Malibu Boats(US:MBUU)2025-08-28 11:05markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) [Fourth Quarter Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Highlights) Malibu Boats, Inc. reported a strong fourth quarter for fiscal year 2025, with significant increases in net sales, unit volume, and profitability compared to the prior year, driven by improved market conditions and strategic initiatives | Metric | Q4 FY25 | Q4 FY24 | Change (%) | | :------------------------------------- | :-------- | :-------- | :--------- | | Net sales | $207.0 million | $158.7 million | +30.4% | | Unit volume | 1,221 units | 1,045 units | +16.8% | | Gross profit | $32.7 million | $12.5 million | +162.1% | | Net income (loss) | $4.8 million | $(19.6) million | +124.5% | | Adjusted EBITDA | $19.7 million | $(4.1) million | +580.6% | | Diluted EPS (Net income) | $0.24 | $(0.94) | +125.5% | | Adjusted net income per share | $0.42 | $(0.40) | +205.0% | [Fiscal Year 2025 Highlights](index=1&type=section&id=Fiscal%20Year%202025%20Highlights) Despite a challenging marine industry environment, Malibu Boats, Inc. achieved a turnaround in net income for fiscal year 2025, though net sales and unit volume saw slight decreases compared to fiscal year 2024 | Metric | FY25 | FY24 | Change (%) | | :------------------------------------- | :------- | :------- | :--------- | | Net sales | $807.6 million | $829.0 million | -2.6% | | Unit volume | 4,898 units | 5,385 units | -9.0% | | Gross profit | $144.1 million | $147.1 million | -2.0% | | Net income (loss) | $15.2 million | $(56.4) million | +127.0% | | Adjusted EBITDA | $74.8 million | $82.2 million | -9.1% | | Diluted EPS (Net income) | $0.76 | $(2.74) | +127.7% | | Adjusted net income per share | $1.58 | $2.01 | -21.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Steve Menneto highlighted FY25 as challenging but successful in laying groundwork for future outperformance, focusing on dealer inventory reduction, network refresh, innovation with 11 new MY26 models, and operational readiness. CFO Bruce Beckman emphasized maintaining a disciplined approach to dealer health in FY26, leveraging cash generation for business investment, and positioning for significant value creation when demand normalizes - CEO Steve Menneto noted FY25 was challenging for the marine industry but praised efforts in supporting dealers to reduce inventory and refreshing the dealer network, positioning the company to outperform the industry. The company continued investing in people, operational readiness, and innovation, introducing **eleven new Model Year 2026 models**[4](index=4&type=chunk) - CFO Bruce Beckman stated that in FY26, the company will maintain a disciplined approach to dealer health, expecting retail headwinds to persist. He expressed confidence in outperforming the industry and leveraging cash generation for continued business investment to position for significant value creation when industry growth returns[4](index=4&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Performance Overview](index=2&type=section&id=Consolidated%20Financial%20Performance%20Overview) [Summary Financial Data (Q4 and FY25)](index=2&type=section&id=Summary%20Financial%20Data%20(Q4%20and%20FY25)) The company's summary financial data for Q4 and the full fiscal year 2025 shows a strong rebound in Q4 profitability, contrasting with a slight decline in annual net sales but a significant improvement in annual net income from a loss to a profit | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net Sales | $207,039 | $158,712 | $807,561 | $829,035 | | Gross Profit | $32,740 | $12,493 | $144,091 | $147,095 | | Gross Profit Margin | 15.8% | 7.9% | 17.8% | 17.7% | | Net Income (Loss) | $4,793 | $(19,598) | $15,240 | $(56,443) | | Net Income (Loss) Margin | 2.3% | (12.3)% | 1.9% | (6.8)% | | Adjusted EBITDA | $19,657 | $(4,090) | $74,770 | $82,237 | | Adjusted EBITDA Margin | 9.5% | (2.6)% | 9.3% | 9.9% | [Fourth Quarter Fiscal 2025 Detailed Financial Analysis](index=2&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Detailed%20Financial%20Analysis) [Net Sales and Unit Volume](index=2&type=section&id=Net%20Sales%20and%20Unit%20Volume%20(Q4%20FY25)) Net sales for Q4 FY25 increased by 30.4% to $207.0 million, driven by higher unit volumes in the Malibu segment, favorable model mix, decreased promotional costs, and inflation-driven price increases. Overall unit volume increased by 16.8% to 1,221 units | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $207.0 million | $158.7 million | +30.4% | | Unit Volume | 1,221 units | 1,045 units | +16.8% | - The increase in net sales was primarily due to increased unit volumes in the Malibu segment, a favorable model mix across all segments, decreased promotional costs, and inflation-driven year-over-year price increases. This was partially offset by decreased unit volumes in the Cobalt and Saltwater Fishing segments and an unfavorable segment mix[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance%20(Q4%20FY25)) In Q4 FY25, the Malibu segment saw substantial growth in both net sales and unit volumes, while Saltwater Fishing and Cobalt segments experienced unit volume decreases but net sales increases due to favorable model mix, lower promotional costs, and price increases [Malibu Segment](index=2&type=section&id=Malibu%20Segment%20(Q4%20FY25)) Malibu segment net sales surged by 114.0% to $80.3 million, with unit volumes increasing by 78.7%, primarily recovering from lower wholesale shipments in the prior year due to elevated dealer inventory | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $80.3 million | $37.5 million | +114.0% | | Unit Volume | 570 units | 319 units | +78.7% | - The increase in net sales was driven by an increase in units, a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases[9](index=9&type=chunk) [Saltwater Fishing Segment](index=2&type=section&id=Saltwater%20Fishing%20Segment%20(Q4%20FY25)) Saltwater Fishing segment net sales increased by 2.7% to $72.9 million, despite a 9.3% decrease in unit volumes, attributed to a favorable model mix, reduced promotional costs, and inflation-driven price increases | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $72.9 million | $71.0 million | +2.7% | | Unit Volume | 323 units | 356 units | -9.3% | - Unit volumes decreased primarily due to lower wholesale shipments driven by lower retail activity and dealers' desire to hold less inventory. The increase in net sales was driven by a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases, partially offset by a decrease in units[10](index=10&type=chunk) [Cobalt Segment](index=2&type=section&id=Cobalt%20Segment%20(Q4%20FY25)) Cobalt segment net sales rose by 7.2% to $53.8 million, even with an 11.4% decline in unit volumes, benefiting from a favorable model mix, decreased promotional costs, and inflation-driven price adjustments | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $53.8 million | $50.2 million | +7.2% | | Unit Volume | 328 units | 370 units | -11.4% | - Unit volumes decreased primarily due to lower wholesale shipments driven by lower retail activity and dealers' desire to hold less inventory. The increase in net sales was driven primarily by a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases, partially offset by a decrease in units[11](index=11&type=chunk) [Net Sales Per Unit](index=2&type=section&id=Net%20Sales%20Per%20Unit%20(Q4%20FY25)) Consolidated net sales per unit increased by 11.6% to $169,565 in Q4 FY25, with all segments showing increases driven by favorable model mix, decreased promotional costs, and inflation-driven price increases | Segment | Q4 FY25 Net Sales Per Unit | Q4 FY24 Net Sales Per Unit | Change (%) | | :---------------- | :------------------------- | :------------------------- | :--------- | | Consolidated | $169,565 | $151,112 | +11.6% | | Malibu | $140,951 | $117,699 | +19.8% | | Saltwater Fishing | $225,582 | $199,298 | +13.2% | | Cobalt | $164,128 | $135,676 | +21.0% | - The increase in net sales per unit across all segments was driven by favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases[12](index=12&type=chunk)[13](index=13&type=chunk) [Cost of Sales and Gross Profit](index=3&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20(Q4%20FY25)) Cost of sales increased by 19.2% to $174.3 million due to higher volumes and inflationary pressures. Gross profit significantly increased by 162.1% to $32.7 million, with gross margin expanding by 790 