Financial Data and Key Metrics Changes - In Q4, net sales increased by $25 million or 46% year over year, reaching $79.5 million, driven by favorable mix, higher volumes, and lower dealer incentives [6][17] - Adjusted net income rose to $6.6 million or $0.40 per share, up from $0.04 per share last year [17] - For the full year, net sales were $284.2 million, a decrease of $38 million or 12% from the prior year, primarily due to planned reduction in unit sales volume [18] - Gross margin for the year was 20%, down from 22.2% in the prior year, attributed to lower cost absorption and price adjustments [18][19] - Adjusted EBITDA for the year was $24.4 million, compared to $40.2 million in the prior year, with an adjusted EBITDA margin of 8.6% [19] Business Line Data and Key Metrics Changes - The MasterCraft brand launched its flagship X Star product, establishing leadership in the ultra-premium ski wake category [10] - Belize, the premium pontoon brand, contributed modest incremental volume as production ramps up [10] - The company removed over 900 units from dealer inventories, strengthening dealer health [9] Market Data and Key Metrics Changes - Retail units in the markets are expected to decline by 5% to 10% in fiscal 2026 [12][22] - The company anticipates a cautious retail environment, with consumer sentiment remaining cautious due to macroeconomic uncertainties [8][12] Company Strategy and Development Direction - The company focuses on optimizing channel inventory, championing innovation, and positioning for the next upcycle [6] - Plans for fiscal 2026 include managing a range of demand scenarios and continuing to invest in product innovation and channel development [12][14] - The company aims to maintain a strong balance sheet while returning capital to shareholders through share repurchases [11][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic uncertainties, including elevated interest rates and a volatile trade environment [8][12] - Despite challenges, the company remains well-positioned for long-term growth, supported by a strong balance sheet and brand strength [14][24] - Management expects to generate positive free cash flow in fiscal 2026, underscoring the flexibility of their variable operating model [12][20] Other Important Information - The company generated $29 million of free cash flow during fiscal 2025 and ended the year with $79 million in cash and short-term investments, debt-free [11][20] - The company repurchased over 530,000 shares totaling $9.5 million in fiscal 2025, bringing cumulative repurchases to $74 million since the program's inception [20] Q&A Session Summary Question: Retail cadence throughout the quarter and Q1 expectations - Management noted a strong Q4 for MasterCraft but weaker for pontoons, maintaining the expectation of a 5% to 10% decline for the year [27][28] Question: Dealer terms and inventory levels - Management indicated that dealer inventories are healthier due to the removal of units, with destocking dependent on retail performance [29][30] Question: Consumer dynamics and tariff impacts - Management acknowledged the impact of tariffs on consumer sentiment but noted that the market is leaning premium, which benefits their brand [34][35] Question: Pricing strategies and affordability trends - Management discussed lowering prices on entry-level products to attract more buyers, while controlling costs to maintain flexibility [37][38] Question: Dealer network updates and wins - Management highlighted efforts to strengthen distribution and increase dealer density in key markets [39][40] Question: Industry dealer base health and inventory levels - Management reported improved dealer health and lower non-current inventories compared to the previous year, with a cautious outlook from dealers [64][67] Question: M&A strategy - Management emphasized a careful and selective approach to M&A, focusing on organic growth initiatives [70][71]

Financial Data and Key Metrics Changes - In Q4, net sales increased by $25 million or 46% year over year, reaching $79.5 million, driven by favorable mix, higher volumes, and lower dealer incentives [5][16] - Adjusted net income rose to $6.6 million or $0.40 per share, up from $0.04 per share last year [16] - For the full year, net sales were $284.2 million, a decrease of $38 million or 12% from the prior year, primarily due to planned reduction in unit sales volume [17] - Gross margin for the year was 20%, down from 22.2% in the prior year, attributed to lower cost absorption and price adjustments [18] - Adjusted net income for the year was $15.1 million or $0.92 per diluted share, compared to $28.9 million or $1.69 per share in the prior year [19] Business Line Data and Key Metrics