MasterCraft Boat (MCFT) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 were $76 million, down 9.5–10% year-over-year, exceeding internal expectations despite industry and macroeconomic headwinds, driven by planned lower production to align dealer inventories with retail demand.

• Adjusted EBITDA for Q3 was $7.5 million (9.9% margin), with adjusted net income of $5 million ($0.30 per diluted share); operating income was $4.1 million, down 39.1% year-over-year.

• Dealer inventories reduced by 30% year-over-year and over 45% compared to fiscal 2019, supporting a healthier dealer network for the summer selling season.

• Leadership transition: Tim Oxley retiring as CFO, succeeded by Scott Kent effective July 1, 2025.

• Aviara brand and facility divested, with results reported as discontinued operations.

Financial highlights

• Q3 net sales were $76 million, down 10% year-over-year; wholesale units fell 19% to 619.

• Gross margin was 20.8%, down 250 basis points year-over-year due to lower cost absorption and inflation.

• Adjusted EBITDA was $7.5 million (9.9% margin), down from $11.7 million (13.9% margin) in Q3 2024.

• Adjusted net income was $5 million ($0.30 per diluted share), down from $8.5 million ($0.50 per share) year-over-year.

• Year-to-date net sales were $204.7 million, down 24% from FY24; YTD adjusted EBITDA was $14.9 million.

Outlook and guidance

• FY2025 guidance: consolidated net sales expected at ~$275 million, adjusted EBITDA at ~$20 million, and adjusted EPS at ~$0.71.

• Capital expenditures for FY2025 projected at ~$9 million.

• Full-year guidance revised downward to reflect evolving macro conditions and challenging demand.

• Retail expected to be down closer to 10% year-over-year; Q4 is the easiest comp.

• Management expects continued market and economic uncertainty through the end of fiscal 2025.