MasterCraft Boat (MCFT) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net sales reached $284.2 million, down 11.8% year-over-year, reflecting planned lower production to align dealer inventories with retail demand, but Q4 net sales rose 46.4% to $79.5 million, driven by premium product launches and cost control.

• Adjusted EBITDA for the year was $24.4 million, down from $40.2 million in the prior year, while Q4 adjusted EBITDA rose to $9.5 million, up $8 million year-over-year.

• Dealer inventories were reduced by approximately 30% year-over-year, achieving the largest Q3 to Q4 field inventory reduction in company history (excluding the pandemic).

• Free cash flow for fiscal 2025 was $29 million, with $79.4 million in cash and investments and no debt at year-end.

• Nearly $10 million was returned to shareholders via share repurchases in fiscal 2025.

Financial highlights

• Q4 net sales were $79.5 million, up 46% year-over-year; full-year net sales were $284.2 million, down 12% due to planned unit reductions.

• Q4 gross margin improved 740 basis points to 23.2%; full-year gross margin was 20%, down from 22.2% prior year.

• Adjusted net income for the year was $15.1 million ($0.92 per share), down from $28.9 million ($1.69 per share) last year.

• Adjusted EBITDA margin for the year was 8.6%, down from 12.5% in the prior year; Q4 margin improved to 12.0%.

• Free cash flow for fiscal 2025 was $29 million, a significant increase from $1.7 million in FY24.

Outlook and guidance

• Fiscal 2026 net sales expected between $295 million and $310 million; adjusted EBITDA between $29 million and $34 million; adjusted EPS between $1.15 and $1.40.

• Fiscal 2026 retail unit sales expected to decline 5%-10% due to continued macro uncertainty and elevated interest rates.

• Q1 fiscal 2026 net sales projected at $67–$69 million, with adjusted EBITDA of $4 million and EPS of $0.16.

• Capital expenditures for fiscal 2026 expected to be approximately $9 million.

• Modest destocking anticipated in 2026, with inventory adjustments spread across the year.