MasterCraft Boat Holdings, Inc. Reports Fiscal 2025 Results
VONORE, Tenn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) today announced financial results for its fiscal 2025 fourth quarter and year ended June 30, 2025.
The overview, commentary, and results provided herein relate to our continuing operations, which consists of our MasterCraft and Pontoon segments.
Fourth Quarter Overview:
Net sales for the fourth quarter were $79.5 million, up $25.2 million, or 46.4%, from the comparable prior-year period
Income from continuing operations was $5.5 million, or $0.33 per diluted share
Adjusted Net Income, a non-GAAP measure, was $6.6 million, or $0.40 per diluted share
Adjusted EBITDA, a non-GAAP measure, was $9.5 million, up $8.0 million from the comparable prior-year period
Share repurchases of $4.5 million during the quarter
Full Year Overview:
Net sales were $284.2 million, down $38.1 million, or 11.8%, from the prior-year
Planned decrease in production contributed to approximately 30% lower dealer inventory levels compared to the prior-year
Income from continuing operations was $10.7 million, or $0.65 per diluted share
Adjusted Net Income, a non-GAAP measure, was $15.1 million, or $0.92 per diluted share
Adjusted EBITDA, a non-GAAP measure, was $24.4 million, down $15.8 million from the prior-year
Net cash provided by operating activities was $38.2 million
Generated $29.0 million of Free Cash Flow and ended the year with cash and investments of $79.4 million, with $100 million of availability on the revolving credit facility and no outstanding debt
Brad Nelson, Chief Executive Officer, commented, "MasterCraft executed well in fiscal 2025, successfully navigating a challenging economic and industry backdrop. In the face of low cycle volumes, we further strengthened dealer health, advanced our new product initiatives, and generated significant free cash flow. This enabled us to return nearly $10 million of capital to shareholders, underscoring our disciplined and value-enhancing approach to capital allocation."
Nelson continued, "Our strong financial foundation provides us with the flexibility to pursue our core strategic initiatives including investments in innovation and dealer health. As we manage through a dynamic environment, our leading brand portfolio and cash flow generation position us well to invest for the future and maintain the flexibility to return capital to shareholders."
Fourth Quarter Results
For the fourth quarter of fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $79.5 million, up $25.2 million from the fourth quarter of fiscal 2024. The increase in net sales was primarily due to favorable model mix related to new product introductions, increased unit volumes, decreased dealer incentives, and favorable option sales.
Gross margin percentage increased 740 basis points during the fourth quarter of fiscal 2025, compared to the prior-year period. Higher margins were primarily the result of increased net sales, as discussed above.
Operating expenses increased $3.3 million for the fourth quarter of fiscal 2025, compared to the prior-year period due to increased variable compensation costs, increased sales and marketing costs, and increased administrative costs.
Income from continuing operations was $5.5 million for the fourth quarter of fiscal 2025, compared to $0.3 million in the prior-year period. Diluted income from continuing operations per share was $0.33, compared to $0.02 for the fourth quarter of fiscal 2024.
Adjusted Net income was $6.6 million for the fourth quarter of fiscal 2025, or $0.40 per diluted share, compared to $0.6 million, or $0.04 per diluted share, in the prior-year period.
Adjusted EBITDA was $9.5 million for the fourth quarter of fiscal 2025, compared to $1.6 million in the prior-year period. Adjusted EBITDA margin was 12.0% for the fourth quarter, up from 2.9% for the prior-year period.
Fiscal 2025 Results
For fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $284.2 million, down $38.1 million from fiscal 2024. The decrease in net sales was primarily due to planned lower unit volumes to align dealer inventories with retail demand and changes in price, partially offset by favorable model mix related to new product introductions, favorable option sales, and decreased dealer incentives.
Gross margin percentage declined 220 basis points during fiscal 2025, compared to the prior-year. Lower margins were the result of lower cost absorption due to the decreased production volume, material and overhead inflation, and changes in sales price.
Operating expenses increased $1.5 million for fiscal 2025, compared to the prior-year due to increased variable compensation costs.
Income from continuing operations was $10.7 million for fiscal 2025, compared to $23.2 million in the prior-year. Diluted income from continuing operations per share was $0.65, compared to $1.36 for fiscal 2024.
Adjusted Net income was $15.1 million for fiscal 2025, or $0.92 per diluted share, compared to $28.9 million, or $1.69 per diluted share, in the prior-year.
Adjusted EBITDA was $24.4 million for fiscal 2025, compared to $40.2 million in the prior-year. Adjusted EBITDA margin was 8.6% for fiscal 2025, down from 12.5% for the prior-year.
See "Non-GAAP Measures" below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per share, and Free Cash Flow, which we refer to collectively as the "Non-GAAP Measures", to the most directly comparable financial measures presented in accordance with GAAP.
