Core Insights - Malibu Boats continues its partnership with General Motors, naming Chevrolet as the Official Vehicle Brand, enhancing their collaboration in the boating industry [2][4] - The partnership focuses on the vertical integration of the Monsoon Line of engines, which are exclusively designed for Malibu and Axis Boats [3][4] - This collaboration aims to leverage advanced technology to improve performance, fuel economy, and reliability in boating experiences [3][6] Company Overview - Malibu Boats, Inc. is a leading designer and manufacturer of recreational powerboats, holding a significant market position in various categories including performance sport boats and sterndrive boats [7] - The company is recognized for its innovation in the powerboat industry, catering to a diverse range of recreational boaters and water sports enthusiasts [7] Partnership Details - The partnership will support Malibu's initiatives such as the Malibu Just Ride Tour and WakeFest TN, ensuring the brand remains at the forefront of the boating industry [4] - Chevrolet's vehicles, including the Silverado and Tahoe, are popular among boat owners, reinforcing the synergy between the two brands [4]

Core Insights - The 2025 Just Ride Tour, hosted by Malibu Boats, is set to return, offering an immersive on-water experience across North America with over 45 stops [5][7][11] - The tour features the Malibu Wakesetter 24 MXZ, towed by the Chevrolet Silverado 3500HD High Country, showcasing the performance of Malibu Boats [5][7] - The event emphasizes community engagement, allowing families and riders to connect with Malibu pro athletes for hands-on instruction and product demonstrations [2][4][8] Company Overview - Malibu Boats, based in Loudon, Tennessee, is a leading designer and manufacturer of recreational powerboats, including performance sport and sterndrive boats [14] - The company is recognized as a market leader in the performance sport boat category through its Malibu and Axis brands [14] - Malibu Boats collaborates with GM Marine to develop the Monsoon engine lineup, which powers their boats and enhances performance [9][10] Product Highlights - The Monsoon engine lineup includes the GM 6.2-liter supercharged V8 LT4 engine, delivering 607 horsepower and 606 lb-ft of torque, specifically adapted for marine use [9] - The Just Ride Tour showcases the capabilities of Malibu's boats, particularly the Wakesetter 24 MXZ, which is designed to create exceptional wakes and waves [6][9] Marketing and Sponsorship - The tour is supported by various sponsors, enhancing the overall experience for participants [10] - Malibu Boats aims to bring the Malibu lifestyle to communities, emphasizing the connection between boating enthusiasts and the brand [11]

Core Insights - Malibu Boats has welcomed Aquaknox Marine to its dealer network, enhancing its presence in East Tennessee [1][4] - Aquaknox Marine, founded in 2008, emphasizes professionalism, transparency, and customer experience in the boating industry [2][3] - The partnership aims to provide a full lineup of Malibu and Axis Wake boats, improving customer access to high-quality watersports experiences [3][4] Company Overview - Malibu Boats, based in Loudon, Tennessee, is the largest manufacturer of watersports towboats, including brands like Malibu and Axis Wake [5] - The company is known for its innovative products such as Surf Gate®, Power Wedge®, and Malibu Command Center™, which enhance the watersports experience [5] Dealer Profile - Aquaknox Marine operates two locations in East Tennessee and is recognized for its commitment to customer service and industry knowledge [3] - The company aims to build trust within the boating community by prioritizing customer satisfaction and integrity [2][3]

Group 1 - Malibu Boats reported revenue of $228.66 million for the quarter ended March 2025, representing a 12.4% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.72, up from $0.63 in the same quarter last year, with an EPS surprise of +7.46% compared to the consensus estimate of $0.67 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $223.38 million by +2.37% [1] Group 2 - Key metrics indicate that Malibu Boats' net sales per unit totaled $159,792, which was below the average estimate of $166,199.50 [4] - The unit volume by segment was 1,431, surpassing the two-analyst average estimate of 1,346 [4] - Revenue by product showed mixed results: Malibu generated $102.20 million, significantly above the estimate of $67.55 million; Cobalt generated $54.60 million, below the estimate of $71.70 million; and Saltwater Fishing generated $71.90 million, below the estimate