MarineMax Q3 2025 Earnings Report

MarineMax EPS Results

• Actual EPS: $0.49
• Consensus EPS: $1.16
• Beat/Miss: Missed by -$0.67
• One Year Ago EPS: $1.51

MarineMax Revenue Results

• Actual Revenue: $657.16 million
• Expected Revenue: $737.82 million
• Beat/Miss: Missed by -$80.66 million
• YoY Revenue Growth: -13.30%

MarineMax Announcement Details

• Quarter: Q3 2025
• Date: 7/24/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, July 24, 2025
• Conference Call Time: 10:00AM ET

MarineMax (NYSE:HZO) operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.

MarineMax Q3 2025 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Soft retail demand driven by economic uncertainty, evolving trade policies, and geopolitical tensions led to Q3 revenue of $657 million and same-store sales down high single digits.
• Positive Sentiment: Maintained over 30% gross margin by leveraging growth in higher-margin segments such as finance & insurance, superyacht services, storage, and marina operations.
• Positive Sentiment: Cost-cutting initiatives delivered adjusted SG&A savings of nearly $11 million year to date, despite ongoing inflationary pressures.
• Negative Sentiment: Recognized a $69 million non-cash goodwill impairment in Q3, resulting in a GAAP net loss and adjusted EPS of $0.49 versus $1.51 a year ago.
• Neutral Sentiment: Lowered full-year guidance to $0.45–$0.95 adjusted EPS and $105 million–$120 million adjusted EBITDA, while July trends show early signs of stabilization.

Presentation

[Operator]

Good morning, and welcome to the MarineMax Incorporated Fiscal twenty twenty five Third Quarter Conference Call. Today's call is being recorded. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. I would now like to turn the call over to Scott Solomon of the company's Investor Relations firm, Sharon Merrill Advisors. Please go ahead, sir.

[Scott Solomon, SVP at Sharon Merrill Advisors]

Good morning and thank you for joining us. Hosting today's call are Brett McGill, MarineMax's Chief Executive Officer and President and Mike McLamb, the company's Chief Financial Officer. Brett will begin the call by discussing MarineMax's operating performance and recent highlights. Mike will review the financial results. Brett will make some concluding comments and then management will be happy to take your questions.

[Scott Solomon, SVP at Sharon Merrill Advisors]

The earnings release and supplemental presentation associated with today's announcement can be found at investor.marinemax.com. With that, I'll turn the call over to Mike. Mike?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Thank you, Scott. Good morning, everyone, and thank you for joining this call. I'd like to start by reminding you that certain of our comments are forward looking statements as defined by the Private Securities Litigation Reform Act of 1995. Any forward looking statements speak only as of today. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

These risks include, but are not limited to, the impact of seasonality and weather, global economic conditions and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share and numerous other factors identified in our Form 10 ks and other filings with the Securities and Exchange Commission. Also on today's call, we will make comments referring to non GAAP financial measures. We believe that the inclusion of these financial measures helps investors gain a meaningful understanding of the changes in the company's core operating results. These measures can also help investors who wish to make comparisons between MarineMax and other companies on both a GAAP and a non GAAP basis. The reconciliation to non GAAP financial measures to the most directly comparable GAAP measures is available in today's earnings release.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

With that, let me turn the call over to Brett. Brett?

[William Brett McGill, CEO, President & Director at MarineMax]

Thank you, Mike, and good morning, everyone, and thank you for joining us today to discuss our Q3 results. Let me begin by recognizing and thanking our team for their commitment to our customers during what was a challenging quarter. Though the numbers reflect a tough environment, their dedication to a world class customer experience has never wavered. Our consistently strong Net Promoter Scores, commitment to the customer experience and business diversification reinforces my confidence that we will successfully navigate this period and emerge even stronger. As noted in this morning's earnings release, a combination of ongoing economic uncertainty, evolving trade policies, and heightened geopolitical tensions contributed to soft retail demand across the recreational industry in Q3.

