Malibu Boats NASDAQ: MBUU reported fiscal third-quarter 2026 results that management said exceeded guidance on its legacy business and included a partial-month contribution from newly acquired Saxdor Yachts. On the earnings call, CEO Steve Menneto described the quarter as “defining,” pointing to the close of the Saxdor acquisition as “the most significant strategic milestone in our company’s history” and a key step in the company’s “build, innovate, and grow” strategy introduced at its September investor day.
CFO David Black said consolidated net sales rose 3.1% year over year to $235.7 million, including $23.1 million from Saxdor following the March 2 closing. On a legacy basis excluding Saxdor, net sales were $212.6 million, above the company’s prior guidance range of $198 million to $202 million.
Management cites bifurcated demand and resilient boat show results
Menneto said the consumer environment has grown more uncertain since the prior update, citing geopolitical developments impacting gas prices and sentiment, along with affordability pressures on “more value-oriented buyers who tend to utilize financing.” He said Malibu is seeing a “clear bifurcation” in the market, with “premium cash-driven buyers” continuing to engage.
According to Menneto, recent boat shows supported that view. At the Miami International Boat Show, the company debuted the Pursuit DC 286 and Pathfinder 2800 Hybrid—two of 11 new models launched across its portfolio over the past year—saying dealer wholesale orders for both models “have exceeded forecasts throughout the end of the fiscal year.” He also noted that Malibu received National Marine Manufacturers Association Customer Satisfaction Index awards across five brands at Miami: Malibu and Axis in ski/wake/surf boats, and Cobalt, Pursuit, and Pathfinder in fiberglass outboard boats.
At the Palm Beach International Boat Show, Menneto said Pursuit and the Maverick Boat Group brands delivered year-over-year sales growth despite what he described as subdued broader industry traffic.
Legacy volumes down, pricing and mix drive higher sales per unit
Black said legacy unit volume fell 17.1% to 1,187 units, attributing the decline primarily to lower wholesale shipments tied to the company’s “disciplined approach to channel management.” Saxdor contributed 66 units during its partial-quarter inclusion.
On a legacy basis, Black said Malibu and Axis represented about 46% of unit sales, Cobalt about 28%, and Saltwater Fishing the remaining 26%. He added that Saxdor will be reported as a new fourth segment and that the company intends to expand segment disclosure in future periods.
Despite lower unit volumes, Black said consolidated net sales per unit on a legacy basis increased 12.1% to $179,000 due to favorable model and segment mix as well as year-over-year price increases. He also noted that while not included in that comparable metric, Saxdor’s net sales per unit in Q3 was $350,000, which he said is expected to lift overall sales per unit in subsequent periods.
Margins improve sequentially; acquisition costs weigh on GAAP results
Black reported gross profit declined 9.7% to $41.3 million and gross margin was 17.5%. However, he emphasized a sequential improvement, saying gross margin expanded 420 basis points from fiscal Q2. Black attributed the sequential improvement to the benefit of the company’s centralized sourcing initiative as higher-cost inventory moved through the income statement, along with improved segment mix and a normalization of promotional activity.
Year over year, Black said gross margin compressed 250 basis points, citing fixed-cost deleverage from lower legacy unit volumes and higher per-unit material and labor costs across legacy segments.
Selling and marketing expense rose 22.1% to $8.3 million, driven by higher personnel-related expenses, marketing events, and incremental expense from the new Saxdor segment, according to Black. General and administrative expense increased 60%, or $11.9 million, primarily due to $10.6 million of acquisition- and integration-related costs tied to the Saxdor transaction; Black said those costs are excluded from adjusted EBITDA. Malibu posted a GAAP net loss of $2.4 million versus GAAP net income of $13.2 million a year earlier, which Black attributed mainly to the acquisition and integration expenses and lower legacy operating income.
Adjusted EBITDA for the quarter was $22.7 million, representing a 9.6% adjusted EBITDA margin. Black said the consolidated total included about one month of Saxdor contribution, equating to approximately $1.4 million of adjusted EBITDA since the March 2 closing. Non-GAAP adjusted net income per share was $0.56, calculated using a normalized C-corp tax rate of 22.1% and a basic weighted average share count of approximately 19 million shares.
