Malibu Boats, Inc. reported sales increased 3.1 percent in the fiscal third quarter ended March 31 as revenues from the acquisition of Saxdor Yachts offset lower volumes across its three existing segments, resulting primarily from lower wholesale shipments. Revenue and adjusted EBITDA each exceeded the high end of the guidance on a legacy basis.

Third Quarter Fiscal 2026 Highlights Compared to Third Quarter Fiscal 2025:

  • Net sales increased 3.1 percent to $235.7 million
  • Unit volume decreased 12.4 percent to 1,253 units
  • Gross profit decreased 9.7 percent to $41.3 million
  • GAAP net (loss) income decreased from net income of $13.2 million to a net loss of $2.4 million
  • GAAP net (loss) income available to Class A Common Stock per share (diluted) decreased from net income of 66 cents to net loss of 13 cents per share
  • Adjusted EBITDA decreased 19.7 percent to $22.7 million
  • Adjusted net income per share decreased from net income of 74 cents to 56 cents per share on a basic weighted-average share count of 19.0 million shares of Class A Common Stock
  • Cash flows provided by operating activities were $21.4 million
  • Free cash flow was approximately $16.0 million

During the three-month fiscal third quarter, the company repurchased approximately 492,794 shares for $13.1 million at an average price of approximately $26.24 per share, a discount to the price at which equity was issued to Saxdor Yachts (“Saxdor”)
As previously announced, on March 2, 2026, the company acquired Saxdor, a leading European designer and manufacturer of premium adventure dayboats headquartered in Helsinki, Finland

“We delivered a strong third quarter and took an important step in our long-term growth strategy with the acquisition of Saxdor Yachts,” commented Steve Menneto, president and CEO of Malibu Boats, Inc. “Revenue and adjusted EBITDA each exceeded the high end of our guidance on a legacy basis, prior to the partial-quarter contribution from Saxdor, which we acquired on March 2, 2026. The Saxdor acquisition advances the ‘Build, Innovate, and Grow’ strategy we outlined at our September 2025 Investor Day — expanding our portfolio into the premium adventure day boat category and establishing a scalable global operating platform. We are already seeing early proof points with Saxdor’s new flagship 460 GTC model. Its US debut at the Palm Beach International Boat Show generated strong market reaction, and the model is now sold out for the year. Across our Pursuit and Maverick Boat Group brands, performance was up year-over-year at the Palm Beach show, reinforcing the strength of our Model Year 2026 lineup and the durability of the premium consumer. With healthy, current dealer inventories and disciplined production heading into the prime selling season, we remain confident in our ability to outperform the industry as market conditions improve.”

“Our disciplined capital allocation framework and the strength of our balance sheet allowed us to complete a strategic acquisition while continuing to return capital to shareholders during the quarter,” said David Black, chief financial officer of Malibu Boats, Inc. “We repurchased shares at a meaningful discount to the price at which equity was issued as partial consideration for Saxdor, effectively offsetting a significant portion of the deal-related dilution. We remain focused on executing against our priorities and delivering long-term value to our shareholders.”Net sales for the three months ended March 31, 2026 increased $7.0 million, or 3.1 percent, to $235.7 million as compared to the three months ended March 31, 2025. The increase in net sales was driven primarily by $23.1 million of revenue from the new Saxdor segment due to the recent acquisition, a favorable model mix across all three existing segments, a favorable segment mix and year-over-year price increases, partially offset by decreased unit volumes across all three existing segments resulting primarily from lower wholesale shipments. Unit volume for the three months ended March 31, 2026, decreased 178 units, or 12.4 percent, to 1,253 units as compared to the three months ended March 31, 2025. Unit volume decreased primarily due to lower wholesale shipments across all three existing segments driven by lower retail activity, partially offset by an additional 66 units contributed by Saxdor.

Net sales attributable to its Malibu segment decreased $21.5 million, or 21.0 percent, to $80.7 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Unit volumes attributable to our Malibu segment decreased 201 units for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, 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 and partially offset by a favorable model mix and year-over-year price increases.

Net sales attributable to its Saltwater Fishing segment increased $1.5 million, or 2.1 percent, to $73.4 million, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Unit volumes attributable to its Saltwater Fishing segment decreased 13 units for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to lower wholesale shipments driven by lower retail activity during the period. The increase in net sales was driven by a favorable model mix and year-over-year price increases partially offset by a decrease in units.

Net sales attributable to its Cobalt segment increased $3.9 million, or 7.1 percent, to $58.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Unit volumes attributable to Cobalt decreased 30 units for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, 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 year-over-year price increases, partially offset by a decrease in units.

Since the acquisition on March 2, 2026, net sales and unit volume attributable to its Saxdor segment were $23.1 million and 66 units, respectively for the three months ended March 31, 2026.

Overall consolidated net sales per unit increased 17.7 percent to $188,107 per unit for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase in overall consolidated net sales per unit was driven primarily by a favorable model mix across all segments, a favorable segment mix including an incremental increase related to its new Saxdor segment, and year-over-year price increases. Net sales per unit for its Malibu segment increased 8.2 percent to $148,661 per unit for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, driven by a favorable model mix and year-over-year price increases. Net sales per unit for its Saltwater Fishing segment increased 6.4 percent to $234,511 per unit for the three months ended March 31, 2026 driven by a favorable model mix and year-over-year price increases, partially offset by increased dealer incentive costs per unit. Net sales per unit for its Cobalt segment increased 16.8 percent to $176,544 per unit for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, driven by a favorable model mix and year-over-year price increases. Since the acquisition on March 2, 2026, net sales per unit for its Saxdor segment was $350,561.

