MasterCraft Boat Holdings (MCFT) delivered a challenging fourth quarter and full-year finish in fiscal 2024, marked by a material revenue decline and margin pressure as the company navigated destocking across its dealer networks and a protracted marine retail cycle. Q4 revenue of $67.18 million contrasted with $166.57 million in the year-ago quarter, reflecting a 59.7% YoY drop and a 29.8% sequential drop (QoQ). The quarter produced a net loss of $8.07 million and an EBITDA of approximately negative $7.46 million, with a gross margin of 11.5% and an operating margin of -3.09%. For the full year, net sales declined to about $367 million from $662 million in the prior year, a roughly 45% decrease, with adjusted EBITDA of $33 million (or $40 million excluding Aviara) and a negative year-end net income, underscoring the cyclicality and inventory dynamics facing the marine OEM landscape.
Management signaled a strategic pivot designed to improve profitability and long-term ROIC. In the near term, MCFT announced the divestiture of Aviara and initiated the wind-down of the Merritt Island facility, with Aviara results expected to be reported as discontinued operations in fiscal 2025 Q1. The Balise premium pontoon brand was introduced as a key growth initiative, leveraging Crest’s manufacturing footprint and an incremental dealer network to drive higher AUSP and margin accretion in the pontoon segment. Management emphasized disciplined cost control and balance sheet strength, projecting positive free cash flow in fiscal 2025, even as destocking persists across the cycle and retail demand remains uncertain. The 2025 guidance envisions consolidated net sales of $265–$300 million, adjusted EBITDA of $15–$26 million, and adjusted EPS of $0.36–$0.87, with first-quarter 2025 expectations around $61 million in net sales and $2 million in adjusted EBITDA. Investors should monitor dealer inventory dynamics, Balise ramp progress, and the pace of margin normalization as the industry navigates a bottoming cycle with select growth levers in place.