Changes - The MasterCraft brand launched its flagship X Star product, establishing leadership in the ultra-premium ski wake category [8] - Belize, the premium pontoon brand, contributed modest incremental volume as production ramps up [9] - Free cash flow for fiscal 2025 was $29 million, allowing for debt repayment and share repurchase [10] Market Data and Key Metrics Changes - Retail units in markets are expected to decline by 5% to 10% in fiscal 2026 [11] - The company anticipates a cautious retail environment, with consumer sentiment remaining cautious due to macroeconomic uncertainties [6][12] Company Strategy and Development Direction - The company focuses on optimizing channel inventory, championing innovation, and positioning for the next up cycle [5] - Plans for fiscal 2026 include managing a range of demand scenarios and continuing to invest in product innovation and operational excellence [11][24] - The company aims to leverage favorable underlying secular trends in the industry, particularly in boating-friendly high-income states [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the marine industry faced pressures from macroeconomic uncertainty, elevated interest rates, and a volatile trade environment [6] - Despite challenges, the company remains well-positioned for long-term growth, supported by a strong balance sheet and ongoing investment in innovation [13][20] - Management expects to generate positive free cash flow again in fiscal 2026, underscoring the flexibility of their variable operating model [11] Other Important Information - The company repurchased over 530,000 shares totaling $9.5 million in fiscal 2025, bringing cumulative repurchases to $74 million since the program's inception [20] - The impact of tariffs on fiscal 2025 results was marginal, with expectations to offset most direct costs with temporary price surcharges in fiscal 2026 [21] Q&A Session Summary Question: Retail cadence throughout the quarter and Q1 expectations - Management indicated that Q4 was strong for MasterCraft but weaker for the Pontoon side, maintaining the expectation of a 5% to 10% decline for the year [28][29] Question: Dealer terms and inventory levels - Management noted that dealer inventories are healthier due to the removal of over 900 units, with destocking in 2026 dependent on retail performance [30][31] Question: Consumer dynamics and tariff impacts - Management acknowledged the mixed consumer sentiment due to tariff headwinds but noted a lean towards premium products, which benefits their brand strength [34][35] Question: Pricing strategies and affordability trends - Management discussed the need for pricing flexibility and potential discounting to attract payment-sensitive buyers, especially in a high-interest rate environment [37][38] Question: Dealer network updates and wins - Management highlighted efforts to strengthen distribution and increase dealer density in key markets, with several successful dealer changes noted [40][41] Question: Industry dealer base health and inventory levels - Management reported improved dealer health and lower non-current inventories compared to the previous year, with a cautious outlook from dealers [66][68] Question: M&A strategy - The company remains selective and opportunistic regarding M&A, focusing on organic growth initiatives while maintaining a strong balance sheet [71][72]

Financial Performance - Fiscal Year 2025 - Net sales reached $284.2 million, a decrease of 12% compared to FY24[22] - Adjusted EBITDA was $24.4 million, down from $40.2 million in FY24[23] - Adjusted Diluted Net Income per share was $0.92, a decrease of $0.77 from FY24[23] - Wholesale units totaled 2,293, a 24% decrease from FY24[22] - Free cash flow was approximately $29 million[20] Financial Performance - Fourth Quarter 2025 - Net sales increased to $79.5 million, a 46% increase compared to Q4 FY24[25] - Adjusted EBITDA increased to $9.5 million, up $8.0 million from Q4 FY24[25] - Adjusted Diluted Net Income per share increased to $0.40, up $0.36 from Q4 FY24[25] - Wholesale units totaled 570, a 10% increase from Q4 FY24[25] Balance Sheet and Capital Allocation - The company maintains a strong financial position with approximately $79 million in cash and investments and no debt[20] - The company returned nearly $10 million of capital through a share repurchase program[20] FY26 Guidance - The company anticipates net sales between $295 million and $310 million[29] - The company anticipates Adjusted EBITDA between $29 million and $34 million[29] - The company anticipates Adjusted DEPS between $1.15 and $1.40[29]

