Malibu Boats, Inc.

Q3 net sales increased 3.1% to $235.7 million, including $23.1 million from Saxdor; legacy net sales were $212.6 million versus guidance of $198 million to $202 million. Legacy unit volume fell 17.1% to 1,187 units, while consolidated net sales per unit on a legacy basis rose 12.1% to $179,000. Gross profit declined 9.7% to $41.3 million and gross margin was 17.5%, down 250 bps year over year but up 420 bps sequentially from Q2. Adjusted EBITDA was $22.7 million and adjusted EBITDA margin was 9.6%; adjusted net income per share was $0.56; GAAP net loss was $2.4 million versus GAAP net income of $13.2 million a year ago. Cash at quarter-end was approximately $50.2 million and long-term debt was $165 million; pro forma net debt to trailing 12-month adjusted EBITDA was about 1.5x. Free cash flow was $16 million, including $5.9 million of capex. Full-year fiscal 2026 guidance is $880 million to $886 million of net sales and $72 million to $74 million of adjusted EBITDA. For the legacy business, full-year revenue is now expected to be down slightly versus fiscal 2025, improved from the prior flat to down mid-single-digits view, and legacy adjusted EBITDA margin is expected toward the lower end of the previously communicated 8% to 9% range. For Q4, Saxdor is expected to generate $57 million to $59 million of net sales and 10% to 11% adjusted EBITDA margin, while consolidated Q4 sales are expected to be $261 million to $267 million and adjusted EBITDA $29 million to $31 million.

Steve Menneto framed the quarter as a turning point, saying Malibu delivered above-guidance results on the legacy business and closed Saxdor, which he called the company’s most significant strategic milestone. He emphasized that premium cash-driven buyers remain engaged even as the broader consumer backdrop weakens, and said the company’s portfolio is positioned around that more resilient customer. He also highlighted strong boat-show reactions to new models, disciplined dealer inventory management, and the long-term growth opportunity from Saxdor’s younger, affluent customer base.

David Black focused on execution, margin flow-through, and the combined-company outlook. He said gross margin improved 420 bps sequentially as higher-cost inventory worked through the P&L and centralized sourcing began contributing more meaningfully, though margin was still down 250 bps year over year due to lower volumes and higher per-unit material and labor costs. He also cited $16 million of free cash flow, $50.2 million of cash, $165 million of long-term debt, and leverage of about 1.5x net debt to trailing 12-month adjusted EBITDA, which remains below the 2.5x target. On capital allocation, he noted the company issued about 1.5 million shares for Saxdor, repurchased about 492,000 shares at an average of $26.24, and still has $70 million of repurchase authorization remaining.

Analysts asked for more detail on Saxdor’s Q4 revenue phasing, units and ASPs, and Black said the company does not usually guide to ASP and unit volume, but Q3 Saxdor ASP should be a useful proxy for Q4. He also explained that Saxdor’s European business is more back-half weighted, with Q1 the weakest quarter and the second half around 60% of revenue at that point in the year. On legacy margins, management said the move toward the low end of the 8% to 9% range is mainly due to the unusually favorable Q3 mix benefit not continuing into Q4, and they said input cost inflation is not currently showing a significant uptick, though they are watching geopolitical-driven cost risks.