MasterCraft Boat Holdings, Inc. reported consolidated net sales of $76.0 million for the fiscal 2025 third quarter ended March 30, a $8.0 million decline from the third quarter of fiscal 2024. The decrease in net sales was primarily due to planned lower unit volumes to align dealer inventories with retail demand and changes in price, partially offset by favorable model mix and option sales.
“Our business performed well during the third quarter against a backdrop of macroeconomic and demand uncertainty,” commented company CEO Brad Nelson. “Our near-term focus continues to be centered around closely managing production levels, driving focused innovation, and delivering operating efficiencies — all while maximizing cash flow and aggressively managing costs.”
Gross margin percentage declined 250 basis points year-over-year (y/y) compared to the 2024 third quarter. Lower margins reportedly resulted from changes in sales price, material and overhead inflation, and lower cost absorption due to the decreased production volume.
Operating expenses decreased $1.2 million y/y for Q3. Prior year costs were elevated due to the CEO transition and related share-based compensation costs.
Income from continuing operations was $3.8 million for the third quarter, compared to $5.7 million in the prior-year Q3 period. Diluted income from continuing operations per share was 23 cents, compared to 34 cents for the third quarter of fiscal 2024.
In the third quarter, adjusted net income was $5.0 million, or 30 cents per diluted share, compared to $8.5 million, or 50 cents per diluted share, in the prior-year Q3 period.
Adjusted EBITDA was $7.5 million for the third quarter, compared to $11.7 million in the prior-year Q3 period. Adjusted EBITDA margin was 9.9 percent of sales for the third quarter, down from 13.9 percent for the prior-year period.
Cash and investments were $66.5 million at quarter-end, with $100 million available on the revolving credit facility and no outstanding debt.
Nelson continued, “Our capital allocation priorities remain disciplined and consistent despite the external pressures. Year-to-date, operating cash flow was $18.5 million despite low cycle production volumes. Our robust, debt-free balance sheet provides us a stable backdrop amid market and tariff uncertainties, while our variable operating model enables us to swiftly adjust production as needed.”
Outlook
“To reflect the evolving macroeconomic conditions and the challenging demand environment, we are revising our full-year guidance range,” concluded Nelson. “We believe we are well prepared for a range of scenarios as a result of the dynamic industry and trade environments. We also believe our flexible operating model and ability to generate cash flow at these low volumes, combined with our fortress balance sheet, affords us the ability to navigate near-term uncertainty while positioning the business for the next market recovery.”
For full year fiscal 2025, Mastercraft expects consolidated net sales to be approximately $275 million, with Adjusted EBITDA of approximately $20 million, and Adjusted Earnings per share of roughly 71 cents. The company reported it also expects capital expenditures to be approximately $9 million for the year.
The company previously revised its outlook in November 2024, said to be based on cleaner retailer inventories. For full year fiscal 2025, MCFT said in November that consolidated net sales would be between $270 million and $300 million, with Adjusted EBITDA between $17 million and $26 million, and Adjusted Earnings per share of between 55 cents and 95 cents per share.
Image courtesy MasterCraft Boat Holdings, Inc.
