MasterCraft Boat (MCFT 7.08%), the specialist in recreational powerboats known for its premium ski and wake boat models, reported results for the fourth quarter of fiscal 2025 on August 27, 2025. The most notable news was a sharp rebound in revenue and profitability, with adjusted EPS at $0.40, compared to just $0.04 a year ago, and revenue of $79.5 million, up 46.4% year over year. These results exceeded analyst estimates, especially on earnings, operating profit, and gross margin. This marked a significant improvement from the depressed Q4 FY2024, driven by higher unit sales, a favorable product mix, and continued focus on controlling incentives and costs. Management described the dealer network as healthier after a year of inventory reductions, and operational metrics suggest the company has entered FY2026 with greater channel stability.
| Metric | Q4 2025 | Q4 2024 | Y/Y Change |
|---|---|---|---|
| EPS – Diluted (Non-GAAP) | $0.40 | $0.04 | 900.0% |
| Revenue | $79.5 million | $54.3 million | 46.4% |
| Adjusted EBITDA (Non-GAAP) | $9.5 million | $1.6 million | 493.8% |
| Adjusted EBITDA Margin (Non-GAAP) | 12.0% | 2.9% | 9.1 pp |
| Consolidated Unit Sales Volume | 570 | 518 | 10.0% |
| Gross Margin | 23.2% | 15.8% | 7.4 pp |
About MasterCraft Boat and Its Recent Focus
MasterCraft operates in the recreational marine industry, focusing on the design and production of ski/wake boats, pontoons, and luxury powerboats. It maintains its core position around the MasterCraft brand, which held the number one market share in the U.S. for ski and wake boats as of March 2024, recognized for performance, quality, and innovation.
Recent strategies center on innovation with new model launches and strengthening the dealer network. The company has also focused on managing inventory levels across its dealer channel to avoid overstocking, ensuring dealers remain healthy and able to sell at profitable levels. Quality manufacturing and strong supplier partnerships remain priorities, enabling MasterCraft to maintain high standards and introduce new features that appeal to consumers.
Highlights and Key Developments in the Quarter
The quarter saw a sharp turnaround in almost all reported metrics. Revenue (GAAP) grew 46.4% year over year, reaching $79.5 million in GAAP net sales. Adjusted EBITDA, a non-GAAP measure of operating profitability excluding certain items, jumped 493.8% to $9.5 million, reflecting higher sales volumes and a favorable product mix. Gross margin improved to 23.2%, rising 7.4 percentage points, which management attributed to a combination of higher per-unit sales, favorable product mix from new model introductions, and a reduction in dealer incentives.
The MasterCraft segment, focused on performance ski and wake boats, saw significant improvement. MasterCraft segment sales grew 48.4%, with unit growth of 16.6%. The pontoon division, which includes models like Crest and Balise, saw GAAP net sales rise by 37.5% despite flat unit volumes, suggesting higher prices and options content offset volume pressures. The value per boat increased substantially in both product families compared to the prior-year period, with MasterCraft-branded units reaching $187,000 on average, up 27.2% from the prior-year period, and pontoon units averaging $62,000, up 34.8%.
Operating expenses rose $3.3 million, mainly owing to higher compensation and increased selling and administrative efforts. However, these costs were well contained relative to the much larger jump in sales. The company repurchased nearly $4.5 million of its own stock, reinforcing its focus on capital returns. The company ended the year with no debt and more than $79 million in cash and investments as of the end of FY2025.
Dealer health and inventory management stand out as a core achievement this period. MasterCraft reported a 30% reduction in dealer inventory compared to the previous year, aligning channel supply more closely with end-user demand. Management highlighted that this was a planned priority throughout fiscal 2025 and positions the company with a stronger dealer network for fiscal 2026.
Looking Ahead
For fiscal 2026, management provided guidance for a further increase in revenue and profits. It expects consolidated net sales (GAAP) in the range of $295 million to $310 million. Adjusted EBITDA (non-GAAP) is projected between $29 million and $34 million, reflecting expected growth of 18.9% to 39.3% over fiscal 2025. Adjusted EPS guidance falls in the range of $1.15 to $1.40, up 25% to 52% from fiscal 2025. For the first quarter of fiscal 2026, the company forecasts sales of $67 million, $4 million in adjusted EBITDA, and $0.16 in adjusted EPS. These metrics point to a soft start, but the expectation is for improvement as the year unfolds.
Management highlighted ongoing progress in inventory management, innovation, and dealer expansion as focal points for the upcoming year. The company intends to continue generating positive free cash flow and invest in new product innovation across both performance boats and pontoons. Investors may want to monitor actual retail demand, dealer inventory levels, gross margin trends, and the pace of unit volume recovery, especially given lingering risks related to tariffs, input costs, and demand swings.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