Cost of sales for the three months ended March 31, 2026 increased $11.5 million, or 6.3 percent, to $194.4 million as compared to the three months ended March 31, 2025. The increase in cost of sales was primarily driven by cost of sales from the new Saxdor segment due to the recent acquisition and higher per unit material and labor costs of $4.6 million, $5.4 million and $4.2 million for the Malibu, Saltwater Fishing, and Cobalt segments, respectively, partially offset by a decrease in unit volumes across the Malibu, Saltwater Fishing, and Cobalt segments. The increase in per unit material and labor costs was primarily driven by increased prices due to fixed cost deleveraging due to lower unit volumes across all segments, a model mix that corresponds to higher costs per unit across all three existing segments and inflationary pressures.

Gross profit for the three months ended March 31, 2026 decreased $4.4 million, or 9.7 percent, to $41.3 million compared to the three months ended March 31, 2025. The decrease in gross profit was driven by the increased cost of sales for the reasons noted above. Gross margin for the three months ended March 31, 2026 decreased 250 basis points from 20.0 percent to 17.5 percent driven primarily by fixed cost deleveraging due to lower unit volumes across all three existing segments and higher per unit labor and material costs.

Selling and marketing expenses for the three months ended March 31, 2026 increased $1.5 million, or 22.1 percent to $8.3 million compared to the three months ended March 31, 2025. The increase was driven primarily by higher personnel-related expenses, marketing events and an incremental increase in selling and marketing expenses due to the new Saxdor segment. As a percentage of sales, selling and marketing expenses increased 50 basis points to 3.5 percent for the three months ended March 31, 2026 compared to 3.0 percent for the three months ended March 31, 2025.

General and administrative expenses for the three months ended March 31, 2026 increased $11.9 million, or 60.0 percent, to $31.8 million as compared to the three months ended March 31, 2025, driven primarily by acquisition related expenses related to the Saxdor acquisition, an incremental increase due to the new Saxdor segment and an increase in incentive pay and stock-based compensation expense. As a percentage of sales, general and administrative expenses increased 480 basis points to 13.5 percent for the three months ended March 31, 2026 compared to 8.7 percent for the three months ended March 31, 2025. Amortization expense increased $1.4 million to $3.1 million for the three months ended March 31, 2026 due to the additional intangibles acquired from the Saxdor acquisition.

Balance Sheet and Cash Flow
As of March 31, 2026, the company had $50.2 million of cash and cash equivalents and $165.0 million of long-term debt, providing ample flexibility to support continued investment and the return of capital to shareholders.

During the nine months ended March 31, 2026, the company generated $40.6 million of cash from operations and invested $14.6 million in capital expenditures. Year-to-date free cash flow was approximately $26.9 million, to include nominal discrete effects from the sale of property, plant and equipment and changes in exchange rate.

During the nine months ended March 31, 2026, the company repurchased 1,243,996 shares of Class A Common Stock for $33.9 million in cash including related fees and expenses under the 2025 Repurchase Program. During the three month fiscal third quarter ended March, the company repurchased approximately 492,794 shares for $13.1 million at an average price of approximately $26.24 per share — a discount to the price at which equity was issued for Saxdor. As of March 31, 2026, $36.1 million was available to repurchase shares of Class A Common Stock and LLC Units under the 2025 Repurchase Program.

Saxdor Acquisition
As previously announced, on March 2, 2026, the company acquired Saxdor Yachts, a leading European designer and manufacturer of premium adventure dayboats headquartered in Helsinki, Finland. The consideration is comprised of approximately $137.2 million in cash, 1,523,794 shares of Malibu common stock, and initial fair value of its potential earnout payments of $32.6 million. Saxdor operates three engineering and manufacturing facilities in Finland and Poland and distributes through a network of over 100 dealer locations across more than 50 countries. The acquisition fills strategic whitespace in MBI’s portfolio by adding premium adventure dayboats — the fastest-growing segment in global recreational boating — and establishes MBI’s global manufacturing footprint, with the transaction expected to be immediately accretive to MBI’s adjusted EBITDA margin profile and earnings per share in the current fiscal year.

Fiscal 2026 Guidance
On a combined basis, the company now expects full-year fiscal 2026 net sales of approximately $880 million to $886 million and adjusted EBITDA of approximately $72 million to $74 million.

For its legacy business (excluding Saxdor), the company is raising its full-year net sales outlook to reflect stronger-than-expected third quarter performance, with full-year legacy net sales now expected to be “down slightly” versus fiscal 2025, representing an improvement from the “flat to down mid-single digit” range it provided previously. Legacy adjusted EBITDA margin is now expected toward the lower end of the previously communicated 8 percent to 9 percent range.

For the fiscal fourth quarter, Saxdor is expected to contribute net sales of approximately $57 million to $59 million and adjusted EBITDA margin of 10 percent to 11 percent.

The company intends to return to a single consolidated outlook with the provision of fiscal year 2027 guidance in August.

Regarding tariffs, the company continues to expect total fiscal 2026 exposure within the 1.5 percent to 3 percent of cost of goods sold range previously communicated, with Section 232-related impact anticipated to be de minimis. The company expects to largely offset these added costs by recent price increases.

Image courtesy Malibu Boats