of $84.15 million, reflecting a year-over-year decline of -11.5% [4] Group 3 - Over the past month, shares of Malibu Boats returned +5%, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Malibu Boats reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and up from $0.63 per share a year ago, representing an earnings surprise of 7.46% [1] - The company posted revenues of $228.66 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.37%, compared to year-ago revenues of $203.42 million [2] - Over the last four quarters, Malibu Boats has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Malibu Boats shares have declined approximately 20.8% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.77 on revenues of $210.93 million, and for the current fiscal year, it is $1.82 on revenues of $806.15 million [7] Industry Outlook - The Leisure and Recreation Products industry, to which Malibu Boats belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Malibu Boats may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Net sales increased by 12.4% to $228.7 million, with unit volume rising by 12.8% to 1,431 units, driven primarily by increased unit volumes in the Malibu segment and favorable model mix across all segments [16][19] - Gross profit rose by 13.4% to $45.7 million, with gross margin as a percentage of sales increasing by 20 basis points to 20% [18] - Q3 GAAP net income surged by 119.4% to $13.2 million, while adjusted EBITDA increased by 16% to $28.3 million, with adjusted EBITDA margin rising by 40 basis points to 12.4% [19][20] - Non-GAAP adjusted fully distributed net income per share increased by 14.3% to $0.72 [20] Business Line Data and Key Metrics Changes - The Malibu and Axis brands accounted for approximately 52% of unit sales, while saltwater fishing represented 22.8%, and Cobalt made up the remaining 25.2% [17] - Consolidated net sales per unit decreased by 0.3% to $159,792, primarily due to an unfavorable segment mix [18] Market Data and Key Metrics Changes - Dealer inventories entering the selling season are healthy and well below last year's levels, with expectations to bring dealer inventories down to the mid-teens percentage [9][27] - Retail environment remains challenging due to elevated interest rates and macroeconomic uncertainty, affecting consumer sentiment and discretionary spending [9] Company Strategy and Development Direction - The company emphasizes innovation as a cornerstone of its competitive advantage, with nearly 40% of Malibu boat show unit sales driven by two new premium models introduced this year [11] - The company is committed to maintaining dealer health and operational excellence while navigating current market conditions [13] - A balanced approach is maintained, focusing on long-term dealer and brand health over short-term volume [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing industry softness but highlights solid execution and growth in Q3, with expectations for retail markets to decline by double digits for the full fiscal year [6][22] - The company does not expect tariffs to have a material impact on its cost structure for the remainder of fiscal 2025 and is deploying various tariff mitigation strategies [23] Other Important Information - Capital expenditures are expected to be tightened to $25 million to $30 million, with a modest reduction in share repurchases planned [21] - The company finished Q3 with over $39 million in cash and over $300 million in untapped liquidity on its credit facility [21] Q&A Session Summary Question: What would the goal be by June with respect to dealer inventory? - The company expects to bring dealer inventories down to the mid-teens percentage, below last year's levels [27][28] Question: How is the behavior of Malibu customers changing? - Retail is seeing some repeat buyers returning, particularly cash repeat buyers, while new buyers remain a small percentage of overall retail [30][31] Question: What are the competitor promotional activities like? - The company has maintained consistent promotional levels and does not expect to elevate them significantly, focusing on new product performance [36][37] Question: What is the company's tariff risk? - The company sources about 18% to 20% of its cost of sales from outside the US, with no singular large sources identified [45][46] Question: How is demand trending in the quarter? - Demand has followed a seasonal ramp but has not met previous expectations for robust growth [51] Question: What changes have occurred in the saltwater segment? - There was some improvement in the saltwater segment, particularly in Florida, but it did not return to growth [60] Question: What has changed in the cost structure leading to adjusted EBITDA pressure? - Adjustments were made to production levels based on market expectations, impacting overall financial projections [68] Question: How will capital allocation be managed in the current environment? - The company remains committed to capital allocation priorities but may modify tactics based on market realities [69]

