MasterCraft Boat (MCFT) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 net sales were $63.4 million, down 29–29.4% year-over-year due to planned lower production and unfavorable model mix, but results exceeded expectations and dealer confidence improved with strong destocking and XStar launch.

• Adjusted EBITDA for Q2 was $3.5 million, with adjusted net income at $1.7 million ($0.10 per diluted share); all debt repaid, and cash/investments rose to $62.9 million.

• Dealer inventories reduced by over 30% year-over-year, with destocking efforts largely completed if current retail trends persist.

• The company completed the sale of the Aviara brand and facility, exiting the luxury dayboat category and reporting related gains and losses as discontinued operations.

• Flexible operating model, strategic production planning, and premium product launches, such as the XStar lineup, are positioning the business for sustained growth.

Financial highlights

• Q2 FY25 net sales were $63.4 million, down 29% year-over-year; gross margin declined to 17.2% from 23.3% year-over-year.

• Adjusted EBITDA was $3.5 million (5.6% margin), down from $12.9 million (14.4%) year-over-year.

• Adjusted net income for Q2 was $1.7 million ($0.10 per diluted share), down from $9.5 million ($0.55 per share) year-over-year.

• Cash and short-term investments totaled $62.9 million at quarter-end, with no debt and $100 million revolving credit available.

• Share repurchases totaled $4.2 million YTD; $31 million remains authorized under the repurchase program.

Outlook and guidance

• FY25 net sales expected between $275 million and $295 million; Adjusted EBITDA between $19 million and $24 million; adjusted EPS between $0.64 and $0.86.

• Q3 FY25 net sales expected at $75 million, Adjusted EBITDA at $5 million, and adjusted EPS at $0.17.

• Capital expenditures for FY25 expected to be approximately $12 million.

• Management remains focused on aligning production with market demand and maintaining operational flexibility amid economic and industry headwinds.

• Retail environment assumed to be down 5–10% year-to-date, consistent with initial guidance.