Malibu Boats (MBUU) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was challenging for the marine industry, but Q4 saw net sales rise 30.4% to $207 million and net income turn positive, outpacing the market and prioritizing dealer health.

• Eleven new Model Year 2026 boats will be introduced, with strong initial orders and continued investment in innovation and dealer support.

• Free cash flow remained strong at $29 million, supporting growth initiatives and $36 million returned to shareholders via share repurchases.

• Net income for FY25 increased 127% to $15.2 million, reversing a prior year loss.

• Outperformed the market despite headwinds, driven by innovation and operational excellence.

Financial highlights

• Q4 net sales rose 30.4% to $207 million, with unit volume up 16.8% to 1,221 boats; gross profit increased 162.1% to $32.7 million, and gross margin improved to 15.8%.

• Fiscal 2025 net sales fell 2.6% to $807.6 million, unit volume dropped 9% to 4,898 boats, and gross profit decreased 2% to $144.1 million.

• Full-year adjusted EBITDA declined 9.1% to $74.8 million (margin 9.3%), and adjusted EPS fell 21.4% to $1.58.

• Q4 adjusted EBITDA was $19.7 million (margin 9.5%), and GAAP net income was $4.8 million; adjusted net income per share rose 205% to $0.42.

• Free cash flow for the year was $28.9 million, with $35.9 million returned to shareholders and $19 million net cash on the balance sheet.

Outlook and guidance

• Fiscal 2026 net sales expected to be flat to down mid-single digits year-over-year; Q1 net sales expected up high single digits.

• Adjusted EBITDA margin guidance for FY26 is 8%-9%; Q1 margin expected at 5%-6%.

• Market expected to decline mid to high single digits, with improvement projected in the back half of the year.

• Guidance does not assume any interest rate cuts; pricing and supply chain mitigations will address tariff impacts.

• Positioned to outperform the market, with growth and value creation strategies to be discussed at Investor Day.