Marine Products (MPX) investor relations material

Executive summary

• Net sales for Q2 2025 declined 3% year-over-year to $67.7 million, driven by a 13% drop in unit sales, partially offset by a 10% price/mix increase.

• Net income for Q2 2025 was $4.2 million, down 25% from the prior year; diluted EPS was $0.12, down from $0.14.

• Demand stabilized with sequential sales growth and field inventories reduced by 11% year-over-year.

• Management is focused on cost control, aligning production with demand, and planning new model launches for 2026.

• Elevated interest rates and macroeconomic uncertainty continue to curb consumer demand.

Financial highlights

• Gross profit was $12.9 million, down 2% year-over-year, but gross margin improved by 20 basis points to 19.1%.

• SG&A expenses rose 9% to $8.1 million, or 12% of sales, mainly due to higher R&D, advertising, and incentive accruals.

• EBITDA for Q2 2025 was $5.6 million (8.3% margin), down from $6.6 million (9.3% margin) in Q2 2024.

• Net cash provided by operating activities for the first half was $9.2 million; free cash flow was $8.6 million.

• Ended Q2 with $50.2 million in cash and no debt.

Outlook and guidance

• Sales have stabilized sequentially, with a 15% increase over Q1, and potential for year-over-year growth in the second half of 2025.

• Full-year 2025 capital expenditures are projected at $2–$3 million, with higher spending in the second half.

• Management expects results to depend on economic trends, interest rates, and consumer demand.

• The company plans to continue regular quarterly dividends, subject to financial and industry conditions.

• Tax rate for the quarter was 21.3% and is expected to be slightly higher for the remainder of the year.