MarineMax (NYSE:HZO) executives said the company’s fiscal 2026 second quarter results reflected a difficult retail environment for new and used boats, while higher-margin businesses helped support profitability and drove a sharp year-over-year improvement in consolidated gross margin.
Retail demand pressured; higher-margin mix lifts gross margin
Chief Executive Officer and President Brett McGill said macroeconomic uncertainty and geopolitical dynamics weighed on consumer confidence during the quarter, contributing to “double-digit unit declines for the industry.” While MarineMax outperformed the broader market, McGill said the company was “certainly…not immune from the impact,” and noted that “retail demand and margins for new and used boats remained pressured during the quarter.”
McGill also said the company is seeing resilience in premium segments, citing “strong results” at recent boat shows, including the Palm Beach International Boat Show, and continued strength in superyacht service operations.
Quarterly financial results
Executive Vice President and CFO Mike McLamb reported fiscal second quarter revenue of $527 million. McLamb said management expected revenue to be down year-over-year, but results were “softer than expected due to the increased global uncertainty.” He attributed most of the decline to a 15% decrease in same-store sales, driven by lower new and used boat revenue.
McLamb said comparable units were down in the mid-single digits, which he described as “much better than the industry overall.” He also noted the average unit selling price declined due to mix, and said the prior-year quarter benefited from delayed hurricane-related closings in Florida that increased last year’s mix of larger boats.
On profitability, McLamb echoed the mix shift described by McGill, saying higher-margin businesses “all performed well in the quarter,” growing as a percentage of revenue and also “year-over-year in absolute dollars.” He added that SG&A expenses (excluding certain items) rose slightly year-over-year, partly because some higher-margin businesses come with a higher expense structure and because the company increased marketing in a tougher environment.
Interest expense declined by more than $3.5 million, which McLamb attributed to lower inventory and lower rates. Adjusted EBITDA was $23.9 million, down from $30.9 million a year earlier, reflecting lower new and used boat sales that were “partially offset by our stronger margin mix.” Adjusted earnings per diluted share were $0.04 compared with $0.24 last year.
Balance sheet and inventory positioning
McLamb said MarineMax ended the quarter with $189 million of cash. Inventories declined about $130 million year-over-year to $845 million and were also down from fiscal year-end—an outcome he called encouraging given inventories typically rise seasonally from September through March.
Customer deposits increased sequentially and year-over-year to about $62 million. In response to analyst questions, McLamb said the rise reflected momentum that built later in March, including deposits tied to deals written during the month. He said the trend supported the company’s view that the back half could improve versus last year’s weaker period after Labor Day.
McLamb also said the company improved its current ratio and total liabilities to tangible net worth ratio while maintaining net debt to adjusted EBITDA of “just over 2x” at quarter end. He told analysts MarineMax feels good about the “quality” and “aging” of inventory and believes it is “set…up in a great inventory position” entering the back half of the year.
Business updates: IGY, technology investments, and new models
McGill said IGY is performing well and continues to benefit from its reputation as a luxury marina operator. He highlighted that IGY renewed its relationship with St. Katharine Docks in London and was appointed marina advisor for the Il Monte Galala Towers and Marina project on Egypt’s Red Sea coast, describing the engagement as “a capital-light, advisory-driven way to deploy IGY’s expertise.”
McGill also emphasized MarineMax’s technology efforts through New Wave Innovations. He said the company’s technology portfolio includes Boatyard, a platform for marine service management, and noted Boatyard subscribers rose 47% as the tool gains traction.
In manufacturing-related updates, McGill said both Cruisers and Intrepid launched new models that are being well-received, adding that launching new models can help brands gain share, particularly in a tough market environment.
Guidance reaffirmed; management cites improving trends into April
McLamb said MarineMax reaffirmed its fiscal 2026 outlook despite the revenue softness in the quarter. The company maintained guidance for:
- Adjusted EBITDA of $110 million to $125 million
- Adjusted net income of approximately $0.40 to $0.95 per diluted share
McLamb said the first half of the fiscal year was expected to be more difficult due to tougher comparisons, and that the company is now starting to lap the weaker post-Labor Day period from last year, which should create more favorable comparisons. He said the full-year outlook assumes industry unit volumes range from “modestly down to modestly up,” with same-store sales expected to be “flattish,” supported by favorable mix and improvements during the summer selling season.
On margins, McLamb said retail margin pressure persisted in the first half, but the company expects industry conditions to “modestly improve” in the back half. He also said MarineMax remains confident it can sustain consolidated gross margins in the low 30% range for the year, driven by growth in higher-margin segments and “modest improvement in boat margins.”
Discussing recent demand trends, McLamb said April trends “generally have been up versus last year,” adding that since early March the company has seen periods of strong retail trends followed by weaker periods, but overall trends have been improving. In the Q&A, McLamb said January was “reasonably well,” February was “a little lighter,” and March started soft but “finished pretty well,” with momentum building later in the month.
Looking forward, McGill said geopolitical uncertainty and broader macroeconomic conditions may continue to influence consumer behavior, but he said continued growth in higher-margin businesses provides “flexibility and resilience” while positioning MarineMax for long-term value creation.
About MarineMax (NYSE:HZO)
MarineMax, Inc is a publicly traded company on the New York Stock Exchange under the ticker HZO and is one of the largest recreational boat and yacht retailers in the United States. The company markets new and used motor yachts, sailing yachts, sport boats and personal watercraft, acting as an authorized dealer for leading manufacturers. In addition to boat sales, MarineMax provides service and maintenance, parts and accessory sales, training and education, and marina operations.
Operating through a network of sales centers, service facilities and marinas, MarineMax serves coastal and inland markets across the continental U.S.
