Malibu Boats, Inc. Announces Second Quarter Fiscal 2025 Results

Core Viewpoint - Malibu Boats, Inc. reported a challenging second quarter for fiscal 2025, with decreased net sales and unit volumes, prompting adjustments in production levels and full-year guidance due to weaker retail market trends [3][17]. Financial Performance - Net sales for the three months ended December 31, 2024, decreased by $10.8 million, or 5.1%, to $200.3 million compared to the same period in 2023 [5][6]. - Unit volume decreased by 151 units, or 11.0%, to 1,222 units for the same period [5][6]. - Gross profit for the quarter was $37.4 million, a slight decrease of 0.2% from $37.5 million in the prior year [4][13]. - Net income decreased by 76.1% to $2.4 million, with a net income margin of 1.2%, down from 4.8% [4][16]. - Adjusted EBITDA fell by 26.3% to $16.9 million, with an adjusted EBITDA margin of 8.4%, down from 10.9% [4][16]. Segment Performance - Net sales in the Malibu segment decreased by $2.3 million, or 3.0%, to $74.1 million, with unit volumes down by 81 units [8]. - The Saltwater Fishing segment saw a more significant decline, with net sales down $12.6 million, or 15.2%, to $70.2 million, and unit volumes decreased by 88 units [9]. - Conversely, the Cobalt segment experienced growth, with net sales increasing by $4.1 million, or 7.8%, to $56.0 million, driven by higher unit volumes [10]. Cost and Expense Analysis - Cost of sales decreased by $10.7 million, or 6.2%, to $162.9 million, primarily due to lower unit volumes [12]. - Selling and marketing expenses increased by 6.7% to $6.0 million, while general and administrative expenses surged by 71.9% to $26.5 million, largely due to legal fees and incentive pay [14][15]. Guidance and Future Outlook - For the full fiscal year 2025, Malibu anticipates net sales to be flat to down low single digits year-over-year, with an adjusted EBITDA margin of approximately 10% [17].