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of the company's financial performance for Q4 and full year fiscal 2025, including key highlights and CEO commentary [Fourth Quarter Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20Highlights) MasterCraft Boat Holdings, Inc. reported a strong fourth quarter for fiscal 2025, with significant increases in net sales, income from continuing operations, and adjusted profitability metrics, alongside share repurchases | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | | Net sales | $79.5 million | $54.3 million | 46.4% | | Income from continuing operations | $5.5 million | $0.3 million | 1733.3% | | Diluted EPS (continuing operations) | $0.33 | $0.02 | 1550.0% | | Adjusted Net Income (non-GAAP) | $6.6 million | $0.6 million | 1000.0% | | Adjusted EPS (non-GAAP) | $0.40 | $0.04 | 900.0% | | Adjusted EBITDA (non-GAAP) | $9.5 million | $1.5 million | 533.3% | | Share repurchases | $4.5 million | N/A | N/A | [Full Year Fiscal 2025 Highlights](index=1&type=section&id=Full%20Year%20Highlights) For the full fiscal year 2025, the company experienced a decrease in net sales and adjusted profitability compared to the prior year, primarily due to planned production adjustments to align with retail demand | Metric | FY2025 | FY2024 | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | | Net sales | $284.2 million | $322.3 million | (11.8)% | | Income from continuing operations | $10.7 million | $23.2 million | (53.9)% | | Diluted EPS (continuing operations) | $0.65 | $1.36 | (52.2)% | | Adjusted Net Income (non-GAAP) | $15.1 million | $28.9 million | (47.7)% | | Adjusted EPS (non-GAAP) | $0.92 | $1.69 | (45.5)% | | Adjusted EBITDA (non-GAAP) | $24.4 million | $40.2 million | (39.3)% | | Net cash from operating activities | $38.2 million | N/A | N/A | | Free Cash Flow | $29.0 million | N/A | N/A | | Cash and investments (year-end) | $79.4 million | N/A | N/A | - Planned decrease in production led to approximately **30% lower dealer inventory levels** compared to the prior year[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Brad Nelson highlighted the company's successful navigation of a challenging economic environment in fiscal 2025, emphasizing strengthened dealer health, new product initiatives, and significant free cash flow generation - MasterCraft successfully navigated a challenging economic and industry backdrop in fiscal 2025[4](index=4&type=chunk) - Key achievements include strengthening dealer health, advancing new product initiatives, and generating significant free cash flow[4](index=4&type=chunk) - The company returned nearly **$10 million of capital** to shareholders, demonstrating a disciplined capital allocation approach[4](index=4&type=chunk) - A strong financial foundation provides flexibility for core strategic initiatives, including investments in innovation and dealer health[6](index=6&type=chunk) [Financial Results - Fourth Quarter Fiscal 2025](index=2&type=section&id=Financial%20Results%20-%20Fourth%20Quarter%20Fiscal%202025) This section details the company's financial performance for the fourth quarter of fiscal 2025, including net sales, gross margin, operating expenses, and adjusted non-GAAP metrics [Net Sales and Gross Margin (Q4 FY2025)](index=2&type=section&id=Q4%20Net%20Sales%20and%20Gross%20Margin%20(Q4%20FY2025)) Consolidated net sales for the fourth quarter of fiscal 2025 increased significantly due to favorable model mix from new product introductions, higher unit volumes, decreased dealer incentives, and favorable option sales | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :------------------ | :-------- | :-------- | :----- | | Consolidated Net Sales | $79.5 million | $54.3 million | +$25.2 million | | Gross Margin Percentage | 23.2% | 15.8% | +740 bps | - Increase in net sales primarily driven by favorable model mix from new product introductions, increased unit volumes, decreased dealer incentives, and favorable option sales[6](index=6&type=chunk) [Operating Expenses and Income (Q4 FY2025)](index=2&type=section&id=Q4%20Operating%20Expenses%20and%20Income%20(Q4%20FY2025)) Operating expenses rose in Q4 FY2025 due to increased variable compensation, sales and marketing, and administrative costs, while income from continuing operations and diluted EPS saw substantial improvements | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :-------------------------------- | :-------- | :-------- | :----- | | Operating Expenses | N/A | N/A | +$3.3 million | | Income from continuing operations | $5.5 million | $0.3 million | +$5.2 million | | Diluted EPS (continuing operations) | $0.33 | $0.02 | +$0.31 | | Operating Income (loss) | $5,928 | ($592) | +$6,520 | | Total Operating Expenses | $12,482 | $9,197 | +$3,285 | - Increased operating expenses were due to higher variable compensation, sales