MasterCraft Boat Holdings, Inc. Reports Fiscal 2026 First Quarter Results

Overview - MasterCraft Boat Holdings, Inc. reported financial results for the first quarter of fiscal 2026, ending September 28, 2025, with consolidated net sales of $69.0 million, an increase of $3.6 million or 5.6% from the previous year [4][6][14] - The company experienced a strong performance despite macroeconomic uncertainties and a dynamic retail environment, supported by disciplined cost controls and effective production planning [3][9] Financial Performance - Consolidated net sales increased to $69.0 million, driven by higher prices, increased unit volumes, favorable option sales, and reduced dealer incentives, partially offset by an unfavorable model mix [4][6] - Gross margin percentage improved by 420 basis points to 22.3% compared to the prior year, attributed to increased net sales and effective cost management [5][24] - Income from continuing operations rose to $3.7 million, or $0.22 per diluted share, compared to $1.0 million, or $0.06 per diluted share, in the prior-year period [6][20] - Adjusted net income for the quarter was $4.5 million, or $0.28 per diluted share, up from $1.9 million, or $0.12 per diluted share, in the previous year [6][34] - Adjusted EBITDA was reported at $6.7 million, an increase of $2.9 million from the prior year, with an adjusted EBITDA margin of 9.7% [7][25] Operational Highlights - The company successfully managed dealer inventories, which returned to normal levels, and launched the new MasterCraft X24 model, generating positive sentiment among dealers [3][9] - Unit sales for MasterCraft boats increased by 0.8% to 377 units, while pontoon unit sales rose by 6.2% to 188 units, contributing to a consolidated unit sales increase of 2.5% [24] - The financial position remains strong, with a debt-free balance sheet, allowing for continued investment in innovation and shareholder returns through share repurchases [3][9] Outlook - The company raised its full-year earnings guidance based on the strong performance in Q1 and positive operational trends, indicating readiness for a return to a more normalized environment [9][14] - For fiscal 2026, consolidated net sales are expected to be between $295 million and $310 million, with adjusted EBITDA projected between $30 million and $35 million [14]