Malibu Boats, Inc. (NASDAQ:MBUU) saw its shares drop 6.38% in pre-market trading Thursday after reporting strong fourth-quarter results but providing a conservative outlook for fiscal 2026.
The recreational boatmaker posted Q4 net sales of $207 million, a 30.4% increase from a year ago, well above analyst expectations of $178.2 million. Adjusted earnings per share came in at $0.42, surpassing estimates of $0.23. Unit shipments rose 16.8% to 1,221 boats, mainly driven by stronger Malibu segment sales, partly offset by declines in Cobalt and Saltwater Fishing units.
Despite the impressive quarterly numbers, investors reacted negatively to the company’s guidance for the coming year. Malibu expects full-year net sales to remain flat or decline in the mid-single digits, with an Adjusted EBITDA margin projected between 8% and 9%, below the 9.3% achieved in fiscal 2025.
“Fiscal year 2025 was a challenging year for the marine industry, but I am proud of the groundwork we laid by supporting our dealers’ efforts to reduce their inventory and refreshing our dealer network, which we believe positions us to outperform the industry,” said Steve Menneto, President and CEO of Malibu Boats.
The company’s Q4 gross profit surged 162.1% to $32.7 million, with gross margin expanding 790 basis points to 15.8%, aided by lower promotional costs and a favorable model mix. Net income for the quarter rose 124.5% to $4.8 million.
For the full fiscal year 2025, Malibu reported net sales of $807.6 million, down 2.6% from 2024, while total unit volume fell 9.0% to 4,898 boats. Annual net income improved to $15.2 million, a turnaround from a $56.4 million net loss in fiscal 2024.
CFO Bruce Beckman emphasized the company will “maintain our disciplined approach to dealer health as we expect several headwinds impacting retail to persist” in 2026, while expressing confidence in Malibu’s ability to outperform the broader marine industry.
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