and marketing, and administrative costs[7](index=7&type=chunk) [Adjusted Non-GAAP Metrics (Q4 FY2025)](index=2&type=section&id=Q4%20Adjusted%20Non-GAAP%20Metrics%20(Q4%20FY2025)) Adjusted Net Income and Adjusted EBITDA for Q4 FY2025 showed significant year-over-year growth, with Adjusted EBITDA margin improving substantially | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :-------------------------- | :-------- | :-------- | :----- | | Adjusted Net Income | $6.6 million | $0.6 million | +$6.0 million | | Adjusted EPS (diluted) | $0.40 | $0.04 | +$0.36 | | Adjusted EBITDA | $9.5 million | $1.6 million | +$7.9 million | | Adjusted EBITDA Margin | 12.0% | 2.9% | +910 bps | [Financial Results - Full Year Fiscal 2025](index=2&type=section&id=Financial%20Results%20-%20Full%20Year%20Fiscal%202025) This section presents the company's comprehensive financial results for the full fiscal year 2025, analyzing net sales, gross margin, operating expenses, and adjusted non-GAAP metrics [Net Sales and Gross Margin (Full Year FY2025)](index=2&type=section&id=FY25%20Net%20Sales%20and%20Gross%20Margin%20(Full%20Year%20FY2025)) Consolidated net sales for fiscal 2025 decreased compared to the prior year, primarily due to planned lower unit volumes to align dealer inventories with retail demand and changes in price | Metric | FY2025 | FY2024 | Change | | :------------------ | :------- | :------- | :----- | | Consolidated Net Sales | $284.2 million | $322.3 million | -$38.1 million | | Gross Margin Percentage | 20.0% | 22.2% | -220 bps | - Decrease in net sales primarily due to planned lower unit volumes to align dealer inventories with retail demand and changes in price[10](index=10&type=chunk) - Lower gross margins resulted from lower cost absorption due to decreased production volume, material and overhead inflation, and changes in sales price[11](index=11&type=chunk) [Operating Expenses and Income (Full Year FY2025)](index=2&type=section&id=FY25%20Operating%20Expenses%20and%20Income%20(Full%20Year%20FY2025)) Operating expenses for fiscal 2025 increased slightly due to variable compensation costs, while income from continuing operations and diluted EPS significantly decreased year-over-year | Metric | FY2025 | FY2024 | Change | | :-------------------------------- | :------- | :------- | :----- | | Operating Expenses | N/A | N/A | +$1.5 million | | Income from continuing operations | $10.7 million | $23.2 million | -$12.5 million | | Diluted EPS (continuing operations) | $0.65 | $1.36 | -$0.71 | | Operating Income (loss) | $11,232 | $27,476 | -$16,244 | | Total Operating Expenses | $45,633 | $44,134 | +$1,499 | - Operating expenses increased due to increased variable compensation costs[11](index=11&type=chunk) [Adjusted Non-GAAP Metrics (Full Year FY2025)](index=3&type=section&id=FY25%20Adjusted%20Non-GAAP%20Metrics%20(Full%20Year%20FY2025)) Adjusted Net Income and Adjusted EBITDA for fiscal 2025 both declined compared to the prior year, with a corresponding decrease in Adjusted EBITDA margin | Metric | FY2025 | FY2024 | Change | | :-------------------------- | :------- | :------- | :----- | | Adjusted Net Income | $15.1 million | $28.9 million | -$13.8 million | | Adjusted EPS (diluted) | $0.92 | $1.69 | -$0.77 | | Adjusted EBITDA | $24.4 million | $40.2 million | -$15.8 million | | Adjusted EBITDA Margin | 8.6% | 12.5% | -390 bps | [Fiscal 2026 Outlook](index=3&type=section&id=Fiscal%202026%20Outlook) This section outlines the company's financial guidance and strategic expectations for fiscal year 2026 and the first quarter of fiscal 2026 [Management Commentary on Outlook](index=3&type=section&id=Outlook%20Management%20Commentary) Management anticipates continued progress in destocking, product innovation, and distribution network expansion to position the company well for fiscal 2026 and beyond - Ongoing destocking progress, product innovation, and expanded distribution network are expected to position the company well for fiscal 2026[15](index=15&type=chunk) - The company has detailed plans for various retail demand scenarios and will continue cost discipline and tight working capital management[15](index=15&type=chunk) - Expects to generate **positive free cash flow** again in fiscal 2026[15](index=15&type=chunk) - Focus will remain on maintaining a healthy dealer network, sustained innovation, and leveraging competitive advantages[15](index=15&type=chunk) [Financial Guidance for FY2026 and Q1 FY2026](index=3&type=section&id=Outlook%20Financial%20Guidance) MasterCraft provided financial guidance for both the full fiscal year 2026 and the first quarter of fiscal 2026, projecting consolidated net sales, Adjusted EBITDA, and Adjusted Earnings per share Fiscal Year 2026 