[William Brett McGill, CEO, President & Director at MarineMax]

While these headwinds have existed to a degree throughout the fiscal year, we saw a noticeable increase in consumer caution since the April. While enthusiasm for the boating lifestyle remains high, the uncertainty is prompting buyers to delay purchases until the economic outlook is clearer. The premium boat segment has generally shown more resilience than other parts of the retail boat market, though it still faced significant unit declines this quarter due to broader economic concerns. Despite these challenges, our teams remain focused on executing our strategic priorities, managing costs and maintaining operational discipline. We continue to invest in digital tools and customer experience enhancements to position MarineMax for long term success.

[William Brett McGill, CEO, President & Director at MarineMax]

Reflecting the challenging retail environment, third quarter revenue came in less than our expectations at $657,000,000 with same store sales down high single digits. With new boat margins hovering near historic lows, gross profit margin decreased from the prior year. However, thanks to the continued strong performance of our higher margin businesses, including finance and insurance, superyacht services, storage and marina operations, including IGY, we maintained a gross margin above 30%. This resilience demonstrates our effective business mix and operational discipline, which enabled us to deliver solid results even in a challenging environment. On the expense line, we are seeing the continued benefits of cost cutting initiatives implemented during the fiscal year.

[William Brett McGill, CEO, President & Director at MarineMax]

That being said, inflation persists, so we continue to look for opportunities to improve our cost structure. Despite the inflation, adjusted SG and A was down nearly $11,000,000 on a year to date basis. Regarding tariffs, tariff related uncertainty has remained a headwind for the broader consumer environment. That said, we've continued to manage the evolving landscape effectively, thanks in part to solid coordination with our premium manufacturing partners and proactive inventory planning earlier in the year. The degree to which that stability continues will be dependent upon subsequent trade policy decisions and tariff agreements.

[William Brett McGill, CEO, President & Director at MarineMax]

While we are optimistic that together with our manufacturing partners, we will continue to find solutions, Tariff related volatility impacting consumer confidence is likely to further influence retail activity. Looking ahead, we are encouraged by early signs that the environment may be stabilizing. Manufacturers in the industry are being appropriately promotional and adjusting production to help align inventory with the retail environment. Lenders are forecasting that industry inventory may drop in the coming quarters to realign with past averages. This will provide some relief to the margin pressure that exists today.

[William Brett McGill, CEO, President & Director at MarineMax]

Our focus remains on disciplined execution, investing in higher margin businesses and positioning MarineMax to accelerate sales and increase profitability when the market stabilizes. Turning to recent highlights. During the quarter, IGY celebrated the opening of the IGY Savannah Harbor Marina, a new 100 berth marina in the heart of downtown Savannah. Additionally, the state of the art marina features a large dock specifically engineered to accommodate superyachts. Earlier this month, IGY also announced that they have been selected as the Marina Manager for the Wynn Al Marjan Island Marina in Ras Al Khaimah, UAE.

[William Brett McGill, CEO, President & Director at MarineMax]

IGY will advise Wynn Resorts on marina design and development. Then oversee marina management and marketing once the marina is operational. Trepid and Cruisers will both be launching a record number of new models within the next twelve months, of which several will debut in the coming months. Additionally, New Coast Financial, our finance and insurance operation continues to see growth through the use of technology and expanded partnerships. We also recently completed the development of a marina adjacent to our retail operation in Stuart, Florida.

[William Brett McGill, CEO, President & Director at MarineMax]

