MasterCraft Boat Holdings, Inc. Q3 FY2026 earnings call

Our goal is to align wholesale and retail closer. Pleased with results coming out of boat show season, with inventory and inventory turns better than pre-COVID levels. General and administrative costs ticked up due to one-time acquisition costs, ERP implementation costs, and timing/sales and marketing changes. Pontoon business is a stabilization year, working on aligning inventory, strengthening dealer network. New Mastercraft models like X series are winning incremental share with dealers and consumers due to design, performance, quality, and premium value.

Pontoon business had fairly flat sales for the year, but margin improvement at adjusted EBITDA was about $1.9 million. Mastercraft brand benefited from lower discounts, segment mix, operations improvements, quality improvements, and favorable warranty, contributing to margin expansion.

Incorporating macroeconomic and geopolitical uncertainty into guidance, viewing geopolitical impacts as temporary. Pontoon business 26 is a stabilization year, need to see sustained retail in summer selling season. General and administrative costs related to acquisition will go away over time, ERP costs will also be eliminated.

Macro-economic and geopolitical pressure affecting retail, promotional environment still elevated from traditional levels. Aluminum tariffs partially offset by surcharges on invoices, but still a risk factor.

Q: On gross margin performance in the quarter, asking about contributors and thinking on margin with retail wholesale parity; A: Discounts lower, segment mix, operations improvements, quality improvements, favorable warranty are drivers.

Q: On MPX's retail this quarter and into April 9th; A: Suggest go to MPX's website to see their quarter results.

Q: On general and administrative costs ticking up; A: Mostly one-time acquisition costs, some ERP implementation costs and sales marketing timing factors.

Q: On pontoon segment retail expectations; A: Pontoon business just in early summer selling season, 26 is stabilization year, need macroeconomic improvement.

Q: On commodities trend and hedging; A: Some commodity costs have small impact, aluminum tariffs offset by extra surcharges.

Q: On pro forma EPS related info; A: More guidance will be given when finalizing purchase accounting for 27th year.

Q: On new models market impact; A: New models win incremental share, dealers requested 23 model for incremental sales