Winnebago Industries leaders look at impacts tariffs will have on their business

EAGAN, MINNESOTA — Leaders at Winnebago Industries are optimistic about what impact tariffs would have on their business.

The outdoor lifestyle products manufacturer with factory locations in Forest City and Lake Mills is just over halfway through their fiscal year. Last week, President Trump signed an executive order announcing a 25% tariff on automobiles and certain automobile parts will take effect starting in April. During a conference call held last week on the release of their Fiscal Year 2025 second quarter earnings report,

Winnebago CEO Michael Happe says they believe tariffs will not have an immediate impact on the company.   “Generally, Fiscal Year 2025 impact will be relatively limited, given timing remaining in our fiscal year. Our existing working capital in terms of inventory we have, ongoing supplier negotiations, and precise pricing action that we can take during this fiscal year.”

While Happe would not release details of potential pricing actions that the tariffs would have on Winnebago products, he says the company is in the planning stages of figuring out pricing for the next fiscal year.  “Our businesses will react in the short-term if they see any incoming cost pressure that we cannot mitigate. We are also preparing our model year 2026 product lineups and pricing, and that will also have the opportunity to include some assumptions around tariffs.”

Happe says there could be certain unknowns about the tariff situation that the company will have to deal with.  “There remain significant unknowns about tariffs in terms of the degree and including reciprocal or retaliatory tariffs, and we will be much better informed probably sometime in early to mid-April  following the administration’s announcements I believe on April 2nd.”

Winnebago last week reported the company’s second quarter net revenue was $620.2 million, a decrease from $625.6 million in the first quarter and down 11.8% compared to the second quarter of last year.