MasterCraft Boat (MCFT) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 reached $69.0 million, a 5.6% year-over-year increase, exceeding expectations and driven by higher prices, unit volumes, and favorable option sales amid ongoing macroeconomic and retail uncertainty.

• Adjusted EBITDA was $6.7 million (9.7% margin), up $2.9 million year-over-year, with adjusted net income per diluted share at $0.28, reflecting strong cost controls and margin improvement.

• Dealer inventories improved 26–27% year-over-year, aligning with pre-COVID inventory turns and supporting sustainable growth.

• New product launches, including the X24, refreshed Conquest lineup, and Balise Halo, received strong dealer and consumer response, driving premium segment momentum.

• Maintained a strong, debt-free balance sheet with $67.3 million in cash and investments, supporting share repurchases and future growth.

Financial highlights

• Net sales for Q1 were $69.0 million, up $3.6 million or 5.6% year-over-year, with gross margin up 420 basis points to 22.3% due to strong cost management and favorable mix.

• Adjusted EBITDA reached $6.7 million (9.7% margin), compared to $3.8 million (5.9% margin) last year.

• Adjusted net income was $4.5 million ($0.28 per diluted share), up from $1.9 million ($0.12 per share) in the prior year.

• Free cash flow for Q1 FY2026 was $(10.1) million, reflecting higher working capital usage and capital expenditures.

• Ended the quarter with $67.3 million in cash and short-term investments, no debt, and $100 million in revolving credit availability.

Outlook and guidance

• Fiscal 2026 consolidated net sales expected between $295 million and $310 million; adjusted EBITDA guidance raised to $30–$35 million; adjusted EPS expected between $1.18 and $1.43.

• Q2 FY2026 guidance: net sales of ~$69 million, adjusted EBITDA of ~$5 million, and adjusted EPS of $0.16.

• Capital expenditures for the year expected to be approximately $9 million.

• Retail for the MasterCraft segment expected to be down 5–10% for the full year, with a ramp in demand anticipated in the second half.

• Management remains focused on cost controls and margin improvement amid continued macroeconomic uncertainty and retail softness.