Malibu Boats, Inc., parent of the Malibu, Axis, Cobalt, Pursuit, Saxdor, Cobia, Maverick, Pathfinder and Hewes boat brands, reported adjusted net income more than doubled in the fiscal fourth quarter ended June 30 as sales jumped 42.7 percent on its acquisition of Saxdor, a maker of adventure dayboats and recreational powerboats.

Fiscal Q4 Summary
Net sales increased 42.7 percent year-over-year (y/y) to $295.5 million for the for the fiscal fourth quarter ended June 30. The increase was driven primarily by $61.2 million of revenue from the new Saxdor segment due to the recent acquisition, increased unit volumes in its Cobalt and Saltwater segments, a favorable model mix across all three existing segments, and year-over-year price increases, partially offset by decreased unit volumes in the Malibu segment. Unit volume for the fiscal fourth quarter increased 235 units, or 19.2 percent, to 1,456 units compared to the prior-year Q4 period. Unit volume increased primarily due to an additional 180 units contributed by Saxdor as well as increased unit volume in its Cobalt and Saltwater segments, partially offset by decreased unit volumes in its Malibu segment.

Net sales attributable to its Malibu segment increased 3.2 percent to $82.9 million for the fiscal fourth quarter compared to the prior-year Q4 period. Unit volumes attributable to its Malibu segment decreased 14 units, or 2.5 percent, year over year, primarily due to lower wholesale shipments driven by lower retail activity. The increase in 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 Saltwater Fishing segment increased 11.1 percent to $80.9 million. Unit volumes increased 7 units, or 2.2 percent, primarily due to higher wholesale shipments as a result of firming dealer inventory levels in pockets of the portfolio. The increase in net sales was driven by an increase in units, a favorable model mix and year-over-year price increases.

Net sales attributable to its Cobalt segment increased 31.0 percent to $70.5 million. Unit volumes attributable to Cobalt increased 62 units, or 18.9 percent, primarily due to higher wholesale shipments as a result of firming dealer inventory levels in pockets of the portfolio. The increase in sales was driven by an increase in units, a favorable model mix and year-over-year price increases.

Net sales attributable to its Saxdor segment were $61.2 million for the fiscal fourth quarter. Unit volumes were 180 units.

Overall consolidated net sales per unit increased 19.7 percent to $202,979 per unit year over year. Net sales per unit for its Malibu segment increased 5.8 percent to $149,110 per unit, driven by a favorable model mix and year-over-year price increases. Net sales per unit for its Saltwater Fishing segment increased 8.7 percent to $245,267 year over year. Net sales per unit for its Cobalt segment increased 10.2 percent to $180,841 per unit year over year, driven by favorable model mix and year-over-year price increases. For the fiscal fourth quarter, net sales per unit for its Saxdor segment were $339,811.

Cost of sales for the fiscal fourth quarter increased $69.0 million, or 39.6 percent, to $243.3 million year over year. The increase in cost of sales was primarily driven by cost of sales from the new Saxdor segment due to the recent acquisition, a 19.2 percent increase in units, a more expensive model mix across all three existing segments and inflationary pressures. In the Malibu, Saltwater Fishing and Cobalt segments, per unit material and labor costs were a net increase of $0.1 million, $6.4 million, and $3.3 million, respectively, driven by inflationary pressures and an increased mix of models that corresponded with higher net sales per unit.

Profitability & Expenses
Gross profit for the fiscal fourth quarter increased 59.4 percent to $52.2 million year over year. The increase in gross profit was driven primarily by higher net sales, partially offset by increased cost of sales for the reasons noted above. Gross margin increased 190 basis points from 15.8 percent to 17.7 percent, driven by an increased mix of models that carry a higher gross margin.