basis points to 15.8%, primarily due to higher sales revenue, decreased promotional costs, and a favorable model mix | Metric | Q4 FY25 | Q4 FY24 | Change | | :----------- | :-------- | :-------- | :----- | | Cost of Sales | $174.3 million | $146.2 million | +19.2% | | Gross Profit | $32.7 million | $12.5 million | +162.1% | | Gross Margin | 15.8% | 7.9% | +790 bps | - The increase in cost of sales was primarily driven by a **16.8% increase in volumes** and continuing inflationary pressure on costs. Gross profit increase was driven primarily by higher sales revenue, decreased promotional costs across all segments, and an increased mix of models that carry a higher gross margin[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses%20(Q4%20FY25)) Selling and marketing expenses increased by 10.7% to $5.4 million, mainly due to compensation and promotional events, but decreased as a percentage of sales. General and administrative expenses decreased by 12.7% to $18.8 million, driven by lower legal, professional, and IT costs, also decreasing as a percentage of sales | Expense Type | Q4 FY25 | Q4 FY24 | Change (%) | % of Sales (Q4 FY25) | % of Sales (Q4 FY24) | Change (bps) | | :-------------------------- | :-------- | :-------- | :--------- | :------------------- | :------------------- | :----------- | | Selling and marketing | $5.4 million | $4.9 million | +10.7% | 2.6% | 3.1% | -50 | | General and administrative | $18.8 million | $21.6 million | -12.7% | 9.1% | 13.6% | -450 | | Amortization | $1.7 million | $1.7 million | 0.0% | - | - | - | - The decrease in general and administrative expenses was driven primarily by a decrease in legal and professional fees, licenses and permits, and IT infrastructure expenses, partially offset by an increase in compensation and personnel-related expense[16](index=16&type=chunk) [Operating Income, Net Income, and Adjusted EBITDA](index=3&type=section&id=Operating%20Income,%20Net%20Income,%20and%20Adjusted%20EBITDA%20(Q4%20FY25)) The company significantly improved its operating income to $6.8 million from a loss, net income to $4.8 million from a loss, and Adjusted EBITDA to $19.7 million from a negative figure, reflecting strong operational recovery and margin expansion | Metric | Q4 FY25 | Q4 FY24 | Change (%) | Margin (Q4 FY25) | Margin (Q4 FY24) | Change (bps) | | :------------------ | :-------- | :-------- | :--------- | :--------------- | :--------------- | :----------- | | Operating Income (Loss) | $6.8 million | $(24.4) million | N/A | - | - | - | | Net Income (Loss) | $4.8 million | $(19.6) million | +124.5% | 2.3% | (12.3)% | +1460 | | Adjusted EBITDA | $19.7 million | $(4.1) million | +580.6% | 9.5% | (2.6)% | +1210 | [Fiscal Year 2025 Detailed Financial Analysis](index=3&type=section&id=Fiscal%20Year%202025%20Detailed%20Financial%20Analysis) [Net Sales and Unit Volume](index=3&type=section&id=Net%20Sales%20and%20Unit%20Volume%20(FY25)) For fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9.0% to 4,898 units. This decline was primarily due to lower wholesale shipments in the Saltwater Fishing and Cobalt segments, driven by reduced retail activity and dealers' efforts to lower inventory | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $807.6 million | $829.0 million | -2.6% | | Unit Volume | 4,898 units | 5,385 units | -9.0% | - The decrease in net sales was driven primarily by decreased unit volumes in the Saltwater Fishing and Cobalt segments resulting from decreased wholesale shipments and an unfavorable segment mix, partially offset by increased unit volumes in the Malibu segment, favorable model mix across all segments, and inflation-driven year-over-year price increases[18](index=18&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance%20(FY25)) In FY25, the Malibu segment showed growth in net sales and unit volumes, while Saltwater Fishing and Cobalt segments experienced declines in both, primarily due to lower wholesale shipments driven by reduced retail activity and dealer inventory management [Malibu Segment](index=4&type=section&id=Malibu%20Segment%20(FY25)) Malibu segment net sales increased by 12.0% to $312.7 million, with unit volumes up by 42 units, largely due to a recovery from lower wholesale shipments in the