It is a profit winning strategy when you can combine a well run dealership with a state of the art marina, especially in a growing market like Stewart. And so with that update, let me turn the call over to Mike for the financial review. Mike?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Thank you, Brett. I also want to express my appreciation to our team for their dedication and resilience in the face of a challenging market environment. Turning to our results.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Total revenue decreased in the quarter to $657,000,000 which as Brett noted, was primarily a function of lower new boat sales resulting from increased consumer caution. Same store sales were down 9%. Depending on the segment, our unit volume for the quarter was down similar to our same store sales decline or greater, although better than the industry as a whole, but reflecting the broad retail softness. As expected, margins remained under pressure in Q3 as we intensified our promotional activity in an effort to drive sales. Gross margins on Boats are about as low as we've seen outside the financial crisis.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Fortunately, our focus to expand our higher margin businesses again enabled our consolidated gross margin to remain above 30%. On the expense side, adjusted selling, general and administrative expenses for the quarter decreased about 4%. Our cost reduction initiatives, which have included closing over 10 locations since last year, have helped reduce expenses. However, we continue to face rising costs in several areas, offsetting a portion of the savings. We are actively reviewing all opportunities to improve efficiency and reduce expenses.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Interest expense decreased primarily due to lower rates. As noted in our earnings release, our GAAP net loss for the quarter included a non cash goodwill impairment charge of just over $69,000,000 associated with our Manufacturing segment. This charge is a required accounting adjustment that primarily reflects the effect of the current macroeconomic uncertainty on our market capitalization in combination with the tougher environment. It does not reflect any change in our long term outlook for the manufacturing business. Adjusted net income, which excludes the goodwill impairment as well as other discrete expenses identified in our earnings release, was $11,000,000 or $0.49 per diluted share for the quarter compared with $34,800,000 or $1.51 per diluted share last year.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Third quarter adjusted EBITDA was 35,500,000 versus $70,400,000 last year. Turning to the balance sheet. Cash and cash equivalents was $151,000,000 at quarter end. Inventories increased year over year by approximately $26,000,000 primarily due to the softer than expected June quarter. Customer deposits decreased as a result of timing of large yard orders and deliveries and more readily available product as well as the softer retail environment.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Our net debt to adjusted EBITDA was under two times at quarter end. Turning to capital allocation. During the quarter, we bought back additional shares of our stock under our share repurchase plan. Through the fiscal year, we have repurchased roughly 6% of our outstanding stock. We also continue to invest in growth initiatives such as the IGY Savannah Harbor and our Stewart Marina expansion as well as improvements in our operations.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

And we remain committed to maintaining a healthy balance sheet. Turning to guidance, given our results through the first nine months of fiscal twenty twenty five and the heightened level of macroeconomic uncertainty, which hit the seasonally critical June especially hard, we are revising our full year guidance. We now expect fiscal year twenty twenty five adjusted net income in the range of $0.45 to $0.95 per diluted share and fiscal year twenty twenty five adjusted EBITDA in the range of $105,000,000 to 120,000,000 These expectations did not consider or give effect for, among other things, material acquisitions that we may complete or other unforeseen events, including changes in global economic conditions. As a reminder, EPS gets impacted greater than adjusted EBITDA given the size and nature of depreciation and amortization and stock based compensation. Our outlook assumes that the September will face challenges similar to the June with higher than expected inventory levels across the industry continuing to pressure margins.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

We'll remain aggressive on pricing to drive sales and reduce inventory through the quarter. Before I turn the call over to Brett, I will comment on July trends. With our aggressive actions, July is expected to finish ahead of last year's July, which certainly is a nice turn from a rather challenging June. Now, let me turn the call over to Brett for closing comments. Brett?

[William Brett McGill, CEO, President & Director at MarineMax]

Thank you, Mike. While our near term outlook is cautious due to the ongoing economic uncertainty, we are confident that our overarching strategy centered on expanding our higher margin businesses will drive operational resilience. Our management team has successfully guided the company through many challenging economic cycles. As the recovery takes hold, we believe that our earnings power is significantly enhanced by the strategic expansion of our higher margin businesses and the resilient consumer demand for the boating lifestyle. With that, Mike and I will be happy to take your questions.

[William Brett McGill, CEO, President & Director at MarineMax]

So operator, please open up the line for the Q and A.

[Operator]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star, one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 to remove yourself from the queue.

[Operator]

We ask that you limit to one question and one follow-up. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Your first question comes from James Hardiman with Citi. Please go ahead.

[James Hardiman, Director - Leisure and Travel Analyst at Citi]

Hey, good morning. Thanks for taking my So I was all I was ready to ask the question about why you guys talk a lot about you saw the drop off in April surrounding all the trade issues. Obviously, the stock market has rebounded pretty nicely. Consumer confidence, maybe a little better, not dramatically so. But certain segments of the economy appeared to have bounced off of those April lows.

[James Hardiman, Director - Leisure and Travel Analyst at Citi]

I was going to ask why you're not really seeing any improvement, certainly if it's a trade issue. But then, Mike, you mentioned that things are now expected to be up in July. So I guess I'll start there. What do you think is different about sort of the various factors impacting the consumer as we think about July? Is it high quality sales, I.

