Malibu Boats (MBUU) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 were $200.3 million, down 5.1% year-over-year, with unit volume declining 11% to 1,222 units due to lower wholesale shipments and persistent retail softness, especially in saltwater markets.

• GAAP net income dropped 76.1% to $2.4 million, and adjusted EBITDA fell 26.3% to $16.9 million, with margins pressured by higher legal and compensation costs.

• Early season boat shows and year-end sales events showed decent but mixed results, with higher retail sell-through but no strong rebound in retail activity.

• Dealer network restructured after Tommy's Boats bankruptcy, with 14 of 15 markets reassigned.

• Disciplined inventory management and production alignment remain priorities to support dealer health and brand strength.

Financial highlights

• Gross profit for Q2 FY2025 was $37.4 million, nearly flat year-over-year, with gross margin improving to 18.7% from 17.8%.

• Adjusted EBITDA margin declined to 8.4% from 10.9% year-over-year.

• Net income margin dropped to 1.2% from 4.8% year-over-year.

• Net sales per unit increased 6.6% to $163,900, driven by favorable model mix and inflation-driven price increases.

• Selling and marketing expenses rose 6.7% to $6.0 million; G&A expenses increased 71.9% to $26.5 million, mainly due to legal fees and incentive pay.

Outlook and guidance

• Full-year FY2025 net sales expected to be flat to down low single digits year-over-year, with adjusted EBITDA margin projected at approximately 10%.

• Q3 net sales expected to increase about 10% year-over-year, with adjusted EBITDA margin of 10-12%.

• Management expects continued dealer inventory reductions and a soft retail environment through FY2025, with production levels adjusted downward to match weaker demand.