MasterCraft's Legacy Sales Rise 37% After Marine Products Close

The Tip Desk · November 10, 2026 · 3 min read

Net sales were $154.1 million in the first three months of the transition period ended Oct. 4, 2026, and income from continuing operations was $12.1 million, or $0.50 a share.

MasterCraft Boat Holdings, Inc. (MCFT) reported net sales of $154.1 million for the first three months of its transition period ended Oct. 4, 2026, up $85.1 million, or 123.4%, from the year-earlier three months. Excluding the Marine Products combination, sales rose $25.8 million, or 37.4%.

The recreational powerboat manufacturer closed the Marine Products merger on May 15, 2026, and recognized $59.3 million of incremental net sales in the Recreation and Sport Fishing segment. It also changed its fiscal year-end from June 30 to Dec. 31, effective July 1, 2026, and said it expects to file a transition report covering the six months from July 1 through Dec. 31, 2026.

Income from continuing operations was $12.1 million, or $0.50 a share, compared with $3.7 million, or $0.22 a share, a year earlier. Adjusted net income was $12.2 million, or $0.50 a share. Adjusted EBITDA was $20.1 million, with a 13.0% margin.

Chief Executive Officer Brad Nelson said results came in above the company’s expectations, with total net sales growing more than 120% year over year. He said legacy business net sales grew 37% and that Adjusted EBITDA growth of nearly 140% reflected product, commercial, and operational actions aimed at premium mix, clean channels, and lower costs.

The company attributed the sales increase primarily to the $59.3 million Marine Products contribution and to higher unit volumes, favorable model mix, and increased prices in Performance and Wake and Leisure. Gross margin percentage fell 120 basis points versus the year-earlier period, which the company said was primarily the result of including Marine Products, partially offset by higher sales and cost absorption in Performance and Wake and Leisure. Operating expenses rose $8.9 million, due to Recreation and Sport Fishing expenses, acquisition and integration costs including the fiscal year-end change, and higher selling and marketing costs.

Consolidated unit sales were 1,251, up 121.4% from 565. Performance and Wake sold 457 units, up 21.2% from 377, for net sales of $81.7 million, up 40.5% from $58.1 million. Net sales per unit in that segment were $179, up 16.2% from $154. Leisure sold 225 units, up 19.7% from 188, for net sales of $13.1 million, up 20.6% from $10.9 million, with sales per unit unchanged at $58. Recreation and Sport Fishing sold 569 units, with no year-earlier volume, for net sales of $59.3 million and $104 a unit.

Free cash flow was $2.9 million, versus a $10.1 million outflow a year earlier. Net cash from continuing operations was $6.2 million, versus a $7.0 million outflow. The company repurchased $4.8 million of stock in the period, with $18.7 million remaining under the program. Cash and cash equivalents were $41.9 million at Oct. 4, 2026.

Nelson said the next-generation X-Series and cost, productivity, and quality initiatives were driving stronger earnings and margin performance. He said the quarter reinforced commercial execution, an expanded brand portfolio and dealer network, and investments to capture synergies in the combined company.

For the six-month transition period, the company expects consolidated net sales of $293 million to $297 million, Adjusted EBITDA of $32 million to $34 million, and Adjusted earnings of $0.75 to $0.80 a share. It continues to expect capital expenditures of approximately $9 million.