What Malibu Boats (MBUU) Said on Its Q1 Earnings Call

Key Points

• Sales grew 29.9% to $252.9 million, including $51.1 million from Saxdor, but came in modestly below guidance; adjusted EBITDA rose 21.7% to $14.3 million, at the low end of outlook. Results varied by segment: Malibu sales fell 9.1%, while Cobalt and saltwater fishing sales increased.
• Softening retail demand—especially for ski and wake boats—led Malibu to limit wholesale shipments to protect dealer health. Dealer inventory was down by a low-double-digit percentage year over year, and management expects incentives to remain elevated.
• Saxdor’s U.S. production ramp is ahead of schedule, with management targeting margins of 10%–11% as manufacturing scales. After changing its fiscal year-end, Malibu forecast $236 million–$248 million in sales and $13 million–$15 million in adjusted EBITDA for the December quarter.

Malibu Boats NASDAQ: MBUU reported a 29.9% increase in net sales for the quarter ended Sept. 30, 2026, as its Saxdor acquisition and higher shipments of Cobalt and saltwater fishing boats helped offset weaker demand in the ski and wake boat category.

Net sales rose to $252.9 million, modestly below the company’s guidance, while adjusted EBITDA increased 21.7% to $14.3 million, at the low end of its outlook. Saxdor contributed $51.1 million in sales.

President and CEO Steve Menneto said the retail environment softened over the summer, prompting the company to limit wholesale shipments to protect dealer health. He attributed the weakness in ski and wake boats to broader category conditions rather than a Malibu-specific issue, and said the company continued to gain market share.

Legacy Sales Rise as Malibu Segment Weakens

Excluding Saxdor, sales increased approximately 3.6% to $201.8 million. Total unit volume rose 15.1% to 1,299 boats, including 139 Saxdor units. Legacy unit volume increased approximately 2.7% to 1,160 boats.

Malibu segment sales declined 9.1% to $71.5 million, reflecting lower wholesale shipments and higher dealer incentive costs. Saltwater fishing sales rose 7.1% to $68.9 million, while Cobalt sales increased 18.8% to $61.5 million. Both segments benefited from higher shipments against a year-earlier period affected by dealer inventory levels, CFO David Black said.

Gross profit rose 35.5% to $37.8 million, and gross margin expanded approximately 70 basis points to 15%. GAAP net income was $6.1 million, or $0.30 per diluted share, including a $15 million benefit related to insurance proceeds. Adjusted net income per share, which excluded that benefit, was unchanged at $0.15.

Adjusted EBITDA excluding Saxdor declined to approximately $10.3 million from $11.8 million a year earlier, with the decrease driven by the Malibu segment, Black said.

Saxdor Production Ramp Continues

Menneto said U.S. production of Saxdor boats at Fort Pierce began in July and was ahead of schedule. The first U.S.-built Saxdor 320 GTO was completed earlier than originally targeted, and serial production is underway. He said the facility has room to build 200 Saxdor boats a year before requiring expansion.

Saxdor posted an adjusted EBITDA margin of 8% during the quarter as the company invested in the production ramp. Management continues to expect margins to rise toward 10% to 11% as U.S. manufacturing scales and the sales mix shifts toward larger models. Black also said the company expects Saxdor growth to remain in the mid-teens through the first half of calendar 2027.

Retail Pressure and Dealer Inventory

Menneto said preliminary industry data showed powerboat registrations fell approximately 11% in the July-to-September period, with ski and wake boats under greater pressure than the broader market. September registrations were down 2%, the industry’s best monthly performance of the year, he said.

Elevated financing costs continue to keep payment-sensitive buyers on the sidelines, Menneto said, while feature-rich boats and custom orders remain in demand. He expects incentives to remain elevated relative to historical levels.

Black said dealer inventory was down by a low-double-digit percentage from a year earlier at Sept. 30. He expects further declines during the transition period, particularly in towboats, before wholesale shipments and retail sales move toward equilibrium.

At the recent Fort Lauderdale boat show, Malibu sold more boats than a year earlier and saw higher average selling prices, Menneto said, while cautioning that the event was only one data point.

Cash Use and Revised Outlook

Net cash used in operating activities was $31.1 million, compared with $6.5 million provided a year earlier. Black attributed the seasonal cash use partly to an approximately $32 million rebuild of company inventory, as well as annual compensation and dealer incentive payments. Free cash flow was negative $39.5 million, compared with positive $2.3 million a year earlier.

Malibu ended September with $40.3 million in cash and $172.9 million in debt. It made no share repurchases during the quarter; its $70 million authorization remains in place through June 30, 2027.

The company also changed its fiscal year-end from June 30 to Dec. 31, superseding its August outlook. For the December quarter, it expects net sales of $236 million to $248 million and adjusted EBITDA of $13 million to $15 million. For the July-to-December transition period, including the September results, it forecasts sales of $489 million to $501 million and adjusted EBITDA of $27.3 million to $29.3 million.

Black cautioned that the seasonally lower-volume transition period should not be annualized. Malibu expects to provide its initial calendar 2027 outlook in March when it reports the December-quarter and transition-period results.

About Malibu Boats (NASDAQ:MBUU)

Malibu Boats, Inc is a recreational powerboat manufacturer headquartered in Loudon, Tennessee. The company designs, manufactures and sells boats for watersports, boating and fishing activities, serving consumers through a network of independent dealers in the United States and international markets.

Its portfolio includes Malibu and Axis wake and watersports boats, as well as a range of saltwater and freshwater fishing and offshore boats sold under brands including Pursuit, Maverick, Cobia, Pathfinder and Hewes.

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