Malibu Boats Investor Day Summary Company Overview - **Company**: Malibu Boats (NasdaqGM: MBUU) - **Event**: 2025 Investor Day held on September 25, 2025 - **Industry**: Marine and Boat Manufacturing Key Points and Arguments Management and Strategy - A new management team is in place, aiming to share the company's future direction and engage with stakeholders [3][4] - The company emphasizes a strategy of "build, innovate, and grow" to enhance customer experience and operational efficiency [6][10][12] Historical Context - Malibu Boats was founded in 1982 in California and later moved to Tennessee, a hub for boat manufacturing [5] - The company has expanded through acquisitions, including the Cobalt line in 2018 and Pursuit thereafter [5][6] Business Growth and Market Position - Malibu Boats operates eight manufacturing locations and has over 300 dealers globally, producing more than 85 boat models [6] - The company is the leading manufacturer of fiberglass boats, with a focus on customer satisfaction and innovation [6][9] Financial Performance - The company anticipates a return to mid-cycle performance, projecting revenues of approximately $1.3 billion with a 17.5% EBITDA margin if market conditions stabilize [17] - There is potential for outperformance, targeting $1.5 billion in revenue and a 20% EBITDA margin through improved execution [18] Innovation and Product Development - Continuous innovation is a core focus, with plans to introduce new products and features that enhance customer experience [11][31] - The company has a robust pipeline of new models, with four new models launched annually for the past decade [48] Market Opportunities - The total addressable market for boat building is estimated at $6 billion, with significant growth potential in marine services and technology [14] - The company aims to expand its market share through strategic M&A and by addressing white space opportunities in the market [12][51] Dealer Relationships - Strong relationships with dealers are emphasized, with an average partnership duration of over 12 years [46] - The company is focused on enhancing dealer support and engagement to drive retail success [21][66] Vertical Integration - Vertical integration is a key strategy, allowing for better control over quality, supply chain, and manufacturing processes [44][64] - Recent expansions in facilities and capabilities are designed to enhance operational efficiency and scalability [62][63] Customer Focus - The company prioritizes customer-centric strategies, aiming to meet diverse consumer needs across various boating activities [40][42] - There is a growing trend of first-time buyers seeking premium products that align with active lifestyles [42] Additional Important Content - The company has a disciplined approach to capital investment and M&A, ensuring alignment with strategic goals [34] - The focus on operational excellence includes continuous improvement initiatives to enhance manufacturing efficiency and reduce costs [20][62] - The introduction of innovative features, such as the NextGen LT4 engine and advanced touchscreen technology, positions Malibu as a leader in the industry [49][50] This summary encapsulates the key insights and strategic directions discussed during the Malibu Boats 2025 Investor Day, highlighting the company's commitment to innovation, customer satisfaction, and market leadership in the marine industry.

Company Strategy & Performance - Malibu Boats, Inc(MBI) aims to be the premier recreational marine company, focusing on delivering the ultimate on-the-water experience through a "Build, Innovate, and Grow" strategy[22] - MBI's strategic priorities include product & quality leadership, continuous improvement, gaining market share, and growing margins to achieve profitable growth[25] - MBI's illustrative mid-cycle baseline revenue opportunity is $1.3 billion, with an adjusted EBITDA margin of 17.5% and adjusted FCF of $130 million[43] - MBI's illustrative mid-cycle + outperformance framework targets revenue of $1.5 billion, with an adjusted EBITDA margin of 20% and adjusted FCF of approximately $200 million[43] - MBI has demonstrated sustainable growth, with revenue increasing from $191 million in 2014 to $808 million in FY25[66] Segment Performance & Opportunities - Malibu/Axis segment FY25 revenue was $313 million, representing 39% of total MBI revenue, with adjusted EBITDA of $61 million[75] - Cobalt segment FY25 revenue was approximately $215 million, accounting for 27% of total MBI revenue, with adjusted EBITDA of $18 million[113] - Saltwater segment FY25 revenue was $280 million, contributing 35% of total MBI revenue, with adjusted EBITDA of $27 million[152] Financial Overview - In FY25, Malibu Boats reported net sales of $807561 million and adjusted EBITDA margin of 93%[240] - MBI's adjusted free cash flow for FY25 was $28877 million, with an adjusted free cash flow conversion of 386%[243]