Guidance | Metric | Range | | :-------------------- | :-------------------- | | Consolidated Net Sales | $295 million - $310 million | | Adjusted EBITDA | $29 million - $34 million | | Adjusted Earnings per share | $1.15 - $1.40 | | Capital Expenditures | Approximately $9 million | Fiscal First Quarter 2026 Guidance | Metric | Amount | | :-------------------- | :------------- | | Consolidated Net Sales | Approximately $67 million | | Adjusted EBITDA | Approximately $4 million | | Adjusted Earnings per share | $0.16 | [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of MasterCraft Boat Holdings, Inc., including its business description and conference call details [About MasterCraft Boat Holdings, Inc.](index=3&type=section&id=About%20MasterCraft%20Boat%20Holdings,%20Inc.) MasterCraft Boat Holdings, Inc. is a leading designer, manufacturer, and marketer of recreational powerboats, operating through its three brands: MasterCraft, Crest, and Balise - Headquartered in Vonore, Tenn., MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is a leading innovator, designer, manufacturer and marketer of recreational powerboats[17](index=17&type=chunk) - The company operates through its three brands: MasterCraft, Crest, and Balise[17](index=17&type=chunk) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast) MasterCraft Boat Holdings, Inc. hosted a live conference call and webcast on August 27, 2025, to discuss its fiscal fourth quarter and full year 2025 results, with replay available on the company's investor website - A live conference call and webcast was held on August 27, 2025, at 8:30 a.m. ET to discuss fiscal Q4 and full year 2025 results[16](index=16&type=chunk) - Participants could access the webcast via Investors.MasterCraft.com or register for telephone participation[16](index=16&type=chunk) - A replay of the conference call and webcast is archived on the Company's website[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains disclaimers regarding forward-looking statements, outlining inherent risks and uncertainties that could impact future results [Disclaimer and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section includes standard forward-looking statements, which are subject to various risks, uncertainties, and important factors that could cause actual results to differ materially from projections - Forward-looking statements are identified by words like 'believes,' 'anticipates,' 'expects,' and similar expressions[19](index=19&type=chunk) - Statements are subject to risks, uncertainties, and important factors that could cause actual results to differ materially[20](index=20&type=chunk) - Key risk factors include changes in interest rates, general economic conditions, demand for products, inflationary pressures, competition, dealer network reliability, and new product introductions[20](index=20&type=chunk) - The company disclaims any obligation to update or supplement forward-looking statements[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines the company's non-GAAP financial measures, explains their rationale and limitations, and provides reconciliations to GAAP [Definition of Non-GAAP Measures](index=8&type=section&id=Definition%20of%20Non-GAAP%20Measures) This section defines the non-GAAP financial measures used by the company, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, and Free Cash Flow, outlining the specific adjustments made to GAAP figures - EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, and amortization[29](index=29&type=chunk) - Adjusted EBITDA further adjusts EBITDA for non-cash charges or items not indicative of core operations, such as share-based compensation and leadership transition costs[29](index=29&type=chunk) - Adjusted Net Income and Adjusted Net Income per share adjust income from continuing operations for similar non-cash or non-core items and reflect income tax expense at the estimated annual effective tax rate[30](index=30&type=chunk) - Free Cash Flow from continuing operations is defined as net cash flows from operating activities less purchases of property, plant, and equipment[31](index=31&type=chunk) [Rationale and Limitations of Non-GAAP Measures](index=4&type=section&id=Rationale%20and%20Limitations%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures to provide additional information to investors for assessing operating performance and evaluating investment risk, as they offer a consistent basis for comparison across periods - Non-GAAP measures are used to provide additional information to investors, assess operating performance consistently, and evaluate investment risk[33](index=33&type=chunk) - Limitations include not reflecting cash requirements for asset replacement, capital