Malibu Boats (MBUU) investor relations material

Executive summary

• Net sales for Q1 FY2026 increased 13.5% year-over-year to $194.7 million, driven by higher Malibu segment volumes and favorable model mix, despite ongoing retail softness.

• Adjusted EBITDA rose 19.1% to $11.8 million, with margin improving to 6.1% and adjusted net income per share up to $0.15.

• GAAP net loss narrowed significantly to $0.7 million, with net loss margin improving to (0.4)% from (3.0)% year-over-year.

• Gross margin declined to 14.3% from 16.4% due to higher labor, material, and dealer incentive costs.

• Management emphasized disciplined execution, dealer health, and innovation, with strong engagement on new product launches and financing initiatives.

Financial highlights

• Net sales: $194.7 million (up 13.5% year-over-year); unit volume up 10.3% to 1,129 units.

• Consolidated net sales per unit increased 2.9% to $172,483, driven by favorable model mix and price increases.

• Adjusted EBITDA: $11.8 million (up 19.1%); margin improved to 6.1% from 5.8% year-over-year.

• Adjusted net income per share was $0.15, up from $0.07 in the prior year.

• Free cash flow for Q1 was $2.5 million, including $4.3 million in capital expenditures.

Outlook and guidance

• Fiscal 2026 net sales expected to be flat to down mid-single digits; Q2 sales guidance is $175–$185 million.

• Adjusted EBITDA margin guidance for fiscal 2026 is 8%-9%; Q2 margin guidance is 3%-5%.

• Market expected to decline mid to high single digits for the year, with a steeper decline in the first half.

• Tariffs estimated to impact cost of sales by 1.5%-3%, with mitigation and price increases planned.

• Management expects continued soft retail environment and further dealer inventory reductions in FY2026.