Malibu Boats, Inc. — Q1 2027 (Three Months Ended September 30, 2026) Earnings Summary

Financial Performance:

• Net sales increased 29.9% year-over-year to $252.9 million, driven by $51.1 million in revenue from the new Saxdor segment, increased unit volumes in Cobalt and Saltwater Fishing, favorable model mix, and price increases.
• Unit volume increased 15.1% to 1,299 units, with 139 units contributed by Saxdor and higher shipments in Cobalt and Saltwater Fishing, partially offset by lower Malibu segment shipments.
• Gross profit increased 35.5% to $37.8 million; gross margin expanded 70 basis points to 15.0% from 14.3% in the prior year period.
• GAAP net income turned positive to $6.1 million from a net loss of $0.7 million in the prior year; GAAP net income per share (diluted) increased to $0.30 from a loss of $0.04.
• Adjusted EBITDA increased 21.7% to $14.3 million, though the margin decreased to 5.7% from 6.1%.
• Adjusted net income per share remained consistent at $0.15 on a basic weighted-average share count of 19.7 million.
• Net cash used in operating activities was $31.1 million, reflecting a $31.8 million increase in inventories due to a rebuild from lean balances, a $14.7 million increase in trade receivables, and payments for annual incentive compensation and insurance premiums.
• Capital expenditures were $8.4 million.
• As of September 30, 2026, the company held $40.3 million in cash, $172.9 million in debt, and approximately $213.5 million in total available liquidity.

Guidance and Future Outlook:

• The Board approved a change in fiscal year-end from June 30 to December 31; the period from July 1, 2026, through December 31, 2026, is a transition period.
• For the three months ending December 31, 2026, the company expects net sales of $236 million to $248 million and Adjusted EBITDA of $13.0 million to $15.0 million.
• For the six-month transition period ending December 31, 2026, the company expects net sales of $489 million to $501 million and Adjusted EBITDA of $27.3 million to $29.3 million.
• Initial calendar year 2027 outlook will be provided in March 2027 concurrent with the transition period reporting.
• The company will not report a twelve-month period ending June 30, 2027.

Business Segments and Product Lines:

• Saxdor: Contributed $51.1 million in net sales and 139 units; the segment drove the increase in consolidated net sales per unit to $194,720.
• Cobalt: Net sales increased 18.8% to $61.5 million with unit volume up 42 units, driven by lower prior-year shipments due to elevated dealer inventory, favorable model mix, and price increases.
• Saltwater Fishing: Net sales increased 7.1% to $68.9 million with unit volume up 22 units, driven by lower prior-year shipments due to elevated dealer inventory and price increases, partially offset by increased dealer incentive costs.
• Malibu: Net sales decreased 9.1% to $71.5 million with unit volume down 33 units, driven by lower retail activity and increased dealer incentive costs, partially offset by price increases.
• The company completed its first U.S.-built Saxdor boats at Fort Pierce and debuted new models across brands at the Fort Lauderdale International Boat Show.

Market and Competitive Landscape:

• The retail environment was softer over the summer, leading to disciplined wholesale shipment management to protect dealer health.
• Malibu continued to gain share in the ski/wake boat category despite challenging demand.
• Cobalt and Saltwater brands grew volume, while Saxdor contributed meaningfully to overall growth.

Risks and Challenges:

• The company faces a softer retail environment and seasonal working capital needs, particularly in the quarter ending September 30.
• Increased dealer incentive costs impacted net sales per unit in the Malibu and Saltwater Fishing segments.
• Forward-looking statements are subject to risks including supply chain constraints, inflation, interest rates, dealer financial health, and integration of the Saxdor acquisition.

Management Commentary and Tone:

• CEO Steve Menneto noted that results reflected a softer retail environment and disciplined wholesale management, keeping sales modestly below the guided range and constraining Adjusted EBITDA.
• Management remains intentional about the outlook until more durable evidence of a broader recovery appears but maintains strong conviction in its "Build, Innovate, Grow" strategy.
• CFO David Black stated the balance sheet provides flexibility to support the business through the cycle, citing a refinancing completed in July that extended maturity to 2031.
• Management expects working capital needs to decrease as the year progresses, consistent with historical seasonality.

Other Key Points:

• The company completed a refinancing in July that extended debt maturity to 2031.
• General and administrative expenses decreased 43.9% to $11.6 million, primarily due to a $15.0 million reduction from the derecognition of a liability related to insurance proceeds from Starr Indemnity & Liability Company.
• Amortization expense increased to $4.7 million due to intangibles acquired from the Saxdor acquisition.
• The company has a $70 million share repurchase authorization in place and intends to remain balanced and disciplined in capital allocation.
• The company will report transition period results on Form 10-KT.