expenditures, working capital, tax expense, or interest payments[36](index=36&type=chunk) - Non-GAAP measures may not be comparable to similarly titled measures of other companies[34](index=34&type=chunk) - The company does not provide forward-looking GAAP guidance due to the unpredictability of certain items[35](index=35&type=chunk) [Reconciliation of Non-GAAP Measures to GAAP](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures%20to%20GAAP) This section provides detailed reconciliations of the company's non-GAAP financial measures to their most directly comparable GAAP financial measures for the reported periods EBITDA and Adjusted EBITDA Reconciliation | (Dollars in thousands) | Q4 FY2025 | % of Net Sales | Q4 FY2024 | % of Net Sales | FY2025 | % of Net Sales | FY2024 | % of Net Sales | | :------------------------------------------------ | :-------- | :------------- | :-------- | :------------- | :------- | :------------- | :------- | :------------- | | Income from continuing operations | $5,452 | 6.9% | $305 | 0.6% | $10,715 | 3.8% | $23,243 | 7.2% | | Income tax expense (benefit) | 1,299 | | (70) | | 2,820 | | 6,730 | | | Interest expense | — | | 798 | | 1,169 | | 3,292 | | | Interest income | (823) | | (1,625) | | (3,472) | | (5,789) | | | Depreciation and amortization | 2,554 | | 2,063 | | 9,579 | | 8,375 | | | **EBITDA** | **8,482** | **10.7%** | **1,471** | **2.7%** | **20,811** | **7.3%** | **35,851** | **11.1%** | | Share-based compensation | 835 | | 66 | | 2,915 | | 2,602 | | | Senior leadership transition and organizational realignment costs | 211 | | 31 | | 659 | | 1,708 | | | **Adjusted EBITDA** | **$9,528** | **12.0%** | **$1,568** | **2.9%** | **$24,385** | **8.6%** | **$40,161** | **12.5%** | Adjusted Net Income Reconciliation | (Dollars in thousands, except per share data) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------------ | :-------- | :-------- | :------- | :------- | | Income from continuing operations | $5,452 | $305 | $10,715 | $23,243 | | Income tax expense | 1,299 | (70) | 2,820 | 6,730 | | Amortization of acquisition intangibles | 450 | 450 | 1,800 | 1,812 | | Share-based compensation | 835 | 66 | 2,915 | 2,602 | | Senior leadership transition and organizational realignment costs | 211 | 31 | 659 | 1,708 | | Adjusted Net Income before income taxes | 8,247 | 782 | 18,909 | 36,095 | | Adjusted income tax expense (20.0%) | 1,650 | 156 | 3,782 | 7,219 | | **Adjusted Net Income** | **$6,597** | **$626** | **$15,127** | **$28,876** | | Adjusted net income per common share (Basic) | $0.40 | $0.04 | $0.92 | $1.71 | | Adjusted net income per common share (Diluted) | $0.40 | $0.04 | $0.92 | $1.69 | Adjusted Net Income per Diluted Share Reconciliation | | Q4 FY225 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------------------------------------- | :-------- | :-------- | :------- | :------- | | Income from continuing operations per diluted share | $0.33 | $0.02 | $0.65 | $1.36 | | Impact of adjustments: | | | | | | Income tax expense | 0.08 | — | 0.17 | 0.39 | | Amortization of acquisition intangibles | 0.03 | 0.03 | 0.11 | 0.11 | | Share-based compensation | 0.05 | — | 0.18 | 0.15 | | Senior leadership transition and organizational realignment costs | 0.01 | — | 0.04 | 0.10 | | Adjusted Net Income per diluted share before income taxes | 0.50 | 0.05 | 1.15 | 2.11 | | Impact of adjusted income tax expense on net income per diluted share before income taxes | (0.10) | (0.01) | (0.23) | (0.42) | | **Adjusted Net Income per diluted share** | **$0.40** | **$0.04** | **$0.92** | **$1.69** | Free Cash Flow Reconciliation | (Dollars in thousands) | FY2025 | FY2024 | | :------------------------------------------------ | :------- | :------- | | Net cash provided by operating activities of continuing operations | $38,222 | $12,200 | | Less: Purchases of property, plant and equipment | (9,198) | (10,525) | | **Free cash flow** | **$29,024** | **$1,675** | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's official consolidated financial statements, including statements of operations, balance sheets, and supplemental operating data [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations provide a detailed breakdown of the company's revenues, costs, and profitability for the three and twelve months ended June 30, 2025, compared to the prior year Consolidated Statements of Operations (Dollars in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------ | :-------- | :-------- | :------- | :------- | | Net sales | $79,516 | $54,318 | $284,203 | $322,351 | | Cost of sales | 61,106 | 45,713 | 227,338 | 250,741 | | Gross profit | 18,410 | 8,605 | 56,865 | 71,610 | | Total operating expenses | 12,482 | 9,197 | 45,633 | 44,134 | | Operating income (loss) | 5,928 | (592) | 11,232 | 27,476 | | Income from continuing operations | 5,452 | 305 | 10,715 | 23,243 | | Net income (loss) | $5,697 | ($8,036) | $7,043 | $7,800 | | Diluted EPS (Continuing operations) | $0.33 | $0.02 | $0.65 | $1.36 | | Diluted EPS (Net income) | $0.35 | ($0.48) | $0.43 | $0.46 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the company's financial position as of June 30, 2025, and June 30, 2024, detailing assets, liabilities, and equity, highlighting changes in cash, investments, and debt structure Consolidated Balance Sheets (Dollars in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------ | | **ASSETS** | | | | Cash and cash equivalents | $28,926 | $7,394 | | Short-term investments | 50,518 | 78,846 | | Total current assets | 121,213 | 155,074 | | Total assets | $259,948 | $317,984 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 65,210 | 77,936 | | Long-term debt, net | — | 44,887 | | Total liabilities | 76,362 | 134,105 | | Total equity | 183,586 | 183,879 | | Total liabilities and equity | $259,948 | $317,984 | - The company ended FY2025 with **no outstanding debt**, compared to **$44.887 million in long-term debt** in FY2024[27](index=27&type=chunk) - Cash and cash equivalents increased significantly from **$7.394 million in FY2024** to **$28.926 million in FY2025**[27](index=27&type=chunk) [Supplemental Operating Data](index=8&type=section&id=Supplemental%20Operating%20Data) Supplemental operating data provides insights into unit sales volume, net sales by brand (MasterCraft and Pontoon), and net sales per unit for both the fourth quarter and full fiscal year 2025, compared to the prior year Unit Sales Volume | Brand | Q4 FY2025 | Q4 FY2024 | Q4 Change (%) | FY2025 | FY2024 | FY Change (%) | | :---------- | :-------- | :-------- | :------------ | :------- | :------- | :------------ | | MasterCraft | 352 | 302 | 16.6% | 1,548 | 1,755 | (11.8)% | | Pontoon | 218 | 216 | 0.9% | 745 | 1,241 | (40.0)% | | Consolidated | 570 | 518 | 10.0% | 2,293 | 2,996 | (23.5)% | Net Sales by Segment (Dollars in thousands) | Brand | Q4 FY2025 | Q4 FY2024 | Q4 Change (%) | FY2025 | FY2024 | FY Change (%) | | :---------- | :-------- | :-------- | :------------ | :------- | :------- | :------------ | | MasterCraft | $65,906 | $44,417 | 48.4% | $240,763 | $262,736 | (8.4)% | | Pontoon | 13,610 | 9,901 | 37.5% | 43,440 | 59,615 | (27.1)% | | Consolidated | $79,516 | $54,318 | 46.4% | $284,203 | $322,351 | (11.8)% | Net Sales per Unit | Brand | Q4 FY2025 | Q4 FY2024 | Q4 Change (%) | FY2025 | FY2024 | FY Change (%) | | :---------- | :-------- | :-------- | :------------ | :------- | :------- | :------------ | | MasterCraft | $187 | $147 | 27.2% | $156 | $150 | 4.0% | | Pontoon | $62 | $46 | 34.8% | $58 | $48 | 20.8% | | Consolidated | $140 | $105 | 33.3% | $124 | $108 | 14.8% |

Core Insights - MasterCraft Boat Holdings, Inc. reported strong financial performance in fiscal 2025, despite a challenging economic environment, with significant increases in net sales and adjusted net income in the fourth quarter [4][8][12]. Fourth Quarter Overview - Consolidated net sales for Q4 fiscal 2025 reached $79.5 million, an increase of $25.2 million or 46.4% compared to Q4 fiscal 2024 [5][8]. - Gross margin percentage improved by 740 basis points year-over-year, primarily due to increased net sales [6]. - Income from continuing operations was $5.5 million, translating to $0.33 per diluted share, compared to $0.3 million or $0.02 per diluted share in the prior year [7][8]. Full Year Overview - For fiscal 2025, consolidated net sales totaled $284.2 million, down $38.1 million or 11.8% from fiscal 2024, attributed to planned lower unit volumes [10]. - Income from continuing operations for the full year was $10.7 million, or $0.65 per diluted share, compared to $23.2 million or $1.36 per diluted share in the previous year [12]. - Adjusted EBITDA for fiscal 2025 was $24.4 million, down from $40.2 million in the prior year, with an adjusted EBITDA margin of 8.6% [13]. Cash Flow and Capital Allocation - The company generated $29.0 million in free cash flow for the year and ended with cash and investments of $79.4 million, alongside $100 million available on its revolving credit facility [8][12]. - Nearly $10 million was returned to shareholders through share repurchases during the fourth quarter [4][8]. Outlook - The company anticipates consolidated net sales for fiscal 2026 to be between $295 million and $310 million, with adjusted EBITDA expected between $29 million and $34 million [16]. - Plans are in place for various retail demand scenarios, focusing on maintaining a healthy dealer network and continued innovation [14].

