OneWater Marine Inc. (ONEW) is a leading force in the recreational boating industry, renowned for its innovative approach to delivering exceptional boating experiences. Headquartered in Buford, Georgia, OneWater Marine operates one of the largest premium recreational boat dealership networks in the United States, with over 100 locations spanning 16 states. Since its inception, the company has become synonymous with excellence in boating, offering a comprehensive suite of services that cater to every aspect of the boating lifestyle.
Founded with the vision of transforming the way people buy, sell, and service boats, OneWater Marine specializes in the sale of new and pre-owned boats, parts, accessories, financing, insurance, and maintenance services. The company’s portfolio includes partnerships with over 50 leading manufacturers and 66 premium boat brands, ensuring a diverse range of options for customers. From luxury yachts to fishing boats, OneWater Marine meets the unique needs of recreational boaters across the country.
What sets OneWater Marine apart is its commitment to creating a seamless, customer-centric experience. The company has earned a reputation for its innovative business model, which combines organic growth with a proven acquisition strategy. By acquiring and integrating dealerships in key markets, OneWater has expanded its footprint significantly, achieving a compound annual revenue growth rate of over 20% since its initial public offering (IPO) in 2020. This strategic approach has not only increased its market share but also solidified its position as a market leader in 13 of the 16 states where it operates.
OneWater Marine’s success is underpinned by its ability to adapt to market dynamics and drive innovation in the recreational boating space. Its diversified revenue streams, which include high-margin services like finance and insurance, parts, and maintenance, provide a stable foundation for growth, even in challenging economic conditions. This resilience has been a cornerstone of the company’s strategy, enabling it to weather industry cycles while continuing to deliver value to customers and shareholders alike.
As a company deeply rooted in the boating lifestyle, OneWater Marine is more than just a retailer, it’s a trusted partner for boating enthusiasts. With a focus on exceptional customer service, cutting-edge technology, and strategic growth, OneWater Marine is redefining what it means to be a leader in the recreational boating industry. Whether serving seasoned boaters or newcomers to the water, OneWater Marine is dedicated to helping customers create lasting memories on the water while maintaining its status as an industry pioneer.
Resilience Amid Industry Challenges
The fiscal year 2024 was marked by a series of challenges for OneWater Marine. From macroeconomic uncertainties to severe weather events like Hurricane Helene, the company faced obstacles that tested its business model and operational efficiency. Despite an 8% decrease in revenue to $1.78 billion and a 7% drop in same-store sales, the company showcased resilience through strategic diversification and geographic reach. CEO Austin Singleton praised the team’s ability to adapt to shifting consumer behaviors and an evolving inventory landscape, highlighting the company’s flexibility and strength.
Hurricane Helene, which struck the West Coast of Florida in late 2024, caused significant damage, temporarily closing several OneWater stores and disrupting sales for the last 10 days of September. While this impacted the fiscal fourth quarter results, OneWater swiftly resumed operations and continued to serve its customers, underscoring its robust recovery capabilities.
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Fiscal Year 2024: A Closer Look at the Numbers
OneWater Marine reported total revenue of $1.78 billion for fiscal year 2024, an 8.5% decrease compared to $1.94 billion in 2023. The decline was primarily due to moderated demand for new and pre-owned boats, with new boat revenue decreasing by 8.6% to $1.12 billion and pre-owned boat revenue declining by 6.7% to $312.2 million. Additionally, service, parts, and other revenue fell by 9.7% to $290.7 million, largely impacted by reduced production from boat manufacturers.
Gross profit for the year totaled $435.1 million, down from $535.1 million in the previous year, reflecting a gross profit margin of 24.5%, a decrease of 310 basis points. This decline was attributed to industry normalization following the COVID-driven boom in boat sales. However, the company’s strategic focus on higher-margin services like finance and insurance (F&I) income, which contributed $51.5 million, helped mitigate some of the pressure on profitability.
