Malibu Boats Q1 Sales Rise 30% on Saxdor Contribution

Malibu Boats (MBUU) reported a 29.9% increase in fiscal first-quarter net sales, driven largely by its recently acquired Saxdor business, while disciplined shipments in the Malibu brand reflected softer retail conditions in the ski and wake category. Adjusted EBITDA increased 21.7%, though its margin narrowed as the company invested in Saxdor’s production ramp.

Net sales for the three months ended September 30, 2026, rose to $252.9 million from $194.7 million a year earlier. Saxdor contributed $51.1 million, while sales from Malibu Boats’ legacy operations increased 3.6% to $201.8 million as higher volumes at Cobalt and the Saltwater brands offset managed Malibu shipments.

Unit volume increased to 1,299 boats from 1,129. Saxdor accounted for 20% of quarterly sales, while Malibu and Axis represented 28%, Saltwater brands 27% and Cobalt 24%, with percentages affected by rounding.

Gross profit increased to $37.8 million from $27.9 million, and gross margin expanded by 70 basis points to 15.0%. The company attributed the margin increase primarily to Saxdor’s contribution, partly offset by higher dealer incentives at Malibu and Saltwater.

GAAP net income was $6.1 million, or a 2.4% net margin, compared with a $710,000 loss and a negative 0.4% margin a year earlier. Net income attributable to Malibu Boats was $6.0 million, or $0.30 per share, versus a loss of $702,000, or $0.04 per share.

The latest quarter included a $15 million reduction in general and administrative expense tied to insurance proceeds that were no longer subject to a reservation of rights. The benefit was included in a net professional-fee adjustment and excluded from the company’s adjusted results.

Adjusted EBITDA rose to $14.3 million from $11.8 million, but adjusted EBITDA margin declined to 5.7% from 6.1%. Saxdor generated $4.1 million of adjusted EBITDA at an 8.0% margin. Adjusted net income was $3.0 million, compared with $3.1 million, while adjusted earnings remained unchanged at $0.15 per share.

Saxdor integration and product expansion

Malibu Boats said the first U.S.-built Saxdor 320 GTO has been completed at its Fort Pierce facility. Management expects Saxdor’s margin to move toward 10% to 11% as domestic manufacturing scales and the production mix shifts toward larger models, though the current transition period still reflects investment in the business and a mix weighted toward smaller boats.

The company is also expanding Saxdor’s dealer network and extending its centralized sourcing program to the acquired brand. Across its broader portfolio, Malibu Boats introduced new Cobalt, Pursuit, Cobia and Saxdor models at the Fort Lauderdale International Boat Show, alongside new Malibu and Axis products.

Management said it is maintaining cost discipline through a structure in which about 80% to 90% of costs are variable, mainly materials and direct labor. Other priorities include vertical integration, dual sourcing, lean manufacturing and expanded financing options across the company’s brands.

Outlook through December 2026

Malibu Boats expects net sales of $236 million to $248 million and adjusted EBITDA of $13 million to $15 million for the three months ending December 31, 2026.

For the six-month transition period from July 1 through December 31, the company projects net sales of $489 million to $501 million and adjusted EBITDA of $27.3 million to $29.3 million. Those ranges include the September-quarter results already reported.

The outlook reflects what management described as a prudent view of industry retail demand, tariff costs at currently enacted rates and pricing actions already in the market. The company cautioned that the July-to-December period is seasonally lower in volume and should not be annualized.

The transition-period forecast replaces the fiscal 2027 outlook issued on August 27 because Malibu Boats is changing its fiscal year-end to December 31. Management plans to provide an initial calendar 2027 outlook in March 2027 when it reports transition-period results.

Cash flow and risks

Operating activities used $31.1 million of cash during the quarter, compared with $6.5 million provided a year earlier. Capital expenditures increased to $8.4 million from $4.3 million, resulting in negative free cash flow of $39.5 million versus positive free cash flow of $2.3 million in the prior-year period.

Malibu Boats reported approximately $213.5 million of available liquidity. A refinancing completed in July extended the company’s debt maturity to 2031.

The company identified softer retail demand, dealer financial health and access to financing, tariffs, inflation and elevated interest rates among its uncertainties. Other risks include Saxdor integration and manufacturing execution, dependence on suppliers and independent dealers, litigation, warranty claims, international operations and the company’s fixed-cost base.