Teleconferência de Resultados do 4º Trimestre Fiscal de 2026 da MasterCraft Boat Holdings (MCFT): Crescimento do EBITDA e Perspectivas de Transição

Principais Destaques

• A MasterCraft Boat Holdings registrou receita líquida consolidada de US$ 129,9 milhões no 4º trimestre fiscal de 2026, uma alta de 63,4% na comparação anual, incluindo a contribuição de seis semanas da Chaparral e da Robalo.
• O EBITDA ajustado do 4º trimestre subiu 114,9%, atingindo US$ 20,5 milhões. A margem EBITDA ajustada das operações legadas expandiu 730 pontos-base, chegando a 19,3%, impulsionada pelos volumes da série premium X-Series, precificação disciplinada, descontos menores e melhor absorção de custos fixos.
• A receita líquida consolidada do ano fiscal de 2026 avançou 22,8%, para US$ 348,9 milhões, enquanto o EBITDA ajustado cresceu 87,1%, alcançando US$ 45,6 milhões. O LPA diluído ajustado foi de US$ 1,76, em comparação com US$ 0,92 no ano fiscal de 2025.
• Os resultados GAAP incluíram um prejuízo das operações continuadas no 4º trimestre de US$ 7,0 milhões, ou US$ 0,35 por ação diluída, refletindo uma baixa contábil por impairment sem efeito em caixa de US$ 10,1 milhões referente à Crest, além de custos contábeis e de transação relacionados a aquisições.
• A administração projeta uma queda de aproximadamente 5% a 10% no mercado de varejo durante o período de transição de julho a dezembro de 2026. A empresa está alinhando a produção para o atacado com a demanda do varejo e mantendo os volumes da Chaparral e da Robalo próximos ao ritmo de saída do 4º trimestre.
• Para o período de transição de seis meses, a administração projetou receita líquida entre US$ 287 milhões e US$ 291 milhões, EBITDA ajustado de US$ 29 milhões a US$ 32 milhões e LPA ajustado de US$ 0,66 a US$ 0,76.

Principais Dados Financeiros

Desempenho Operacional e dos Negócios

A linha premium X-Series da MasterCraft foi o principal motor de crescimento. Volumes mais elevados, um mix de produtos favorável, precificação disciplinada e descontos menores sustentaram a expansão tanto da receita quanto da margem. Espera-se que todos os três novos modelos da X-Series estejam em produção total durante o trimestre encerrado em setembro.

As vendas de varejo da MasterCraft cresceram na faixa de um dígito baixo durante o ano fiscal de 2026, segundo a administração, apesar dos recuos na categoria de ski/wake e no mercado geral de barcos a motor. A Robalo registrou um crescimento de varejo na faixa de um dígito alto, beneficiando-se do momento favorável na categoria de pesca esportiva.

O estoque de concessionárias no negócio legado encerrou o ano cerca de 30% menor na comparação anual, com o giro de estoque acima dos níveis pré-pandemia. A Chaparral e a Robalo também finalizaram o ano com estoques mais baixos e giros mais elevados. A administração informou que a intensidade promocional tornou-se mais saudável e que os clientes da categoria premium continuam engajados.

O segmento de Recreação e Pesca Esportiva gerou US$ 33,3 milhões em receita e US$ 1,8 milhão em EBITDA ajustado durante o período de seis semanas de propriedade. A administração afirmou que a rentabilidade inicial não representa o potencial de lucros de longo prazo do segmento devido aos efeitos de contabilidade de aquisição, condições sazonais e investimentos planejados.

A empresa está buscando oportunidades de integração no relacionamento com concessionárias, manufatura, suprimentos e tecnologia de produtos. A produção da plataforma Chaparral Surf foi pausada temporariamente enquanto a empresa combina a capacidade de design e layout da Chaparral com a expertise da MasterCraft em wake e surf.

Projeções da Administração

A MasterCraft está alterando o encerramento do seu ano fiscal para dezembro. Suas projeções atuais cobrem o período de transição de seis meses, de julho a dezembro de 2026, o qual a administração descreveu como um período sazonalmente de baixo volume.

As perspectivas pressupõem uma redução na demanda do mercado de varejo de cerca de 5% a 10%. A administração planeja manter a disciplina de produção, alinhar as remessas do atacado à demanda do varejo e manter os volumes de remessa e os preços médios de venda da Chaparral e da Robalo próximos à taxa de saída do 4º trimestre.

