Marine Products Corporation (MPX), parent of the Chaparral and Robalo boat brands, reported net sales were $59.0 million in the 2025 first quarter, down 15 percent from the year-ago Q1 period. The decrease in net sales reported primarily due to a 19 percent decrease in the number of boats sold during the quarter, partially offset by a price/mix increase of 4 percent.

“Dealers continued to tightly manage their inventories as consumer demand remained modest,” the company said in a media release. “The year-over-year sales decline, however, was significantly less pronounced than the 30 percent-plus quarterly decreases the company experienced during 2024.”

MPX said comparisons are beginning to ease, and field inventories are returning to more acceptable levels after being elevated since late 2023. The company’s field unit inventory at the end of the first quarter was approximately 18 percent below the end of Q1 2024.

Gross profit was $11.0 million in Q1, down 22 percent year-over-year (y/y). Gross margin was 18.6 percent for the quarter, down 160 basis points y/y. The year-over-year gross margin decline reportedly reflects weak sales, which more than offset manufacturing cost controls.

MPX said production schedules and labor costs continue to be adjusted to align with market demand, as relayed to the company through dealer orders and feedback regarding consumer sentiment.

Selling, general and administrative (SG&A) expenses were $8.3 million, down 5 percent y/y, and represented 14.1 percent of net sales in Q1, up 150 basis points versus the prior-year period. The decrease in SG&A expenses was reported largely due to costs that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expenses.

Interest income of $442 thousand decreased year-over-year, reportedly due to lower cash balances as a result of the company’s special dividend paid during the second quarter of 2024.

Income tax provision was $849 thousand, or 27.8 percent of income before income taxes, in the first quarter, up 320 basis points y/y.

Net income for the quarter was $2.2 million, or 6 cents per diluted share, down from $4.6 million, or 13 cents per diluted share, in Q1 2024. Net income margin was 3.7 percent of net sales, down 290 basis points y/y.

EBITDA was $3.4 million in Q1, down from $5.9 million in Q1 2024. EBITDA margin was 5.8 percent in the quarter, down 270 basis points from last year’s first quarter.

Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $57.1 million at the end of the first quarter, with no outstanding borrowings under the company’s $20 million revolving credit facility.

In the quarter, net cash provided by operating activities and free cash flow were $10.8 million and $10.7 million, respectively. The company expects full-year 2025 capital expenditures to be approximately $3 million.

Payment of dividends totaled $4.9 million in the first quarter. Additionally, the Board of Directors declared a regular quarterly dividend of 14 cents per share, payable on June 10, 2025, to common stockholders of record at the close of business on May 9, 2025.

Image courtesy Robalo/Marine Products Corporation