MasterCraft Boat Holdings, Inc., the Tennessee-based parent of the MasterCraft, Crest, and Balise boat brands, reported net sales for the fiscal 2026 second quarter ended December 28 grew 13.2 percent year-over-year to $71.8 million. The increase in net sales was said to be primarily due to favorable model mix and options sales, higher unit volumes, and increased prices.

Gross margin percentage for the quarter increased 440 basis points year-over-year. Higher margins were said to be primarily the result of increased net sales, combined with effective cost controls.

Operating expenses increased $2.1 million for the second quarter, compared to the prior-year period, reportedly due to consulting costs related to the implementation of a new enterprise resource planning (ERP) system, business development and consulting costs related to the transaction, and increased selling and marketing costs.

Income from continuing operations was $2.5 million for the second quarter, compared to $0.4 million in the prior-year Q2 period. Diluted income from continuing operations per share was 15 cents, compared to 3 cents for the second quarter of fiscal 2025.

Adjusted net income was $4.7 million for Q2, or 29 cents per diluted share, compared to $1.7 million, or 10 cents per diluted share, in the prior-year Q2 period.

Adjusted EBITDA was $7.5 million for the second quarter, compared to $3.5 million in the prior-year Q2 period. Adjusted EBITDA margin was 10.4 percent for the second quarter, up from 5.6 percent for the prior-year period.

“We delivered results that exceeded our expectations, and we are building momentum as we head into boat-shows and the spring selling season,” shared company CEO Brad Nelson, We’re entering this window with right-sized dealer inventories and a team that continues to deliver on key initiatives – bringing leading-edge innovation to market, executing on operational and cost efficiencies, and maintaining disciplined production management.”

Nelson continued, “Within MasterCraft, momentum continues to build across the portfolio as we usher in the next generation of premium products with high margins and advanced technology, continuing our mission of bringing luxury, performance, and precision to the forefront of our lineup. This year’s progress and performance is a direct outcome of our continued innovation and focused execution. As a result, we are raising our full-year guidance.”

Combination with Marine Products Corporation
The company has entered into a definitive agreement under which it will acquire Marine Products Corporation, the parent of the Chaparral and Robalo boat brands in a cash and stock transaction. The transaction is expected to close in the second calendar quarter of 2026.

Simultaneously, we amended and extended our credit agreement, providing the company with a $75 million revolving credit facility that now matures on February 5, 2031.

“We’re doing exactly what we said we would: innovating, executing with discipline, supporting our dealers, and building a stronger platform to drive long-term shareholder value,” added Nelson. “The combination with Marine Products Corporation unites proven, market leading brands, dealer networks, and product development and manufacturing capabilities. We look forward to welcoming the Chaparral and Robalo teams to our family and continuing to deliver world-class experiences to boaters everywhere.”

See below for additional coverage of the Marine Products Corporation acquisition and its Q4 and full year financial news.

Outlook
The company’s outlook is as follows:

  • For full year fiscal 2026, MCFT now expect consolidated net sales to be between $300 million and $310 million, with Adjusted EBITDA between $36 million and $39 million, and Adjusted Earnings per share between $1.45 and $1.60. We continue to expect capital expenditures to be approximately $9 million for the year.
  • For fiscal third quarter 2026, consolidated net sales are expected to be approximately $75 million, with Adjusted EBITDA of approximately $9 million, and Adjusted Earnings per share of 35 cents.

The outlook provided does not include the pending combination with Marine Products Corp.

Image courtesy Mastercraft/MasterCraft Boat Holdings, Inc.

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