Summary of Malibu Boats (MBUU) Q4 2026 Earnings Call

1Key Financial Results and Metrics

Q4 Results:

Net sales increased 42.7% to $295.5 million, including $61.2 million from Saxdor.

Adjusted EBITDA rose 72.7% to $33.9 million, with margins expanding to 11.5%.

GAAP net income increased 53.7% to $7.4 million ($0.37 per diluted share).

Total unit volume grew 19.2% to 1,456 units, with legacy unit volume up 4.5%.

Full Year Results:

Net sales for FY 2026 reached $914.6 million, up 13.3%, including $84.3 million from Saxdor.

Adjusted EBITDA was $73.9 million, a slight decline of 1.1%.

GAAP net income dropped 88.8% to $1.7 million ($0.09 per diluted share).

2Strategic Updates and Business Highlights

Saxdor Acquisition: Integration is progressing well, with a focus on expanding into the Adventure Day boat segment. The first domestically built Saxdor boat is expected to be completed in the fall.

Operational Framework: The MBI Advantage framework emphasizes operational excellence, centralized sourcing, and channel discipline, contributing to improved margins.

Product Innovation: Launched 11 new models across brands in FY 2026, with plans for 13 new models in FY 2027.

Partnerships: Established a 6-year global partnership with the International Waterski & Wakeboard Federation.

3Forward Guidance and Outlook

FY 2027 Guidance:

Expected net sales of $1.080 billion to $1.120 billion and adjusted EBITDA of $101 million to $109 million.

Anticipated low to mid-single-digit growth for legacy brands and mid-teens growth for Saxdor.

First quarter guidance includes net sales of $255 million to $265 million and adjusted EBITDA of $14 million to $16 million.

4Bad News, Challenges, or Points of Concern

Market Conditions: The marine industry is experiencing macroeconomic pressures, affecting payment-sensitive buyers and leading to a cautious outlook for retail demand.

Input Cost Pressures: Higher material and labor costs have impacted margins, particularly in the Saxdor segment, which is still ramping up production.

Legacy Business Performance: Despite some growth, legacy unit volumes were down 4.1%, indicating challenges in maintaining sales momentum in a competitive environment.

5Notable Q&A Insights

Saxdor's Impact: Management expects Saxdor to contribute approximately $180 million in revenue for FY 2027, with adjusted EBITDA margins improving as domestic manufacturing scales.

Retail Growth Expectations: Legacy business is projected to see flat to slightly down retail growth, with some recovery anticipated in the second half of FY 2027.

Dealer Inventory Health: Dealer inventories have improved, with a focus on aligning wholesale and retail levels as the market stabilizes.

Capital Allocation: The company plans to balance investments in growth, debt repayment, and shareholder returns through share buybacks, with a new $70 million repurchase program authorized for FY 2027. Overall, Malibu Boats demonstrated strong financial performance in Q4 2026, driven by strategic acquisitions and operational improvements, while navigating challenges in the broader marine market.