MasterCraft Boat (MCFT) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 net sales reached $78.2 million, up 3% year-over-year, driven by favorable model mix, pricing, and reduced dealer incentives, despite lower unit volumes.

• Adjusted Net Income rose to $7.2 million ($0.45 per diluted share), up from $5 million ($0.30 per share) last year; Adjusted EBITDA increased to $10.7 million.

• Net loss for the quarter was ($0.7) million, primarily due to one-time business development and transaction costs related to the pending Marine Products Corporation merger.

• Dealer inventories declined 28% year-over-year, reflecting disciplined production and effective dealer support.

• The proposed combination with Marine Products Corporation is progressing, with a shareholder vote scheduled for May 12, 2026, and closing expected soon.

Financial highlights

• Q3 net sales: $78.2 million (+3% YoY); nine months: $219.0 million (+7% YoY).

• Gross margin improved by 420 basis points to 25% year-over-year.

• Adjusted EBITDA for Q3: $10.7 million (13.7% margin), up from $7.5 million (9.9% margin) last year.

• Adjusted Net Income for Q3: $7.2 million ($0.45 per diluted share); nine months: $16.7 million ($1.03 per diluted share).

• Ended Q3 with $84.6 million in cash and investments, no debt, and $75 million revolver availability.

Outlook and guidance

• FY2026 guidance: consolidated net sales expected at $312 million, Adjusted EBITDA at $40 million, and Adjusted EPS at $1.65.

• Capital expenditures for FY2026 projected at $8 million.

• Guidance excludes the impact of the pending Marine Products Corporation merger and incorporates macroeconomic and geopolitical uncertainties.

• Retail for MasterCraft brand now expected to be roughly flat year-over-year, improved from prior guidance of down 5%-10%.