Malibu Boats (MBUU) investor relations material

Executive summary

• Net sales for Q2 FY26 were $188.6 million, down 5.8% year-over-year, with unit volume falling 9.5% to 1,106 units amid a challenging retail environment and unfavorable model mix, partially offset by price increases.

• Gross profit dropped 32.9% to $25.1 million, and the company reported a net loss of $2.5 million versus net income of $2.4 million a year ago.

• Adjusted EBITDA declined 52.5% to $8.0 million (4.3% margin), and adjusted net loss per share was $0.02 compared to adjusted net income per share of $0.32 last year.

• Despite industry headwinds, positive free cash flow and expanded share repurchases of $21 million were highlighted, reflecting disciplined capital allocation.

• New product launches, innovation, and expanded financing initiatives are central to strategy, with early positive dealer feedback.

Financial highlights

• Q2 net sales: $188.6 million (down 5.8% YoY); unit volume: 1,106 units (down 9.5% YoY).

• Gross profit: $25.1 million (down 32.9% YoY); gross margin: 13.3% (down 540 bps YoY).

• GAAP net loss: $2.5 million; net loss margin: (1.3)%.

• Adjusted EBITDA: $8.0 million; adjusted EBITDA margin: 4.3% (down from 8.4% YoY).

• Free cash flow for Q2: $8.4 million; $21 million in share repurchases completed.

Outlook and guidance

• Fiscal 2026 net sales expected to be flat to down mid-single digits year-over-year.

• Q3 net sales guidance: $198 million–$202 million.

• Full-year consolidated adjusted EBITDA margin expected in the 8%–9% range; Q3 margin guidance at ~8.5%.

• Guidance incorporates 1.5%–3% cost of sales impact from tariffs; company aims to offset with price increases.

• Channel destocking and soft retail environment expected to persist.