Financial Data and Key Metrics Changes - For Q3 2025, net sales were $76 million, a decrease of $8 million or 10% from the prior year, primarily due to lower unit sales volume, partially offset by a favorable mix [17] - Gross margin was 20.8%, down from 23.3% in the prior year, attributed to lower cost absorption from production decreases [18] - Adjusted net income for the quarter was $5 million or $0.30 per diluted share, compared to $8.5 million or $0.50 per diluted share in the prior year [18] - Adjusted EBITDA was $7.5 million, down from $11.7 million in the prior year, with an adjusted EBITDA margin of 9.9% compared to 13.9% [19] - The company ended the quarter with nearly $167 million in total liquidity, including $67 million in cash and short-term investments, and $100 million available under its revolving credit facility, with no debt [19] Business Line Data and Key Metrics Changes - In the MasterCraft segment, production of the premium X Star model ramped up, contributing positively to brand momentum and dealer support [14] - The pontoon segment, including Crest and Valise brands, faced challenges with dealer inventories, leading to a 40% year-over-year unit reduction [16] Market Data and Key Metrics Changes - Dealer inventories across brands decreased by 30% over the past year, and more than 45% compared to the pre-pandemic period in fiscal 2019 [10] - The company anticipates a modest impact from tariffs on fiscal 2025 costs, while closely monitoring broader demand implications [11] Company Strategy and Development Direction - The company is focused on disciplined cost, cash, and pipeline management, with a renewed emphasis on product development and prudent destocking [9] - Capital allocation priorities remain disciplined, with a solid balance sheet and a focus on share repurchase programs to return capital to shareholders [12] - The company is exploring growth opportunities within its distribution network, particularly in key markets like Dallas and Southern Utah [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds and tariff uncertainty impacting the marine sector, leading to a revision of full-year guidance [10] - Despite challenges, management remains confident in achieving inventory reduction targets and maintaining dealer health [10] - The company is optimistic about retail momentum, particularly with premium buyers, and is preparing for the summer selling season [50] Other Important Information - Tim Oxley, the CFO, will retire in June, with Scott Kent set to succeed him [5][6] - The X Star model received the National Marine Manufacturers Association Innovation Award, highlighting the company's focus on quality and innovation [13] Q&A Session Summary Question: Can you quantify the tariff impacts and potential price increases for model year '26? - Management indicated that the impact of tariffs is evolving and has not yet determined specific pricing effects, but expects some inflationary impact [26] Question: How do you view retail trends and dealer health? - Management expects retail to trend closer to a 10% decline and is pleased with the health of dealers, noting no significant dealer failures [27][37] Question: What is the status of the Belize product and its revenue expectations? - The Belize product is in low-rate production, with anticipated net sales around $10 million for fiscal '25, and positive early responses from dealers [41][44] Question: How will you approach pricing in light of tariffs? - The company aims to balance volume, price, and cost, considering a variable pricing model due to tariff variability [62][64]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $76 million, a decrease of $8 million or 10% from the prior year, primarily due to lower unit sales volume, partially offset by a favorable mix [16][17] - Gross margin was 20.8%, down from 23.3% in the prior year, attributed to lower cost absorption from production decreases [17] - Adjusted net income for the quarter was $5 million or $0.30 per diluted share, compared to $8.5 million or $0.50 per diluted share in the prior year [18] - Adjusted EBITDA was $7.5 million, down from $11.7 million in the prior year, with an adjusted EBITDA margin of 9.9% compared to 13.9% [19] Business Line Data and Key Metrics Changes - Within the MasterCraft segment, production of the premium X Star model ramped up, contributing positively to brand momentum [8][13] - The pontoon segment, including Crest and Valise brands, faced challenges with dealer inventories, leading to a 40% year-over-year unit reduction [15] Market Data and Key Metrics Changes - Dealer inventories across brands decreased by 30% over the last year, and more than 45% compared to pre-pandemic levels in fiscal 2019 [9] - The company anticipates a modest impact from tariffs on fiscal 2025 costs, while closely monitoring demand implications [10] Company Strategy and Development Direction - The company is focused on disciplined cost, cash, and pipeline management, with a strong emphasis on product development and dealer support [8][12] - Capital allocation priorities remain disciplined, with a solid balance sheet and no debt, allowing for share repurchase programs to return capital to shareholders [11][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds and tariff uncertainty affecting the marine sector, leading to a revision of full-year guidance [9][21] - Despite challenges, management remains confident in achieving inventory reduction targets and is optimistic about the upcoming selling season [9][22] Other Important Information - Tim Oxley, the CFO, will retire in June, with Scott Kent set to succeed him, reflecting careful succession planning [5][6] - The X Star model received the National Marine Manufacturers Association Innovation Award, highlighting the company's focus on quality and innovation [12] Q&A Session Summary Question: Can we quantify the tariff impacts and potential price increases for model year '26? - Management indicated that the impact of tariffs is evolving and has not yet determined specific pricing effects, but expects some inflationary impact [26] Question: How is retail performing, and does the previous down 5% to 10% estimate change? - Management expects retail to trend closer to 10% down, with more clarity expected in June [28] Question: What is the direct and indirect exposure to tariffs? - Management has discussions with suppliers to understand costs and expects a modest impact in Q4, with ongoing monitoring [33][34] Question: What is the status of dealer network expansion? - Management reported progress in expanding the dealer network, particularly in Texas and Utah, which are key markets [36] Question: How is the dealer network's balance sheet performing? - Management expressed satisfaction with dealer health, noting no significant dealer failures despite the challenging environment [38] Question: What is the early response to the Belize product? - Management anticipates net sales around $10 million for fiscal '25, with positive dealer interest and response [42][45] Question: Any trends observed at retail in April and May? - Management noted that while retail momentum is not yet vibrant, there are signs of improvement, particularly with premium buyers [51][52]

