Marine Products Corp. reported a loss in its first quarter ended March 31 due to $5.0 million in costs tied to its pending merger with MasterCraft and . Sales grew 13 percent in the quarter due to pricing actions and favorable mix.

Consolidated Financial Results (year-over-year comparisons versus 1Q:25)

  • Net sales were $66.5 million, up 13 percent. The increase in net sales was primarily due to a price/mix increase of 15 percent offset slightly by a 1 percent decrease in the number of boats sold during the quarter. The company’s field unit inventory at the end of the quarter was approximately 2 percent below the year-ago quarter.
  • Gross profit was $11.1 million, up 1 percent. Gross margin was 16.6 percent, down 200 basis points from the prior year period. Gross margin decreased due primarily to higher labor and overhead costs.
  • Selling, general and administrative expenses were $8.8 million, up 6 percent, and represented 13.3 percent of net sales, down 80 basis points versus 1Q:25.
  • Merger related costs for the three months ended March 31, 2026 were $5.0 million.
  • Interest income of $325,000 decreased due to lower cash balances.
  • Income tax provision was negative $329,000, or 13.7 percent of loss before income taxes, down 1,410 basis points primarily due to the impact of detrimental discrete adjustments on a pretax loss in 2026 compared to a pretax income in 2025.
  • Net loss was $2.1 million, or 6 cents a share, down from net income of $2.2 million, or 6 cents, a year ago. Net loss margin was negative 3.1 percent, down 680 basis points.
  • EBITDA was negative $1.9 million, down from positive $3.4 million. EBITDA margin was negative 2.9 percent, down 870 basis points from last year’s first quarter.

Balance Sheet, Cash Flow and Capital Allocation

  • Cash and cash equivalents were $45.8 million at the end of the first 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 $9.1 million and $8.6 million, respectively, year-to-date.
  • Payment of dividends totaled $4.9 million year-to-date through the end of the latest quarter. Additionally, the Board of Directors declared a regular cash quarterly dividend of 14 cents per share payable on May 14, 2026, to common stockholders of record at the close of business on May 8.

Proposed Transaction with MasterCraft
As previously announced, on February 5, the company entered into an agreement to acquire MasterCraft in a in a stock-and-cash transaction. Shareholders of each company will vote to approve all of the proposals necessary for MasterCraft to complete its acquisition of the company at their respective Special Meetings of Stockholders to be held on May 12, 2026. dditionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act expired on April 6. The transaction is expected to close in the second calendar quarter of 2026.

Image courtesy Marine Products