Riscos e Pontos de Atenção

• A administração afirmou que o momento da recuperação do mercado de varejo foi adiado, com pressão particular nas categorias de entrada de pontoon e runabout.
• Taxas de juros mais elevadas, inflação e incertezas econômicas continuam a pesar sobre os consumidores focados em custo-benefício, enquanto os clientes das categorias premium e principal se mantiveram mais resilientes.
• A empresa registrou uma despesa de impairment sem efeito em caixa de US$ 10,1 milhões relacionada a determinados ativos intangíveis da Crest, refletindo as condições atuais da categoria de pontoon.
• A contabilidade de aquisição reduziu a rentabilidade reportada de Chaparral e Robalo. O período de seis semanas incluiu uma despesa de US$ 2,6 milhões relativa à reavaliação de estoque e US$ 1,1 milhão em depreciação.
• A produção da Chaparral Surf foi pausada temporariamente enquanto a empresa aprimora a tecnologia e a experiência do cliente na plataforma.

Destaques da Sessão de Perguntas e Respostas com Analistas

A administração declarou que a margem bruta reportada da Chaparral e da Robalo foi de 0,9% durante o período de seis semanas de propriedade, mas teria sido de aproximadamente 9% excluindo a reavaliação de estoque. A margem EBITDA ajustada ficou em torno de 5,5%, e a administração espera que permaneça próxima desse patamar até que as sinergias avancem e os investimentos iniciais na marca sejam absorvidos.

Para o período de transição, espera-se que os volumes de Chaparral e Robalo fiquem próximos do ritmo de saída do 4º trimestre. A administração enfatizou que essa abordagem visa equiparar as remessas do atacado à demanda do varejo, em vez de buscar reduções adicionais de estoque nos canais, a menos que o mercado enfraqueça ainda mais.

Em relação à combinação com a Marine Products, a administração afirmou que a principal alteração frente às suas premissas iniciais foi o adiamento da recuperação do varejo. Sua confiança no racional estratégico aumentou, sustentada por um mercado endereçável mais amplo, mais faixas de preço e potenciais sinergias com concessionárias, operações e suprimentos.

A empresa já observou algumas concessionárias adicionarem marcas do portfólio expandido de cinco marcas. As equipes de integração também estão compartilhando práticas de fabricação entre as instalações e avaliando sinergias de compras.

Transcrição Completa da Teleconferência de Resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Thank you for standing by and welcome to the MasterCraft Boat Holdings, Inc. Fiscal Fourth Quarter and Full Year 2026 Earnings Conference Call. Please be advised that today's call is being recorded.

[Operator Instructions]

I will now hand the conference over to Alec Harmon, Senior Director, Strategy and Investor Relations. Please go ahead.

Alec Harmon

Thank you, Rebecca, and welcome, everyone. Thank you for joining us today as we discuss the fiscal fourth quarter and full year 2026 performance of MasterCraft Boat Holdings. As a reminder, today's call is being webcast live and will also be archived on our website for future listening.

With me on this morning's call is Brad Nelson, Chief Executive Officer, and Scott Kent, Chief Financial Officer. Brad will begin with an overview of our operational performance. After that, Scott will discuss our financial performance. Brad will then offer some closing remarks before we open the call for questions.

Before we begin, we would like to remind participants that the information contained in this call is current only as of today, September 10, 2026. The company assumes no obligation to update any statements, including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to the safe harbor disclaimer in today's press release.

Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude items not indicative of our ongoing operations. For each non-GAAP measure, we will also provide the most directly comparable GAAP measure in today's press release, which will include a reconciliation of these non-GAAP measures to our GAAP results.

Before turning to our results, I would like to provide some important context for the quarter and year. On May 15, we completed our combination with Marine Products Corporation, welcoming the Chaparral and Robalo brands to the MasterCraft Boat Holdings or MCBH family. As a result, our fourth quarter and full year results include a partial 6-week contribution from these brands. To help frame the underlying performance of our business and for comparative purposes, we will speak to our full year results on both a total combined company basis and on a legacy basis.

In connection with the combination, we have also realigned our reportable segments. Our former MasterCraft segment is now our Performance and Wake segment. Our former Pontoon segment is now our Leisure segment, and the newly combined Chaparral and Robalo brands are reported within our Recreation and Sport Fishing segment.

