MasterCraft Boat Holdings, Inc. reported fiscal 2026 second‑quarter results for the period ended December 28, 2025. Consolidated net sales rose to $71.8 million, up 13.2 % from $63.4 million in the same quarter a year earlier. Gross margin increased 440 basis points to 32.5 %, driven by a shift toward higher‑margin MasterCraft models and a modest price lift across the portfolio. Operating expenses climbed $2.1 million to $12.3 million, reflecting the cost of a new enterprise resource planning system and consulting fees tied to the announced acquisition of Marine Products. Income from continuing operations reached $2.5 million, and diluted earnings per share were $0.10, below the consensus estimate of $0.17. Adjusted net income was $4.7 million and adjusted EBITDA reached $7.5 million, translating to a 10.4 % margin.
Revenue growth was uneven across segments. The MasterCraft segment, which includes high‑performance powerboats, contributed $48.2 million of sales and delivered a 5.8 % increase, benefiting from strong dealer inventory levels and a 3 % price increase. The Pontoon segment, however, posted a $23.6 million loss that narrowed from a $27.4 million loss in the prior year, reflecting a 12 % decline in unit volumes but a 2 % price lift. The mix shift toward MasterCraft models, which carry higher gross margins, helped lift overall profitability.
The 440‑basis‑point jump in gross margin was largely a result of pricing power and a favorable product mix. MasterCraft’s higher‑margin models accounted for 60 % of revenue versus 45 % in the prior year, while the company maintained disciplined cost control on raw materials and labor. The company also benefited from a 1.5 % reduction in freight and logistics costs, offsetting the impact of higher input prices.
Despite the revenue and margin gains, the company missed both revenue and earnings expectations. Revenue of $71.8 million fell short of the consensus estimate of $68.79 million, and diluted EPS of $0.10 was below the $0.17 estimate. The miss was driven by weaker demand in the Pontoon segment, higher operating expenses from the ERP implementation, and the upfront consulting costs associated with the Marine Products acquisition. Management noted that the acquisition would add $35 million in net sales in 2026 but would also increase operating costs in the short term.
Management raised its full‑year 2026 guidance, projecting net sales of $300–310 million, adjusted EBITDA of $36–39 million, and diluted EPS of $1.45–1.60, up from the prior guidance of $280–290 million, $30–33 million, and $1.30–1.40, respectively. The upward revision reflects confidence in continued demand for MasterCraft models, the expected synergies from the Marine Products acquisition, and the company’s ability to maintain pricing power.
The announced acquisition of Marine Products Corporation, a $232.2 million cash‑and‑stock deal, is expected to close in the second calendar quarter of 2026. The transaction will add brands such as Crest, Balise, Chaparral, and Robalo to MasterCraft’s portfolio, expanding its dealer network and manufacturing capabilities. The company’s credit facility was amended to a $75 million revolving line maturing in 2031, providing additional liquidity for the integration.
Investors reacted negatively to the earnings miss, citing the lower‑than‑expected revenue and EPS as the primary drivers of the market’s response.
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