Core Insights - Malibu Boats, Inc. is hosting an Investor Day to present its strategic plan aimed at driving growth and enhancing long-term value creation [1][2] - The event will include presentations from the CEO and CFO, followed by a Q&A session to provide insights into the company's strategy, growth objectives, and capital allocation priorities [2][3] Event Details - Presentations will start at approximately 10:00 a.m. ET on September 25, 2025, lasting for two hours, followed by a thirty-minute Q&A session [3] - The event will be available via live webcast, allowing virtual participation in the Q&A session, with an archived version accessible shortly after the event [3][4] Company Overview - Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [5] - The company holds a market-leading position in the performance sport boat category through its Malibu and Axis brands, and is also a leader in the 20' - 40' segment of the sterndrive boat category with its Cobalt brand [5] - Malibu Boats is recognized as an innovator in the powerboat industry, catering to a wide range of recreational boaters, fishermen, and water sports enthusiasts [5]

Core Insights - Malibu Boats, Inc. has announced a six-year global partnership with the International Waterski & Wakeboard Federation (IWWF) starting January 1, 2026, to support premier waterski, wakeboard, and wakesurf events, making Malibu the exclusive official towboat partner [1][4] Company Overview - Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [5] - The company is the market leader in the performance sport boat category through its Malibu and Axis brands and holds a leading position in the 20'–40' segment of the sterndrive boat category with its Cobalt brand [5] - Malibu Boats is recognized as a preeminent innovator in the powerboat industry, appealing to a broad range of recreational boaters and watersports enthusiasts [5] Partnership Details - The partnership will feature two elite Malibu models: the Response TXi and the Malibu M230, both known for their precision, power, and innovation in competitive watersports [2][3] - The Response TXi has set more world records in waterskiing than any other boat, while the M230 is favored by professional riders for its performance [2][4] - This collaboration aims to enhance athlete development and expand the reach of towed watersports globally [4]

Core Insights - Malibu Boats, Inc. has launched the 2026 Malibu Wakesetter 22 LSV, which features significant enhancements in wake sports performance, technology, and onboard comfort, setting new industry standards [1][2] Company Overview - Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [4] - The company is the market leader in the performance sport boat category through its Malibu and Axis brands, and holds leading positions in the sterndrive and saltwater fishing boat markets with its various brands [4] Product Features - The 2026 Wakesetter 22 LSV includes a bold redesign with features such as the exclusive Power Rise & Slide Helm Seat, a 15.8" touchscreen Command Center, and upgraded wireless phone chargers [2] - The model is available with customizable Wake Plus or Diamond hulls, designed to deliver the best wakes and waves for all riding styles [2] Innovation and User Experience - The new model incorporates over a dozen breakthrough features based on user feedback, emphasizing Malibu's commitment to innovation and performance-driven design [3] - Professional wakeboarder Tarah Mikacich praised the intuitive design and performance of the new 22 LSV, highlighting its ease of use and enjoyment [3] Availability - The 2026 Malibu Wakesetter 22 LSV is now available for order through Malibu's worldwide dealer network, with an interactive 3D Boat Builder available for customization [3]

How do you see Malibu boots after you spent a year there. And as we come to like an inflection point, maybe for four rates, is that important to you. Rates are important, important to us.I see Malibu boats in a good position. Matt, honestly, you know, as we were, you know, looking at the market and the consumers is, you know, still struggling a little bit with the elevated rates and so on, We're in a good position. We have capacity. We have invested in our capacity over the last few years.We have new models ...

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1]

