Winnebago, the company that is synonymous with American motorhomes, gave investors a downbeat snapshot of its business. The company reported lower profits last quarter and adjusted its full year revenue expectations down.

RV sales hit an all-time high in the pandemic as Americans hit the road to escape isolation outdoors. Purchasers pumped the brakes in 2023, and the market has been sputtering ever since, according to Morningstar analyst David Whiston. 

“It's gotten to be a broken record,” Whiston said. “They keep saying, ‘we expect this recovery to happen.’ And then it just keeps getting pushed out.”

First by inflation, then rising interest rates, and now tariff-related uncertainty have continued to drag down the market.

“For most of 2025, it's been a lot of tariff headline news,” Whiston said.

Consumers who are still buying are more often looking for value — opting for lower-priced and lower margin towable RV products over pricey motorhomes.

Tariffs have been squeezing profits even more, said Michael Hicks, an economist at Ball State University in Muncie Indiana. Most of the industry is based just 150 miles away in Elkhart, Indiana.

“There are huge cost increases on what are probably somewhere between a third and a half of the component parts to a recreational vehicle,” said Hicks. “So the price is skyrocketing.”

Elevated interest rates have kept borrowing costs high for what can be a six-figure purchase. With limited room to raise prices, dealers are stuck in a tight spot — and the peak buying season is nearly over.

“I think what you're likely to see is a cascade of layoffs in the coming weeks,” Hicks said.

Still, the softened demand doesn’t reflect a lack of enthusiasm for the RV lifestyle said James Ashurst at the RV Industry Association.

“Long term, we still feel very positive about the RV industry,” Ashurst said.

Ashurst said surveys show strong consumer intention to buy over the next five years, and attendance at RV expos remains high.

“So there's a lot of people that are interested,” Ashurst said. “They're just hoping to have some of the headwinds removed.”

And no one likes driving an RV through a gusty storm.