MALIBU BOATS, INC. Q1 FY2026 earnings call

• Delivered solid start to fiscal year with revenue growth above expectations despite soft retail backdrop. Net sales up ~13% y-o-y, adjusted EBITDA margins in line with plan. - Focus on working with dealer partners to support rightsized inventory levels via targeted promotions. - Outlined strategy to drive growth through build, innovate, and grow framework, including expansion into parts/accessories and marine services, with launch of MBI Acceptance financing partnership. - Product innovation with new models like Kobia, Cobalt R31, Pathfinder 2600, and Pursuit's National Boating Safety Award win.

Net sales increased 13.5% to $194.7 million, with unit volume up 10.3% to 1,129 units. Malibu and Axis brands accounted for approximately 47.7% of unit sales, Saltwater Fishing 25.5%, and Cobalt 26.8%. Gross profit decreased 1% to $27.9 million, with gross margin at 14.3%. Adjusted EBITDA increased 19.1% to $11.8 million, and adjusted EBITDA margin was 6.1%. Non-GAAP adjusted net income per share was $0.15, up $0.08 from the prior year.

• Full-year guidance unchanged: sales flat to down mid-single digits. Q2 sales expected between $175 million to $185 million. - Adjusted EBITDA margin for full year ranging from 8% to 9%, and 3% to 5% for Q2. - Tariffs impact estimated 1.5% to 3% of cost of sales, mitigated by supply chain initiatives.

• Soft retail backdrop and elevated inventories at quarter start. - Competitive promotional environment. - Impact of interest rates on consumer sentiment and retail finance rates.

Q: Congrats on the quarter. Have you seen interest rates come down from consumers? And is this having an effect?

A: Steve Menneto says consumer sentiment improves with rate cuts, dealer floor plan costs come down, but retail finance rates take time to manifest.

Q: Follow up on inventory. How are you thinking about it going forward?

A: Bruce Beckman says monitoring inventory levels, aligning production with market expectations for down markets in second quarter and beyond.

Q: Talk about MBI Acceptance. Initial read on rollout?

A: Steven Menneto says strong dealer adoption, excited about pilot in Malibu Axis, early anecdotal success with promotions.

Q: Color on ASPs across segments and model year '26 pricing?

A: Bruce Beckman says modest year-over-year price increases, trend towards larger, feature-rich boats continues.

Q: Thoughts on expense leverage and top-line growth?

A: Bruce Beckman says need market declines to shallow out for expense leverage, prepared for innovation and outperformance initiatives regardless of market conditions.