Fiscal 2026 First Quarter Summary
- Revenue of $505.2 million
- Same-store sales increased over 10 percent
- Gross profit margin of 31.8 percent
- Inventories at quarter end decreased $167.3 million from the prior year
- Reported net loss of $7.9 million, or $0.36 per share; adjusted net loss1 of $4.6 million, or $0.21 per share
- Adjusted EBITDA1 of $15.5 million
CEO & President Commentary
“As anticipated, retail margin pressure persisted across the recreational boating industry in the December quarter, reflecting continued uncertainty and competitive dynamics, including elevated promotional activity, as the industry continues to right-size inventory,” said Brett McGill, CEO and president of MarineMax. “While these conditions kept new and used boat margins well below historical levels, we were encouraged by the solid same-store sales growth achieved during the period. With industry inventory levels anticipated to normalize through the second half of the fiscal year, we believe our positioning at the premium end of the market will support a gradual improvement in margin performance.
“Our ability to consistently generate gross margins above 30 percent in one of the industry’s more challenging markets underscores the benefits of our strategy of adding higher-margin, complementary and less cyclical businesses. Over the past several years, we have diversified beyond traditional boat sales into marinas, storage operations, superyacht services, and financing and insurance. These businesses provide higher‑margin, recurring-revenue streams that enhance resilience and reduce the volatility inherent in the boating industry cycles. As these businesses continue to scale, they are becoming an increasingly important driver of long-term performance.
“During the quarter, we also achieved substantial reductions in inventory and floor plan financing, reflecting disciplined operational execution and improved alignment between supply and demand. Customer deposits remained steady year-over-year, providing a foundation for greater stability as we progress through the year. Combined with increased liquidity, improved inventory positioning and a strengthening balance sheet, we are entering the next phase of the industry recovery from a position of financial strength.”
Fiscal 2026 First Quarter Results
Revenue in the fiscal 2026 first quarter increased 7.8 percent to $505.2 million from $468.5 million in the prior-year period, which was adversely impacted by Hurricanes Helene and Milton. On a comparable store basis, revenue increased by more than 10 perrcent year-over-year, compared with an 11 percent decline in the first quarter of fiscal 2025 versus the same period in fiscal 2024.
Gross profit was $160.5 million, or 31.8 percent of revenue, in the first quarter of fiscal 2026, compared with $169.7 million, or 36.2 percent of revenue, in the prior-year period. The decrease in gross margin percentage was primarily driven by the current retail promotional environment and sales mix, partly offset by contributions from the company’s higher-margin businesses.
Selling, general, and administrative (SG&A) expenses totaled $155.6 million, or 30.8 percent of revenue, in the first quarter of fiscal 2026, compared with $130.7 million, or 27.9 percent of revenue, in the prior-year period. Included in the prior-year period is a gain of $25.8 million for an adjustment to the fair value of contingent consideration. Excluding change in fair value of contingent consideration, hurricane and tornado (weather) expenses, intangible amortization, restructuring charges, and transaction and other costs, Adjusted SG&A1 increased $1.6 million, or 1.1 percent, to $151.0 million from $149.4 million in the first quarter of fiscal 2025.
Interest expense was $15.9 million, or 3.1 percent of revenue, in the first quarter of fiscal 2026, compared with $18.7 million, or 4.0 percent of revenue, in the prior-year period. The decrease primarily reflected lower inventory levels relative to the first quarter of fiscal 2025, as well as reduced financing costs.
Net loss for the first quarter of fiscal 2026 was $7.9 million, or 36 cents per share, compared with net income of $18.1 million, or 77 cents per diluted share, in the prior-year period. Adjusted net loss1 was $4.6 million, or 21 cents per share, compared with adjusted net income of $4.1 million, or 17 cents per diluted share, in the first quarter of fiscal 2025. Adjusted EBITDA1 totaled $15.5 million, compared with $26.1 million in the prior-year period.
Reaffirms Fiscal 2026 Guidance
Based on current business conditions, retail marine industry trends, and other relevant factors, the company continues to expect fiscal 2026 Adjusted EBITDA1, 2 to be in the range of $110 million to $125 million, with adjusted net income1, 2 in the range of $0.40 to $0.95 per diluted share. These projections exclude the potential impact of material acquisitions or other unforeseen developments, including changes in tariffs and broader global economic conditions.
McGill concluded, “Although conditions across the recreational marine industry remain challenging, we expect activity to gradually improve as we move into the spring selling season. Early indications from this year’s retail boat shows have been encouraging, and our positioning in the premium segment should enable us to outperform the broader market as conditions improve.”
MarineMax, based in Oldsmar, FL, has over 120 dealership locations worldwide, including over 70 dealerships and over 65 marina and storage facilities. Businesses include IGY Marinas, which operates luxury marinas; Fraser Yachts Group and Northrop & Johnson, which off superyacht brokerage and luxury yacht services companies; Cruisers Yachts, a manufacturers of sport yachts, motor yachts, and Aviara luxury dayboats; and Intrepid Powerboats, a manufacturer of powerboats. In addition, the company operates MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime.
Image courtesy Marine Max
