Marine Products Corp. reported sales grew 7 percent in the third quarter as pricing actions and a favorable product mix offset a slight decrease in the number of boats sold during the quarter. Profits declined due to R&D investments.

Third Quarter 2025 Highlights

  • Net sales increased 7 percent year-over-year to $53.1 million
  • Net income was $2.7 million, down 22 percent year-over-year, and diluted Earnings Per Share (EPS) was $0.07; Net income margin decreased 180 basis points to 5.0 percent. The decline was due to higher R&D investments related to new products and cost true-ups
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $3.7 million, down 15 percent year-over-year; EBITDA margin decreased 170 basis points to 6.9 percent
  • The company generated strong operating and free cashflow ending the quarter with approximately $47.4 million in cash and no debt
  • The company recently launched the 2026 model year Chaparral and Robalo products

Management Commentary
“Third quarter results reflect an increase in sales from the prior year period,” stated Ben M. Palmer, Marine Products’ president and chief executive officer. “We are cautiously optimistic that we’ve reached a turning point in the industry as dealer inventory has adjusted to stabilizing demand. We are encouraged by the strong interest in our larger boats and initial positive feedback on our 2026 model year offerings; however, finance buyers continue to be more restrained.

“Economic uncertainty continues to impact the marine industry, but we are encouraged by the potential for lower interest rates helping the finance buyer, as well as improved clarity on potential tariffs not having a significant impact on model year 2026 costs.”

“Our team continues to work relentlessly to better position ourselves in this market, including reducing field inventory, focusing on strategic pricing, and targeting new innovations. Our ongoing focus on disciplined management combined with our strong balance sheet affords us the ability to opportunistically invest in the business,” concluded Palmer.

3Q25 Consolidated Financial Results
(year-over-year comparisons versus 3Q24)

  • Net sales were $53.1 million, up 7 percent. The increase in net sales was primarily due to a price/mix increase of 7 percent, slightly offset by a slight decrease in the number of boats sold during the quarter. Field inventories have returned to more balanced levels as retail sales have exceeded wholesale shipments. The company’s field unit inventory at the end of 3Q:25 was approximately 6 percent below 3Q:24.
  • Gross profit was $10.2 million, up 11 percent. Gross margin was 19.2 percent, up 80 basis points versus the prior year period. Gross margin improved with targeted incentives and stabilized production schedules resulting in improved manufacturing cost absorption.
  • Selling, general and administrative expenses were $7.4 million, up 31 percent, and represented 13.9 percent of net sales, up 260 basis points versus 3Q:24. The increase in SG&A expenses was largely due to an increase in new product R&D investments, warranty cost adjustments and other expenses that typically vary with sales.
  • Interest income of $443 thousand decreased due to lower cash balances.
  • Income tax provision was $658 thousand, or 19.9 percent of income before income taxes, up 50 basis points.
  • Net income and diluted EPS were $2.7 million and $0.07, respectively, down from $3.4 million and $0.10, respectively, in 3Q:24. Net income margin was 5.0 percent, down 180 basis points.
  • EBITDA was $3.7 million, down from $4.3 million. EBITDA margin was 6.9 percent, down 170 basis points from last year’s third quarter.

Balance Sheet, Cash Flow and Capital Allocation

  • Cash and cash equivalents were $47.4 million at the end of 3Q:25, with no outstanding borrowings under the company’s $20 million revolving credit facility.
  • Net cash provided by operating activities and free cash flow were $11.7 million and $10.8 million, respectively, year-to-date through 3Q:25. The Company expects full year 2025 capital expenditures to be approximately $1.0 to $1.5 million.Payment of dividends totaled $14.7 million year-to-date through 3Q:25. Additionally, the Board of Directors declared a regular cash quarterly dividend of $0.14 per share payable on December 10, 2025, to common stockholders of record at the close of business on November 10, 2025.

Image courtesy Marine Products Corp.