Marine Products Corporation (MPX), the parent of the Chaparral and Robalo boat brands, reported that second-quarter net sales declined 3 percent year-over-year to $67.7 million. The decrease in net sales was attributed primarily to a 13 percent decline in the number of boats sold during the quarter, which was substantially offset by a 10 percent increase in price and mix. The company stated that the year-over-year (y/y) sales decline was more modest compared to recent quarters, as comparisons ease and field inventories return to more balanced levels.
“Second quarter results reflected a stabilization of demand and a more balanced environment,” stated company President and CEO Ben Palmer. “Second quarter sales were down 3 percent year-over-year; however, shipments and sales grew sequentially again this quarter and are now solidly off second-half of 2024 lows. We are excited about our model year 2026 introductions, which feature new models, enhancements across the entire portfolio, and thoughtful approaches to offer cost-effective alternatives.”
The company’s field unit inventory at the end of the quarter was approximately 11 percent lower than at the end of the 2024 Q2 period. Effective management of field inventory has allowed the company to maintain reasonable production levels and manage operational efficiencies during the quarter.
“Tariffs and macro risks remain top of mind, with dealers and retail consumers remaining cautious overall,” Palmer offered. “Thus far, supplier cost increases have been manageable, alleviating the concern that the 2026 model year pricing would be up significantly, but risks still persist as tariff policies continue to evolve. The interest rate outlook continues to be cloudy, although there are market expectations for rate cuts later this year.”
Profitability and Expenses
Gross profit was $12.9 million in Q2, down 2 percent y/y. Gross margin was 19.1 percent of sales, up 20 basis points versus the prior-year Q2 period. Gross margin reportedly improved as production schedules stabilized, resulting in manufacturing cost efficiencies due to increased demand.
Selling, general and administrative (SG&A) expenses were $8.1 million, up 9 percent y/y, and represented 12.0 percent of net sales, up 130 basis points versus the prior-year Q2 period. The increase in SG&A expenses was attributed to a rise in R&D investments and the timing of incentive compensation accruals.
Interest income of $476,000 decreased due to lower cash balances resulting from the Company’s special dividend paid during the second quarter of 2024.
Income tax provision was $1.1 million, or 21.3 percent of income before income taxes, up 560 basis points.
Net income was $4.2 million, or 12 cents per diluted share, in Q2, compared to $5.6 million, or 14 cents per share, in Q2 2024.
Net income margin was 6.1 percent in Q2, down 190 basis points y/y.
EBITDA was $5.6 million in Q2, down from $6.5 million. EBITDA margin was 8.3 percent of sales, down 100 basis points from last year’s second quarter.
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $50.2 million at the end of the second quarter, with no outstanding borrowings under the company’s $20 million revolving credit facility.
Net cash provided by operating activities and free cash flow were $9.2 million and $8.6 million, respectively, year-to-date through the second quarter. MPX expects full-year 2025 capital expenditures to be approximately $3 million.
Payment of dividends totaled $9.8 million year-to-date through the 2025 second quarter. Additionally, the Board of Directors declared a regular quarterly dividend of $0.14 per share, payable on September 10, 2025, to common stockholders of record as of the close of business on August 11, 2025.
“We are extremely proud of the responsiveness and resiliency our employees, operations, and dealers have shown in this environment. Our strong balance sheet, cash position and disciplined management of production levels relative to retail demand and field inventory afford us the ability to continue to invest in the business internally and through strategic opportunities,” concluded Palmer.
Image courtesy Robalo/Marine Products Corporation