Core Insights - Malibu Boats (MBUU) reported revenue of $207.04 million for the quarter ended June 2025, marking a year-over-year increase of 30.5% and exceeding the Zacks Consensus Estimate of $195.8 million by 5.74% [1] - The company's EPS for the same period was $0.42, a significant improvement from -$0.39 a year ago, although it fell short of the consensus estimate of $0.44 by 4.55% [1] Revenue Breakdown - Revenue from Malibu products reached $80.3 million, surpassing the average estimate of $56.75 million by two analysts, reflecting a year-over-year increase of 114.1% [4] - Cobalt products generated $53.8 million in revenue, which was below the average estimate of $62.1 million, but still represented a year-over-year increase of 7.2% [4] - Saltwater Fishing products reported revenue of $72.9 million, falling short of the average estimate of $83 million, with a year-over-year change of 2.7% [4] Stock Performance - Over the past month, shares of Malibu Boats have returned +16.4%, significantly outperforming the Zacks S&P 500 composite's +1.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [20] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [24] - Q4 adjusted EBITDA increased to $19.7 million, with an adjusted EBITDA margin of 9.5% [22] - GAAP net income for Q4 increased to $4.8 million, and adjusted net income per share increased by 205% to $0.42 [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [20] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% for fiscal year 2025 from 15.3% in fiscal year 2024 [26] - Adjusted EBITDA margin for the saltwater fishing segment decreased to 9.5% from 10.8%, and for the Cobalt segment decreased to 8.3% from 10.2% [27] Market Data and Key Metrics Changes - Initial market data suggests that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [10] - The company anticipates a modest direct impact from tariffs on fiscal year 2026 structure estimated between 1.5% to 3% cost of sales [17] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [8] - The focus remains on aligning wholesale with retail and supporting dealer health [10][12] - The company is committed to customer-centric innovation and environmental responsibility [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging retail environment and macroeconomic uncertainty affecting consumer sentiment [6][10] - The company expects gradual improvement in fiscal year 2026, with net sales anticipated to be flat to down mid-single digits [29] - Management emphasizes a disciplined approach to expectations, aligning with real-time market conditions [18] Other Important Information - The company generated $29 million in free cash flow for the year and returned $36 million to shareholders through share repurchases [9][27] - The balance sheet remains strong with $19 million of net cash and over $300 million of untapped liquidity [27] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal year 2026 guidance [33][34] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, and has incorporated expected cost increases into guidance [36] Question: Retail outlook and dealer health - Management expects the retail market to remain similar to the previous year, focusing on gaining market share in a declining market [47][49] Question: Pricing and cost offsets - Management confirmed that some mitigation efforts occurred in the previous fiscal year, and price increases will be necessary due to additional costs [61][63] Question: Long-term debt and capital strategy - Management clarified that the presence of long-term debt is due to the use of a credit facility for working capital, with a strong net cash position [67][68] Question: Sensitivity analysis for EBITDA margin recovery - Management noted that stabilizing the market would help eliminate the need for destocking, which could drive revenue and profit growth [70]

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [18] - Consolidated net sales per unit increased by 11.6% to $169,565, driven by inflation and a favorable model mix [19] - Gross profit increased by 162.1% to $32.7 million, with gross margin rising to 15.8% from 7.9% in the prior year [19] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [22] - Adjusted EBITDA decreased by 9.1% to $74.8 million, with adjusted EBITDA margin decreasing by 60 basis points to 9.3% [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [19] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% from 15.3% in the previous year, while the saltwater fishing segment decreased to 9.5% from 10.8% [24] Market Data and Key Metrics Changes - Initial market data indicated that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [9] - Elevated interest rates and macroeconomic uncertainty affected consumer sentiment, leading to softer industry retail data [9] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [7] - A focus on dealer health and inventory alignment is central to the company's strategy, with proactive steps taken to reduce dealer inventory [9][10] - The company aims to remain disciplined and aligned with market conditions while preparing for potential growth when the market normalizes [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging retail environment and macroeconomic uncertainties but expressed confidence in the company's ability to navigate these challenges [6][15] - The company anticipates a modest direct impact from tariffs on cost of sales, estimated between 1.5% to 3% [15] - For fiscal year 2026, the company expects net sales to be flat to down mid-single digits, with gradual improvement projected towards the back half of the year [28][29] Other Important Information - The company generated $29 million in free cash flow and returned $36 million to shareholders through share repurchases [8][25] - The balance sheet remains strong, with $19 million of net cash and over $300 million of untapped liquidity on the credit facility [25][26] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal 2026 guidance [32][33] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, but has incorporated increased costs into guidance [34][35] Question: Retail outlook and interest rate cuts - Guidance does not assume any interest rate cuts, and management expects normalized promotions to drive market share during the boat show season [39][40] Question: Health of the dealer base and industry inventory levels - The dealer network is generally healthy, but there is a slight excess inventory due to softer retail in Q4; the industry is improving overall [56][58] Question: Pricing and cost mitigation strategies - Management has taken steps to mitigate costs through advanced purchases and expects some price increases to be necessary [60][61] Question: Long-term debt and capital expenditure plans - There is no change in capital strategy; the company maintains a strong net cash position while being disciplined in capital expenditures [66][67]