Malibu Boats Inc. shaved its loss in the fiscal first quarter ended September 30 to $700,000 from $5.1 million as sales grew 13.5 percent. The top-line growth was boosted by increased unit volumes in the Malibu segment, a favorable model mix in its Cobalt segment and inflation-driven year-over-year price increases.

First Quarter Fiscal 2026 Highlights Compared to First Quarter Fiscal 2025

  • Net sales increased 13.5 percent to $194.7 million
  • Unit volume increased 10.3 percent to 1,129 units
  • Gross profit decreased 1.0 percent to $27.9 million
  • GAAP net loss decreased 86.2 percent from a net loss of $5.1 million to a net loss of $0.7 million
  • GAAP net loss available to Class A Common Stock per share (diluted) decreased 84.0 percent from a net loss of $0.25 per share to a net loss of $0.04 per share
  • Adjusted EBITDA increased 19.1 percent to $11.8 million
  • Adjusted net income per share increased 114.3 percent to $0.15 per share on a basic weighted-average share count of 19.3 million shares of Class A Common Stock

“We delivered strong results in the first quarter in what continues to be a challenging market environment. Prioritizing dealer health remains central to our strategy, and our team executed with discipline to keep channel inventories aligned,” said Steve Menneto, president and chief executive officer of Malibu Boats, Inc. “As we enter boat show season, we are excited to showcase our Model Year 2026 lineup, including the all-new Pathfinder 2600, which was debuted earlier this week at the Fort Lauderdale International Boat Show. Innovation is at the heart of Malibu, and we remain committed to delivering the most advanced technology and highest-quality products across our portfolio of brands.”

“Our first-quarter results modestly exceeded our expectations, underscoring solid execution and operational discipline,” said Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc. “We continue to focus on efficiency, cost management, and maintaining balance sheet strength which provides flexibility to navigate near-term conditions and capture opportunity as the market improves.”

Net sales for the three months ended September 30, 2025 increased $23.2 million, or 13.5 percent, to $194.7 million as compared to the three months ended September 30, 2024. The increase in net sales was driven primarily by increased unit volumes in the Malibu segment, a favorable model mix in its Cobalt segment and inflation-driven year-over-year price increases, partially offset by decreased unit volumes in the Cobalt and Saltwater Fishing segments and an unfavorable segment mix. Unit volume for the three months ended September 30, 2025, increased 105 units, or 10.3 percent, to 1,129 units as compared to the three months ended September 30, 2024. The company’s unit volume increased primarily due to higher wholesale shipments across the Malibu segment, partially offset by lower wholesale shipments in the Cobalt and Saltwater Fishing segments.

Net sales attributable to its Malibu segment increased $22.6 million, or 40.4 percent, to $78.6 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Unit volumes attributable to its Malibu segment increased 154 units for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to lower wholesale shipments during the three months ended September 30, 2024, as a result of elevated dealer inventory levels. The increase in net sales was driven by an increase in units and inflation-driven year-over-year price increases, partially offset by increased dealer incentive costs.

Net sales attributable to its Saltwater Fishing segment decreased $0.4 million, or 0.7 percent, to $64.3 million, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Unit volumes attributable to our Saltwater Fishing segment decreased 12 units for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to lower wholesale shipments driven by lower retail activity during the period. The decrease in net sales was driven by a decrease in units, partially offset by inflation-driven year-over-year price increases and a favorable model mix.

Net sales attributable to its Cobalt segment increased $1.0 million, or 1.9 percent, to $51.8 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Unit volumes attributable to Cobalt decreased 37 units for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to lower wholesale shipments driven by lower retail activity during the period and its dealers’ desire to hold less inventory. The increase in net sales was driven primarily by a favorable model mix and inflation-driven year-over-year price increases, partially offset by a decrease in units.

Overall consolidated net sales per unit increased 2.9 percent to $172,483 per unit for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase in overall consolidated net sales per unit was driven primarily by a favorable model mix in its Cobalt and Saltwater Fishing segments and inflation-driven year-over-year price increases, partially offset by an unfavorable segment mix and increased dealer incentive costs in the Malibu segment. Net sales per unit for our Malibu segment increased 0.2 percent to $146,184 per unit for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, driven by inflation-driven year-over-year price increases, partially offset by an increase in dealer incentive costs. Net sales per unit for its Saltwater Fishing segment increased 3.5 percent to $223,326 per unit for the three months ended September 30, 2025 driven by a favorable model mix and inflation-driven year-over-year price increases. Net sales per unit for our Cobalt segment increased 14.3 percent to $170,851 per unit for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, driven by a favorable model mix and inflation-driven year-over-year price increases.

Cost of sales for the three months ended September 30, 2025 increased $23.4 million, or 16.3 percent, to $166.8 million as compared to the three months ended September 30, 2024. The increase in cost of sales was primarily driven by a 13.5 percent increase in net sales due to higher unit volumes and partially due to higher net per unit material and labor costs of $1.9 million, $2.2 million and $6.3 million for the Malibu, Saltwater Fishing, and Cobalt segments, respectively. The increase in per unit material and labor costs was primarily driven by increased prices due to fixed cost deleverage in the Cobalt and Saltwater Fishing segments, a model mix that corresponds to higher costs per unit in its Cobalt and Saltwater Fishing segments, and inflationary pressures.

Gross profit for the three months ended September 30, 2025 decreased $0.3 million, or 1.0 percent, to $27.9 million compared to the three months ended September 30, 2024. The decrease in gross profit was driven primarily by increased cost of sales for the reasons noted above, partially offset by increased net sales. Gross margin for the three months ended September 30, 2025 decreased 210 basis points from 16.4 percent to 14.3 percent driven primarily by higher per unit labor and material costs and increased dealer incentive costs in the Malibu segment.

Selling and marketing expenses for the three months ended September 30, 2025 increased $1.4 million, or 29.4 percent to $6.3 million compared to the three months ended September 30, 2024. The increase was driven primarily by an increase in certain marketing events. As a percentage of sales, selling and marketing expenses increased 40 basis points to 3.2 percent for the three months ended September 30, 2025 compared to 2.8 percent for the three months ended September 30, 2024. General and administrative expenses for the three months ended September 30, 2025 decreased $6.5 million, or 23.8 percent, to $20.8 million as compared to the three months ended September 30, 2024 driven primarily by a $3.5 million legal settlement for the three months ended September 30, 2024, along with decreased legal and professional fees. As a percentage of sales, general and administrative expenses decreased 520 basis points to 10.7 percent for the three months ended September 30, 2025 compared to 15.9 percent for the three months ended September 30, 2024. Amortization expense remained flat at $1.7 million for the three months ended September 30, 2025.

Operating loss for the first quarter of fiscal year 2026 decreased to an operating loss of $0.8 million from an operating loss of $5.6 million in the first quarter of fiscal year 2025. Net loss for the first quarter of fiscal year 2026 decreased 86.2 percent to a net loss of $0.7 million from a net loss of $5.1 million and net loss margin decreased to (0.4) percent from (3.0) percent in the first quarter of fiscal year 2025. Adjusted EBITDA in the first quarter of fiscal year 2026 increased 19.1 percent to $11.8 million from $9.9 million, while Adjusted EBITDA margin increased to 6.1 percent from 5.8 percent in the first quarter of fiscal year 2025.

Fiscal 2026 Guidance
For the full fiscal year 2026, Malibu continues to anticipate net sales to be flat to down mid-single digits year-over-year, and Adjusted EBITDA margin ranging from 8 percent to 9 percent.

Image courtesy Malibu Boats