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]