MasterCraft Boat Holdings, Inc., which has reached an agreement to merge with Marine Products Corp., reported earnings in the fiscal third quarter ended March 29 that easily topped expectations due to 3 percent sales growth and cost controls. The manufacturer of sport and pontoon boats raised its outlook for the year.

Overview:

  • Continued expectation to complete the combination with Marine Products Corporation (“Marine Products”) shortly after its special meeting of shareholders scheduled on May 12, 2026, subject to customary closing conditions
  • Net sales for the third quarter were $78.2 million, up $2.2 million, or 3.0 percent, from the comparable prior-year period
  • Dealer pipeline discipline remains strong, with stabilized dealer pipelines, supported by aligned production plans and a flexible, demand-driven wholesale approach
  • Loss from continuing operations in the third quarter was ($0.7) million, or ($0.04) per diluted share, down from prior-year income of $3.8 million, or $0.23 per diluted share, primarily due to one-time transaction costs related to the pending Marine Products combination
  • Adjusted net income, a non-GAAP measure, was $7.2 million, or 45 cents per diluted share, up from $5.0 million, or 30 cents per diluted share, in the prior-year period
  • Adjusted EBITDA, a non-GAAP measure, was $10.7 million, up $3.2 million from the comparable prior-year period
  • Ended the third quarter with cash and investments of $84.6 million

Revenues of $78.2 million surpassed company guidance calling for sales to be approximately $75 million. Adjusted EBITDA of $10.7 million compared with guidance of $9 million, and adjusted EPS of 45 cents topped guidance of 35 cents.

Brad Nelson, chief executive officer, commented, “We delivered results that outperformed our expectations during the third quarter, driven by disciplined execution across our business and continued new product momentum. In a market that’s evolving week to week, we’ve remained focused on our core strengths—delivering operational efficiencies, aligning production with demand, and differentiated innovation that resonates with customers and dealers.”

Nelson continued, “Within MasterCraft, premium product momentum continues to build across the lineup. Last month, we announced the reintroduction of the X23, marking the return of a historic name in our portfolio and completing the next-generation X-series.”

Third Quarter Results
For the third quarter of fiscal 2026, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $78.2 million, up $2.2 million from the third quarter of fiscal 2025. The increase in net sales was primarily due to favorable model mix and options sales, increased prices, and decreased dealer incentives, partially offset by lower unit volumes.

Gross margin percentage increased 420 basis points during the third 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 $9.2 million for the third quarter of fiscal 2026, compared to the prior-year period, due to business development and consulting costs related to the combination with Marine Products, increased selling and marketing costs, and consulting costs related to the implementation of its enterprise resource planning system (“ERP implementation costs”).

Loss from continuing operations was ($0.7) million for the third quarter of fiscal 2026, compared to income from continuing operations of $3.8 million in the prior-year period. Diluted loss from continuing operations per share was ($0.04), compared to diluted income from continuing operations per share of $0.23 for the third quarter of fiscal 2025.

Adjusted net income was $7.2 million for the third quarter of fiscal 2026, or 45 cents per diluted share, compared to $5.0 million, or 30 cents per diluted share, in the prior-year period.

Adjusted EBITDA was $10.7 million for the third quarter of fiscal 2026, compared to $7.5 million in the prior-year period. Adjusted EBITDA margin was 13.7 percent for the third quarter, up from 9.9 percent for the prior-year period.

Combination with Marine Products Corporation
On February 5, 2026, MasterCraft announced that it entered into a definitive agreement under which it will merge with Marine Products, a manufacturer of recreation and sport fishing powerboats, in a cash and stock transaction. A special meeting of shareholders is scheduled for May 12, 2026, with the deal expected to close shortly thereafter, subject to customary closing conditions.

Outlook
Concluded Nelson, “Looking ahead, we remain confident and credible in our ability to navigate the current macroeconomic environment by remaining disciplined, agile, and focusing on our strengths. With a strong balance sheet, a variable operating model, and a premium product portfolio that continues to resonate, we believe we’re well positioned as we move through the remainder of fiscal 2026 and into the next cycle.”

The company’s outlook is as follows:

  • For full year fiscal 2026, MasterCraft now expects consolidated net sales to be $312 million ($300 million and $310 million previously), with adjusted EBITDA of $40 million (between $36 million and $39 million previously), and adjusted earnings per share of $1.65 ($1.45 and $1.60 previously). MasterCraft now expects capital expenditures to be approximately $8 million ($9 million previously) for the year.

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

Image courtesy MasterCraft