Malibu Boats shares drop 6% as fiscal 2026 guidance disappoints investors

Published 28/08/2025, 12:16
 Malibu Boats shares drop 6% as fiscal 2026 guidance disappoints investors

LOUDON, Tenn. - Malibu Boats, Inc. (NASDAQ:MBUU) reported better-than-expected fourth quarter results on Thursday, though management issued cautious guidance for fiscal 2026, projecting flat to mid-single-digit revenue declines.

The company’s stock tumbled 6.38% in pre-market trading following the result.

The recreational boat manufacturer posted fourth quarter net sales of $207 million, up 30.4% YoY, significantly exceeding analyst expectations of $178.2 million. Adjusted earnings per share came in at $0.42, compared to analyst estimates of $0.23. Unit volume increased 16.8% to 1,221 units, driven primarily by higher wholesale shipments in the Malibu segment, though partially offset by lower volumes in the Cobalt and Saltwater Fishing segments.

Despite the strong quarterly performance, investors reacted negatively to the company’s outlook for fiscal 2026. Malibu anticipates net sales to be flat to down mid-single digits YoY, with Adjusted EBITDA margin ranging from 8% to 9%, below the 9.3% achieved in fiscal 2025.

"Fiscal year 2025 was a challenging year for the marine industry, but I am proud of the groundwork we laid by supporting our dealers’ efforts to reduce their inventory and refreshing our dealer network, which we believe positions us to outperform the industry," commented Steve Menneto, President and Chief Executive Officer of Malibu Boats, Inc.

The company’s fourth quarter gross profit surged 162.1% to $32.7 million, with gross margin expanding 790 basis points to 15.8%. This improvement was driven by decreased promotional costs across all segments and a favorable model mix. Net income for the quarter increased 124.5% to $4.8 million.

For the full fiscal year 2025, Malibu reported net sales of $807.6 million, down 2.6% from the previous year, while unit volume decreased 9.0% to 4,898 units. Annual net income improved to $15.2 million compared to a net loss of $56.4 million in fiscal 2024.

CFO Bruce Beckman noted that the company will "maintain our disciplined approach to dealer health as we expect several headwinds impacting retail to persist" in fiscal 2026, while expressing confidence in Malibu’s ability to outpace the industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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