Marinemax Adjusted EBITDA Rises Despite Revenue Decline
The boat retailer reported a net income of $15.4 million for the third quarter, reversing a loss from the prior year.
Marinemax (HZO), the boat retailer, reported a rise in adjusted EBITDA to $51.3 million in the third quarter of fiscal 2026, up from $35.5 million in the prior-year period.
The results reflected a period of margin expansion and inventory reduction despite a contraction in top-line sales. The company saw a recovery in same-store sales, which declined 7% in the third quarter, a smaller drop than the 15% decline recorded in the second quarter, though it followed growth of over 10% in the first quarter.
Revenue for the quarter declined 7.0% year-over-year to $611.3 million, compared to $657.2 million in the same period last year. However, gross profit increased 9.2% to $218.1 million. This growth was supported by a gross margin expansion of 530 basis points to 35.7%, up from 30.4% in the prior-year period.
Margin growth was driven by improved boat margins and higher-margin business growth, though the result benefited by approximately 110 basis points from a tariff refund. Net income for the quarter was $15.4 million, a swing from a net loss of $52.1 million in the third quarter of fiscal 2025, which included a $69.1 million non-cash goodwill impairment charge in the manufacturing segment. Adjusted diluted EPS rose to $0.81 from $0.05 in the prior-year period.
Inventory levels decreased 13.0% year-over-year to $788.6 million, down from $906.2 million. Interest expense also declined to $14.3 million, or 2.3% of revenue, from $16.9 million, or 2.6% of revenue, in the prior-year period.
Marinemax reaffirmed its fiscal 2026 guidance for adjusted EBITDA between $110 million and $125 million and adjusted net income between $0.40 and $0.95 per diluted share, maintaining the range provided in the second quarter.
The company completed the refinancing of $1.49 billion in aggregate senior secured credit facilities, extending maturities to 2031 and expanding its revolving credit facility from $100 million to $150 million.