MasterCraft reports fiscal 2025 Q3 results
MasterCraft Boat Holdings, Inc. has reported financial results for its fiscal 2025 third quarter, which ended on 30 March 2025. The results exclude the company’s former Aviara segment – which was handed to MarineMax in August 2024 – and relate only to continuing operations.
Net sales for the Tennessee-based boatbuilder total $76m for the quarter, a decrease of $8m or 9.5 per cent compared to the same period in fiscal 2024. A planned reduction in production contributed to dealer inventory levels being approximately 30 per cent lower than in the prior year.
Income from continuing operations stands at $3.8m, or $0.23 per diluted share. Adjusted net income, a non-GAAP measure, is $5m or $0.30 per diluted share. Adjusted EBITDA is $7.5m, down from $11.7m in the same quarter of the previous year.
Cash and investments total $66.5m. The company also reports $100m in available credit under its revolving credit facility and no outstanding debt.
“Our business performed well during the third quarter against a backdrop of macroeconomic and demand uncertainty,” says Brad Nelson, chief executive officer. “Our near-term focus continues to be centred around closely managing production levels, driving focused innovation and delivering operating efficiencies – all while maximising cash flow and aggressively managing costs.
“Our capital allocation priorities remain disciplined and consistent despite the external pressures. Year to date, operating cash flow was $18.5m despite low cycle production volumes. Our robust, debt-free balance sheet provides us a stable backdrop amid market and tariff uncertainties, while our variable operating model enables us to swiftly adjust production as needed.”
Gross margin for the quarter declines 250 basis points compared to the prior-year period, driven by changes in sales price, input cost inflation and lower cost absorption due to reduced production volume. Operating expenses are $1.2m lower than the comparable quarter in fiscal 2024, when they had been elevated due to CEO transition and associated share-based compensation.
MasterCraft has revised its full-year fiscal 2025 guidance. The company now expects net sales of approximately $275m, adjusted EBITDA of approximately $20m and adjusted earnings per share of approximately $0.71. Capital expenditures for the year are forecast at approximately $9m.
“To reflect the evolving macroeconomic conditions and the challenging demand environment, we are revising our full-year guidance range,” says Nelson. “We believe we are well prepared for a range of scenarios as a result of the dynamic industry and trade environments. We also believe our flexible operating model and ability to generate cash flow at these low volumes, combined with our fortress balance sheet, affords us the ability to navigate near-term uncertainty while positioning the business for the next market recovery.”
MasterCraft Boat Holdings, Inc., based in Vonore, Tennessee, designs, manufactures and markets recreational powerboats through its MasterCraft, Crest and Balise brands.
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