Financial Data and Key Metrics Changes - Net sales increased by 12.4% to $228.7 million, with unit volume rising by 12.8% to 1,431 units, driven primarily by increased unit volumes in the Malibu segment and favorable model mix across all segments [15][16] - Gross profit rose by 13.4% to $45.7 million, with gross margin as a percentage of sales increasing by 20 basis points to 20% [16] - Q3 GAAP net income surged by 119.4% to $13.2 million, while adjusted EBITDA increased by 16% to $28.3 million, with adjusted EBITDA margin rising by 40 basis points to 12.4% [17][18] - Non-GAAP adjusted fully distributed net income per share increased by 14.3% to $0.72 [18] Business Line Data and Key Metrics Changes - The Malibu and Axis brands accounted for approximately 52% of unit sales, while saltwater fishing represented 22.8%, and Cobalt made up the remaining 25.2% [15] - Consolidated net sales per unit decreased by 0.3% to $159,792, primarily due to an unfavorable segment mix [16] Market Data and Key Metrics Changes - Dealer inventories entering the selling season are healthy and well below last year's levels, with expectations to bring dealer inventories down to the mid-teens percentage [7][24] - Retail environment remains challenging due to elevated interest rates and macroeconomic uncertainty, affecting consumer sentiment and discretionary spending [7][20] Company Strategy and Development Direction - The company emphasizes innovation as a cornerstone of its long-term strategy, with nearly 40% of Malibu boat show unit sales driven by two premium models introduced this year [10] - The company is committed to maintaining dealer health and operational excellence while navigating current market conditions [12][19] - A balanced approach is maintained, focusing on dealer health, operational excellence, and continued innovation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market conditions, highlighting a strong balance sheet and robust cash flow generation [13][19] - The company has recalibrated expectations for the upcoming selling season, now expecting retail markets to be down double digits for the full fiscal year [20] - Management does not expect tariffs to have a material impact on the cost structure for the remainder of fiscal 2025 [21] Other Important Information - Capital expenditures are expected to be tightened to $25 million to $30 million, with a modest reduction in share repurchases planned [19] - The company generated over $15 million in cash from operations during the quarter and finished Q3 with over $39 million in cash on hand [18][19] Q&A Session Summary Question: What would the goal be by June with respect to dealer inventory? - The company expects to bring dealer inventories down to the mid-teens percentage, below last year's levels [24][25] Question: Insights into customer behavior, particularly repeat buyers and first-time buyers? - Retail trends show repeat buyers, especially cash buyers, returning, while new buyers remain a small percentage of overall retail [28][29] Question: What are the observations regarding competitor promotional activity? - The company has maintained consistent promotional levels and has not had to elevate them significantly due to strong new product performance [33][34] Question: How is the saltwater segment performing? - There was an improvement in the saltwater segment, particularly in Florida, but it did not bounce back to growth [56][57] Question: What has changed in the cost structure leading to adjusted EBITDA pressure? - Adjustments were made to production expectations based on market conditions, impacting overall financial projections [63]