Financial Performance - Q3 2025 - Net sales reached $76 million[18], a decrease of 10% compared to Q3 FY24[20] - Adjusted EBITDA amounted to $75 million[18], down from $117 million in Q3 FY24[20] - Adjusted diluted net income per share was $030[18], a decrease from $050 in Q3 FY24[20] Financial Performance - YTD Q3 2025 - YTD net sales totaled $2047 million[22], a 24% decrease from FY24[22] - YTD Adjusted EBITDA was $149 million[22], down from $386 million in FY24[22] - YTD Adjusted Diluted Net Income per Share was $053[22], down from $112 in FY24[22] Balance Sheet & Capital Allocation - The company maintains a strong financial position with approximately $67 million in cash and investments and no debt[18] - The company returned $5 million of capital YTD through a share repurchase program[18] - The company authorized a $50 million share repurchase program in July 2023, with approximately $30 million still available[26] Fiscal Year 2025 Guidance - The company refines fiscal 2025 guidance with net sales of approximately $275 million[18] - The company projects adjusted EBITDA of approximately $20 million[18] - The company anticipates adjusted earnings per share of approximately $071[18]

Core Insights - The upcoming earnings report for Malibu Boats (MBUU) is projected to show quarterly earnings of $0.67 per share, reflecting a 6.4% increase year over year, with revenues expected to reach $223.38 million, a 9.8% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 4.2%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies have shown a strong correlation between earnings estimate trends and short-term stock price movements [3]. Analyst Estimates - Analysts estimate that revenue from the Saltwater Fishing segment will be $84.15 million, representing a 3.6% year-over-year increase [5]. - The forecast for 'Unit Volume by Segment - Malibu' is 472, up from 452 in the same quarter last year, while 'Unit Volume by Segment - Cobalt' is expected to reach 491, compared to 436 a year ago [5]. - The 'Net Sales per Unit - Total' is projected at $166,199.50, an increase from $160,299 in the previous year, with total unit volume expected to be 1,346, up from 1,269 [6]. - The estimated 'Unit Volume by Segment - Saltwater Fishing' is 383, slightly up from 381 in the same quarter last year [7]. Stock Performance - Over the past month, shares of Malibu Boats have increased by 12.4%, outperforming the Zacks S&P 500 composite, which rose by 11.5% [7]. - Currently, Malibu Boats holds a Zacks Rank 3 (Hold), suggesting that its performance may align with the overall market in the near future [7].

Company Overview - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of experience and annual sales of CA$7.8 billion from over 130 countries as of January 31, 2025 [4] - The company employs approximately 16,500 people and offers a diverse portfolio of brands including Ski-Doo, Lynx, Sea-Doo, Can-Am, Alumacraft, and Rotax [4] Acquisition Details - Bryton Marine Group, a diversified marine manufacturer specializing in aluminum boats, has acquired the Alumacraft marine business from BRP [2] - The acquisition is expected to close by the end of BRP's first quarter, with both companies collaborating to ensure a smooth transition [2] - Bryton Marine Group aims to expand its North American boat building brand footprint and continue the legacy of Alumacraft, which has been part of family memories for over 75 years [2] Bryton Marine Group Profile - Bryton Marine Group is North America's largest private family-owned builder of aluminum boats, serving both commercial and recreational markets [6] - The group consists of six industry-leading brands and is dedicated to advancing boatbuilding through modern engineering and craftsmanship [6]

Financial Data and Key Metrics Changes - The company reported a significant decline in revenues, ending 2024 with net sales of $14.4 million, a reduction of $19 million or 57% from 2023 [10] - The fourth quarter of 2024 saw revenues fall to a multi-year low of $1.9 million, down from $8.4 million in Q4 2023, with sequential declines throughout the year [7][9] - The average sale price of boats increased by 19% to approximately $167,000 in 2024, compared to $140,000 in 2023, attributed to a shift towards larger, higher-priced boats [11] Business Line Data and Key Metrics Changes - The company experienced a renewed interest in its Twin Vee and AquaSport lines, leading to a growing backlog and new dealer interest [6] - Despite the overall revenue decline, the company focused on higher-priced boats, resulting in a smaller decline in sales volume compared to revenue [11] Market Data and Key Metrics Changes - The marine and recreational vehicle markets faced a post-COVID slowdown, high interest rates, and inflation, which negatively impacted consumer demand [8] - The industry dealt with excess inventory, particularly OneWater boats being sold at deep discounts, intensifying market pressures [8] Company Strategy and Development Direction - The company implemented aggressive cost-cutting measures throughout 2024 to align with lower revenue volumes, including reductions in headcount and discretionary spending [9][12] - A strategic decision was made to curtail research and development of electric boats, focusing instead on strengthening the business foundation [9] - The acquisition of the remaining 55% of Forza X1 was completed, aimed at improving operational efficiencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating a 50% increase in first-quarter sales sequentially compared to Q4 2024 [6] - The company noted improved market conditions and increased demand for boats, with a careful approach to ramping up production and hiring [17] - Management emphasized a focus on operational efficiencies and strengthening product offerings to capitalize on the improving industry environment [18] Other Important Information - The company ended 2024 with $7.7 million in cash and cash equivalents, down from $11.4 million at the end of Q3 2024 [14] - Operating expenses were reduced by $1.454 million or 10% compared to 2023, despite increases in depreciation and professional fees related to the merger [12][13] Q&A Session Summary - The Q&A session concluded without any recorded questions or answers, indicating a lack of participant inquiries during this segment [20]