Marine Products Corporation (MPC), the parent of the Chaparral and Robalo boat brands, reported that 2025 fourth-quarter net sales came in at $47.8 million, down 33 percent from $70.9 million in the prior-year corresponding quarter. The decline comes on top of a 35 percent decrease in the 2023 fourth quarter.

The manufacturer of fiberglass boats said the decrease in net sales in the 2024 quarter was primarily due to a 39 percent decrease in the number of boats the company sold during the quarter, partially offset by a positive price/mix of 6 percent year-over-year.

“Dealers continued to tightly manage their inventories in the face of elevated floor plan carrying costs and soft consumer demand,” MPC said in its earnings release. “The company’s quarterly sales decreases steadily improved throughout 2024 (full-year sales declined 38 percent), and management expects year-over-year sales comparisons to be generally flat in the near term, with potential for growth in the second half of 2025.”

Gross margin was 19.2 percent of net sales, up 20 basis points year-over-year, reportedly reflecting effective manufacturing cost controls as well as a favorable comparison to the impact of reinstituting promotional programs in last year’s fourth quarter.

Production schedules and labor costs were adjusted to more closely align with reduced demand.

Selling, general and administrative (SG&A) expenses were $5.6 million in Q4, down 28 percent year-over-year, and represented 11.6 percent of net sales, up 70 basis points versus the prior year Q4 period. The decrease in SG&A expenses was largely due to costs that vary with sales and profitability, such as incentive compensation, sales commissions and warranty expense.

Interest income of $512 thousand decreased due to lower cash balances as a result of the company’s special dividend paid during the second quarter of 2024, coupled with lower interest rates.

The income tax benefit was $71 thousand, primarily due to tax credits related to the solar panel installation at the company’s manufacturing site, applied against the company’s tax liability.

Net income was $4.3 million, or 12 cents per diluted share, in Q4, compared to net income of $5.4 million, or 16 cents per diluted share, in Q4 2023. Net income margin was 8.9 percent of net sales, up 120 basis points, primarily due to the favorable tax credit.

EBITDA was $4.4 million in the quarter, down from $6.5 million in the prior-year quarter. EBITDA margin was 9.2 percent of net sales, consistent with 2023’s fourth quarter.

“We were encouraged with our fourth quarter results after a very challenging 2024,” stated Ben M. Palmer, president and CEO of Marine Products Corporation. “Our year-over-year sales decline in the fourth quarter was 33 percent, marking our smallest quarterly decrease this year. While we are not pleased with these results, we believe we are past the toughest quarterly sales comparisons and have seen sequential gross margin stability, with a slight improvement compared to last year’s fourth-quarter margin.

“Our efforts to scale down production and allow the channel to de-stock have been successful; however, our dealers remain cautious given persistently high inventories across other competitors and categories. We have managed our costs aggressively during this challenging demand period to preserve margins and will remain prudent with hiring and production increases until we have more definitive signals for improved demand. Feedback from recent boat shows has been positive, with good attendance and solid interest from buyers,” continued Palmer.

Full Year 2024 Results

  • Net sales decreased 38 percent year-over-year to $236.6 million
  • Net income was $17.9 million
  • Diluted EPS was 50 cents per diluted share
  • Net income margin was 7.5 percent of net sales
  • EBITDA was $21.1 million
  • EBITDA margin was 8.9 percent

The company said it continued to generate strong cash flow, supporting both regular quarterly dividends and a significant mid-year special dividend, and ended the year with approximately $52.4 million in cash and no debt.

Balance Sheet, Cash Flow and Capital Allocation

  • Cash and cash equivalents were $52.4 million at the end of 2024, with no outstanding borrowings under the company’s $20 million revolving credit facility.
  • Net cash, provided by operating activities and free cash flow, was $29.5 million and $24.9 million, respectively, in 2024.
  • During the fourth quarter, the company said it completed its solar panel installation at its Nashville, GA production facility, a significant capital project with expected cost savings and environmental benefits.
  • Payment of dividends totaled $43.7 million in 2024, including a special dividend of 70 cents per share paid during the second quarter, totaling $24.3 million.
  • The Board of Directors declared a regular quarterly dividend of 14 cents per share, payable on March 10, 2025, to common stockholders of record at the close of business on February 10, 2025.

Image courtesy Chapparal/Marine Products Corp.