Core Insights - Malibu Boats, Inc. will showcase its brands at the Miami International Boat Show (MIBS) from February 11-15, 2026, featuring new models including the Pursuit DC 286 and Pathfinder 2800 Hybrid [1][2][3] Group 1: Event Details - The Miami International Boat Show is a significant event for the global marine industry, where Malibu Boats will present its latest offerings [3] - Attendees will have the opportunity to experience the public debut of the Pursuit DC 286 and Pathfinder 2800 Hybrid on February 11 [2][3] Group 2: Product Highlights - The Pursuit DC 286 is a 28-foot dual console designed for exceptional performance and comfort, filling a key space in the Pursuit lineup [5] - The Pathfinder 2800 Hybrid is a milestone model that combines innovation and performance, featuring several firsts for the brand, including a stepped-hull design for twin engines [8][9] - Malibu and Axis Boats will showcase performance-driven models like the Malibu M230 and Axis T250, emphasizing on-water performance and technology [4] Group 3: Brand Commitment - Malibu Boats, Inc. emphasizes its commitment to innovation, quality, and customer experience, aiming to connect with boating enthusiasts at the show [3] - Cobalt Boats will present a premium lineup reflecting luxury craftsmanship and performance, including models from its acclaimed outboard series [7] - Cobia Boats will debut the all-new 245 CC and 305 CC, focusing on fishing capability combined with family comfort [10]

Use & Definition of Non-GAAP Financial Measures This presentations includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net (Loss) Income, Adjusted Net (Loss) Income per Share and Free Cash Flow. These measures have limitations as analytical tools and should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with U.S. generally a ...

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [20] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [24] - Q4 adjusted EBITDA increased to $19.7 million, with an adjusted EBITDA margin of 9.5% [22] - GAAP net income for Q4 increased to $4.8 million, and adjusted net income per share increased by 205% to $0.42 [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [20] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% for fiscal year 2025 from 15.3% in fiscal year 2024 [26] - Adjusted EBITDA margin for the saltwater fishing segment decreased to 9.5% from 10.8%, and for the Cobalt segment decreased to 8.3% from 10.2% [27] Market Data and Key Metrics Changes - Initial market data suggests that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [10] - The company anticipates a modest direct impact from tariffs on fiscal year 2026 structure estimated between 1.5% to 3% cost of sales [17] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [8] - The focus remains on aligning wholesale with retail and supporting dealer health [10][12] - The company is committed to customer-centric innovation and environmental responsibility [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging retail environment and macroeconomic uncertainty affecting consumer sentiment [6][10] - The company expects gradual improvement in fiscal year 2026, with net sales anticipated to be flat to down mid-single digits [29] - Management emphasizes a disciplined approach to expectations, aligning with real-time market conditions [18] Other Important Information - The company generated $29 million in free cash flow for the year and returned $36 million to shareholders through share repurchases [9][27] - The balance sheet remains strong with $19 million of net cash and over $300 million of untapped liquidity [27] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal year 2026 guidance [33][34] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, and has incorporated expected cost increases into guidance [36] Question: Retail outlook and dealer health - Management expects the retail market to remain similar to the previous year, focusing on gaining market share in a declining market [47][49] Question: Pricing and cost offsets - Management confirmed that some mitigation efforts occurred in the previous fiscal year, and price increases will be necessary due to additional costs [61][63] Question: Long-term debt and capital strategy - Management clarified that the presence of long-term debt is due to the use of a credit facility for working capital, with a strong net cash position [67][68] Question: Sensitivity analysis for EBITDA margin recovery - Management noted that stabilizing the market would help eliminate the need for destocking, which could drive revenue and profit growth [70]

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [18] - Consolidated net sales per unit increased by 11.6% to $169,565, driven by inflation and a favorable model mix [19] - Gross profit increased by 162.1% to $32.7 million, with gross margin rising to 15.8% from 7.9% in the prior year [19] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [22] - Adjusted EBITDA decreased by 9.1% to $74.8 million, with adjusted EBITDA margin decreasing by 60 basis points to 9.3% [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [19] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% from 15.3% in the previous year, while the saltwater fishing segment decreased to 9.5% from 10.8% [24] Market Data and Key Metrics Changes - Initial market data indicated that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [9] - Elevated interest rates and macroeconomic uncertainty affected consumer sentiment, leading to softer industry retail data [9] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [7] - A focus on dealer health and inventory alignment is central to the company's strategy, with proactive steps taken to reduce dealer inventory [9][10] - The company aims to remain disciplined and aligned with market conditions while preparing for potential growth when the market normalizes [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging retail environment and macroeconomic uncertainties but expressed confidence in the company's ability to navigate these challenges [6][15] - The company anticipates a modest direct impact from tariffs on cost of sales, estimated between 1.5% to 3% [15] - For fiscal year 2026, the company expects net sales to be flat to down mid-single digits, with gradual improvement projected towards the back half of the year [28][29] Other Important Information - The company generated $29 million in free cash flow and returned $36 million to shareholders through share repurchases [8][25] - The balance sheet remains strong, with $19 million of net cash and over $300 million of untapped liquidity on the credit facility [25][26] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal 2026 guidance [32][33] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, but has incorporated increased costs into guidance [34][35] Question: Retail outlook and interest rate cuts - Guidance does not assume any interest rate cuts, and management expects normalized promotions to drive market share during the boat show season [39][40] Question: Health of the dealer base and industry inventory levels - The dealer network is generally healthy, but there is a slight excess inventory due to softer retail in Q4; the industry is improving overall [56][58] Question: Pricing and cost mitigation strategies - Management has taken steps to mitigate costs through advanced purchases and expects some price increases to be necessary [60][61] Question: Long-term debt and capital expenditure plans - There is no change in capital strategy; the company maintains a strong net cash position while being disciplined in capital expenditures [66][67]

Fiscal Year 2025 Performance - Malibu Boats Inc's net sales decreased by 2.6% year-over-year, reaching $807.6 million[19,40] - Adjusted EBITDA decreased by 9.1% year-over-year to $74.8 million[19,44] - Adjusted net income per share for fiscal year 2025 was $1.58, compared to $2.01 in fiscal year 2024[17] - The company generated $29 million of free cash flow in fiscal year 2025[15,54] - Gross margin increased by 10 bps year-over-year to 17.8%[19,43] Q4 Fiscal Year 2025 Performance - Net sales for Q4 2025 were $158.7 million, compared to $207.0 million in Q4 2024[34] - Gross margin for Q4 2025 was 7.9%, compared to 15.8% in Q4 2024[37] - Adjusted EBITDA for Q4 2025 was $(4.1) million, compared to $19.7 million in Q4 2024[38] Fiscal Year 2026 Outlook - The company anticipates consolidated net sales to be flat to down mid-single digits[46] - The company projects an adjusted EBITDA margin between 8% and 9%[46]