Camping World (NYSE:CWH) reported third-quarter adjusted EBITDA of $36 million as pressure on new-RV demand and elevated industry promotions weighed on vehicle margins, prompting the retailer to expand cost-cutting efforts and maintain a disciplined inventory strategy.
Chief Executive Officer and President Matthew Wagner said the company’s used-vehicle gross margin and gross profit per unit improved during the quarter, but new-vehicle margins declined as competitors aggressively discounted older and prior-model-year inventory. Camping World reduced selling, general and administrative expense by $24 million from a year earlier, though those savings did not fully offset the gross-profit decline.
Adjusted EBITDA included a $12.7 million unfavorable adjustment to the company’s finance-and-insurance chargeback reserve. Excluding that charge, Wagner said adjusted EBITDA would have been $49 million.
Vehicle margins and inventory positioning
New-vehicle gross margin was 10.2% in the third quarter. Wagner said Camping World chose not to match promotional pricing from competing dealerships, a decision that hurt unit volume and new-unit market share but protected margins. He said the company expects new-vehicle margins to improve by approximately 50 to 100 basis points sequentially in the fourth quarter.
Camping World’s new-vehicle average selling price rose nearly 12%, reflecting share gains in fifth wheels and motorized RVs. Its exclusive brands represented roughly 47% to 48% of total new-vehicle sales during the quarter, according to Wagner. He said the higher average selling price was also driven by stronger sales of motorized RVs, including gains in the Class C segment, as well as fifth-wheel sales.
Used same-store unit sales declined about 9% as the broader used-RV market softened beginning in August. Still, used-vehicle gross margin improved to 18%, up from 16.5% in the second quarter, as Camping World operated with leaner and fresher inventory.
Wagner said the company’s share of prior-model-year new RVs was at its lowest level in five years. It also reduced used inventory aged more than 180 days by its largest amount in six years, with aged used inventory down about 25% on a cost basis from a year earlier.
During the question-and-answer session, Wagner said competitors’ promotional activity appeared to ease from the levels seen in July and August, when some dealerships advertised discounts of 37% to 40% off MSRP, compared with what he described as a more typical industry range of 27% to 30%. He said Camping World entered the fourth quarter with 61% of its new inventory in 2027 model-year units.
Cost reductions and systems initiatives
Management had previously outlined approximately $100 million of annualized structural SG&A savings across 20 initiatives. Between August and September, Camping World reduced headcount by nearly 15% and closed four dealerships, including two it may reopen when market conditions improve. Those actions are expected to provide at least $50 million of additional annualized savings.
Chief Financial Officer Tom Kirn said the combined annualized cost program now exceeds $150 million. The company expects to end 2026 with SG&A approximately $130 million below 2025 levels and expects fourth-quarter SG&A dollars to be more than $50 million lower than a year earlier.
For 2027, Kirn said Camping World expects to realize an incremental $75 million of savings. Along with modest gross-margin normalization and ordinary cost inflation, management expects these factors to generate roughly $60 million to $70 million of additional earnings benefit next year.
The company also completed the rollout of an internally developed RV sales customer relationship management system across all locations by the end of September. Wagner said the system replaced third-party software and related license fees. In early observations, initial customer outreach within five minutes increased by more than 150%, while the time between a lead and first interaction declined 70%.
Good Sam, cash flow and financing
Good Sam Services and Plans segment gross margin expanded more than 550 basis points to 62.3%. The segment maintained adjusted EBITDA of $21.4 million despite lower revenue. Wagner said the completed systems overhaul allows Good Sam to sell extended-service, roadside-assistance and insurance products to other dealers and partners at scale.
More than 60% of Camping World’s gross profit now comes from F&I, service and parts, and Good Sam, according to Wagner. The company also disclosed that its renegotiated credit-card-provider agreement generated $2.3 million in recurring quarterly profit sharing. Kirn said management expects a similar quarterly contribution going forward, while noting the quarter also included a separate nonrecurring $5 million payment.
Camping World generated $488 million of operating cash flow in the first nine months of 2026 and reduced floor-plan borrowing by $349 million. It ended the quarter with $263 million of cash and $444 million of working capital, primarily reflecting lower inventory. The company said the book value of mortgage-free real estate exceeded $200 million.
Gross capital expenditures totaled about $92 million year to date before sale-leaseback transactions. For 2027, Camping World expects gross capital expenditures below $80 million and positive free cash flow, including the effect of a potential refinancing of its senior secured credit facilities.
The company extended the maturity of its M&T Bank mortgage facility to August 2031. Its term loan matures in June 2028, and management said it continues to evaluate refinancing alternatives to improve financial flexibility.
Outlook remains tied to consumer demand
Camping World said it expects full-year 2026 adjusted EBITDA to fall below the low end of its prior guidance range and is not providing a new full-year outlook, citing uncertainty around seasonal unit demand and front-end margins.
Management expects fourth-quarter combined new and used unit volume to decline at a pace similar to the third quarter on a year-over-year basis. Through August, total U.S. new and used retail registrations were down 4.5% year to date, with new registrations down 16% and used registrations up 1%, Wagner said.
For 2027, Camping World expects industry new-RV retail to range from roughly flat to down mid-single digits and used-RV retail to be roughly flat if current macroeconomic pressures persist. Wagner said management expects longer-term new-vehicle gross margins to return to a 13% to 14% range, while used-vehicle margins have remained relatively resilient near 18%.
About Camping World (NYSE:CWH)
Camping World Holdings, Inc is a recreational vehicle retailer and service provider operating under the Camping World brand. The company sells new and used motorized and towable recreational vehicles, including motorhomes, travel trailers and fifth-wheel trailers, serving consumers across the United States.
In addition to vehicle sales, Camping World provides related products and services through its dealership network. These offerings include RV parts and accessories, maintenance and repair services, vehicle financing and insurance products, and other ownership-related services.