[James Hardiman, Director - Leisure and Travel Analyst at Citi]

E. Like are promotions higher in July and maybe it's sort of maybe not as impressive of a turnaround as it sounds? Obviously, weather was a big factor earlier in the quarter. Don't really know how to think about that in the context of your business. But basically walk us through sort of how you think about where the consumer is and if this July improvement is the start of something or maybe just an outlier?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

I'll take a stab. It's the $64 question, if you will, or $164 question as to what's caused the consumer to pause in post Liberation Day, but clearly they did. Obviously consumer confidence dropped a lot after that as did some of the economic outlooks for the country. That's all published data. It's better now to your point.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Consumer confidence is coming back up. You think about the big buckets of uncertainty. And again, this is stuff that's published. You had all the tariff headlines. You had the global tensions that were pretty high in the June, especially in The Middle East.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

You had a lot of discussion around the tax law, was it going to be passed? What was going be in it? What's not going to be in it? Tax law is now passed, which is good. That was July 4, if I remember right.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

You can argue that maybe the global tensions are a little bit less now. People would argue either way on that. You could also for sure, you mentioned weather and we're probably less susceptible to weather than some people in the industry, but it does seem like weather did begin to improve later than normal for much of our markets in the Midwest and Northeast. So it's kind of a combination of all that. I mean, there's a lot of wealth right now.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

So people have the money to buy what they want to buy. But not just boats. It's boats. It's it's a lot of other more expensive discretionary items have been impacted right now.

[William Brett McGill, CEO, President & Director at MarineMax]

So Yeah. And, James,

[William Brett McGill, CEO, President & Director at MarineMax]

I I would add that, you know, April, when you go back to that quarter, you kinda say, well, what's the difference? So July looks like it's gonna be up. April was dramatically down. I mean, the liberation day, it was a cliff. It was down.

[William Brett McGill, CEO, President & Director at MarineMax]

Just kept you couldn't get couldn't get the month back. May actually had a little bit of, you know, had a little bit of good signs in there. And then June, you know, good signs you could make up what what you lost in April, and then June just never really got going, you know, ended up down. But you you so not only did you not make up what you lost So the difference here is, you know, July starts off, you know, there's signals out there in the economy.

[William Brett McGill, CEO, President & Director at MarineMax]

There's tariff announcements every day that can kind of be positive, but there's not this cliff effect that we kinda had in April. So that's encouraging that you're not trying to dig out of a massive hole created in almost two weeks.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

That's a good point.

[James Hardiman, Director - Leisure and Travel Analyst at Citi]

All all great points. And then as we think about moving forward, I don't know, kind of July I mean, how should we be thinking about same store sales for the fourth quarter? Could they possibly be up? And then, I don't know, as we think about next year, given all the uncertainty of this year, almost hesitate to ask a question about next year, but any sort of early thoughts? There's some things hopefully that you can control, maybe SG and A, how to think about that. But as we think about fiscal twenty twenty six, any initial guideposts?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

I'll comment first on the first part of that question, which was really about Q4. And I think in my prepared remarks, I was alluding to was we're expecting the September to be challenging, similar to the June. Maybe not quite as soft perhaps because we are up against the negative comp in the September because of the hurricanes last year. You asked, is it possible that same store sales will be positive? I can tell you our team is working like heck to make it positive.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

And so yes, it's possible, but that's not what we factored into our guidance. We think it's prudent to think it probably will be down.

[William Brett McGill, CEO, President & Director at MarineMax]

And the setup for 2026, you know, if we can get a little bit of favorable wins is good. You know, when you think about our ability to drive margin up, if we get the inventory, level down. And, yep, so there's some good setup for what '26 could look like, but it's too your guess is good in mind on what's really going to happen in the macro.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

The expectation, at least obviously those who are in the industry have this expectation, but even folks who watch the industry are that industry inventory levels will bottom. It was supposed to happen as of June 30, but because of the weak June, that's now going to be pushed out a quarter or maybe two quarters or sometime into the fall. Once that bottoms to Brett's point, you have some margin relief for the industry, obviously for us and also for the industry. And then once the industry bottoms, in theory, you start having some growth levels coming off of that with the wealth that's being created out there.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

And the one thing I want to I don't want to lose sight of is the demand for the boating lifestyle. Brett said it, I probably said it. I boat whenever I can and you see the people out there, there's a ton of folks enjoying their boats. There's a ton of people at our events. Our gallons sold at our marinas are up.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

There's a lot of data that says people are enjoying it and they wanna be in it. They're just pausing the purchase decision right now. So that's that's a a big important point is that it's a healthy environment, meaning it's a healthy lifestyle. People wanna be part of it, which is something I don't want to say of.