prior year caused by high dealer inventory levels | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $312.7 million | $279.1 million | +12.0% | | Unit Volume | 2,223 units | 2,181 units | +42 units | - The increase in net sales was primarily driven by an increase in units, a favorable model mix, and inflation-driven year-over-year price increases[19](index=19&type=chunk) [Saltwater Fishing Segment](index=4&type=section&id=Saltwater%20Fishing%20Segment%20(FY25)) Saltwater Fishing segment net sales decreased by 14.6% to $279.6 million, with unit volumes down by 367 units, primarily due to lower wholesale shipments driven by reduced retail activity and dealers' desire for lower inventory | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $279.6 million | $327.5 million | -14.6% | | Unit Volume | 1,266 units | 1,633 units | -367 units | - The decrease in net sales was driven by a decrease in units and increased promotional costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases[20](index=20&type=chunk) [Cobalt Segment](index=4&type=section&id=Cobalt%20Segment%20(FY25)) Cobalt segment net sales decreased by 3.2% to $215.2 million, with unit volumes down by 162 units, mainly due to lower wholesale shipments resulting from decreased retail activity and dealers' inventory reduction efforts | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $215.2 million | $222.3 million | -3.2% | | Unit Volume | 1,409 units | 1,571 units | -162 units | - The decrease in net sales was driven primarily by a decrease in units, partially offset by a favorable model mix and inflation-driven year-over-year price increases[21](index=21&type=chunk) [Net Sales Per Unit](index=4&type=section&id=Net%20Sales%20Per%20Unit%20(FY25)) Consolidated net sales per unit increased by 7.1% to $164,876 for FY25, with all segments experiencing increases due to favorable model mix and inflation-driven price increases, though Saltwater Fishing was partially offset by higher promotional costs | Segment | FY25 Net Sales Per Unit | FY24 Net Sales Per Unit | Change (%) | | :---------------- | :---------------------- | :---------------------- | :--------- | | Consolidated | $164,876 | $153,949 | +7.1% | | Malibu | $140,665 | $127,978 | +9.9% | | Saltwater Fishing | $220,881 | $200,551 | +10.1% | | Cobalt | $152,752 | $141,502 | +7.9% | - Net sales per unit increases across segments were driven by a favorable model mix and inflation-driven year-over-year price increases. Saltwater Fishing's increase was partially offset by increased promotional costs[22](index=22&type=chunk) [Cost of Sales and Gross Profit](index=4&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20(FY25)) Cost of sales decreased by 2.7% to $663.5 million, primarily due to a 9.0% decrease in volumes, partially offset by higher per unit material and labor costs and increased warranty expense. Gross profit decreased by 2.0% to $144.1 million, but gross margin slightly increased from 17.7% to 17.8% | Metric | FY25 | FY24 | Change | | :----------- | :-------- | :-------- | :----- | | Cost of Sales | $663.5 million | $681.9 million | -2.7% | | Gross Profit | $144.1 million | $147.1 million | -2.0% | | Gross Margin | 17.8% | 17.7% | +10 bps | - The decrease in cost of sales was primarily driven by a **9.0% decrease in volumes**, partially offset by higher per unit material and labor costs, increased warranty expense, and increased depreciation expense. Gross profit decrease was primarily due to lower net sales, partially offset by decreased cost of sales[23](index=23&type=chunk)[24](index=24&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses%20(FY25)) Total operating expenses decreased significantly by 39.8% in FY25, mainly due to the absence of $88.4 million in impairment charges related to Maverick Boat Group recognized in FY24. General and administrative expenses increased by 21.1% to $92.5 million, driven by a legal settlement, professional fees, and compensation, while selling and marketing expenses slightly increased | Expense Type | FY25 | FY24 | Change (%) | % of Sales (FY25) | % of Sales (FY24) | Change (bps) | | :------------------------------------- | :-------- | :-------- | :--------- | :---------------- | :---------------- | :----------- | | Total