Malibu Boats Reports Strong Q3 Turnaround with 12.4% Revenue Growth

Malibu Boats, Inc. reported a significant turnaround in its financial performance for the third quarter of fiscal 2025, ending March 31, 2025, with net sales reaching $228.7 million, a 12.4% increase from $203.4 million in the same period last year. The company achieved a gross profit of $45.7 million, up 13.4% from $40.3 million, and net income of $13.2 million, compared to a net loss of $67.8 million in the prior year. This improvement was attributed to increased unit volumes, particularly in the Malibu segment, and favorable pricing driven by inflation.

In contrast, the nine-month results showed a decline in net sales to $600.5 million, down 10.4% from $670.3 million in the previous year. This decrease was primarily due to reduced unit volumes across all segments, reflecting lower wholesale shipments and a shift in dealer inventory strategies. The Malibu segment saw a slight decrease in sales, while the Saltwater Fishing segment experienced a more pronounced decline of 19.4%, attributed to decreased retail activity and inventory management by dealers.

Operationally, Malibu Boats has been focusing on enhancing its product offerings and expanding its market share. The company reported a total of 1,431 units sold in the third quarter, a 12.8% increase from the previous year, driven mainly by the Malibu brand. However, the Saltwater Fishing and Cobalt segments faced challenges, with unit sales declining due to dealers' efforts to reduce inventory levels. The company continues to maintain a strong dealer network, with over 400 locations globally, which is seen as a competitive advantage.

Malibu Boats has also been active in managing its capital structure, with $28 million drawn from its revolving credit facility as of March 31, 2025. The company has initiated a stock repurchase program, authorizing up to $50 million for the period ending June 30, 2025, and has repurchased approximately $10.1 million worth of shares during the quarter. Looking ahead, Malibu Boats anticipates continued challenges in the recreational boating market due to macroeconomic factors such as inflation and interest rates, but remains optimistic about its ability to navigate these conditions and achieve higher sales in the latter half of fiscal 2025 compared to the same period in fiscal 2024.