As a reminder, unless otherwise noted, the following commentary is made on a continuing operations basis, and all references to specific quarters and periods will be on a fiscal basis. Because we are changing to a December fiscal year-end, today's outlook will cover the 6-month transition period from July 2026 through December 2026, which Scott will discuss in greater detail later in the call. With that, I will turn the call over to Brad.

Bradley Nelson

Thank you, Alec, and good morning, everyone. Fiscal 2026 was a defining year for MasterCraft Boat Holdings. Strong execution across our legacy business drove results to significantly outperform expectations despite a challenging macroeconomic and retail environment. We grew net sales, expanded adjusted EBITDA nearly 80%, a margin improvement of more than 500 basis points year-over-year, and completed the transformational combination with Chaparral and Robalo.

These results reflect the durability of our foundation and our disciplined execution against the priorities we established at the beginning of the year, which were aligning production with demand, strengthening dealer health, improving operational efficiency, and delivering differentiated innovation that resonates with dealers and consumers. Those actions positioned us to outperform the broader market while building an even stronger foundation for the future.

On a legacy basis, fiscal 2026 net sales were $315.6 million, and adjusted EBITDA was $43.8 million. These results exceeded the increased guidance we issued last quarter and demonstrate the earnings power of our legacy business in a challenging market. The MasterCraft brand was at the center of that success. Strong retail performance and the successful rollout of the next-generation X-Series drove favorable premium mix, strengthened brand momentum, and improved profitability. This more than offset lower industry volumes and served as a primary driver of growth across our business.

Including the initial contribution from Chaparral and Robalo, total company net sales were $348.9 million, up 22.8% year-over-year, and adjusted EBITDA was $45.6 million, up 87.1% year-over-year.

Turning to the fourth quarter. Our performance was particularly encouraging given the difficult prior year comparison, which benefited from the launch of the ultra-premium XStar. Against that backdrop, our legacy business delivered 21.5% year-over-year net sales growth and expanded adjusted EBITDA margin 730 basis points to 19.3% from 12.0% in the prior year period. These results reflect the strength of MasterCraft's premium product portfolio, continued momentum across the lineup, healthy dealer inventories, and disciplined cost management.

Including the 6-week contribution from Chaparral and Robalo, total company fourth quarter net sales were $129.9 million, up 63.4% year-over-year. And adjusted EBITDA was $20.5 million, up 114.9% year-over-year. The new Recreation and Sport Fishing segment contributed $33.3 million of revenue and $1.8 million of adjusted EBITDA during the abbreviated 6-week window of ownership. We do not believe the segment's initial reported profitability is representative of its underlying earnings power or long-term potential. Scott will provide additional detail on these items shortly.

On a consolidated basis, a key reason for our outperformance was disciplined channel management. Dealer health remains a significant competitive advantage for MCBH. Field inventory in our legacy business finished the year down approximately 30% year-over-year with turns improving to better than pre-pandemic levels. Chaparral and Robalo also ended the year with lower inventory levels and higher turns.

The broader retail environment remained mixed throughout the year. Premium and core customers remained relatively resilient, while value-oriented customers faced pressure from higher interest rates, inflation, and broader economic uncertainty. Even in that environment, our differentiated products, disciplined execution, and strong dealer health enabled us to outperform the broader market.

MasterCraft's retail performance is a clear example of that dynamic. Entering the year, we expected category retail to decline 5% to 10%, with the market finishing slightly lower than our estimated range. We significantly outperformed that expectation with MasterCraft retail finishing up low-single digits and outperforming both the ski/wake category and the broader powerboat market.

In our Recreation and Sport Fishing segment, Robalo was another standout performer, delivering retail growth in the high-single digits and continuing to benefit from strong product momentum within the attractive sport fishing category. Together, MasterCraft and Robalo helped MCBH outperform a broader powerboat industry that declined mid- to high-single digits.

Looking ahead, we continue to plan prudently and currently expect retail market demand to be down approximately 5% to 10% over the next 6 months following current calendar year-to-date trends. As we evaluate conditions across the portfolio, retail dynamics remain challenged across marine categories, especially within the entry-level pontoon and runabout markets. Consistent with our disciplined approach to channel management, we continue to expect to align wholesale production with retail demand. That assumption is incorporated into the guidance Scott will discuss later in the call.

