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Malibu Boats(MBUU) - 2026 Q2 - Earnings Call Transcript
2026-02-05 14:30
Financial Data and Key Metrics Changes - Net sales decreased 5.8% to $188.6 million, with unit volume decreasing 9.5% to 1,106 units, primarily due to lower wholesale shipments and unfavorable segment and model mix [12][15] - Consolidated net sales per unit increased 4.1% to $170,544 per unit, driven by favorable model mix in Cobalt and saltwater fishing segments and inflation-driven price increases [12][13] - Gross profit decreased 32.9% to $25.1 million, with gross margin at 13.3%, a decrease of 540 basis points compared to the prior year [13][14] - Adjusted EBITDA decreased 52.5% to $8 million, with adjusted EBITDA margin decreasing to 4.3% from 8.4% in the prior year [15] Business Line Data and Key Metrics Changes - Malibu and Axis represented approximately 46.4% of unit sales, saltwater fishing represented 25.5%, and Cobalt made up the remaining 28.1% [12] - The decrease in net sales was driven by decreased unit volumes across all segments, with Malibu segment facing unfavorable model mix [12][15] Market Data and Key Metrics Changes - The broader industry is experiencing a modest overhang on non-current inventory, but the company maintains a healthy inventory position for model year 2026 boats [9][11] - The company expects the market to decline in the range of mid to high single digits for the fiscal year, with sales expected to be flat to down mid-single digits year-over-year [17] Company Strategy and Development Direction - The company is focused on customer-driven innovation, operational excellence, and disciplined capital allocation to drive long-term growth [6][8] - The introduction of new models and partnerships is central to the company's strategy, with plans to showcase new products at the Miami International Boat Show [6][8] - The company is also expanding its marine components business and centralized sourcing initiatives to improve efficiency and reduce costs [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the retail environment, noting a successful year-end sales event and strong customer response to new models [5][11] - The company is closely monitoring market conditions and is prepared to scale production in line with retail demand if necessary [18] - Management expects to see benefits from centralized sourcing and operational improvements in the latter part of the fiscal year [44] Other Important Information - The company generated $8.4 million of free cash flow during Q2, with $20.8 million of share repurchases completed during the quarter [16] - The company anticipates Adjusted EBITDA margins of approximately 8.5% for Q3 and expects to maintain operational discipline despite market challenges [17][18] Q&A Session Summary Question: Impact of higher boat show expenses on EBITDA margin - Management indicated that higher boat show expenses contributed about 50 basis points of cost pressure for the quarter [21][22] Question: Inventory levels compared to the industry - Management noted that while the industry has pockets of elevated inventory, their inventory position is healthy and well-managed [23] Question: MBI Acceptance program rollout and its impact - Early feedback from dealers on the MBI Acceptance program has been positive, with some increase in traffic and sales at boat shows [27] Question: Centralized sourcing initiatives and cost savings - Management expects significant benefits from centralized sourcing efforts to impact margins positively in the latter part of the fiscal year [28] Question: Dealer sentiment and inventory management - Dealer feedback has been mixed but generally positive, with additional orders resulting from successful boat shows [32] Question: Outlook for labor costs - Management anticipates that operational effectiveness and centralized sourcing will help manage labor costs moving forward [36] Question: Competitive landscape in the ski and wake category - Management acknowledged ongoing efforts to stimulate growth in the ski/wake segment, collaborating with industry peers [39][40] Question: Confidence in EBITDA margin guidance for Q3 - Management outlined expectations for sequential growth, fixed-cost leverage, and reduced promotional spending as key drivers for margin growth [43][44]
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OKX· 2025-11-25 19:31
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Malibu Boats(MBUU) - 2026 Q1 - Earnings Call Transcript
2025-10-30 13:30
Financial Data and Key Metrics Changes - Net sales increased approximately 13.5% year over year to $194.7 million, driven by increased unit volumes and inflation-driven price increases [11] - Adjusted EBITDA for the quarter increased 19.1% to $11.8 million, with adjusted EBITDA margin rising to 6.1% from 5.8% in the prior year [13] - GAAP net loss decreased 86.2% to a loss of $700,000 [13] - Consolidated net sales per unit increased 2.9% to $172,500 per unit [11] Business Line Data and Key Metrics Changes - In the Malibu segment, gross profit decreased 1% to $27.9 million, with gross margin as a percentage of sales at 14.3%, down 210 basis points year over year [12] - Unit volume increased 10.3% to 1,129 units, with Malibu and Axis brands representing approximately 47.7% of unit sales [11] - Saltwater fishing represented 25.5% and Cobalt made up the remaining 26.8% of unit sales [11] Market Data and Key Metrics Changes - Retail activities remained soft, with inventories entering the quarter slightly elevated [4] - The company expects the market to decline in the range of mid to high single digits for the year, with a continuation of high single digit to low double digit decline through the second quarter [15] Company Strategy and Development Direction - The company is focused on driving growth and long-term value creation through its Build, Innovate, and Grow framework, expanding capabilities beyond boat building into parts, accessories, and marine services [5] - A new financing partnership, MBI Acceptance, was launched to support dealer retail activity [5][6] - The company aims to protect dealer health, manage production with precision, and continue pushing innovation [9] Management's Comments on Operating Environment and Future Outlook - Management remains realistic about the broader marine environment, noting no clear inflection signaling a market recovery [9] - The company is maintaining its full-year guidance, expecting sales to be flat to down mid single digit percentage points [15] - Management expressed confidence in the ability to outperform the market while building for the next up cycle [10] Other Important Information - The company generated $2.5 million of free cash flow during Q1, inclusive of $4.3 million of capital expenditures [13] - The company anticipates consolidated adjusted EBITDA margin for the full year ranging from 8% to 9% [16] Q&A Session Summary Question: Impact of interest rates on consumer behavior - Management noted that consumer sentiment has improved with recent rate cuts, but retail finance rates will take time to reflect these changes [19] Question: Higher dealer incentives for Malibu brand - Management indicated that higher dealer incentives were related to clearing inventory and expected a competitive promotional environment moving forward [20] Question: Inventory management and expectations - Management stated that dealer inventories are expected to reduce across all segments, aligning production with market expectations [21][29] Question: Insights on MBI Acceptance rollout - Initial feedback on MBI Acceptance has been positive, with strong dealer engagement and early success in the rollout [32][34] Question: Discounting levels in the market - Management acknowledged that while discounting has cooled from previous excess inventory levels, the environment remains competitive [38] Question: Consumer purchasing behavior - Management observed no significant changes in the cash buyer versus payment buyer dynamic, with MBI Acceptance expected to provide more insights over time [55]