MasterCraft Boat Holdings, Inc. Q1 FY2026 earnings call

• Delivered results exceeding expectations despite geopolitical uncertainty and dynamic retail environment.
• Pipeline inventory levels improved year-over-year.
• Q1 net sales increased $3.6 million or 6% year-over-year, adjusted EBITDA rose nearly $3 million with margin improvement of 380 basis points.
• MasterCraft brand launched the X24, ushering in the next generation of premium ski-wake products.
• Pontoon segment refreshed Crest's lineup including the Conquest line and launched the new Balise Halo.
• Strong financial position with $67.3 million in cash and short-term investments, no debt, and expect positive free cash flow for the year.
• Continued to return capital to shareholders through EPS-accretive share repurchases.

MasterCraft: Q1 net sales increased $3.6 million or 6% year-over-year, and adjusted EBITDA rose nearly $3 million, a margin improvement of 380 basis points. Pontoon segment: Delivered meaningful progress with year-over-year improvements in operational execution; Crest's model year 2026 lineup was well received, including the rebranded Conquest line and new Conquest SE, and the new Balise Halo launched within the quarter.

• Raised full-year guidance for fiscal '26: Consolidated net sales expected between $295 million and $310 million, adjusted EBITDA now expected between $30 million and $35 million, adjusted earnings per share between $1.18 and $1.43.
• Second quarter of fiscal '26: Consolidated net sales expected to be approximately $69 million, with adjusted EBITDA of approximately $5 million and adjusted earnings per share of approximately $0.16.
• Plan to ramp up production in the second half of fiscal year to execute new product initiatives and align with seasonal demand.

• Geopolitical uncertainty.
• Dynamic retail environment.
• Retail variability.
• Pontoon category highly competitive with retail softness persisting due to elevated interest rates and promotional activity.
• Near-term macroeconomic uncertainty.

Q: Asked about current marine consumer retail trends and how the consumer is behaving with rates moving lower but uncertainty.

A: Scott Kent mentioned rates going down is positive for the industry, early SSI for Q1 showed industry down but MasterCraft gained share; Bradley Nelson said dealers remain cautiously optimistic with no significant dealer failures yet.

Q: Follow-up on retail cadence through fiscal year and rate cut benefits.

A: Scott Kent said rate cuts already occurred are factored in but not future ones; Bradley Nelson said pleased with Q1 results, Q1 is tough comp, sees retail down 5%-10% range, and expects ramp in second half driven by new X Series products.

Q: Asked about M&A opportunities, comfort level with leverage, etc.

A: Bradley Nelson said they work to keep flexible balance sheet, direct capital for highest returns including share buyback and evaluating M&A, with flexibility to do so but won't comment on scale/trigger points.