MasterCraft Boat Holdings (MCFT) Q1 2025 Earnings Report

MasterCraft Boat Holdings Inc. (MCFT) reported a challenging fiscal first quarter 2025 (Q1) with 65.36 million in net sales, down 37.3% year over year and down 2.7% quarter over quarter, driven by lower volumes and an unfavorable product mix. Gross margin compressed to 18.1% from 23.8% a year ago, as lower cost absorption from reduced production and higher dealer incentives weighed on profitability. Adjusted EBITDA was 3.8 million (margin 5.9%), while GAAP net income was negative at -5.15 million and earnings per diluted share registered -0.31. Management framed these results within a deliberate production and inventory reduction program aimed at rebalancing the dealer pipeline as the company positions for a second-half production ramp and a broader market recovery.

Despite near-term profitability pressures, management conveyed a constructive undercurrent: retail results surpassed initial expectations, dealer inventories were being actively reduced (approximately 500 units in Q1 and over 1,000 units in the last 12 months across MasterCraft and Crest), and confidence in wholesale plans supported a raised lower end of the full-year guidance. The company reaffirmed its strategic growth levers, including the XStar redesign (shipments expected in the second half of fiscal 2025), the Balise premium pontoon brand gaining early traction, and ongoing Aviara-related asset monetization ( Merritt Island sale targeted for end of Q2 2025). The balance sheet remains robust with substantial liquidity (cash and short-term investments around $82.8 million) and a strategy to fund growth initiatives while returning capital to shareholders. The raised guidance implies a path to improved EBITDA and earnings in the back half of the year if retail momentum persists and production ramps align with demand. Investors should monitor unit trends, promotional dynamics at boat shows, and the evolution of consumer financing as rate environments normalize.