Net sales for MasterCraft Boat Holdings declined nearly 31% for its fiscal 2025 first quarter ended September 29 2024.
The decrease to $65.4 million, down $28.9 million, was primarily due to lower unit volumes and an unfavourable model mix.
“Our business executed well during the first quarter as we delivered results above expectations despite facing a backdrop of continued economic and industry headwinds,” said CEO Brad Nelson. “Our strong quarter was led by significant progress rebalancing dealer inventories and sets a strong foundation for the rest of the fiscal year.”
During the period, Mastercraft completed the transfer of rights to its Aviara brand of luxury dayboats to a subsidiary of MarineMax, Inc.
An agreement to sell the Aviara manufacturing facility for $26.5 million is expected to be completed in Mastercraft’s fiscal 2025 second quarter.
During the quarter, gross margin percentage declined as a result of lower cost absorption due to planned decreased production volume and higher dealer incentives as a percentage of net sales.
Our business executed well during the first quarter as we delivered results above expectations.
Brad Nelson
Operating expenses decreased $1.1 million and income from continuing operations was $1 million for the period compared to $8.5 million in the prior-year period.
Adjusted EBITDA was $3.8 million, compared to $14 million in the prior-year period and adjusted EBITDA margin was 5.9%, down from 14.9% for the prior-year period.
The company is anticipating a return to a more normalised environment helped by recent industry and economic developments, including easing interest rates.
For the full year fiscal 2025, Mastercraft expects consolidated net sales to be between $270 million and $300 million, with adjusted EBITDA between $17 million and $26 million.