PART I FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for the three and nine-month periods ended March 31, 2025, and 2024 [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) For Q3 2025, the company reported net sales of $228.7 million and a net income of $13.2 million, a significant turnaround from the prior year's loss Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $228,662 | $203,419 | $600,522 | $670,323 | | **Gross profit** | $45,724 | $40,333 | $111,351 | $134,602 | | **Operating income (loss)** | $17,367 | $(74,902) | $14,932 | $(31,568) | | **Net income (loss)** | $13,173 | $(67,759) | $10,447 | $(36,845) | | **Basic EPS** | $0.66 | $(3.28) | $0.52 | $(1.79) | - A significant goodwill and intangible asset impairment charge of **$88.4 million** was recorded in fiscal 2024, driving the net loss in that period[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets increased to $758.8 million as of March 31, 2025, driven by higher cash and receivables, while liabilities rose due to credit facility drawings Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $237,938 | $202,129 | | **Total assets** | $758,766 | $739,624 | | **Total current liabilities** | $148,374 | $138,586 | | **Long-term debt** | $28,000 | $0 | | **Total liabilities** | $240,830 | $204,905 | | **Total stockholders' equity** | $517,936 | $534,719 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the nine months ended March 31, 2025, net cash from operations was $35.5 million, while cash used in investing decreased significantly Cash Flow Summary (in thousands) | Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $35,467 | $39,221 | | **Net cash used in investing activities** | $(20,575) | $(64,092) | | **Net cash used in financing activities** | $(2,855) | $(6,875) | | **Change in cash** | $11,768 | $(31,821) | | **Cash - End of period** | $38,713 | $47,116 | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, debt agreements, stock-based compensation, and significant legal proceedings across three reportable segments - The company operates and reports results under three segments: **Malibu, Saltwater Fishing, and Cobalt**[23](index=23&type=chunk)[101](index=101&type=chunk) - As of March 31, 2025, the company had **$28.0 million outstanding** under its revolving credit facility, with $320.3 million available for borrowing[49](index=49&type=chunk) - The company is involved in several legal proceedings for which it is unable to estimate the range of possible loss[94](index=94&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, highlighting a Q3 sales increase but a nine-month decrease, with a cautious outlook due to market challenges [Business Outlook](index=28&type=section&id=Outlook) The company anticipates continued industry challenges from macroeconomic factors and expects dealers to reduce inventories in fiscal 2025 - The recreational powerboat industry is challenged by **high inflation and interest rates**, impacting production costs and consumer demand[113](index=113&type=chunk) - Dealers are expected to **reduce inventories further** in fiscal 2025 due to high flooring costs and a soft retail environment[114](index=114&type=chunk) - The company anticipates delivering **higher sales in the second half of fiscal 2025** relative to the prior year and the first half of fiscal 2025[118](index=118&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q3 2025 net sales rose 12.4% driven by the Malibu segment, while nine-month sales fell 10.4% due to lower volumes across all segments Q3 2025 vs Q3 2024 Net Sales by Segment (in millions) | Segment | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Malibu | $102.2 | $60.2 | +69.8% | | Saltwater Fishing | $71.9 | $81.2 | -11.5% | | Cobalt | $54.6 | $62.0 | -12.0% | | **Total** | **$228.7** | **$203.4** | **+12.4%** | Nine Months 2025 vs 2024 Net Sales by Segment (in millions) | Segment | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | | Malibu | $232.4 | $241.6 | -3.8% | | Saltwater Fishing | $206.8 | $256.6 | -19.4% | | Cobalt | $161.4 | $172.2 | -6.3% | | **Total** | **$600.5** | **$670.3** | **-10.4%** | - Gross margin for the nine months ended March 31, 2025 **decreased 160 basis points to 18.5%** due to lower sales and fixed cost deleverage[146](index=146&type=chunk) - General and administrative expenses for the nine months **increased 34.5% to $73.6 million**, driven by legal settlements and related fees[147](index=147&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=GAAP%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for Adjusted EBITDA and Adjusted Fully Distributed Net Income, showing mixed results compared to the prior year Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $13,173 | $(67,759) | $10,447 | $(36,845) | | **Adjustments** | $15,150 | $92,168 | $44,660 | $123,172 | | **Adjusted EBITDA** | $28,323 | $24,409 | $55,107 | $86,327 | | **Adjusted EBITDA Margin** | 12.4% | 12.0% | 9.2% | 12.9% | Adjusted Fully Distributed Net Income per Share | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted Fully Distributed Net Income per Share** | $0.72 | $0.63 | $1.12 | $2.33 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary cash sources are operations and its credit facility, with