Alongside pipeline management and dealer health, differentiated innovation continues to be one of our most important competitive advantages. Within MasterCraft, the X-Series continued to gain momentum throughout the year. With the reintroduction of the X23 alongside the X22 and X24, and building on the success of the XStar, dealer and consumer response has been outstanding. The X-Series drove significant revenue and profitability growth throughout both the fourth quarter and full year, and we believe this product expansion has further strengthened our leadership position in the premium ski/wake category.

Within Leisure, we improved segment profitability this year through disciplined cost management and operational efficiencies. Looking ahead to the new model year, we have responded directly to dealer feedback by improving performance across the lineup through meaningful enhancements in both speed, design, and handling.

We also introduced the new Crest Conquest SE Tritoon and announced an industry-first integration of Apple CarPlay and Android Auto with on-water navigation directly from the factory. These initiatives improve the ownership experience and provide consumers with compelling reasons to choose our brands.

Within our newly acquired brands, we are encouraged by the product and innovation road maps alongside the strength of the existing portfolio. Chaparral recently introduced the all-new SSX4 OB, expanding the brand's premium outboard bowrider offering. Separately, our sterndrive lineup now features the new E-Z Step, an innovative water entry design that received a 2026 NMMA Innovation Award.

Robalo continues to build momentum in the dual console category with products such as the R277 and new R237, both filling strategic white space and expanding Robalo's ability to attract incremental customers.

As we deepen our understanding of these newly acquired businesses, our approach is clear: protect what makes each brand strong in its market, invest behind the products and categories where we see the greatest opportunity to create value, and use the scale and capabilities of MCBH to accelerate that value creation.

One early example of how we are creating value across the portfolio is the Chaparral Surf platform. We have temporarily paused production in these models while we enhance the technology and overall customer experience. By combining Chaparral's strength in ride, design, and layout with MasterCraft's deep wake and surf expertise, we believe we can deliver an even stronger product offering for consumers and dealers. This is an early example of how we intend to leverage the capabilities of the combined company to drive product innovation and long-term value creation.

Since closing the transaction, we've spent significant time with the Chaparral and Robalo teams, dealers, and products. Our conviction in the long-term opportunities created by the combination has only increased. These are strong brands with talented teams, loyal customers, and attractive market positions.

Our integration and synergy efforts are underway with structured work streams in place. In the near term, we are prioritizing and investing in attractive opportunities to enhance innovation, expand dealer relationships with our robust product set, share technologies, and leverage manufacturing and sourcing best practices.

Our capital allocation priorities remain unchanged: maintain a strong balance sheet, invest in innovation and growth, which includes synergy work, returning capital to shareholders through share repurchases, and maintaining a disciplined approach to M&A. Overall, we executed well in a challenging market, delivered results that exceeded expectations, expanded profitability, and completed a transformational acquisition that strengthens the future of MCBH. With that, I'll turn the call over to Scott.

Scott Kent

Thanks, Brad, and good morning, everyone. Fiscal 2026 was a strong year -- was a year of strong execution and meaningful transformation for our company. I'll start by reviewing our fourth quarter and full year results, then provide additional details regarding the impact of the Marine Products acquisition, and finish with our outlook for the 6-month transition period.

For the fourth quarter, legacy net sales were $96.6 million, an increase of $17.1 million or 21.5% compared to the prior year period. The increase was driven by higher volumes of our premium X-Series models, disciplined pricing, and lower discounts. Including $33.3 million of net sales from Chaparral and Robalo during the 6-week ownership period, consolidated fourth quarter net sales were $129.9 million, an increase of $50.4 million or 63.4% compared to the prior year period.

These same factors impacting net sales also supported strong margin performance across our legacy business. Gross margins expanded approximately 690 basis points to 30%, driven by improved fixed cost absorption on higher unit volumes, lower discounts, and strong operating execution. Including Chaparral and Robalo, consolidated gross margin declined 60 basis points compared to the prior year period, primarily reflecting purchase accounting impact associated with the Marine Products combination.

As part of our year-end -- year-end impairment assessment, we recorded a non-cash impairment charge of $10.1 million in our Leisure segment related to certain Crest brand intangible assets. This charge reflects current conditions within the pontoon category, is excluded from our adjusted results, has no impact on our liquidity or cash flows. We continue to view pontoons as an attractive long-term category and remain focused on strengthening the segment through disciplined inventory management, targeted product innovation, and improved execution as retail and market conditions stabilize.

