MBUU

• Strategic Execution: The 'MBI Advantage' framework (operational excellence, central sourcing, channel discipline) drove strong margin expansion and bottom-line growth despite a challenging macro environment.
• SACSTOR Integration: The acquisition of Saksö Yachts is progressing well, opening new categories (Adventure Day Boat) and geographies. Early results exceeded revenue guidance ($61.2M vs $57-59M guided). Domestic manufacturing at Fort Pierce is on schedule for completion in H1 FY27.
• Product Innovation: Maintained industry-leading pace of new product introductions. Model Year 2026 saw 11 new models added. Model Year 2027 plans include 13 new models across legacy brands, including the all-new Malibu 20 VTX and Pursuit Denali series.
• Channel Health: Dealer inventories decreased over the year due to disciplined wholesale shipment management, resulting in healthier channel conditions entering FY27 with minimal aged inventory.
• Industry Trends: While fiberglass segments remain pressured, there are early signs of stabilization. Usage remains strong among core buyers despite higher fuel prices. MBI Acceptance financing tool shows growing momentum, particularly among payment-sensitive buyers.
• Milestones: Celebrated 50 years of Pursuit Boats, secured exclusive partnership with International Water Ski and Wakeboard Federation, and won multiple NMMA Customer Satisfaction Index Awards.

• Full Fiscal 2027 Net Sales: Guided to $1.080 billion - $1.120 billion, reflecting a full year of SACSTOR contribution and low-to-mid single-digit growth for legacy brands.
• Full Fiscal 2027 Adjusted EBITDA: Guided to $101 million - $109 million, assuming SACSTOR margins improve throughout the year as domestic manufacturing scales.
• First Quarter Fiscal 2027: Net sales expected at $255 million - $265 million; Adjusted EBITDA expected at $14 million - $16 million.
• Margin Outlook: Margins in the first half of FY27 will be lower than the second half primarily due to investments and ramp-up costs at SACSTOR's Fort Pierce facility.
• Assumptions: Guidance includes currently enacted tariff rates and pricing actions already in market.

The company reported consolidated net sales of $914.6 million for the full fiscal year, including $84.3 million from the newly acquired SACSTOR segment. On a legacy basis (excluding SACSTOR), net sales were $830.3 million, representing a 2.8% increase. Legacy unit volume decreased by approximately 4.1% to 4,698 units. In the fourth quarter specifically, consolidated net sales rose 42.7% to $295.5 million, with SACSTOR contributing $61.2 million. Legacy Q4 net sales grew 13.2% to $234.3 million. By legacy segment, Malibu generated $82.9 million in Q4 net sales (+3.2%), Saltwater Fishing generated $80.9 million (+11.1%), and Cobalt generated $70.5 million (+31%). SACSTOR operates as a distinct fourth segment; its Q4 net sales per unit was $340,000 compared to the legacy average of $184,000.

• Macro Disruptions: Continued pressure on payment-sensitive buyers due to economic conditions, potentially slowing retail inflection.
• Input Cost Pressures: Higher material and labor costs impacted legacy gross margins in FY26; SACSTOR absorbed additional input costs in Q4.
• Integration Risks: SACSTOR integration involves significant upfront investment in domestic manufacturing ramp-up, which temporarily depresses margins.
• Inventory Management: Risk of dealer destocking or aging inventory if retail demand does not stabilize as expected, though current inventory health is deemed strong.
• Tariff Exposure: Outlook reflects embedded costs from currently enacted tariffs, subject to change.

Q: Analyst asked for details on SACSTOR's impact on FY27 guidance and Fort Pierce production capacity.

A: CFO David Black explained that FY27 revenue growth relies on low-teens growth from SACSTOR (based on an ~$180M pro forma run rate) and low-to-mid single-digit growth from legacy brands. Regarding Fort Pierce, he noted the facility can produce upwards of 200+ units without incremental CapEx, aiming for this as a near-term goalpost once fully ramped.

Q: Analyst questioned the rationale behind SACSTOR's lower-than-guided Q4 adjusted EBITDA margin.

A: Management clarified that the margin compression was driven by two factors: deliberate upfront resource hiring ahead of expected volume ramps, and absorption of higher input costs. CEO Steve Menneto emphasized these are strategic investments to meet North American demand quickly, rather than structural inefficiencies, and margins are expected to improve as production scales.

Q: Analyst sought clarity on the sources of Cobalt's volume growth and margin drivers.

A: CFO Black attributed Cobalt's 19% volume increase to strong market share performance and firming dealer inventory levels after prior destocking. On margins, he stated the improvement was roughly half-and-half between volume leverage (absorption) and benefits from centralized sourcing initiatives running through the P&L.

Q: Analyst asked about the adoption rate and effectiveness of the MBI Acceptance financing program.

A: CEO Menneto reported positive momentum, noting that dealers are actively using the tool even without promotional rates. He disclosed that approximately one-third to 40% of the dealer base has signed up, with usage concentrated among dealers carrying lower price-point brands, helping to convert payment-sensitive buyers.

Q: Analyst inquired about capital allocation priorities amidst debt from the SACSTOR acquisition.

A: CFO Black reaffirmed that priorities remain unchanged: investing in the business, paying down debt with free cash flow, opportunistic share buybacks when intrinsic value is attractive, and disciplined M&A. He highlighted that the company successfully executed major acquisitions, refinanced debt, and repurchased shares simultaneously, demonstrating flexibility.