Net loss for fiscal year 2024 was $6.2 million, or $(0.39) per diluted share, compared to a net loss of $39.1 million, or $(2.69) per diluted share, in 2023. Adjusted EBITDA for the year was $82.5 million, a 53.2% decrease from $176.4 million in 2023. The company’s cost-reduction efforts and expense management played a critical role in minimizing losses and maintaining financial stability.
Fourth Quarter Performance: Impact of Hurricane Helene
The fiscal fourth quarter of 2024 was particularly challenging for OneWater Marine, with revenue declining by 16.2% to $377.9 million compared to $451 million in the same period of 2023. Same-store sales decreased by 17%, driven by an 18% drop in new boat revenue and a 20.1% decrease in pre-owned boat revenue. Service, parts, and other sales were down 6.7%, but dealership service sales remained positive when excluding prior-year dispositions.
Gross profit for the quarter totaled $90.7 million, with a gross margin of 24%, down from 26.4% in the prior year. Selling, general, and administrative (SG&A) expenses decreased by 6.1% to $79.5 million due to cost-reduction initiatives, although they accounted for a higher percentage of revenue at 21% compared to 18.8% in 2023.
Hurricane Helene had a significant impact on fourth-quarter sales, with temporary store closures and interruptions in insurance underwriting during the final days of September. Despite these setbacks, the company’s rapid recovery and support for affected communities demonstrated its operational resilience and commitment to customer service.
Strategic Growth Through Diversification and Acquisitions
OneWater Marine has built a business model that thrives on diversification and growth through acquisitions. Its revenue streams extend beyond boat sales to include high-margin segments like F&I income and service, parts, and maintenance, providing a stable foundation during periods of market volatility. This diversification helps offset fluctuations in boat sales, particularly during challenging economic conditions.
Since its IPO in 2020, OneWater has expanded its retail footprint from 61 to 100 locations through strategic acquisitions, achieving a compound annual growth rate (CAGR) of over 20% in revenue. The company’s ability to integrate acquisitions seamlessly and capitalize on synergies has been a key driver of its success in a fragmented industry.
Inventory Optimization and Cost Management
As of September 30, 2024, OneWater Marine reported inventory of $590.8 million, a slight decrease from $609.6 million in June 2024. This reflects the company’s focus on aligning inventory levels with market demand and avoiding overstocking in a post-COVID market environment. The strategic optimization of inventory has been instrumental in maintaining liquidity, with total liquidity, including cash and availability under credit facilities, standing at approximately $30 million.
Cost-reduction initiatives have also played a vital role in OneWater’s financial management. SG&A expenses decreased by 3.7% for fiscal year 2024, demonstrating the company’s ability to adapt its cost structure to changing market conditions while continuing to invest in growth opportunities.
Outlook for Fiscal Year 2025: Positioned for Growth
Looking ahead, OneWater Marine anticipates revenue for fiscal year 2025 to be in the range of $1.7 billion to $1.85 billion, with same-store sales expected to grow in the low single digits. Adjusted EBITDA is projected between $80 million and $110 million, reflecting a cautiously optimistic outlook.
CEO Austin Singleton acknowledged the potential for a slower start to 2025 due to the lingering effects of Hurricanes Helene and Milton but expressed confidence in the company’s ability to recover and capitalize on opportunities. With healthy inventory levels, a focus on cost optimization, and strong customer engagement, OneWater is well-positioned to navigate challenges and drive long-term growth.
Why OneWater Marine Stands Out
OneWater Marine’s ability to adapt to changing market dynamics, diversify its revenue streams, and execute strategic acquisitions makes it a standout player in the recreational boating industry. While fiscal year 2024 presented challenges, the company’s resilience, operational excellence, and commitment to customer service position it for success in 2025 and beyond. As the industry continues to normalize, OneWater Marine remains a compelling investment opportunity, backed by a proven track record of growth and a forward-looking strategy.
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