Massimo Group, the Garland, TX-based manufacturer and distributor of powersports vehicles and pontoon boats, reported that revenue decreased 3.3 percent to $111.2 million in fiscal 2024, compared to $115.0 million in fiscal 2023. The decrease in revenue was said to be primarily due to the combined effects of rising demand in the U.S., ATV and UTV market and the company’s modified sales strategy, offset by the decrease in revenue from sales of Pontoon Boats.

“In 2024, we continued expanding our distribution network through various retailers to enhance market penetration,” the company said in its annual report summary. “We strategically focused our efforts on large retail stores in the U.S. that offer their own financing plans while moving away from retailers that have liberal return policies.”

Massimo Motor Sports
Revenue from sales of UTVs, ATVs and e-bikes increased by 4.0 percent, to $107.5 million in fiscal 2024, compared to $103.3 million in fiscal 2023. The company attributed the increase in revenue primarily to the expansion into more big box stores.

“This surge is consistent with the increasing ranch/farm-work utilization of UTVs across the 1.89 million farms in the U.S. with an average size of 464 acres and the new customer’s rural lifestyle focus,” the company said. “The increase in sales is also due to a shift in our sales strategy, focusing mostly on in-store sales to this retail chain store customer, which generally involve larger volumes and no returns. In addition, sales to this new customer consist of high-turnover inventory products that are of high quality and have a strong customer reputation. This enhances the efficiency of our capital utilization.”

Massimo Marine
Revenue from sales of Pontoon Boats fell 68.0 percent to $3.8 million in fiscal 2024 from $11.7 million in fiscal 2023. The decrease was said to be primarily driven by an industry-wide downturn caused by high interest rates and inflation, which are impacting the consumption of non-essential goods.

“In addition, the fact that the dealers have experienced high rejection rates at the floorplan financing providers such as Northpoint has directly affected the inventory level the dealers maintain and, therefore, our sales in this category,” the company explained. “This trend aligns with broader industry challenges. The ongoing economic uncertainty in the U.S. has further reduced discretionary spending on luxury boats, negatively affecting sales of high-end models such as our yacht.”

Gross profit decreased by $1.6 million, or 4.4 percent, from $35.9 million in fiscal 2023 to $34.3 million in fiscal 2024. Gross margin was 30.9 percent in fiscal 2024, as compared with 31.2 percent in fiscal 2023. Our gross margin in fiscal 2024 remained constant when compared with fiscal 2023.

Net income was $3.2 million and $10.4 million in fiscal 2024 and 2023, respectively. The decrease was primarily due to decreased revenues and gross profit, offset by an increase in general and administrative expenses and a loss on litigation.

As of December 31, 2024, Massimo reported a positive working capital of $19.2 million, with an increase in net cash and cash equivalents of $9.4 million for the year ended Dec. 31, 2024.

Key 2024 Operational Highlights

  • Relocation of its MVR Golf Cart series production to its facility in Garland, TX;
  • A new robotic assembly line will increase efficiency, enhance quality control and improve worker safety in Garland.
  • Massimo’s nationwide distribution network now includes six strategically located centers: Edison, NJ; City of Industry, CA; Port Wentworth, GA; Houston, TX; Garland, TX and Edwardsville, IL.
  • The company continues to deepen its relationships with key retail partners through active engagement at major industry events.
  • The company plans to expand into AI Application Robotic Products, partnering with manufacturers to distribute AI-powered companions and utility assistants, transforming the business beyond traditional powersports into high-tech, AI-driven applications.

Massimo Group, through its subsidiaries Massimo Motor Sports and Massimo Marine LLC, manufactures, imports and distributes a diversified portfolio of products, including UTVs, ATVs, motorcycles, scooters, golf carts, tractors, and recreational pontoon boats, among other product lines designed for outdoor enthusiasts.

The company’s 286,000-square-foot factory is in the Dallas/Fort Worth, TX area in Garland, TX.

Image courtesy Massimo Motors