METTAWA, Ill., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE: BC), the world’s largest marine technology company, today announced a consolidation of its global fiberglass boat manufacturing footprint designed to reduce fixed costs and unlock greater productivity and efficiency while maintaining the necessary capacity and flexibility for future growth. As part of this footprint rationalization, Brunswick will close its Reynosa, Mexico fiberglass boat manufacturing facility, transitioning pr ...

Core Viewpoint - Analysts project that Malibu Boats (MBUU) will report quarterly earnings of $0.44 per share, reflecting a significant year-over-year increase of 212.8% and revenues expected to reach $195.8 million, up 23.4% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating that analysts have not revised their initial projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenue by product- Malibu' at $56.75 million, representing a year-over-year increase of 51.3% [5]. - The expected 'Revenue by product- Cobalt' is projected to be $62.10 million, indicating a year-over-year change of 23.7% [5]. - 'Revenue by product- Saltwater Fishing' is anticipated to reach $83.00 million, reflecting a year-over-year increase of 16.9% [6]. Stock Performance - Malibu Boats shares have increased by 11.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.7% [6]. - With a Zacks Rank of 3 (Hold), MBUU is expected to closely follow overall market performance in the near term [6].

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]