Winnebago Industries, Inc. and its wholly-owned subsidiaries (Winnebago) is one of the North American manufacturers 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-...
Winnebago Industries, Inc. and its wholly-owned subsidiaries (Winnebago) is one of the North American manufacturers 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. Other products manufactured by the company primarily consist of original equipment manufacturing parts for other manufacturers and commercial vehicles. The company produces its towable RV units in Indiana; its motorhome RV units in Iowa and Indiana; the company’s 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.
In the year ended August 31, 2024 (Fiscal 2024), one of the company’s suppliers individually accounted for approximately 16% of the company’s consolidated raw material purchases. In the case of motorhome RV chassis, Mercedes-Benz (USA and Canada), Stellantis N.V., Freightliner Trucks, Ford Motor Company, and Spartan RV Chassis are the company’s major suppliers. The company’s relationship with its chassis suppliers is similar to the company’s other supplier relationships in that no specific contractual commitments are engaged in by either party.
Principal Products
The company’s operations are organized into three reportable segments, Towable RV, Motorhome RV, and Marine, based on similarities within their markets, products, operations and distributions.
Towable RV
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 six types: conventional travel trailers, fifth wheels, travel trailers with expandable ends, folding camping trailers, truck campers, and park models. The company manufactures and sells conventional travel trailers and fifth wheels under the Winnebago and Grand Design brand names.
The company’s travel trailer and fifth wheel towable RVs are sold by dealers in the retail market with manufacturer's suggested retail prices ranging from approximately $20,000 to $154,000, which can vary depending on size and model, plus optional equipment and delivery charges.
Motorhome RV
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.
The company’s Class A, Class B, and Class C motorhome RVs are sold by dealers in the retail market with manufacturer's suggested retail prices ranging from approximately $143,000 to $1,847,000, which can vary depending on size and model, plus optional equipment and delivery charges. The company’s motorhome RVs range in length from approximately 18 to 45 feet.
Motorhome RV parts and service activities represent revenues generated by service work the company performs for retail customers at the company’s Forest City, Iowa and Nappanee, Indiana facilities as well as revenues from the sale of unit parts.
Marine
The company manufactures and sells premium quality recreational boats under the company’s Chris-Craft and Barletta brands through an established network of independent authorized dealers.
The company’s boats are sold by dealers in the retail market with manufacturer's suggested retail prices ranging from approximately $47,000 to $768,000, which can vary depending on size and model, plus optional equipment and delivery charges.
Winnebago Specialty Vehicles
The company manufactures 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 100% of the equity interests of 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.
Production
The company generally produces towable RVs, motorhome RVs, and marine products made to order for dealers.
The company’s towable RVs are produced at two assembly campuses located in Indiana. The majority of components are consisted of frames, appliances, and furniture, and are purchased from multiple suppliers.
The company’s motorhome RVs are produced in the states of Iowa and Indiana at five different assembly campuses. The company’s motorhome RV business utilizes vertically integrated supply streams, with the principal exceptions being chassis, engines, generators, and appliances that the company purchases from multiple suppliers. Certain parts, especially motorhome RV chassis, are available from a small group of suppliers.
The company’s marine products are produced in the states of Indiana and Florida at two different assembly campuses. The company manufactures certain components and purchase other components from suppliers and install them on the boat. Certain parts, especially motors, are available from a small group of suppliers.
Distribution and Financing
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. Foreign sales accounted for less than 10% of net revenues during Fiscal 2024.
As of August 31, 2024, the company’s RV and marine dealer network in the U.S. and Canada included over 750 physical dealer locations, many of which carry more than one of the company’s 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 the company’s dealers to provide complete service for the company’s products. Dealers are obligated to provide full service for owners of the company’s 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, the company’s 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.
Sales to dealers are made primarily on cash terms. Most dealers are financed on a ‘floorplan’ basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the merchandise purchased. As is customary in the industries the company serves, the company typically enters into a repurchase agreement with a lending institution financing a dealer's purchase of the company’s product upon the lending institution's request and after completion of a credit check of the dealer involved. The company’s repurchase agreements provide that, for up to 18 months after an RV unit is financed and up to 24 months after a marine unit is financed, in the event of default by the dealer on the agreement to pay the lending institution and repossession of the unit(s) by the lending institution, the company will repurchase the financed merchandise from the lender at the amount then due, which is often less than dealer invoice.
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 the company’s second fiscal quarter, 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 Boat Safety Act of 1971 has similar safety-related recall requirements for marine units. In addition, marine units sold in the U.S. and Europe must meet the certification standards of the U.S. Coast Guard and the European Community, respectively.
The company is also subject to regulations established by the Occupational Safety and Health Administration (‘OSHA’). The company’s facilities are periodically inspected by federal and state agencies, such as OSHA. The company is a member of RVIA, a voluntary association of RV manufacturers, which promulgates RV safety standards. The company places an RVIA seal on each of its RVs to certify that the RVIA standards have been met. The company’s products and facilities comply in all material respects with the applicable vehicle safety, consumer protection, RVIA, and OSHA regulations and standards.
The company’s operations are subject to a variety of federal and state environmental laws and regulations relating to the use, generation, storage, treatment, emission, labeling, and disposal of hazardous materials and wastes, and noise pollution. The company is in compliance with applicable environmental laws and regulations in all material aspects.
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.