The non-cash impairment charge, together with acquisition-related purchase accounting impact and transaction costs, resulted in a GAAP net loss for the quarter. Loss from continuing operations was $7 million or a loss of $0.35 per diluted share compared to income from continuing operations of $5.5 million or $0.33 per diluted share in the prior year period. Due to the extent of the one-time acquisition-related and non-cash items affecting GAAP results this quarter, we believe our adjusted results better reflect the underlying strength and operating performance of the business, which I will cover now.

On a legacy basis, adjusted EBITDA for the quarter was $18.6 million, an increase of $9.1 million or 95.6% compared to the prior year period. Adjusted EBITDA margin expanded 730 basis points to 19.3%, up from 12% a year ago, reflecting strong performance across our legacy businesses. In the partial period contribution -- including the partial period contribution from Chaparral and Robalo, consolidated adjusted EBITDA was $20.5 million with an adjusted EBITDA margin of 15.8%. Consolidated adjusted net income was $13.5 million or $0.67 per diluted share compared to $6.6 million or $0.40 per diluted share a year ago.

Turning to the full year. Legacy net sales were $315.6 million, up $31.4 million or 11% compared to fiscal 2025. Including the impact of the Chaparral and Robalo businesses, net sales were $348.9 million, an increase of $64.7 million or 22.8%. Profitability also improved meaningfully for the year. Legacy gross margins expanded 520 basis points to 25.2%, supported by the same operating drivers that benefited our fourth quarter results.

Including Chaparral and Robalo, consolidated gross margin was 22.9%, an increase of 290 basis points compared to fiscal 2025, despite the purchase accounting impacts related to Marine Products combination. Legacy adjusted EBITDA increased 79.6%, up $43.8 million compared to $24.4 million in fiscal 2025, with margins expanding 530 basis points to 13.9%, up from 8.6% in the prior year. Including the partial period contribution from Chaparral and Robalo, consolidated adjusted EBITDA increased 87.1% to $45.6 million. Consolidated adjusted net income was $30.2 million or $1.76 per diluted share compared to $15.1 million or $0.92 per diluted share in the prior year.

Turning to the balance sheet. We remain disciplined and continue to generate cash through a transformational year. We generated $22.3 million of free cash flow for the year after funding $8.1 million of capital expenditures and absorbing transaction-related costs associated with the Marine Products combination. We ended the year with $43.9 million in cash, no debt outstanding, and full availability under our $75 million revolving credit facility.

Before discussing the consolidated outlook, I want to highlight a few items related to the Chaparral and Robalo acquisition, including the impact of purchase accounting. In the fourth quarter, we reported $2.8 million for a step-up in inventory value, of which $2.6 million was recognized as cost of sales expense in Q4 with the remainder being recognized in Q1.

Q4 intangible amortization expense was $2.9 million, including $2.6 million for a short-lived backlog intangible that fully amortized in fiscal year '26. We expect amortization to normalize at approximately $0.6 million per quarter. Depreciation included in the gross margin was $1.1 million in Q4 and is expected to normalize at approximately $2.7 million per quarter.

A couple of items of note on Chaparral and Robalo volumes versus our prior market recovery and growth assumptions. Due to delayed retail recovery, we are moderating production levels to align wholesale and retail demand, which will result in holding shipments and average selling prices near our Q4 exit rate. Additionally, as Brad mentioned, we have also temporarily paused production of the Chaparral Surf Series to further enhance the platform. While timing of market recovery is delayed, our confidence in the long-term opportunity is grounded in our proven ability to create value through strong execution and meaningful product innovation.

Now turning to our consolidated results or consolidated outlook. As Alec mentioned earlier, we are transitioning our fiscal year to align with calendar year. And today, we are providing guidance for the 6-month transition period covering July through December 2026. This guidance reflects the combined company, including Chaparral and Robalo, and covers a seasonally low volume period for our business.

For the upcoming September quarter, we expect net sales of approximately $147 million, adjusted EBITDA of approximately $16 million, and adjusted earnings per share of approximately $0.40. For the 6-month transition period, we expect net sales of between $287 million and $291 million, adjusted EBITDA between $29 million and $32 million, and adjusted earnings per share between $0.66 and $0.76. We expect capital expenditures of approximately $9 million in the period.

