MasterCraft highlights operational discipline in third quarter fiscal 2026 results
Image courtesy of MasterCraft
“We delivered results that outperformed our expectations during the third quarter, driven by disciplined execution across our business and continued new product momentum,” says Brad Nelson, MasterCraft’s CEO.
“In a market that’s evolving week to week, we’ve remained focused on our core strengths—delivering operational efficiencies, aligning production with demand, and differentiated innovation that resonates with customers and dealers.”
The company’s reporting its fiscal 2026 results show net sales for the third quarter were $78.2 million, up $2.2 million, or 3.0 per cent, from the comparable prior-year period. Loss from continuing operations in the third quarter was ($0.7) million, or ($0.04) per diluted share, down from prior-year income of $3.8 million, or $0.23 per diluted share.
This was primarily due to one-time transaction costs related to the pending Marine Products ‘combination’. The company recently announced that it’d entered into a definitive agreement under which it will merge with Marine Products (which manufactures recreation and sport fishing powerboats), in a cash and stock transaction. That’s expected to complete shortly after MasterCraft’s special meeting of shareholders scheduled on 12 May 2026 – subject to customary closing conditions.
Adjusted Net Income, a non-GAAP measure, was $7.2 million, or $0.45 per diluted share, up from $5.0 million, or $0.30 per diluted share, in the prior-year period. Adjusted EBITDA, a non-GAAP measure, was $10.7 million, up $3.2 million from the comparable prior-year period. Thus, MasterCraft ended the third quarter with cash and investments of $84.6 million.
Dealer pipeline strategy remains tightly managed
The dealer pipeline discipline remains strong, with stabilised dealer pipelines, supported by aligned production plans and a flexible, demand-driven wholesale approach, says a company statement.
Nelson continues: “Within MasterCraft, premium product momentum continues to build across the lineup. Last month, we announced the reintroduction of the X23, marking the return of a historic name in our portfolio and completing the next-generation X-series.”
Third Quarter results in detail
For the third quarter of fiscal 2026 MasterCraft Boat Holdings reported consolidated net sales of $78.2 million, up $2.2 million from the third quarter of fiscal 2025. The increase in net sales was primarily due to favourable model mix and options sales, increased prices, and decreased dealer incentives, partially offset by lower unit volumes.
Gross margin percentage increased 420 basis points during the third quarter of fiscal 2026, compared to the prior-year period. Higher margins were primarily the result of increased net sales, as discussed above, combined with effective cost controls.
Operating expenses increased $9.2 million for the third quarter of fiscal 2026, compared to the prior-year period, due to business development and consulting costs related to the combination with Marine Products, increased selling and marketing costs, and consulting costs related to the implementation of its enterprise resource planning system.
Loss from continuing operations was ($0.7) million for the third quarter of fiscal 2026, compared to income from continuing operations of $3.8 million in the prior-year period. Diluted loss from continuing operations per share was ($0.04), compared to diluted income from continuing operations per share of $0.23 for the third quarter of fiscal 2025.
Adjusted Net income was $7.2 million for the third quarter of fiscal 2026, or $0.45 per diluted share, compared to $5.0 million, or $0.30 per diluted share, in the prior-year period.
Adjusted EBITDA was $10.7 million for the third quarter of fiscal 2026, compared to $7.5 million in the prior-year period. Adjusted EBITDA margin was 13.7 per cent for the third quarter, up from 9.9 per cent for the prior-year period.
“Looking ahead, we remain confident and credible in our ability to navigate the current macroeconomic environment by remaining disciplined, agile, and focusing on our strengths,” notes Nelson. “With a strong balance sheet, a variable operating model, and a premium product portfolio that continues to resonate, we believe we’re well positioned as we move through the remainder of fiscal 2026 and into the next cycle.”
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