Saxdor integration, manufacturing capacity, and revenue seasonality
Menneto said the Saxdor integration is progressing well and reiterated elements of the acquisition rationale, including Saxdor’s customer demographic, which he said skews young and affluent with an average household income of approximately $375,000. He highlighted Saxdor’s debut of the 460 GTC flagship at the Palm Beach show, saying planned production for the model this year is “effectively spoken for,” and added that the company is pacing production to protect premium positioning and scale with its dealer network. Menneto also said the 400 GTS “continues to perform well” following its Miami debut.
On manufacturing, Menneto said Malibu expects to expand Saxdor’s North American manufacturing capacity by leveraging the existing Fort Pierce footprint, which he said currently operates at about 65% utilization. He described this as a way to grow in North America without a “capital-intensive greenfield investment” while relieving demand pressure on Saxdor’s European facilities in Finland and Poland.
In the Q&A, Black addressed Saxdor’s quarterly phasing, saying it is still early but that the back half of Malibu’s fiscal year is heavier for Saxdor revenue than the first half, with fiscal Q1 the lowest. He characterized the ramp as being weighted to the back half of the year, with roughly 60% of revenue at that point in the year. On product cadence, Menneto said Malibu is “pretty excited” about Saxdor’s product plan over the next three to five years and sees “a lot more opportunity” ahead.
Balance sheet, capital allocation, and updated outlook
Black said Malibu ended the quarter with about $50 million in cash and $165 million in long-term debt, reflecting financing for the acquisition. He said pro forma leverage was approximately 1.5x net debt to trailing 12-month adjusted EBITDA, below the company’s stated maximum target of 2.5x. Free cash flow was $16 million in Q3, including $5.9 million in capital expenditures.
As part of the Saxdor purchase consideration, Black said Malibu issued roughly 1.5 million shares priced using a 10-day volume weighted average price of $30.98 per the deal terms; at closing, the shares were recorded at a GAAP fair value of $27.37. During the quarter, the company repurchased approximately 492,000 shares at an average price of $26.24. Black said the company’s $70 million share repurchase authorization remains in effect.
On tariffs, Menneto said the company still expects total fiscal 2026 tariff exposure to fall within the range previously communicated at the start of the year and expects Section 232 impacts to be “de minimis.” He said Malibu’s vertically integrated U.S. footprint and centralized sourcing capabilities provide flexibility, and added that with Saxdor the company now has manufacturing on both sides of the Atlantic.
For fiscal 2026, Black guided to combined net sales of approximately $880 million to $886 million and adjusted EBITDA of approximately $72 million to $74 million. He said Malibu is raising its full-year net sales outlook for the legacy business due to Q3 outperformance while keeping Q4 expectations unchanged from the cadence in the prior annual framework, resulting in full-year legacy revenue “down slightly” versus fiscal 2025.
Black said legacy adjusted EBITDA margin is expected to finish toward the lower end of the previously communicated 8% to 9% range, explaining in the Q&A that Q3 benefited from a favorable mix impact that is not expected to repeat in Q4. For Saxdor in fiscal Q4, the company expects net sales of about $57 million to $59 million and adjusted EBITDA margin of 10% to 11%, which Black said reflects a full quarter contribution during the peak of Saxdor’s European sales season. On a combined basis for Q4, Malibu guided to net sales of $261 million to $267 million and adjusted EBITDA of $29 million to $31 million, implying an adjusted EBITDA margin of roughly 11% to 12%.
Black said Malibu expects to return to a single consolidated outlook when it provides fiscal 2027 guidance in August. In closing remarks, he said the company exceeded expectations in the legacy business, is seeing margin benefits from centralized sourcing, and believes healthier dealer inventories and a strong balance sheet position it for the remainder of fiscal 2026 and into fiscal 2027.
About Malibu Boats NASDAQ: MBUU
Malibu Boats, Inc is a leading designer, manufacturer and distributor of performance sport boats for the recreational boating market. The company's product portfolio includes the premium Malibu® brand and the value-oriented Axis® Wake Research line, as well as Cobalt® boats following its 2020 acquisition. Malibu's vessels are engineered to serve water-sports enthusiasts, with models optimized for wakeboarding, wakesurfing and waterskiing.
Founded in 1982 by water-sports enthusiast Jack Springer, Malibu Boats is headquartered in Loudon, Tennessee.
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