These results reflect strong growth from our legacy brands despite our expectations that the retail environment will decline approximately 5% to 10%. Our ability to grow in a down market reflects consistent execution against proven core strategies. The MasterCraft X-Series is a clear example of this strategy in action. During the first quarter of the prior year, we paused X-Series production to support dealer sell-through of outgoing models and facilitate a disciplined transition to the next-generation lineup.

In the upcoming September quarter, all 3 new X-Series models will be in full production. While this production timing creates an unusual year-over-year comparison, it also positions us with a complete premium product lineup and strong momentum entering the transition period. Looking ahead, we will continue to evaluate market conditions, dealer inventory levels, and product launch timing as we closely align wholesale production with retail demand and focus on executing our strategic priorities.

We have the balance sheet and cash flows to invest not only in the synergy opportunities created by the acquisition, but also in our ongoing focus on new differentiated products that will continue -- that will continue to win in the marketplace. We remain confident in the strength of our portfolio, the long-term earnings power of the combined company, and our ability to create value despite challenging market conditions. With that, I'll turn it back to Brad for closing remarks.

Bradley Nelson

Thanks, Scott. We executed well and delivered results that exceeded our expectations while expanding profitability and broadening our growth platform. What gives me confidence is that these results were earned, not market-driven. Our teams executed with discipline, remained focused on the fundamentals, and consistently delivered against our priorities. As a result, we strengthened dealer health, gained retail share, and expanded our platform for future growth.

There is real energy and excitement across the organization as we enter our next chapter as a larger, more diversified company. With our 5 brands, we now have a broader portfolio spanning attractive recreational boating categories, expanded reach across inland and coastal markets, and greater opportunity to serve dealers and customers with differentiated products and a wider range of price points.

The macroeconomic and retail environment remains challenging. However, our long-term view and execution-minded focus has not changed. We believe our portfolio of leading brands, established dealer network, strong balance sheet, and flexible operating model position us well to navigate near-term uncertainty, drive growth, and create value as market conditions stabilize.

I want to thank our team members, dealer partners, suppliers, and shareholders for their support this year. And once again, welcome the Chaparral and Robalo teams to the company. We are excited about what we are building together, and we remain confident in the long-term value creation potential of MCBH. Operator, you may now open the line for questions.

Operator

[Operator Instructions]

Your first question comes from Craig Kennison with Baird.

Perguntas e respostas

Craig Kennison

Regarding your guidance for the next 6-month stub period, could you help us unpack the contribution of Chaparral and Robalo to those results?

Scott Kent

Sure. So I guess I'll start by reminding you, we are kind of at a low point in the market, and this is also our low season as we go into the next 6-month stub period. But as you think about the results for the 6-week period of Chaparral and Robalo, just keep in mind, they are impacted by purchase accounting items in that 6-week period, most of which is the inventory step-up, which was $2.6 million.

So our public gross margins in the K are going to show 0.9% for the gross margins for the Chaparral and Robalo business for that 6-week ownership period. Those margins would actually be 9% without the inventory step-up. The margins are also impacted by higher depreciation as we wrote up all of our fixed assets in the purchase accounting process.

So the depreciation in that 6-week period was $1.1 million, and that will obviously have an ongoing impact in the future as well. But we approximate $2.7 million on a go-forward quarterly basis for what the depreciation will run for the Chaparral and Robalo businesses.

Now all of that ultimately led to an adjusted EBITDA, which excludes both the depreciation as well as the inventory step-up that came in at about 5.5% for that 6-week period.

As we look forward into that business, I think you can think of the margins, at least for the adjusted EBITDA are going to be somewhere in that same range on a go-forward basis until we get through some of our synergies and some of the initial investments we're putting into the brands.

Craig Kennison

That's very helpful. Just thinking about the revenue contribution over the next 6 months embedded in your guidance for those 2 brands, how should we think about that?

Scott Kent

So as I was trying to say in my sort of prepared remarks, we're keeping the volumes fairly flat, the run rate volume fairly flat and how we exited Q4 for that business as well. Just keep in mind that it was 6 weeks' worth of activity in that fourth quarter period for us, but the run rate of that should continue into the 6-month or 6-month transition period as well.

Bradley Nelson

Craig, which also really aligns production and wholesale with retail generally.

