Malibu Boats (NASDAQ:MBUU) Posts Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Malibu Boats (NASDAQ:MBUU) issued its quarterly earnings results on Thursday. The company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.06), FiscalAI reports. Malibu Boats had a net margin of 0.18% and a return on equity of 4.78%. The company had revenue of $252.94 million during the quarter, compared to analyst estimates of $257.64 million. During the same quarter last year, the firm earned $0.15 EPS. The business’s revenue was up 28.1% on a year-over-year basis.

Here are the key takeaways from Malibu Boats’ conference call:

• Net sales rose 29.9% to $252.9 million, including $51.1 million from Saxdor, while adjusted EBITDA increased 21.7% to $14.3 million. Excluding Saxdor, adjusted EBITDA fell to $10.3 million from $11.8 million, with weaker Malibu performance weighing on legacy results.
• Management said summer retail demand softened, particularly in ski/wake boats, as payment-sensitive buyers remained cautious; industry powerboat registrations fell about 11% in July–September. The company expects a mid- to high-single-digit market decline through the transition period and plans to keep wholesale shipments aligned with retail demand amid elevated incentives.
• U.S. Saxdor production at Fort Pierce began ahead of schedule, with serial production underway and capacity for about 200 boats annually before a plant expansion. Saxdor’s 8% adjusted EBITDA margin reflects ramp-up investment, and management expects margins to move toward 10%–11% as production scales and the model mix shifts to larger boats.
• For the December quarter, the company forecast net sales of $236 million–$248 million and adjusted EBITDA of $13 million–$15 million. Management expects the July–December transition period to have lower margins than the following six months, partly because of Saxdor’s production ramp, and cautioned that the transition-period results should not be annualized.
• Free cash flow was negative $39.5 million, primarily reflecting a seasonal inventory rebuild, annual compensation and dealer incentive payments; management expects working-capital needs to ease through the first half of calendar 2027. The company ended September with $213.5 million of available liquidity and pro forma net leverage of about 1.5 times.

Malibu Boats Stock Down 2.0%

Shares of NASDAQ MBUU opened at $20.22 on Friday. Malibu Boats has a 52-week low of $19.46 and a 52-week high of $34.97. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.60 and a current ratio of 1.43. The firm has a 50 day moving average price of $23.55 and a 200 day moving average price of $26.82. The stock has a market cap of $397.93 million, a P/E ratio of 49.32 and a beta of 1.20.

Key Malibu Boats News

Here are the key news stories impacting Malibu Boats this week:

• Positive Sentiment: Quarterly revenue rose 28.1% year over year to $252.94 million, providing a growth offset to the weaker results. Malibu Boats quarterly results
• Negative Sentiment: Malibu reported quarterly EPS of $0.15, below the $0.21 consensus, while revenue of $252.94 million also missed estimates of $257.64 million. The earnings shortfall and sales miss weighed on investor sentiment. Malibu Boats earnings and revenue miss
• Negative Sentiment: Coverage of the results highlighted deteriorating retail activity and weaker guidance, raising concerns about demand and the company’s outlook. Sales miss and guidance concerns
• Negative Sentiment: B. Riley reaffirmed its “neutral” rating but cut its price target to $22 from $30, signaling a more cautious valuation view. B. Riley rating and target

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Benchmark restated a “buy” rating on shares of Malibu Boats in a report on Friday, August 28th. Truist Financial lowered their price objective on Malibu Boats from $34.00 to $26.00 and set a “hold” rating on the stock in a research note on Friday, October 23rd. Weiss Ratings upgraded shares of Malibu Boats from a “sell (e+)” rating to a “sell (d)” rating in a research note on Thursday, August 27th. Raymond James Financial reaffirmed a “market perform” rating on shares of Malibu Boats in a report on Monday, August 31st. Finally, B. Riley Financial reissued a “neutral” rating and set a $22.00 price objective (down from $30.00) on shares of Malibu Boats in a report on Friday. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $28.40.

Malibu Boats Company Profile

Malibu Boats, Inc is a recreational powerboat manufacturer headquartered in Loudon, Tennessee. The company designs, manufactures and sells boats for watersports, boating and fishing activities, serving consumers through a network of independent dealers in the United States and international markets.

Its portfolio includes Malibu and Axis wake and watersports boats, as well as a range of saltwater and freshwater fishing and offshore boats sold under brands including Pursuit, Maverick, Cobia, Pathfinder and Hewes.