MasterCraft Boat Holdings, Inc. — First Three Months of Transition Period Earnings Summary

Financial Performance:

• Consolidated net sales reached $154.1 million for the three months ended October 4, 2026, an increase of $85.1 million (123.4%) from the prior-year period.
• Excluding the Marine Products Transaction, net sales increased $25.8 million (37.4%) year-over-year.
• Income from continuing operations was $12.1 million ($0.50 per diluted share), up from $3.7 million ($0.22 per diluted share) in the prior-year period.
• Adjusted Net Income was $12.2 million ($0.50 per diluted share), up from $4.7 million ($0.29 per diluted share) in the prior-year period.
• Adjusted EBITDA was $20.1 million, up $13.1 million from the prior-year period, with an Adjusted EBITDA margin of 13.0% compared to 10.1% in the prior year.
• Gross margin percentage decreased 120 basis points to 21.1% from 22.3% in the prior-year period.
• Operating expenses increased $8.9 million to $20.5 million, driven by incremental expenses from the Recreation and Sport Fishing segment, acquisition and integration costs, and higher selling and marketing costs.
• Net cash provided by operating activities was $6.2 million, compared to a net cash used of $7.0 million in the prior year.
• Free cash flow was $2.9 million, compared to a negative $10.1 million in the prior year.
• Cash and cash equivalents were $41.9 million as of October 4, 2026, down from $43.9 million as of June 30, 2026.
• Total assets were $508.3 million as of October 4, 2026, compared to $500.4 million as of June 30, 2026.

Guidance and Future Outlook:

• For the full Transition Period (July 1, 2026, through December 31, 2026), the Company expects consolidated net sales between $293 million and $297 million.
• Adjusted EBITDA for the Transition Period is expected to be between $32 million and $34 million.
• Adjusted Earnings per share for the Transition Period is expected to be between $0.75 and $0.80.
• Capital expenditures for the Transition Period are expected to be approximately $9 million.

Business Segments and Product Lines:

• The Company's continuing operations consist of Performance and Wake, Leisure, and Recreation and Sport Fishing segments.
• The Recreation and Sport Fishing segment generated $59.3 million in incremental net sales due to the Marine Products Transaction completed on May 15, 2026.
• Performance and Wake segment net sales increased 40.5% to $81.7 million, with unit sales volume up 21.2% to 457 units.
• Leisure segment net sales increased 20.6% to $13.1 million, with unit sales volume up 19.7% to 225 units.
• The next-generation X-Series product launch is highlighted as a key driver of product strength and market resonance.
• The Company is executing deliberate product, commercial, and operational actions to drive premium mix, clean channels, and reduce costs.

Market and Competitive Landscape:

• The Company operates through five brands: MasterCraft, Crest, Balise, Chaparral, and Robalo.
• The expanded brand portfolio and growing dealer network are creating new growth opportunities across categories and end markets.
• Integration and synergy efforts with Marine Products are advancing to plan.

Risks and Challenges:

• Forward-looking statements are subject to risks including rising interest rates, general economic conditions, and persistent inflationary pressures.
• Risks include changes in trade priorities, tariffs, quotas, and reciprocal trade actions.
• Challenges include the ability to successfully integrate Marine Products and realize expected benefits, as well as potential litigation related to the acquisition.
• Other risks include maintaining a reliable dealer network, managing elevated dealer inventories, and managing manufacturing levels and fixed cost bases.
• Geopolitical conflicts, political developments, and financial institution disruptions are also cited as potential risks.

Management Commentary and Tone:

• CEO Brad Nelson stated results were delivered above expectations, with total company net sales growing more than 120% year-over-year.
• Nelson highlighted that legacy business net sales grew 37% and delivered Adjusted EBITDA growth of nearly 140%.
• Management emphasized that commercial and operational execution is translating into higher earnings.
• The tone reflects confidence in the combined company's scale, capabilities, and ability to drive value creation through synergy investments.

Other Key Points:

• The Company completed the merger with Marine Products on May 15, 2026.
• The fiscal year-end changed from June 30 to December 31, effective July 1, 2026, to conform to Marine Products' historical fiscal year-end.
• Share repurchases totaled $4.8 million during the first three months of the Transition Period, with $18.7 million remaining under the repurchase program.
• Acquisition and integration costs, including those related to the change in fiscal year-end, impacted the current period results.
• The Company incurred an inventory step-up charge related to the Marine Products Transaction.
• The Transition Period report covers the six-month period from July 1, 2026, through December 31, 2026.