Core Insights - Marine Products Corporation reported a 7% increase in net sales for Q3 2025, reaching $53.1 million, primarily driven by a price/mix increase, despite a slight decrease in the number of boats sold [4][7][8] - The company expressed cautious optimism about the marine industry's recovery, noting that dealer inventory has adjusted to stabilizing demand and there is strong interest in larger boats and new model offerings for 2026 [3][4] - Economic uncertainty continues to affect the marine industry, but potential lower interest rates and clarity on tariffs are seen as positive factors for future performance [3][4] Financial Performance - Gross profit for Q3 2025 was $10.2 million, an 11% increase year-over-year, with a gross margin of 19.2%, up 80 basis points from the previous year [5][7] - Selling, general and administrative expenses rose by 31% to $7.4 million, representing 13.9% of net sales, largely due to increased R&D investments and warranty costs [6][7] - Net income decreased by 22% year-over-year to $2.7 million, with diluted EPS at $0.07, reflecting higher R&D investments and cost adjustments [7][8] Cash Flow and Balance Sheet - The company ended Q3 2025 with $47.4 million in cash and no debt, with net cash provided by operating activities at $11.7 million and free cash flow at $10.8 million year-to-date [9][10] - Year-to-date dividend payments totaled $14.7 million, and a quarterly dividend of $0.14 per share was declared [10] - Total assets increased to $179.5 million, with total liabilities at $53.2 million, indicating a solid capital structure [17]