Operating Expenses | $122.4 million | $203.1 million | -39.8% | - | - | - | | General and administrative | $92.5 million | $76.3 million | +21.1% | 11.4% | 9.2% | +220 | | Selling and marketing | $23.1 million | $22.8 million | +1.3% | 2.9% | 2.7% | +20 | | Goodwill and other intangible asset impairment | $0 | $88.4 million | -100.0% | - | - | - | | Abandonment of construction in process | $0 | $8.7 million | -100.0% | - | - | - | | Amortization | $6.8 million | $6.8 million | 0.0% | - | - | - | - The decrease in total operating expenses was primarily due to **$88.4 million in impairment charges** related to Maverick Boat Group in fiscal year 2024, which did not recur in fiscal year 2025. General and administrative expenses increased due to a **$3.5 million legal settlement**, other related legal fees, and increases in stock-based compensation, incentive pay, and salaries[25](index=25&type=chunk)[26](index=26&type=chunk) [Operating Income, Net Income, and Adjusted EBITDA](index=5&type=section&id=Operating%20Income,%20Net%20Income,%20and%20Adjusted%20EBITDA%20(FY25)) Operating income for FY25 improved significantly to $21.8 million from a loss in FY24. Net income also turned positive to $15.2 million from a loss, with net income margin increasing. Adjusted EBITDA decreased by 9.1% to $74.8 million, and Adjusted EBITDA margin slightly declined | Metric | FY25 | FY24 | Change (%) | Margin (FY25) | Margin (FY24) | Change (bps) | | :------------------ | :-------- | :-------- | :--------- | :-------------- | :-------------- | :----------- | | Operating Income (Loss) | $21.8 million | $(55.9) million | N/A | - | - | - | | Net Income (Loss) | $15.2 million | $(56.4) million | +127.0% | 1.9% | (6.8)% | +870 | | Adjusted EBITDA | $74.8 million | $82.2 million | -9.1% | 9.3% | 9.9% | -60 | **Adjusted EBITDA by Segment (FY25 vs FY24):** | Segment | FY25 Adjusted EBITDA | FY24 Adjusted EBITDA | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Malibu | $60.6 million | $42.6 million | +42.3% | | Saltwater Fishing | $26.7 million | $35.5 million | -24.9% | | Cobalt | $17.9 million | $22.7 million | -21.2% | [Fiscal Year 2026 Outlook](index=5&type=section&id=Fiscal%20Year%202026%20Outlook) [Guidance](index=5&type=section&id=Guidance) For fiscal year 2026, Malibu Boats, Inc. anticipates net sales to be flat to down mid-single digits year-over-year, with an Adjusted EBITDA margin ranging from 8% to 9%. The company has not provided GAAP reconciliations for Adjusted EBITDA margin guidance due to the unreasonable effort required to forecast certain items - For the full fiscal year 2026, Malibu anticipates net sales to be **flat to down mid-single digits year-over-year**[29](index=29&type=chunk) - Adjusted EBITDA margin is expected to range from **8% to 9%** for fiscal year 2026[29](index=29&type=chunk) - The company has not provided reconciliations of guidance for Adjusted EBITDA margin, citing the unreasonable efforts exception under Regulation S-K, as forecasting certain GAAP financial measures (e.g., vertical integration costs, stock-based compensation, litigation expenses) is difficult[30](index=30&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) [About Malibu Boats, Inc.](index=5&type=section&id=About%20Malibu%20Boats,%20Inc.) Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of recreational powerboats, including performance sport, sterndrive, and outboard boats, operating through brands like Malibu, Axis, Cobalt, Pursuit, Cobia, Pathfinder, Maverick, and Hewes - Malibu Boats, Inc. (MBUU) is a designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats[32](index=32&type=chunk) - The company holds market leadership in performance sport boats (Malibu, Axis), 20'-40' sterndrive boats (Cobalt), and saltwater fishing boats (Pursuit, Cobia, Pathfinder, Maverick, Hewes)[32](index=32&type=chunk) [Webcast and Conference Call Information](index=5&type=section&id=Webcast%20and%20Conference%20Call%20Information) Malibu Boats, Inc. hosted a webcast and conference call on August 28, 2025, to discuss its fourth quarter and fiscal year 2025 results, with replay available on its investor relations website - The company hosted a webcast and conference call on Thursday, August 28, 2025, at 8:30 