Group 1: MasterCraft Boat Holdings, Inc. (MCFT) - MCFT shares increased by 6.4% to close at $21.4, driven by notable trading volume and higher investor confidence [1] - The company is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 550%, with revenues projected at $70.87 million, up 5.5% from the previous year [2] - The consensus EPS estimate for MCFT has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] Group 2: Industry Context - MCFT operates within the Zacks Leisure and Recreation Products industry, where American Outdoor Brands, Inc. (AOUT) also competes [3] - AOUT's consensus EPS estimate has remained unchanged at -$0.16, representing a significant year-over-year decline of 366.7%, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Viewpoint - MasterCraft Boat Holdings, Inc. will host a live webcast for its fiscal fourth quarter and full year 2025 earnings conference call on August 27, 2025, at 8:30 a.m. EDT, where financial results will be discussed by the CEO and CFO [1]. Group 1 - The conference call will be accessible via webcast on the investor section of the Company's website, and participants can also join via telephone after registering in advance [2]. - A pre-market earnings release will be issued prior to the call on the same day [1]. - A replay of the conference call and webcast will be archived on the Company's website for future access [2]. Group 2 - MasterCraft Boat Holdings, Inc. is headquartered in Vonore, Tennessee, and is recognized as a leading innovator, designer, manufacturer, and marketer of recreational powerboats under its three brands: MasterCraft, Crest, and Balise [3].

Core Viewpoint - MasterCraft Boat Company is committed to protecting waterways and ensuring responsible boating practices through education and advocacy, rather than imposing regulations [1][3]. Group 1: Campaign Overview - MasterCraft is partnering with the Water Sports Industry Association (WSIA) to promote the "Wake Responsibly" campaign, which aims to preserve access to waterways while protecting jobs and the environment [1][3]. - The campaign emphasizes three essential principles: courtesy, coexistence, and protection of the sport [3]. Group 2: Guidelines for Responsible Boating - The campaign includes specific guidelines for boaters: maintain a distance of 200 feet from shore and other boats, keep music at a respectful level, and minimize repetitive passes in the same area [4][6]. - MasterCraft is equipping its dealer network with WSIA advocacy resources to educate local boaters and embedding Wake Responsibly principles across all communication channels [5][11]. Group 3: Commitment to Innovation and Education - MasterCraft is investing in innovations and programs to help boaters operate responsibly and is actively addressing concerns to inform future solutions [6][8]. - Studies indicate that wakesurfing boats have a lesser environmental impact compared to natural waves, countering misconceptions about wake boats [7]. Group 4: Company Background - MasterCraft Boat Holdings, Inc. is a leading innovator and manufacturer of premium recreational powerboats, with a history of over five decades in the industry [9][10].

Core Insights - MasterCraft Boat Company has expanded its dealer network by partnering with Hagadone Marine Center, enhancing its presence in the Inland Northwest, a key U.S. market for boating [1][2] - The partnership is expected to provide customers in the region with access to premium towboats and exceptional service, capitalizing on the area's strong demand for luxury boating experiences [2][4] Company Overview - MasterCraft is recognized as a leading innovator in the design and manufacturing of premium performance sport boats, with a history of industry-leading innovation since its founding in 1968 [7][9] - The company aims to deliver unmatched quality, comfort, and craftsmanship in its boats, focusing on performance that exceeds industry standards [5][7] Partnership Details - Hagadone Marine Center is a luxury, full-service dealership located on the north shore of Lake Coeur d'Alene, known for its strong reputation in the boating community and commitment to exceptional customer experiences [2][3] - The partnership aligns with Hagadone Marine's mission to provide the best boating experience, complementing its existing lineup with MasterCraft's innovative products [4][3] Customer Experience Enhancements - Customers can expect a full-service luxury dealership experience at Hagadone Marine Center, which includes new boat sales, factory-certified service, on-water demos, and seasonal events [8][4] - The partnership will also feature exclusive promotions and service incentives, enhancing the overall customer experience [8]

Core Insights - MasterCraft Boat Company has expanded its dealer network by partnering with Rinker's Boat World in Houston, Texas, enhancing customer access to its premium towboats [1][4] - Rinker's Boat World, established in 1978, aligns with MasterCraft's commitment to quality and customer experience, offering a full-service dealership with on-water demos and support [2][4] - The partnership aims to strengthen MasterCraft's presence in high-demand regions, providing local customers with superior service and access to top-tier towboats [4] Company Overview - MasterCraft is recognized as a leading innovator in the design and manufacturing of premium performance sport boats, with a history of over 50 years in the industry [6] - MasterCraft Boat Holdings, Inc. operates under three brands: MasterCraft, Crest, and Balise, and is headquartered in Vonore, TN [7]