Marine Products Corporation Reports Decline in Revenue and Profitability for Q2 and First Half of 2025

Marine Products Corporation reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated net sales of $67.7 million, a decrease of 2.7% from $69.5 million in the prior year. The decline was attributed primarily to a 13% drop in unit sales to dealers, although this was partially offset by a 10% increase in price/mix. Gross profit for the quarter fell to $12.9 million from $13.2 million, while operating income decreased to $4.8 million from $5.8 million. Net income also saw a decline, dropping to $4.2 million, or $0.12 per diluted share, compared to $5.6 million, or $0.14 per diluted share, in the same quarter of 2024.

For the six months ended June 30, 2025, Marine Products reported net sales of $126.7 million, down 8.8% from $138.9 million in the first half of 2024. This decline was driven by a 16% decrease in unit sales volume, again partially offset by a 7% increase in price/mix. The company’s gross profit for the first half of 2025 was $23.9 million, down from $27.2 million in the previous year. Net income for the six-month period was $6.4 million, or $0.18 per diluted share, compared to $10.2 million, or $0.28 per diluted share, in the same period of 2024.

Operationally, Marine Products reported a total of 641 boats sold in the second quarter of 2025, down from 737 in the same quarter of 2024. The average gross selling price per boat increased to $94,100 from $85,700 year-over-year. The company’s cash and cash equivalents at the end of the second quarter stood at $50.2 million, a slight decrease from $52.4 million at the end of 2024. The company also noted an increase in selling, general, and administrative expenses, which rose to $8.1 million in the second quarter, primarily due to higher research and development investments and changes in incentive compensation accruals.

Looking ahead, Marine Products anticipates that its financial results for the remainder of 2025 will be influenced by various factors, including economic trends, consumer demand for discretionary products, and the impact of interest rates on financing options. The company has adjusted its production levels to align more closely with expected demand, as dealers remain cautious regarding inventory levels. While interest rates have shown slight decreases, the company believes that further relief may be necessary to stimulate consumer appetite for new boat purchases. The company continues to monitor dealer inventories and order patterns to adapt its production strategy accordingly.