Malibu Boats Q4 Earnings Call Highlights

Malibu Boats (NASDAQ:MBUU) reported higher fourth-quarter sales and adjusted EBITDA for fiscal 2026, aided by contributions from its Saxdor Yachts acquisition and improved performance in its legacy operations. Management said the company entered fiscal 2027 with healthier dealer inventories, a refinanced credit facility and a new $70 million share-repurchase authorization, while maintaining a cautious view of retail demand. Fourth-quarter net sales rose 42.7% from a year earlier to $295.5 million, while adjusted EBITDA increased 72.7% to $33.9 million. Adjusted EBITDA margin expanded to 11.5% from 9.5%, and gross margin increased 190 basis points to 17.7%. “Our fourth quarter marked a strong finish to fiscal 2026 and demonstrated the power of our strategic execution,” President and CEO Steve Menneto said. He attributed the results to the company’s MBI Advantage operating framework, including operational improvements, centralized sourcing and channel discipline.

Saxdor, acquired on March 2, contributed $61.2 million of fourth-quarter revenue, exceeding Malibu Boats’ prior forecast of $57 million to $59 million. On a legacy basis, excluding Saxdor, quarterly sales were $234.3 million, up about 13.2% from the prior-year period. Total unit volume increased 19.2% to 1,456 boats. Legacy unit volume rose about 4.5% to 1,276 units, while Saxdor added 180 units. Net sales per unit increased 19.7% to $203,000 on a consolidated basis, reflecting favorable model mix, Saxdor’s addition and pricing gains. Legacy net sales per unit rose about 8.3% to roughly $184,000. Saxdor generated net sales per unit of $340,000 during the quarter. Malibu segment sales increased 3.2% to $82.9 million. Saltwater Fishing sales increased 11.1% to $80.9 million, supported by higher wholesale shipments and firmer dealer inventory in certain parts of the portfolio. Cobalt sales rose 31% to $70.5 million, also supported by higher wholesale shipments and dealer inventory trends.

Chief Financial Officer David Black said quarterly margin improvement was split roughly evenly between volume leverage and the benefits of centralized sourcing flowing through inventory costs. Gross profit increased 59.4% to $52.2 million. GAAP net income rose 53.7% to $7.4 million, or $0.37 per diluted share. Adjusted net income per share was $0.90, up 114.3% from the prior-year period. Saxdor’s adjusted EBITDA margin was below Malibu Boats’ previously forecast 10% to 11% range in the quarter. Black said the company added resources ahead of expected higher volumes and accelerated the domestic manufacturing ramp at its Fort Pierce, Florida, facility. Saxdor also faced higher input costs. Management characterized the manufacturing-related spending as an investment expected to support future production.

For fiscal 2026, Malibu Boats reported net sales of $914.6 million, up 13.3% and about $29 million above the high end of guidance that had been raised in May. Saxdor contributed $84.3 million in sales since the acquisition closed. Legacy sales were $830.3 million, an increase of about 2.8%. Annual unit volume increased 0.9% to 4,944 units, as 246 Saxdor units more than offset a 4.1% decline in legacy volume to approximately 4,698 units. Full-year gross margin declined 180 basis points to 16%, primarily due to higher material and labor costs per unit. Adjusted EBITDA declined 1.1% to $73.9 million, while adjusted EBITDA margin decreased to 8.1% from 9.3%. GAAP net income fell 88.8% to $1.7 million, or $0.09 per diluted share, primarily because of acquisition- and integration-related expenses tied to Saxdor. Adjusted net income per share was $1.52. The company generated $67.5 million of operating...