MasterCraft reports 2025 Q3 results
MasterCraft Boat Holdings, Inc. has shared its financial results for the fiscal 2025 third quarter, ended March 30, 2025.
“Our business performed well during the third quarter against a backdrop of macroeconomic and demand uncertainty,” said Brad Nelson, chief executive officer of MasterCraft. “Our near-term focus continues to be centered around closely managing production levels, driving focused innovation, and delivering operating efficiencies – all while maximizing cash flow and aggressively managing costs.
“Our capital allocation priorities remain disciplined and consistent despite the external pressures,” he continued. “Year to date, operating cash flow was $18.5 million despite low cycle production volumes. Our robust, debt-free balance sheet provides us a stable backdrop amid market and tariff uncertainties, while our variable operating model enables us to swiftly adjust production as needed.”
Third Quarter Results
For the third quarter of fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $76 million, down $8 million from the third quarter of fiscal 2024. The decrease in net sales was primarily due to planned lower unit volumes to align dealer inventories with retail demand and changes in price, partially offset by favorable model mix and option sales.
Gross margin percentage declined 250 basis points during the third quarter of fiscal 2025, compared to the prior-year period. Lower margins were the result of changes in sales price, material and overhead inflation, and lower cost absorption due to the decreased production volume.
Operating expenses decreased $1.2 million for the third quarter of fiscal 2025, compared to the prior-year period. Prior year costs were elevated as a result of the CEO transition and related share-based compensation costs.
Income from continuing operations was $3.8 million for the third quarter of fiscal 2025, compared to $5.7 million in the prior-year period. Diluted income from continuing operations per share was $0.23, compared to $0.34 for the third quarter of fiscal 2024.
Adjusted Net income was $5 million for the third quarter of fiscal 2025, or $0.30 per diluted share, compared to $8.5 million, or $0.50 per diluted share, in the prior-year period.
Adjusted EBITDA was $7.5 million for the third quarter of fiscal 2025, compared to $11.7 million in the prior-year period. Adjusted EBITDA margin was 9.9% for the third quarter, down from 13.9% for the prior-year period.
Outlook
“To reflect the evolving macroeconomic conditions and the challenging demand environment, we are revising our full-year guidance range,” Nelson said. “We believe we are well prepared for a range of scenarios as a result of the dynamic industry and trade environments. We also believe our flexible operating model and ability to generate cash flow at these low volumes, combined with our fortress balance sheet, affords us the ability to navigate near-term uncertainty while positioning the business for the next market recovery.”
For full year fiscal 2025, MasterCraft now expects consolidated net sales to be approximately $275 million, with Adjusted EBITDA of approximately $20 million, and Adjusted Earnings per share of approximately $0.71. The company also now expects capital expenditures to be approximately $9 million for the year.