[James Hardiman, Director - Leisure and Travel Analyst at Citi]

That's all really good color. Good luck, guys. Thanks.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Thank you.

[William Brett McGill, CEO, President & Director at MarineMax]

Thank you, James.

[Operator]

Next question, Joe Altobello with Raymond James. Please go ahead.

[Joseph Altobello, Managing Director at Raymond James Financial]

Thanks. Hey, guys. Good morning. Wanted to follow-up on July terms of the promotional environment. I mean, obviously, it sounds like things got a little bit better here this month. How much of that was promotion driven? How much of that was deals on leftover model year 25s, for example?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

We're pretty promotional, but we were pretty promotional. So it may be a sign that perhaps the consumer may be feeling a little bit. I I don't know, Brett. It doesn't seem like we're doing a whole lot different right now in July other than we're working hard and maybe maybe the consumer's feeling a little bit better.

[William Brett McGill, CEO, President & Director at MarineMax]

Yeah. It it it's not a you know, obviously, we we work hard to pull any lever we can in the business to drive sales and we are, but I don't I wouldn't I wouldn't put anything on any extra promotion that was material enough to tell you that made a difference in July.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Yeah.

[Joseph Altobello, Managing Director at Raymond James Financial]

Got it. Okay. And just and just a follow-up on that. I mean, given the promotional environment and I think you mentioned that it's as bad as it's been since the financial crisis. What has to change for that to get better?

[Joseph Altobello, Managing Director at Raymond James Financial]

I mean, obviously, improvement would help. But like, is that being driven by just excess inventories? Or are there other factors involved?

[William Brett McGill, CEO, President & Director at MarineMax]

Inventories, you know, being up drives it makes it a little bit more of a a buyer's market. But I just see uncertainty out there. People, you know, whether they're a plumbing company, a construction company that has, you know, workers that are in fact affected by the immigration issues going on out there to tariff uncertainty for them. They're just sitting the promotional activity is only thing that can kinda get them off the couch to say, okay. I guess maybe I should buy now instead of waiting until there's some settle you know, things settle down in my business.

[Joseph Altobello, Managing Director at Raymond James Financial]

Got it. Okay. Thank you.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Thank you, Joe.

[Operator]

Next question, Eric Wold with Texas Capital. Please go ahead.

[Eric Wold, Executive Director, Equity Research at Texas Capital Securities]

Hey, thanks. Good morning.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Morning.

[Eric Wold, Executive Director, Equity Research at Texas Capital Securities]

Quick question, I apologize, I kind of dropped off a bit during the James question beginning. I'm not sure how you addressed this, but you mentioned that you're encouraged by kind of the OEMs adjusting production to retail activity.

[Eric Wold, Executive Director, Equity Research at Texas Capital Securities]

I know we've kind of heard that kind of almost repeatedly for a number of quarters. Is that kind of just a continual adjustment or are you seeing them kind of make any kind of extra moves to really kind of try to get ahead of what's happening now to really drive inventories lower and kind of maybe take an extra step to kind of get ahead of where consumers are and kind of really cut inventories lower to maybe get, ahead of where we are kind of we're going to eliminate the move that to promote extra heavy kind of ahead of next year's voting season?

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

I think the industry is very responsible and they really the builders don't want too much inventory in the channel. Obviously, the dealers don't want too much inventory. The banks who finance the industry don't want too much inventory. Everybody has the same goal in mind. What's so tough is the June is so critical

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

I mean for some people it's 6070% of their sales. It's so important that when the June falls, 16% in fiberglass sales in April and 20% in May and June is not out yet, but it's going to be in that same range as what we believe. People weren't forecasting on that big of a decline in the June. So you have to level set and reset your thoughts for 2026, which is what the manufacturers are doing. You gotta bring down production accordingly.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

And you gotta step it down, which the industry is is working to do it. I think the important thing is is I think everybody has the right goal in mind, which is to keep inventories in check, not overbuild, which will help with the promotional environment. It will help with margins. It's just people didn't expect this big of a drop in the most important quarter seasonally in the industry.

