MasterCraft Boat (MCFT) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 were $76 million, down 9.5–10% year-over-year, exceeding internal expectations despite challenging market conditions and planned lower production to align dealer inventories with retail demand.

• Adjusted EBITDA for Q3 was $7.5 million (9.9% margin), with adjusted net income of $5 million ($0.30 per diluted share); operating income was $4.1 million, down 39.1% year-over-year.

• Dealer inventories reduced by 30% year-over-year and over 45% from fiscal 2019, supporting a healthy dealer network ahead of the summer selling season.

• Leadership changes included CEO and CFO transitions, with Tim Oxley retiring and Scott Kent named as successor.

• Balance sheet remains strong with $66.5–67 million in cash and investments, no debt, and $100 million available under a revolving credit facility.

Financial highlights

• Q3 FY2025 net sales were $76 million, down 9.5–10% year-over-year, with wholesale units down 19% to 619.

• Gross margin declined 250 basis points to 20.8%, reflecting lower cost absorption, pricing, and inflation.

• Adjusted EBITDA was $7.5 million (9.9% margin), down from $11.7 million (13.9% margin) in the prior year.

• Adjusted net income for Q3 was $5 million ($0.30 per diluted share), down from $8.5 million ($0.50 per share) year-over-year.

• Operating expenses decreased by $1.2 million year-over-year, mainly due to lower general administrative and share-based compensation costs.

Outlook and guidance

• FY2025 guidance: consolidated net sales expected at ~$275 million, adjusted EBITDA at ~$20 million, and adjusted EPS at ~$0.71.

• Capital expenditures for FY2025 projected at ~$9 million.

• Full-year inventory reduction target of 600–1,000 units, with expectations to reach the higher end.

• Management expects continued market and economic uncertainty, with modest tariff impacts embedded in guidance.