MasterCraft Boat Holdings — Fiscal 2026 Earnings Summary

Financial Performance

• Consolidated net sales for the fourth quarter were $129.9 million, a 63.4% increase year-over-year; excluding the Marine Products Transaction contribution, sales grew 21.5%.
• Full-year net sales were $348.9 million, a 22.8% increase year-over-year; excluding the Marine Products Transaction contribution, sales grew 11.0%.
• GAAP loss from continuing operations for the fourth quarter was $7.0 million ($0.35 per diluted share), compared to income of $5.5 million ($0.33 per share) in the prior year.
• GAAP loss from continuing operations for the full year was $1.6 million ($0.09 per diluted share), compared to income of $10.7 million ($0.65 per share) in the prior year.
• Adjusted Net Income for the fourth quarter was $13.5 million ($0.67 per diluted share), up from $6.6 million ($0.40 per share) in the prior year.
• Adjusted Net Income for the full year was $30.2 million ($1.76 per diluted share), up from $15.1 million ($0.92 per share) in the prior year.
• Adjusted EBITDA for the fourth quarter was $20.5 million, up from $9.5 million in the prior year; Adjusted EBITDA margin was 15.8% versus 12.0%.
• Adjusted EBITDA for the full year was $45.6 million, up from $24.4 million in the prior year; Adjusted EBITDA margin was 13.1% versus 8.6%.
• Gross margin percentage decreased 60 basis points to 22.6% in the fourth quarter, primarily due to a $2.6 million inventory step-up charge, though it increased 290 basis points to 22.9% for the full year.
• Free cash flow for the full year was $22.3 million, down from $29.0 million in the prior year.
• Cash and cash equivalents were $43.9 million at June 30, 2026, compared to $28.9 million at June 30, 2025.
• Total assets were $500.4 million at June 30, 2026, compared to $259.9 million at June 30, 2025.
• Total liabilities were $119.1 million at June 30, 2026, compared to $76.4 million at June 30, 2025.
• Inventory increased to $82.3 million at June 30, 2026, from $30.5 million at June 30, 2025.
• Goodwill increased to $134.1 million at June 30, 2026, from $28.5 million at June 30, 2025.
• Operating expenses increased $23.1 million in the fourth quarter and $35.3 million for the full year, driven by transaction costs, impairment charges, and ERP implementation costs.

Guidance and Future Outlook

• The Company changed its fiscal year-end from June 30 to December 31, effective July 1, 2026, and will file a transition report for the six-month period ending December 31, 2026.
• For the six-month Transition Period (July 1, 2026 – December 31, 2026), the Company expects consolidated net sales between $287 million and $291 million.
• For the Transition Period, the Company expects Adjusted EBITDA between $29 million and $32 million and Adjusted Earnings per share between $0.66 and $0.76.
• For the first quarter of the Transition Period, the Company expects consolidated net sales of approximately $147 million, Adjusted EBITDA of approximately $16 million, and Adjusted Earnings per share of approximately $0.40.
• Capital expenditures for the Transition Period are expected to be approximately $9 million.

Business Segments and Product Lines

• The Company operates three segments: Performance and Wake, Leisure, and Recreation and Sport Fishing.
• Performance and Wake segment net sales increased 28.3% in the fourth quarter and 12.6% for the full year, driven by increased unit volumes, prices, and favorable model mix.
• Leisure segment net sales decreased 11.2% in the fourth quarter and increased 2.2% for the full year; the segment recorded a $10.1 million non-cash impairment charge in the fourth quarter due to declines in estimated fair value of intangible assets.
• Recreation and Sport Fishing segment, established following the merger with Marine Products Corporation, generated $33.3 million in net sales during the fourth quarter and $33.3 million for the full year.
• Consolidated unit sales volume increased 66.0% in the fourth quarter and 16.2% for the full year.
• Performance and Wake unit sales increased 26.1% in the fourth quarter and 5.9% for the full year.
• Leisure unit sales decreased 11.9% in the fourth quarter and 3.9% for the full year.
• The rollout of the next-generation X-Series product family drove favorable premium mix and strengthened brand momentum.

Market and Competitive Landscape

• The Company completed the merger with Marine Products Corporation on May 15, 2026, resulting in a larger, more diversified company with five brands: MasterCraft, Crest, Balise, Chaparral, and Robalo.
• Management noted a challenging retail environment but stated that strong execution drove results to significantly outperform expectations.
• The Company reported increased prices and decreased dealer incentives as contributors to net sales growth.

Risks and Challenges

• Reported earnings were significantly impacted by a $10.1 million non-cash impairment charge in the Leisure segment and $11.0 million in acquisition-related expenses in the fourth quarter.
• Full-year results were impacted by a $10.1 million non-cash impairment charge and $20.4 million in acquisition-related expenses.
• Gross margin in the fourth quarter was negatively impacted by a $2.6 million inventory step-up charge related to the Marine Products Transaction.
• Forward-looking statements are subject to risks including changes in interest rates, economic conditions, trade policies, tariffs, consumer preferences, competition, integration of Marine Products, dealer network reliability, elevated dealer inventories, and geopolitical conflicts.

Management Commentary and Tone

• CEO Brad Nelson described fiscal 2026 as a "defining year" where strong execution across legacy business drove results to significantly outperform expectations despite a challenging retail environment.
• Nelson highlighted that the MasterCraft brand was central to success, citing the rollout of the next-generation X-Series product family which improved profitability and brand momentum.
• Management expressed confidence that results were "earned, not market-driven," citing disciplined execution and focus on fundamentals.
• Nelson noted "real energy and excitement" across the organization as the company enters its next chapter as a larger, more diversified entity.

Other Key Points

• The Company completed the transformational combination with Marine Products Corporation (Chaparral and Robalo brands) on May 15, 2026.
• Acquisition-related expenses included transaction costs, purchase accounting adjustments, order-backlog and dealer network amortization, and ERP implementation costs.
• The Company will host a conference call and webcast on September 10, 2026, at 8:30 a.m. ET to discuss results.
• Weighted average shares outstanding increased to 20.2 million (diluted) in the fourth quarter of 2026 from 16.4 million in the prior year.
• The Company reported a loss on extinguishment of debt of $71,000 for the full year ended June 30, 2026.