[Eric Wold, Executive Director, Equity Research at Texas Capital Securities]

Got it. And just a quick follow-up. Any update on kind of what you're seeing out of the Florida market kind of a couple of quarters past the hurricanes or that market coming back kind of maybe relative to the other markets in the country?

[William Brett McGill, CEO, President & Director at MarineMax]

Yeah. Eric, great question. It was something I was talking we've been talking about here this quarter more than probably the certain areas within Florida are still not recovered from the hurricane. And probably more so than maybe we kinda realize, you know, as you get around and you visit places, heck, our our Sarasota store is still operating out of a mobile trailer and, you know, we're doing what we can and so many people's homes haven't been rebuilt. So it's it's actually gone on longer.

[William Brett McGill, CEO, President & Director at MarineMax]

Here we are coming up on hurricane season for this year, and we're still not recovered from that. It's probably probably had more of an impact than I think everyone thought.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

The bigger, the issue, Brett alluded to it, but it's the amount of docks that are still damaged. You see them when you boat or when you drive around and the docks aren't repaired because the people are still waiting on something on their home. Or if they were ready for their dock, there's just not that many dock builders out there. So it's it's lasted longer because of the amount of flooding that happened here.

[Eric Wold, Executive Director, Equity Research at Texas Capital Securities]

Got it. Thank you both.

[Operator]

You, Next question, Anna Glastian with B Riley. Please go ahead.

[Anna Glaessgen, Senior Research Analyst at B. Riley Securities]

Hey. Good morning, guys. I'd like to ask a bigger picture question. You know, you spoke to maybe inventory recalibration maybe being pushed out a quarter or two. But as you think about the broader recovery in boat retail, has your view shifted in light of the uncertainty over the past few months? Thanks.

[William Brett McGill, CEO, President & Director at MarineMax]

Yeah, go ahead.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

No, I don't think our broader view has shifted at all. I mentioned a minute ago about the strength of the demand for the boating lifestyle and the interest in it. So that's real positive. I think we're in a tough period.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

We were in a tough period prior to Liberation Day. I mean, it was tough. We were doing fantastic in a tough environment. And then the uncertainty came with liberation day. That doesn't change our long term.

[William Brett McGill, CEO, President & Director at MarineMax]

And I think, speaking to the inventory recalibration, us working really closely with our manufacturers early on in our fiscal year to get things aligned. You know, we had a good plan and then the June is as soft as it was for our industry and so there's gonna be a continued recalibration there to get it in line with the best forecast we can give. It doesn't change our entire broad broader, you know, aspect of things, but that June being down is gonna take adjustments on manufacturers and and us to move through it.

[Anna Glaessgen, Senior Research Analyst at B. Riley Securities]

Got it. And and then just a follow-up on July. I I I know it's still pretty early, but anything interesting you're hearing from those consumers that are responsible for that pickup? Are they more responsive to promotions? Just kind of over the headlines about tariffs and just looking to get on the water. Any help there would be great.

[William Brett McGill, CEO, President & Director at MarineMax]

There's nothing material in the promotional activity that's helped us there. I mean there is something I'm sure that effort and focus, you know, driving out some aged aged product, of course, helps. And I'll I'll I'll comment too. You know, new models that manufacturers, we sometimes get stuck in all these other metrics. But when people see a new model from a brand come out with new innovation, that's that continues to sell.

[William Brett McGill, CEO, President & Director at MarineMax]

And so that's that's probably a little bit of it there. But it's just, you know, like I said, when the June never really recovered from those first couple weeks of April, probably helping that July doesn't have that cliff effect in there.

[Anna Glaessgen, Senior Research Analyst at B. Riley Securities]

Great. Thanks, guys.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Thanks, Anna.

[Operator]

Next question, Mike Albany with The Benchmark Company. Please proceed.

