Marine Products Corporation net income decreased 52% year-over-year to £2.2 million for the first quarter of 2025 with the results reflecting continued softness of demand.
The company’s net sales decreased 15% year-over-year to $59 million with the net income margin decreasing to 3.7%.
The decrease in net sales was primarily due to a 19% decrease in the number of boats sold during the quarter, partially offset by a price/mix increase of 4%.
“We started off 2025 with a continuation of challenging marine industry trends while we focused on supporting our dealers, managing inventories and controlling costs,” explained Ben Palmer, Marine Products’ president and CEO.
“First quarter sales were down 15%, reflecting lower volumes and hesitation from dealers to place orders in the current demand environment.”
However the first quarter sales were up 23% versus the fourth quarter of 2024 and Marine Products says its balance sheet remains strong.
Facing limited visibility in this environment, Marine Products will manage with prudence and conservatism, as we always have.
Ben Palmer
The organisation is expecting to take a conservative approach to the rollout of new models and inventory management due to the current economic instability but will work with dealers regarding 2026 products.
“Beyond our specific industry, we are clearly seeing heightened uncertainty driven by tariff related headlines,” added Ben.
“Potential boat component and materials cost increases would likely result in model price increases.
“In addition, a broader sense of economic uncertainty and risk aversion are likely to impact consumer spending.”
He continued: “Facing limited visibility in this environment, Marine Products will manage with prudence and conservatism, as we always have.”
Marine Products added that field inventories are returning to more acceptable levels after being elevated since late 2023.
The company’s field unit inventory at the end of Q1 2025 was approximately 18% below the same period in 2024.
The year-over-year sales decline was less than the 30% plus quarterly decrease the company experienced during 2024.
Gross profit was $11 million, down 22% and gross margin was 18.6%. EBITDA was $3.4 million, down from $5.9 million. EBITDA margin was 5.8%.
Marine Products Corporation designs, manufactures and distributes Chaparral sterndrive and outboard pleasure boats and Robalo outboard sport fishing boats.
