Malibu Boats, Inc. Q2 FY2026 earnings call

• Solid second quarter results despite challenging retail environment; net sales ahead of expectations. • Successful year-end sales event; new model introductions at Miami International Boat Show planned. • Malibu 23 LSV recognized as surf boat of the year for sixth consecutive year, reinforcing leadership in towboat segment. • Close partnership with dealers, maintaining healthy inventory position for model year 26 boats. • MBI acceptance program rolled out, with early positive feedback from dealers. • Centralized sourcing initiatives underway, providing benefits in supply chain management, cost reduction, and quality control.

Net sales for the second quarter were $188.6 million, a 5.8% decrease, with unit volume down 9.5% to 1,106 units. Segment mix: Malibu and Axis accounted for approximately 46.4% of unit sales, saltwater fishing 25.5%, and cobalt 28.1%. Gross profit decreased 32.9% to $25.1 million, with gross margin at 13.3%, a 540 basis point decline from the prior year.

• Full fiscal year sales expected to be flat to down mid-single digits. • Q3 net sales预计在$198 million to $202 million range. • Q3 adjusted EBITDA margin预计约8.5%, full year adjusted EBITDA margin预计在8% to 9% range. • Continues to focus on disciplined execution, operational excellence, and prudent capital deployment.

• Challenging retail environment. • Broader industry facing noncurrent inventory overhang. • Tariff impacts potentially affecting costs and price increases to consumers.

Q: Quantify how much higher boat show expenses weighed on EBITDA margin?

A: Year-over-year, promo related to year-end sales events and Q2 cadence caused approximately 50 bps cost pressure for the quarter.

Q: Elaborate on MBI acceptance program lift?

A: Early positive feedback, with higher take rate on 3.99% rate at boat shows, though early stage with not enough to form clear trend.

Q: Centralized sourcing cost savings?

A: Sourcing efforts starting to hit the P&L, with expected continued benefits in the back half of the fiscal year.

Q: Dealer sentiment on inventory?

A: Mixed retail, but overall positive trend with healthy inventory position, and additional orders seen from custom boats.

Q: Labor costs outlook?

A: Focus on operational effectiveness, with sourcing benefits expected to help reduce labor per unit costs moving forward.

Q: Ski weight category bounce back?

A: Efforts ongoing among Malibu, Axis, and competitive groups to reinvigorate the segment, with early positive feedback from dealers.