MasterCraft Boat Holdings, Inc. Reports Fiscal 2025 Results

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].