fiscal 2025 capital expenditures projected at $25.0 to $30.0 million - Primary uses of cash include working capital, capital investments, debt repayments, acquisitions, and stock repurchases[162](index=162&type=chunk) - Expected capital expenditures for fiscal year 2025 are between **$25.0 million and $30.0 million**[164](index=164&type=chunk) - As of March 31, 2025, **$39.9 million was available for repurchase** under the 2024 Repurchase Program, which runs through June 30, 2025[170](index=170&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk from the disclosures in its most recent Annual Report on Form 10-K - There have been **no material changes in market risk** from those disclosed in the Company's Form 10-K for the year ended June 30, 2024[187](index=187&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Based on an evaluation, the CEO and CFO concluded that disclosure controls and procedures were **effective as of March 31, 2025**[189](index=189&type=chunk) - There were **no material changes in internal control** over financial reporting during the quarter ended March 31, 2025[190](index=190&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company details significant ongoing legal matters for which the potential costs or outcomes cannot currently be estimated - The company is involved in several lawsuits, the outcomes of which are **uncertain and for which no reserve has been established**[192](index=192&type=chunk) - Key legal matters are detailed in Note 15 and include insurance litigation, disputes with Tommy's Boats, a securities class action, and a customer class action[94](index=94&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk)[100](index=100&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K - There were **no material changes to the risk factors** discussed in the Annual Report on Form 10-K for the year ended June 30, 2024[193](index=193&type=chunk) [Unregistered Sales of Equity Securities and Issuer Purchases](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased 279,340 shares for $10.1 million during the quarter, with $39.9 million remaining under its repurchase program Share Repurchases for Quarter Ended March 31, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining Under Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | 122,710 | $36.64 | $45,459,000 | | Feb 2025 | 118,077 | $36.20 | $41,142,000 | | Mar 2025 | 38,553 | $31.90 | $39,900,000 | | **Total** | **279,340** | **$35.94** | **$39,900,000** | - The 2024 Repurchase Program allows for the repurchase of up to **$50.0 million** of Class A Common Stock and LLC Units through June 30, 2025[195](index=195&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[196](index=196&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[197](index=197&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - None[198](index=198&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including corporate governance documents and required CEO/CFO certifications - The report includes standard corporate governance documents and required CEO/CFO certifications as exhibits[199](index=199&type=chunk)

Financial Performance - Q3 net sales reached $228.7 million, a 12.4% increase year-over-year, driven by higher unit volumes in the Malibu segment[17] - Gross margin increased to 20.0%, up 20 basis points year-over-year, due to fixed cost leveraging and operational performance[17] - Adjusted EBITDA for Q3 was $28.323 million compared to $24.409 million in the same period last year[36] - Adjusted EBITDA margin was 12.4%[17] Fiscal Year 2025 Outlook - Consolidated net sales are projected to be down 3% to 5%[34] - Adjusted EBITDA margin is expected to be between 9% and 10%[34] Strategic Initiatives - The company generated $15 million in operating cash flow and repurchased $10 million of shares, demonstrating disciplined capital allocation[13] - The company is implementing vertical integration strategies at Cobalt, Pursuit, and Maverick Boat Group to drive margin expansion[23] - The company is actively mitigating tariff-related cost impacts in FY25 to balance cost structure and enhance supply chain agility[13]

Exhibit 99.1 Loudon, TN, May 8, 2025 - Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial results for the third quarter ended March 31, 2025. Third Quarter Fiscal 2025 Highlights Compared to Third Quarter Fiscal 2024: "Our team executed effectively in the third quarter, navigating ongoing market challenges by leveraging our strong brands, disciplined operational performance, and continued focus on dealer health," commented Steve Menneto, Chief Executive Officer of Malibu Boats, Inc. "While reta ...