Marine Products Corporation Reports 14.9% Decline in Q1 2025 Net Sales

Marine Products Corporation reported a decline in financial performance for the first quarter of 2025, with net sales totaling $59.0 million, a decrease of 14.9% compared to $69.3 million in the same period of 2024. The company attributed this decline primarily to a 19% drop in unit sales to dealers, although a price/mix increase of 4% partially offset the decrease. Gross profit also fell to $10.9 million from $14.0 million year-over-year, leading to a reduction in operating income from $5.2 million to $2.6 million. Net income decreased to $2.2 million, or $0.06 per diluted share, down from $4.6 million, or $0.13 per diluted share, in the prior year.

The company's balance sheet as of March 31, 2025, showed total assets of $182.9 million, up from $171.2 million at the end of 2024. Cash and cash equivalents increased to $57.1 million from $52.4 million, while accounts receivable rose significantly to $7.8 million from $4.2 million. However, total liabilities also increased to $56.5 million from $42.2 million, primarily due to a rise in accounts payable and accrued expenses. The company’s stockholders’ equity decreased to $126.4 million from $129.0 million, reflecting the impact of lower retained earnings.

Operationally, Marine Products reported a total of 625 boats sold in the first quarter of 2025, down from 770 in the same period last year. The company noted that domestic sales accounted for 92% of net sales, while international sales represented 8%, an increase from 7.1% in the prior year. The company continues to monitor dealer inventories and consumer demand closely, as high inventory levels and soft consumer sentiment have affected sales. The company’s management indicated that the decline in sales was less severe than the previous year, suggesting a potential stabilization in the market.

Looking ahead, Marine Products anticipates that its financial results for the remainder of 2025 will depend on 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, but this has resulted in reduced fixed cost absorption, negatively impacting profit margins. Management believes that sales comparisons may begin to improve in the second half of 2025, contingent on a recovery in consumer sentiment and demand for new boats.