Malibu Boats Inc. Reports Third Quarter Fiscal 2026 Results

Malibu Boats reported a 3.1% increase in net sales, totaling $235.7 million compared to $228.7 million in the same quarter of the previous fiscal year. This growth was primarily driven by $23.1 million in revenue from the newly acquired Saxdor segment, which has positioned Malibu to tap into the fast-growing adventure dayboat market. Despite this revenue increase, the company experienced a 12.4% decline in unit volume, selling 1,253 units compared to 1,431 units in Q3 Fiscal 2025.

The company's gross profit decreased by 9.7% to $41.3 million, with a gross margin of 17.5%, down from 20.0% a year earlier. The decline in profitability was linked to rising costs of sales associated with the Saxdor acquisition and higher material and labor costs across existing product segments.

In a stark shift, Malibu recorded a GAAP net loss of $2.4 million, a significant contrast to the net income of $13.2 million reported in the same period last year. This translated to a net loss of $0.13 per diluted share, compared to earnings of $0.66 per share in Q3 Fiscal 2025. Adjusted EBITDA also fell 19.7% to $22.7 million, reflecting the pressures on profitability.

A highlight of the quarter was Malibu's acquisition of Saxdor Yachts, completed on March 2, 2026. This strategic move aims to enhance Malibu’s offerings in the premium adventure dayboat segment. The acquisition, valued at approximately $137.2 million in cash and stock, is expected to be accretive to both adjusted EBITDA margins and earnings per share for the current fiscal year.

Steve Menneto, President and CEO of Malibu Boats, commented, “The Saxdor acquisition advances the 'Build, Innovate, and Grow' strategy we outlined at our September 2025 Investor Day.” He emphasized the strong market reaction to Saxdor's flagship model, the 460 GTC, which was sold out for the year following its debut at the Palm Beach International Boat Show.

In a display of disciplined capital allocation, Malibu Boats repurchased approximately 492,794 shares for $13.1 million during the quarter, taking advantage of a discount to the equity price issued for the Saxdor acquisition. This repurchase reduces the dilution effect of the acquisition, showcasing the company's commitment to returning capital to shareholders while simultaneously pursuing growth opportunities.

Looking ahead, Malibu has raised its full-year fiscal 2026 net sales outlook, now expecting between $880 million to $886 million. The anticipated contribution from Saxdor is projected to be between $57 million to $59 million in net sales for the fourth quarter, with an adjusted EBITDA margin of 10% to 11%. This optimistic outlook reflects stronger-than-expected performance in the third quarter, despite the challenges posed by unit sales declines and rising costs.

As Malibu Boats navigates through a challenging third quarter, the company’s strategic acquisition of Saxdor Yachts positions it to explore new growth avenues in the recreational boating market. With a focus on enhancing shareholder value and maintaining a robust balance sheet, Malibu is poised for potential recovery as market conditions improve.

For more insights and to engage with the company's leadership, Malibu will host a conference call at 5:00 p.m. Eastern Time today, allowing investors and analysts to dive deeper into the results and future strategies.