pre-owned boats, arranges finance and insurance, performs repairs and maintenance, sells marine parts and accessories, and offers slip and storage accommodations. The Distribution segment, comprising PartsVu and T-H Marine, manufactures, assembles and distributes marine-related parts and accessories to distributors, big box retailers, online retailers and direct to consumers. The company has completed 35 acquisitions since its 2014 formation and operates dealerships in 17 states, including Florida, Texas, Alabama and Georgia.

Revenue drivers

• Dealerships segment — Represents approximately 92% of fiscal 2025 revenue and 94% of revenue for the three months ended June 30, 2026, driven by new boat sales, pre-owned boat sales, finance and insurance income, and service, parts and other sales across 91 dealerships in 17 states.
• Distribution segment — Represents approximately 8% of fiscal 2025 revenue and 6% of revenue for the three months ended June 30, 2026, comprising PartsVu and T-H Marine, which operate 6 distribution centers/warehouses in Alabama, Florida and Oklahoma; after the February 2, 2026 sale of Ocean Bio-Chem, the segment no longer includes OBCI.
• New boat sales — The largest revenue line within Dealerships, generating $319.96 million in the fiscal third quarter of 2026, or about 60% of total quarterly revenue, from over 35 manufacturers covering more than 50 brands.
• Pre-owned boat sales — Generated $121.06 million in the fiscal third quarter of 2026, about 23% of total quarterly revenue, reflecting trade-ins and established customer relationships; over 9,500 new and pre-owned boats were sold in fiscal year 2025.

Recent performance

For the fiscal third quarter ended June 30, 2026, revenue was $530.7 million, down 4.0% from $552.9 million in the prior-year quarter, primarily due to the Ocean Bio-Chem divestiture. Same-store sales decreased 2%; new boat revenue fell 1.9% on lower unit volumes partly offset by higher average price per unit, and pre-owned boat revenue fell 3.9%. Gross profit margin rose 70 basis points to 24.0%, and net income was $11.7 million, or $0.69 per diluted share, compared with $10.7 million and $0.65 in the prior-year quarter. Adjusted EBITDA increased 15% to $37.8 million, and the adjusted net debt leverage ratio improved to 3.7x from 5.8x a year earlier.

Strategy

Management said it achieved its balance sheet leverage target ahead of schedule and cited structural improvements and enhanced financial flexibility. The company has focused on disciplined inventory management, cost reduction actions, strategic brand exits, and margin enhancement, which contributed to the 24.0% gross margin in the fiscal third quarter of 2026. It continues to pursue acquisitions as a core growth strategy, having completed 35 acquisitions since 2014, though manufacturer consent is required prior to acquiring other dealers. The February 2, 2026 sale of Ocean Bio-Chem narrowed the Distribution segment to PartsVu and T-H Marine, and the company maintains a diversified revenue profile across new boats, pre-owned boats, finance and insurance, service, and parts and accessories.

Risks

• Consumer spending and economic conditions — General economic conditions and consumer spending patterns can materially adversely affect demand for discretionary boat purchases and the company's results.
• Severe weather — Hurricanes, floods and other natural disasters can disrupt operations, damage inventory or facilities, and reduce customer demand in the company's Southeast, Gulf Coast, Mid-Atlantic and Northeast markets.
• Tariffs and supply chain — Changes in tax laws, tariffs, trade restrictions and international supply chain disruptions can increase costs and limit product availability.
• Acquisition and integration risk — Growth depends on acquiring dealers at attractive prices and integrating them successfully, and the company must obtain manufacturer consent before acquiring other dealers.

Outlook

Management stated that despite a measured retail environment, the company expanded margins, reduced leverage, and maintained disciplined inventory levels, and that it achieved its balance sheet leverage target for the fiscal year ahead of schedule. Executive Chairman Austin Singleton said the company believes it is well positioned to deliver outsized growth as industry conditions improve. The company reported total liquidity of $73.3 million as of June 30, 2026, including $68.7 million of cash and cash equivalents.