MasterCraft Boat Holdings Inc. reported earnings on an adjusted basis more than doubled in the fiscal first quarter ended September 28, thanks to a 5.6 percent revenue gain and cost-containment efforts.

First-Quarter Highlights

  • Net sales for the first quarter were $69.0 million, up $3.6 million, or 5.6 percent, from the comparable prior-year period.
  • Income from continuing operations was $3.7 million, or 22 cents per diluted share, up from $1.0 million, or 6 cents per diluted share, in the prior-year period.
  • Adjusted net Income, a non-GAAP measure, was $4.5 million, or 28 cents per diluted share, up from $1.9 million, or 12 cents per diluted share, in the prior-year period.
  • Adjusted EBITDA, a non-GAAP measure, was $6.7 million, up $2.9 million from the comparable prior-year period.
  • Share repurchases of $2.3 million during the quarter.

Guidance had called for consolidated net sales to be approximately $67 million, with adjusted EBITDA of approximately $4 million, and adjusted earnings per share of 16 cents.

Brad Nelson, chief executive officer, commented, “We delivered results that exceeded our expectations despite continued macroeconomic uncertainty and a dynamic retail environment. Our team continues to execute our key operating initiatives and maintain disciplined cost controls, which contributed to our performance in the quarter. Dealer inventories across our brands have returned to normal levels, supported by disciplined production planning and proactive pipeline management. We remain encouraged by the positive energy and sentiment from our recent dealer meetings, bolstered by the fresh launch of our new MasterCraft X24 model, the first unveiling within our new X-family line of boats. Excitement and momentum around our brands is surging as we usher in the next generation of premium products.”

Nelson continued, “Our financial position remains strong, and our strategic growth initiatives are fully resourced. This enables us to invest confidently throughout the cycle, continuing to advance innovation across our business with product and brand development, return capital to shareholders through EPS-accretive share repurchases, and remain disciplined in evaluating inorganic opportunities. We believe our debt-free balance sheet remains one of the strongest in the industry and will continue to benefit us as we move through fiscal 2026.”

First Quarter Results
For the first quarter of fiscal 2026, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $69.0 million, up $3.6 million from the first quarter of fiscal 2025. The increase in net sales was primarily due to increased prices, higher unit volumes, favorable option sales, and decreased dealer incentives, partially offset by unfavorable model mix.

Gross margin percentage increased 420 basis points during the first quarter of fiscal 2026, compared to the prior-year period. Higher margins were primarily the result of increased net sales, as discussed above, combined with effective cost controls.

Operating expenses increased $0.8 million for the first quarter of fiscal 2026, compared to the prior-year period due to senior leadership transition costs and timing of commercial activities.

Income from continuing operations was $3.7 million for the first quarter of fiscal 2026, compared to $1.0 million in the prior-year period. Diluted income from continuing operations per share was 22 cents, compared to 6 cents for the first quarter of fiscal 2025.

Adjusted net income was $4.5 million for the first quarter of fiscal 2026, or 28 cents per diluted share, compared to $1.9 million, or 12 cents per diluted share, in the prior-year period.

Adjusted EBITDA was $6.7 million for the first quarter of fiscal 2026, compared to $3.8 million in the prior-year period. Adjusted EBITDA margin was 9.7 percent for the first quarter, up from 5.9 percent for the prior-year period.

Outlook
Concluded Nelson, “Based on our fiscal Q1 performance and current expectations, we are raising the earnings range of our full year guidance. We remain encouraged by operational and quality trends driving strong operating performance across our brands, and continue to maintain readiness for an eventual return to a more normalized environment. Our wholesale and financial plan is disciplined and provides us with the ability to deliver year-over-year growth despite continued market uncertainty. We will continue to closely monitor the retail environment, dealer sentiment, and broader economic conditions and are well-equipped to adjust our production plans for a range of scenarios.”

The company’s outlook is as follows:

  • For the full year fiscal 2026, we expect consolidated net sales to be between $295 million and $310 million, with adjusted EBITDA between $30 million and $35 million, and adjusted earnings per share between $1.18 and $1.43. The company expects capital expenditures to be approximately $9 million for the year. Previously, guidance called for sales between $295 million and $310 million, with adjusted EBITDA between $29 million and $34 million, and adjusted earnings per share between $1.15 and $1.40.
  • For fiscal second quarter 2026, consolidated net sales are expected to be approximately $69 million, with adjusted EBITDA of approximately $5 million, and adjusted earnings per share of 16 cents.

Image courtesy MasterCraft