a.m. Eastern Time to discuss fourth quarter and fiscal year 2025 results[31](index=31&type=chunk) - Investors and analysts could participate by dialing (833) 630-1956 or (412) 317-1837, or listen to a live webcast via the Investor Relations section of the company's website[31](index=31&type=chunk) [Investor Contacts](index=8&type=section&id=Investor%20Contacts) Investor inquiries can be directed to Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc., via phone or email - Investor contacts are Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc., reachable at (865) 458-5478 or InvestorRelations@MalibuBoats.com[44](index=44&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Definition of Non-GAAP Measures](index=5&type=section&id=Definition%20of%20Non-GAAP%20Measures) The report defines Adjusted EBITDA and Adjusted Net Income per Share as non-GAAP financial measures, explaining their calculation and purpose for management and investors to assess core operating performance by excluding certain non-recurring or non-operating expenses - Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, goodwill and other intangible asset impairment expense, and non-cash, non-operating expenses or other expenses not indicative of ongoing operations[35](index=35&type=chunk) - Adjusted net income per share is a newly disclosed non-GAAP measure for fiscal 2025, replacing adjusted fully distributed net income (loss). It excludes similar non-operating items from net income (loss) attributable to Malibu Boats, Inc. per share, and reflects an adjustment for income tax expense on adjusted income before income taxes at an estimated effective income tax rate[37](index=37&type=chunk)[38](index=38&type=chunk) - These non-GAAP measures are used by management to evaluate operating performance and compare results consistently, excluding items that can vary substantially across companies or are not indicative of core performance, but they should not be considered alternatives to GAAP measures[35](index=35&type=chunk)[39](index=39&type=chunk) [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) The reconciliation table details the adjustments made to GAAP net income (loss) to arrive at Adjusted EBITDA for both the three months and fiscal year ended June 30, 2025 and 2024, highlighting significant non-cash and non-recurring items | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $4,793 | $(19,598) | $15,240 | $(56,443) | | Provision (benefit) for income taxes | 2,018 | (4,801) | 5,023 | (1,342) | | Interest expense (income) | 377 | (9) | 1,883 | 1,842 | | Depreciation | 8,395 | 6,967 | 31,794 | 26,178 | | Amortization | 1,695 | 1,697 | 6,799 | 6,811 | | Goodwill and other intangible asset impairment | — | — | — | 88,389 | | Abandonment of construction in process | — | 8,735 | — | 8,735 | | Litigation settlement | — | — | 3,500 | — | | Non-recurring professional fees | 1,112 | 1,110 | 4,962 | 3,096 | | Stock-based compensation expense | 1,619 | 1,773 | 5,916 | 4,935 | | Adjustments to tax receivable agreement liability | (352) | 36 | (347) | 36 | | **Adjusted EBITDA** | **$19,657** | **$(4,090)** | **$74,770** | **$82,237** | | Net Sales | $207,039 | $158,712 | $807,561 | $829,035 | | Net Income (Loss) Margin | 2.3% | (12.3)% | 1.9% | (6.8)% | | Adjusted EBITDA Margin | 9.5% | (2.6)% | 9.3% | 9.9% | - Key adjustments include goodwill and other intangible asset impairment (**$88.4 million in FY24**), abandonment of construction in process (**$8.7 million in FY24**), and a litigation settlement (**$3.5 million in FY25**)[51](index=51&type=chunk) [Reconciliation of Adjusted Net Income (Loss)](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20(Loss)) The reconciliation provides a detailed breakdown of adjustments from GAAP net income (loss) attributable to Malibu Boats, Inc. to adjusted net income (loss) and adjusted net income (loss) per share for the reported periods, including non-recurring items and a normalized tax rate | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) attributable to Malibu Boats, Inc. | $4,674 | $(19,221) | $14,879 | $(55,912) | | Goodwill and other intangible asset impairment | — | — | — | 88,389 | | Litigation settlement | — | — | 3,500 | — | | Non-recurring professional fees | 1,112 | 1,110 | 4,962 | 3,096 | | Stock-based compensation expense | 1,619 | 1,773 | 5,916 | 4,935 | | Abandonment of construction in process | — | 8,735 | — | 8,735 | | Acquisition related amortization | 1,659 | 1,659 | 6,653 | 6,672 | | Provision (benefit) for taxes | 2,018 | (4,801) | 5,023 | (1,342) | | Adjusted income (loss) before taxes | $11,082 | $(10,745) | $40,933 | $54,573 | | Income tax expense (benefit) on adjusted income (loss) before income taxes | 2,715 | (2,633) | 10,029 | 13,370 | | **Adjusted net income (loss)** | **$8,367** | **$(8,112)** | **$30,904** | **$41,203** | | Basic weighted-average shares outstanding | 19,326,533 | 20,395,625 | 19,664,337 | 20,439,449 | | Net income (loss) per share attributable to Malibu Boats, Inc. | $0.24 | $(0.94) | $0.76 | $(2.74) | | **Adjusted net income (loss) per share** | **$0.42** | **$(0.40)** | **$1.58** | **$2.01** | - The estimated normalized annual effective income tax rate used for adjusted income tax expense was **24.5%** for both fiscal years 2025 and 2024[54](index=54&type=chunk) [Cautionary Statement](index=7&type=section&id=Cautionary%20Statement) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance, including fiscal year 2026 guidance, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These risks include fixed-cost base, manufacturing strategy, demand forecasting, raw material costs, supply chain disruptions, and general economic conditions - Forward-looking statements, identifiable by words like "believes," "anticipates," "expects," and "intends," include guidance for fiscal year 2026 net sales and Adjusted EBITDA margin, and intentions to support dealer health and generate cash flow[42](index=42&type=chunk) - These statements are subject to risks and uncertainties such as large fixed-cost base, ability to execute manufacturing strategy, demand forecasting accuracy, raw material and transportation costs, supplier disruptions, climate events, workforce needs, dependence on key management, acquisition integration, capital requirements, intellectual property protection, cybersecurity risks, and general economic conditions[43](index=43&type=chunk) - The company disclaims any obligation to update or supplement forward-looking statements, and past performance is not indicative of future results[43](index=43&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The condensed consolidated statements of operations and comprehensive income (loss) provide a detailed breakdown of revenues, expenses, and profitability for the three months and fiscal years ended June 30, 2025 and 2024, showing a significant shift from net loss to net income in FY25 | (In thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $207,039 | $158,712 | $807,561 | $829,035 | | Cost of sales | 174,299 | 146,219 | 663,470 | 681,940 | | Gross profit | 32,740 | 12,493 | 144,091 | 147,095 | | Operating income (loss) | 6,829 | (24,379) | 21,761 | (55,947) | | Net income (loss) | 4,793 | (19,598) | 15,240 | (56,443) | | Net income (loss) attributable to Malibu Boats, Inc. | $4,674 | $(19,221) | $14,879 | $(55,912) | | Diluted Net income (loss) per share | $0.24 | $(0.94) | $0.76 | $(2.74) | [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets as of June 30, 2025, and 2024, present the company's financial position, showing a slight decrease in total assets and stockholders' equity, while total liabilities increased | (In thousands) | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | **Assets** | | | | Total current assets | $219,892 | $202,129 | | Property, plant and equipment, net | 235,877 | 244,601 | | Goodwill | 51,306 | 51,415 | | Other intangible assets, net | 168,634 | 175,449 | | Total assets | **$734,578** | **$739,624** | | **Liabilities** | | | | Total current liabilities | $134,612 | $138,586 | | Long-term debt | 18,000 | — | | Total liabilities | **$214,745** | **$204,905** | | **Stockholders' Equity** | | | | Total stockholders' equity attributable to Malibu Boats, Inc. | $515,461 | $530,009 | | Total stockholders' equity | **$519,833** | **$534,719** | - Cash increased from **$26.9 million** in FY24 to **$37.0 million** in FY25. Inventories slightly decreased from **$145.6 million** to **$142.2 million**[48](index=48&type=chunk)