Selling and marketing expenses increased 25.7 percent, to $6.8 million year over year. The increase was driven primarily by higher personnel-related expenses and an incremental increase due to the new Saxdor segment. As a percentage of sales, selling and marketing expenses decreased 30 basis points to 2.3 percent year over year. General and administrative expenses climbed 68.8 percent, to $31.8 million year over year. The increase in general and administrative expenses was driven primarily by acquisition-related expenses incurred due to the Saxdor acquisition, an incremental increase due to the new Saxdor segment and increases in incentive pay. As a percentage of sales, general and administrative expenses increased 170 basis points to 10.8 percent year over year. Amortization expense  increased $2.6 million to $4.3 million year over year. The increase was due to the additional intangibles acquired from the Saxdor acquisition.

Operating income increased to $9.3 million from $6.8 million year over year. Net income increased 53.7 percent to $7.4 million from $4.8 million and net income margin increased to 2.5 percent from 2.3 percent for the prior year. Adjusted EBITDA increased 72.7 percent to $33.9 million from $19.7 million, while adjusted EBITDA margin increased to 11.5 percent from 9.5 percent for the prior-year Q4 period.

Fiscal Year 2026 Highlights Compared to Fiscal Year 2025
  • Net sales increased 13.3 percent to $914.6 million
  • Unit volume increased 0.9 percent to 4,944 units
  • Gross profit increased 1.7 percent to $146.5 million
  • General and administrative expenses increased to $105.1 million
  • GAAP net income decreased 88.8 percent to $1.7 million
  • GAAP net income available to Class A Common Stock per share (diluted) decreased 88.2 percent to $0.09 per share
  • Adjusted EBITDA decreased 1.1 percent to $73.9 million
  • Adjusted net income per share decreased 3.8 percent to $1.52 on a weighted average share count of 19.3 million shares of Class A Common Stock
  • Cash flows provided by operating activities increased 19.5 percent to $67.5 million
  • Free cash flow increased 48.3 percent to $43.2 million

Steve Menneto, president and chief executive officer of Malibu Boats, Inc., commented, “Fiscal 2026 demonstrated the power of our strategic execution. We delivered a strong finish to the year, driven by better than expected net sales, disciplined cost management, dealer network optimization, and the successful integration of Saxdor in our first four months with the business. We also invested meaningfully in innovation as our Model Year 2026 lineup added eleven new models across the portfolio that brought new features as well as value to our product line. The Saxdor integration is progressing well, with the completion of our first domestically-built Saxdor boats at our Fort Pierce, Florida facility expected in the first half of fiscal 2027. While we’re seeing early signs of stabilization across the industry, we are contending with macro disruptions that continue to pressure the payment buyer, which presents a near-term headwind to an inflection in the cycle. That said, we like how we’re positioned relative to the industry heading into fiscal 2027 and expect to build on the momentum we established, while remaining intentional about our outlook until we see more durable evidence of a broader recovery.”

Balance Sheet, Cash Flow and Capital Allocation
As of June 30, 2026, the company had $74.4 million of cash and $165.0 million of long-term debt, providing ample flexibility to support continued investment and the return of capital to shareholders. For the 2026 fiscal full year ended June 30, the company generated $67.5 million of cash from operations and invested $24.7 million in capital expenditures. Free cash flow was approximately $43.2 million, including nominal impacts from proceeds received on the sale of property, plant and equipment.

David Black, chief financial officer of Malibu Boats, Inc., added, “We closed the year with a strong balance sheet and began our new fiscal year with the completion of our credit agreement refinancing, which extends our maturity through 2031 and gives us added liquidity and flexibility. Our leverage remains well below our stated maximum target, even after financing the Saxdor acquisition. While we chose to pause our open market purchases during our lender negotiations, the Board authorized a new $70 million share repurchase program for fiscal 2027 in June, and we closed our refinancing in July, underscoring our confidence in the business and our commitment to returning capital to shareholders. With that flexibility now in place, we remain opportunistic on capital allocation and are well positioned to keep investing in the business as we move through fiscal 2027.”

Fiscal 2027 Guidance
For the full fiscal year 2027, Malibu anticipates net sales in the range of $1.08 billion to $1.12 billion year-over-year, and adjusted EBITDA ranging from $101 million to $109 million.

Image courtesy Malibu Boats