Outlook
Concluded Nelson, "Our ongoing destocking progress, product innovation, and expanded distribution network position us well for fiscal 2026 and beyond. We have detailed plans in place for a range of potential retail demand scenarios and will continue to apply the cost discipline and tight working capital management that served us well in 2025. Based on our operating model and execution, we expect to generate positive free cash flow again in fiscal 2026. Regardless of the cycle, our focus will remain on maintaining a healthy dealer network, sustained innovation, and leveraging our competitive advantages to capitalize on the next market upswing."
The Company's outlook is as follows:
For full year fiscal 2026, we expect consolidated net sales to be between $295 million and $310 million, with Adjusted EBITDA between $29 million and $34 million, and Adjusted Earnings per share between $1.15 and $1.40. We expect capital expenditures to be approximately $9 million for the year.
For fiscal first quarter 2026, consolidated net sales are expected to be approximately $67 million, with Adjusted EBITDA of approximately $4 million, and Adjusted Earnings per share of $0.16.
Conference Call and Webcast Information
MasterCraft Boat Holdings, Inc. will host a live conference call and webcast to discuss fiscal fourth quarter and full year 2025 results today, August 27, 2025, at 8:30 a.m. ET. Participants may access the conference call live via webcast on the investor section of the Company's website, Investors.MasterCraft.com, by clicking on the webcast icon. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the conference call and webcast will be archived on the Company's website.
About MasterCraft Boat Holdings, Inc.
Headquartered in Vonore, Tenn., MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) is a leading innovator, designer, manufacturer and marketer of recreational powerboats through its three brands, MasterCraft, Crest, and Balise. For more information about MasterCraft Boat Holdings, and its three brands, visit: Investors.MasterCraft.com, www.MasterCraft.com, www.CrestPontoonBoats.com, and www.BalisePontoonBoats.com.
Forward-Looking Statements
This press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can often be identified by such words and phrases as "believes," "anticipates," "expects," "intends," "estimates," "may," "will," "should," "continue" and similar expressions, comparable terminology or the negative thereof, and include statements in this press release concerning economic uncertainty, the resilience of our business model, our intention to drive value, and our financial outlook.
Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: changes in interest rates, general economic conditions, changes in trade priorities, policies and regulations, including increases or changes in duties, current and potentially new tariffs and quotas and other similar measures, as well potential direct and indirect impact of retaliatory tariffs and other actions, demand for our products, persistent inflationary pressures, changes in consumer preferences, competition within our industry, our ability to maintain a reliable network of dealers, our ability to cooperate with our strategic partners, elevated inventories resulting in increased costs for dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products, the success of our strategic divestments, geopolitical conflicts, and financial institution disruptions. These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the "SEC") on August 30, 2024, could cause actual results to differ materially from those indicated by the forward-looking statements. The discussion of these risks is specifically incorporated by reference into this press release.
Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue or cause our views to change, whether because of new information, future events, changes in assumptions or otherwise. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements prepared in accordance with United States generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures in this release. Reconciliations of the Non-GAAP measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables immediately following the consolidated statements of operations. The Non-GAAP Measures have limitations as analytical tools and should not be considered in isolation or as a substitute for the Company's financial results prepared in accordance with GAAP.
Results of Operations for the Three and Twelve Months Ended June 30, 2025
MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Three Months Ended
Year Ended
June 30,
June 30,
June 30,
June 30,
2025
2024
2025
2024
Net sales
$
79,516
$
54,318
$
284,203
$
322,351
Cost of sales
61,106
45,713
227,338
250,741
Gross profit
18,410
8,605
56,865
71,610
Operating expenses:
Selling and marketing
3,197
2,498
11,740
11,203
General and administrative
8,835
6,249
32,093
31,119
Amortization of other intangible assets
450
450
1,800
1,812
Total operating expenses
12,482
9,197
45,633
44,134
Operating income (loss)
5,928
(592
)
11,232
27,476
Other income (expense):
Interest expense
—
(798
)
(1,169
)
(3,292
)
Interest income
823
1,625
3,472
5,789
Income before income tax expense
6,751
235
13,535
29,973
Income tax expense (benefit)
1,299
(70
)
2,820
6,730
Income from continuing operations
5,452
305
10,715
23,243
Income (loss) from discontinued operations, net of tax
245
(8,341
)
(3,672
)
(15,443
)
Net income (loss)
$
5,697
$
(8,036
)
$
7,043
$
7,800
Income (loss) per share
Basic
Continuing operations
$
0.33
$
0.02
$
0.65
$
1.37
Discontinued operations
0.02
(0.50
)
(0.22
)
(0.91
)
Net income (loss)
$
0.35
$
(0.48
)
$
0.43
$
0.46
Diluted
Continuing operations
$
0.33
$
0.02
$
0.65
$
1.36
Discontinued operations
0.02
(0.50
)
(0.22
)
(0.90
)
Net income (loss)
$
0.35
$
(0.48
)
$
0.43
$
0.46
