Malibu Boats, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial condition and results of operations. The company, founded in 1982 and based in Loudon, Tennessee, is a leading designer, manufacturer, and marketer of recreational powerboats, operating through three segments: Malibu, Saltwater Fishing, and Cobalt. It offers a diverse range of boats used for recreational activities such as water sports, general boating, and fishing, selling its products through an extensive network of independent dealers.
In the second quarter of fiscal 2026, Malibu Boats, Inc. reported a net sales figure of $188.6 million, a decrease from $200.3 million in the same period in fiscal 2025. The gross profit for the same period also declined to $25.1 million from $37.4 million in the prior year. The company reported a net loss of $2.5 million for the quarter, down from a net income of $2.4 million in the same period in fiscal 2025. The adjusted EBITDA for the quarter was $8.0 million, a decrease from $16.9 million in the prior year.
The company's outlook for fiscal 2026 reflects challenges in the recreational powerboat industry due to macro-economic factors such as inflation and high interest rates, which have increased production costs and impacted consumer demand. Additionally, the company expects reduced retail market demand and pressure from dealers to further reduce inventories in fiscal 2026. Despite these challenges, Malibu Boats, Inc. aims to increase its market share across various boating categories through new product development, improved distribution, and innovative features.
Malibu Boats, Inc.'s financial results and operations are expected to be impacted by external events such as trade policies, tariffs, inflationary pressures, interest rates, material shortages, weather events, and global economic uncertainty. The company anticipates additional material costs in fiscal year 2026 due to new tariff exposure, estimating a potential impact of 1.5% to 3% of the cost of sales. To mitigate these costs, the company plans to largely offset them through price increases.
The 10-Q report also details the components of the company's results of operations, including net sales, cost of sales, gross profit, operating expenses, other expenses, income taxes, and net income attributable to non-controlling interest. Additionally, the report provides a comprehensive breakdown of the company's unaudited interim consolidated results of operations for the periods presented, offering a transparent view of its financial performance.
Following these announcements, the company's shares moved -1.29%, and are now trading at a price of $33.60. Check out the company's full 10-Q submission here.
