MasterCraft Completes Marine Products Merger
Fourth-quarter net sales reached $129.9 million, including $33.3 million from the newly combined Recreation and Sport Fishing segment.
MasterCraft Boat Holdings (MCFT) closed its combination with Marine Products Corporation on May 15, 2026, and the deal reshaped the boatmaker’s fourth-quarter results. Consolidated net sales were $129.9 million, up $50.4 million, or 63.4%, from a year earlier. Excluding the Marine Products contribution, sales rose $17.1 million, or 21.5%.
The sequential step-up was steeper. Third-quarter sales had been $78.2 million, only 3.0% above the year-earlier period. Fourth-quarter sales of $129.9 million were $51.7 million higher.
Recreation and Sport Fishing, the segment created by the merger, generated $33.3 million of the quarter’s sales and 310 units. Performance and Wake, formerly reported as MasterCraft, posted $84.5 million in sales, up 28.3% from $65.9 million a year earlier, on 444 units, up 26.1%. Leisure, formerly Pontoon, recorded $12.1 million in sales, down 11.2%, on 192 units, down 11.9%. Consolidated unit sales were 946, up 66.0% from 570.
The sales increase was primarily due to the $33.3 million of incremental Recreation and Sport Fishing sales, higher unit volumes, higher prices, and lower dealer incentives, partially offset by unfavorable model mix.
Gross margin percentage fell 60 basis points to 22.6% from 23.2% a year earlier. The decline was primarily due to a $2.6 million inventory step-up charge related to the Marine Products Transaction, partially offset by higher sales and cost controls in Performance and Wake and Leisure.
Operating expenses rose $23.1 million versus the year-earlier quarter. Those costs included $5.9 million of Marine Products Transaction costs, $2.9 million of order backlog and dealer-network amortization, incremental Recreation and Sport Fishing expenses, and a $10.1 million noncash impairment of Leisure intangible assets. The impairment reflected declines in the estimated fair value of certain intangible assets based on updated projections and other valuation inputs.
Loss from continuing operations was $7.0 million, or $(0.35) a share, compared with income of $5.5 million, or $0.33 a share, a year earlier. Adjusted net income, a non-GAAP measure, was $13.5 million, or $0.67 a share, up from $6.6 million, or $0.40 a share. Adjusted EBITDA was $20.5 million, up $11.0 million from $9.5 million a year earlier, and Adjusted EBITDA margin was 15.8%, up from 12.0%. Sequentially, Adjusted EBITDA rose from $10.7 million in the third quarter, and the margin rose from 13.7%.
Chief Executive Officer Brad Nelson said fiscal 2026 was a defining year, that strong execution across the legacy business drove results to significantly outperform expectations despite a challenging retail environment, and that the company expanded Adjusted EBITDA nearly 80% and completed the combination with Chaparral and Robalo. He said the MasterCraft brand was at the center of that success and that retail performance and the next-generation X-Series rollout drove favorable premium mix, brand momentum, and improved profitability.
For the full year ended June 30, 2026, net sales were $348.9 million, up 22.8%. Excluding Marine Products, sales increased $31.4 million, or 11.0%. Full-year Adjusted EBITDA was $45.6 million, up $21.2 million from $24.4 million a year earlier, with a 13.1% margin versus 8.6%. Adjusted net income was $30.2 million, or $1.76 a share, versus $15.1 million, or $0.92 a share. A full-year loss from continuing operations of $1.6 million, or $(0.09) a share, reflected the $10.1 million Leisure impairment and $20.4 million of acquisition-related expenses.
Cash and cash equivalents were $43.9 million at June 30, 2026. Inventories were $82.3 million, goodwill was $134.1 million, and other intangible assets, net, were $82.2 million.
In June 2026, the company changed its fiscal year-end from June 30 to December 31, effective July 1, 2026. It expects to file a transition report covering July 1 through December 31, 2026. For that six-month period, it expects consolidated net sales of $287 million to $291 million, Adjusted EBITDA of $29 million to $32 million, and Adjusted earnings of $0.66 to $0.76 a share, with capital expenditures of about $9 million. For the first quarter of the transition period, it expects sales of approximately $147 million, Adjusted EBITDA of approximately $16 million, and Adjusted earnings of approximately $0.40 a share.