Core Insights - Marine Products Corporation reported a 3% year-over-year decline in net sales for Q2 2025, totaling $67.7 million, primarily due to a 13% decrease in the number of boats sold, which was partially offset by a 10% price/mix increase [4][7] - The company experienced a net income of $4.2 million, down 25% from the previous year, with diluted EPS at $0.12, reflecting a net income margin decrease of 190 basis points to 6.1% [7][8] - Management expressed optimism about demand stabilization and upcoming model year 2026 introductions, despite ongoing concerns regarding tariffs and macroeconomic risks [3][4] Financial Performance - Gross profit for Q2 2025 was $12.9 million, a decrease of 2% year-over-year, with a gross margin of 19.1%, which improved by 20 basis points compared to the prior year [5][8] - Selling, general and administrative expenses rose by 9% to $8.1 million, representing 12.0% of net sales, attributed to increased R&D investments and timing of incentive compensation [5][8] - EBITDA for the quarter was $5.6 million, down 13% year-over-year, with an EBITDA margin of 8.3%, a decrease of 100 basis points from the previous year [7][8] Cash Flow and Balance Sheet - The company ended Q2 2025 with cash and cash equivalents of $50.2 million and no debt, with net cash provided by operating activities at $9.2 million and free cash flow at $8.6 million year-to-date [9][10] - Year-to-date dividend payments totaled $9.8 million, with a quarterly dividend of $0.14 per share declared for payment on September 10, 2025 [10] - Total assets as of June 30, 2025, were $173.2 million, with total liabilities at $46.0 million, indicating a strong balance sheet position [16][17] Market Outlook - Management highlighted the importance of a strong balance sheet and disciplined production management to navigate the current market environment, with expectations for capital expenditures of approximately $3 million for the full year 2025 [3][9] - The company is focused on product innovation and diversification to enhance market share and long-term shareholder value [12][13]