Craig Kennison

Got it. That makes sense. And maybe, Brad, if I could just ask you, curious, any early surprises or challenges associated with the Marine Products? I'm sure there are many surprises as you dig in deeper?

Bradley Nelson

Not many. I mean the only thing that's really changed from our early assumptions is the retail environment and recovery of the retail environment has just been pushed out some here as we continue to bounce at the low part of the market. But in general, on the fundamentals of the business from an addressable market perspective that more than doubles our participation with a wide range of price points now with a larger platform for product channel and even operational leverage, we've been really thrilled with that.

We've got active synergy plans in place that we're excited, accelerating value creation there. But in general, our conviction and confidence around this has only increased.

Operator

Your next question comes from Noah Zatzkin with KeyBanc Capital Markets.

Noah Zatzkin

I guess, first, just kind of on the industry retail commentary. What did you kind of see play out through the quarter? And maybe what are you seeing now? Any kind of change in retail performance for you guys or the broader industry as things progressed?

Scott Kent

As I think we mentioned, the 5% to 10% we're sort of assuming for the industry across really all of our segments was really a reflection of kind of the current calendar year trend that's been going on across our segments. Some are a little better, some are a little worse in that 5% to 10% range. But we're just assuming that, that sort of continues through the rest of the season.

Keep in mind, the rest of the 6-month period is the low point of retail. So it's harder on a calendar year basis to catch up much. So we still believe in the quarter as well as for the calendar year, we'll still be in that 5% to 10% range.

Noah Zatzkin

Got it. Very helpful. And then maybe just now kind of exiting selling season, just any comments on what you're seeing in terms of inventory positions kind of across the industry and how you're feeling?

Scott Kent

I do think that over the last 2 years, the entire industry has been trying to bring down inventory levels coming out of the kind of COVID highs of retail. That certainly has continued. I think the entire industry is healthier than it used to be, and we're certainly in that way -- in that as well.

So I think as we kind of mentioned, the legacy brands for our pipeline are down about 20% or 30% on the legacy side and about 20%, including our new Chaparral and Robalo brands. So we think we've done what we need to do to bring down inventories. And as we've kind of tried to say, as you think forward, we're going to do a lot better trying to align wholesale to retail and not really focus on trying to get any further pipeline reductions unless the market just continues to go down, and we have to follow the market. So...

Bradley Nelson

Also, Noah, just to build on that a little bit, on the positive front, as Scott mentioned, dealer inventory is clean. Promotional intensity is healthier than it's been. Premium customers remain engaged in our brands and boating participation supports the long term.

So although we're managing relatively conservatively today through this period with retail recovery delay, when that broadens, we're prepared for upside there. So that delayed retail recovery is really a timing issue in our view, not a change in any long-term fundamentals in the marine space.

Operator

Your next question comes from Gregory Miller with Truist Securities.

Gregory Miller

You mentioned a number of items that you're working on in the Recreation and Sport Fishing segment, innovation, dealer relations and manufacturing. I thought to focus on dealer relations, and I'm just curious what changes you're working and implementing post acquisition.

Bradley Nelson

Well, across the board, as we accelerate value creation of a larger group here with presence with 5 brands in all these categories, first of all, let me just say we're protecting what makes our brands special. And that includes Chaparral, Robalo, keeping them strong while we use scale and process and cross-company expertise to drive even more value.

So with synergy plans in general as it relates to dealers, you can imagine with that added scale, product diversity, brand leverage, there's all kinds of discussions happening. We've already seen successes of dealers picking up new brands within our portfolios, of which there are also numerous other discussions ongoing as that unfolds. Every one of those conversations creates value opportunity for the future. It's one of our core synergy items that we're deeply engaged in right now today, and that will continue to unfold over time.

Gregory Miller

Okay. And I think you may have addressed this a little bit in the call already, but from a manufacturing or plant operations context, have you made any changes to the Georgia plant since you finished acquisition?

Bradley Nelson

Well, the teams are working together on all kinds of best practice sharing, and that goes in all directions. It's not just MasterCraft injection into the Georgia facility. There's best practices there that we're applying in reverse. There's a handful of high-priority operational items at play there. We have structured integration and synergy teams very disciplined working through that. And in time, that will prove out as we look at -- and that also includes purchasing synergies as well on the sourcing side.

Operator

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.