[Michael Albanese, Equity Research Analyst at The Benchmark Company LLC]

Yes. Hey, guys. Thanks for taking my question. I just wanted to ask, I guess, I'm looking for some historical context in a sense, but you mentioned, I guess, strong engagement, lifestyle, putting activity, all fairly resilient. Have you seen such a divergence in the past between kind of stable boating activity and just the lack of new boat sales?

[Michael Albanese, Equity Research Analyst at The Benchmark Company LLC]

I can I imagine, obviously, I wasn't covering the industry in 02/08/1929 that boating activity declined along with sales? So I'm just curious if you can comment on that.

[William Brett McGill, CEO, President & Director at MarineMax]

That's a great point. It's Mike can comment, but, you know, you're right. There was a people still went boating, but it was a lot less and closer to home and not spending as much money on fuel back in the financial crisis that is. But this is definitely a divergence. I mean, people are out there.

[William Brett McGill, CEO, President & Director at MarineMax]

They're using their boats. So, yeah, that's that's a little new to us. Probably seen a little bit of it before.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

It's I mean, the financial crisis is so much different than what this is. There's financial crisis. There's you if you remember how many people got laid off, they had to sell their boats, all that kind of stuff. That's not what this environment is. This is just a, you know, fair amount of uncertainty being thrown at the potential buyers and potential people who are going to trade up the customers that they're delaying.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

I don't know if we've really seen it before, looks like it is now.

[William Brett McGill, CEO, President & Director at MarineMax]

The inflationary pressures over the years too are clearly having an impact. You know, the average price of a boat, you know, now versus, you know, pre COVID, we'll call it. Those are dramatic differences that clearly put a gap between when somebody bought a boat and when they're ready to buy their next boat.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

Yeah.

[Michael Albanese, Equity Research Analyst at The Benchmark Company LLC]

So I guess the thought being there that that, you know, the typical, I don't know, upgrade replacement cycle has kind of been pushed out or it's elongated. I mean, how do you think about there being pent up demand if the consumer gets unlocked? Maybe we were looking out into 2026 or 2027 at this point. But I mean, how are you thinking about pent up demand forming given that divergence?

[William Brett McGill, CEO, President & Director at MarineMax]

Real because we yes, it does. When we talk to customers at boat shows or in our showroom, just interactions personally with people I know in the market that are boaters and want new boats, there's just some delay and they're saying, hey, I'm gonna do that next year. You know, it's there. They're just waiting to see how things play out. There is a pent up demand.

[William Brett McGill, CEO, President & Director at MarineMax]

I'd be careful how strong I say that. But it it's it's there. There is a pause in the buyers and, you know, the excuses range from, yeah, that boat's so much more. You know? And some of us just, hey.

[William Brett McGill, CEO, President & Director at MarineMax]

I wanna wait and see what happens in my business, see what happens with tariffs Mhmm. In my business. It's not so much tariffs and the cost of your boat.

[Michael McLamb, Executive VP, CFO, Secretary & Director at MarineMax]

It's Yeah.

[William Brett McGill, CEO, President & Director at MarineMax]

How does it affect what I'm doing in my world?

[Michael Albanese, Equity Research Analyst at The Benchmark Company LLC]

Got it. That's great color. I appreciate it, guys.

[William Brett McGill, CEO, President & Director at MarineMax]

Thank you, Mike.

[Operator]

Thank you. I will now turn the call back to mister McGill for closing comment.

[William Brett McGill, CEO, President & Director at MarineMax]

Well, thank you, everybody, for joining us today. Some really great questions. Thanks for your interest in MarineMax, and we'll update you on our next call.

[Operator]

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Michael McLamb, Executive VP, CFO, Secretary & Director
• William Brett McGill, CEO, President & Director

Analysts

• Scott Solomon, SVP at Sharon Merrill Advisors
• James Hardiman, Director - Leisure and Travel Analyst at Citi
• Joseph Altobello, Managing Director at Raymond James Financial
• Eric Wold, Executive Director, Equity Research at Texas Capital Securities
• Anna Glaessgen, Senior Research Analyst at B. Riley Securities
• Michael Albanese, Equity Research Analyst at The Benchmark Company LLC