MasterCraft beats Q2 sales, EPS estimates; to acquire Marine Products Corp

Overview

• Boat manufacturer reported fiscal Q2 net sales up 13.2%, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company to acquire Marine Products Corporation in cash and stock transaction

Outlook

• MasterCraft expects full-year fiscal 2026 net sales between $300 mln and $310 mln

• Company forecasts fiscal third-quarter 2026 net sales of approximately $75 mln

• Adjusted EBITDA for fiscal third-quarter 2026 expected to be approximately $9 mln

Result Drivers

• SALES GROWTH - Net sales increased by 13.2% due to favorable model mix, higher unit volumes, and increased prices

• MARGIN IMPROVEMENT - Gross margin rose by 440 basis points, attributed to increased sales and effective cost controls

• INCREASED EXPENSES - Operating expenses rose due to ERP implementation and business development costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy."

• Wall Street's median 12-month price target for Mastercraft Boat Holdings Inc is $23.00, about 0.5% below its February 4 closing price of $23.12

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX3FJRfQ

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