Mastercraft Boat (NASDAQ:MCFT) reported higher fiscal 2026 sales and adjusted profitability, supported by premium product demand in its legacy business and an initial contribution from newly acquired Chaparral and Robalo brands. The company also outlined guidance for a six-month transition period as it moves to a December fiscal year-end.
Chief Executive Officer Brad Nelson said fiscal 2026 was a “defining year” for the company, citing production discipline, dealer inventory management, operating efficiencies and product innovation amid what management characterized as a challenging retail and macroeconomic environment.
Full-Year and Fourth-Quarter Results
On a legacy basis, fiscal 2026 net sales totaled $315.6 million, up 11% from fiscal 2025, while adjusted EBITDA increased 79.6% to $43.8 million. Legacy adjusted EBITDA margin rose to 13.9% from 8.6% a year earlier.
Including the initial Chaparral and Robalo contribution, total company fiscal 2026 net sales reached $348.9 million, up 22.8% year over year. Consolidated adjusted EBITDA rose 87.1% to $45.6 million, while adjusted net income was $30.2 million, or $1.76 per diluted share, compared with $15.1 million, or $0.92 per diluted share, in fiscal 2025.
During the fiscal fourth quarter, legacy net sales increased 21.5% to $96.6 million. Chief Financial Officer Scott Kent said the increase reflected higher volumes of premium Max series models, disciplined pricing and lower discounts. Legacy adjusted EBITDA rose 95.6% to $18.6 million, with margin expanding to 19.3% from 12.0% in the prior-year quarter.
Consolidated fourth-quarter net sales were $129.9 million, up 63.4% from a year earlier, while adjusted EBITDA increased 114.9% to $20.5 million. Chaparral and Robalo contributed $33.3 million in revenue and $1.8 million in adjusted EBITDA during the six-week ownership period.
MasterCraft recorded a GAAP loss from continuing operations of $7 million, or $0.35 per diluted share, for the fourth quarter, compared with income from continuing operations of $5.5 million, or $0.33 per diluted share, a year earlier. Kent attributed the loss to a $10.1 million non-cash impairment charge in the Leisure segment, acquisition-related purchase accounting effects and transaction costs.
The impairment related to certain Crest brand intangible assets and reflected current conditions in the pontoon category, Kent said. The charge was excluded from adjusted results and did not affect liquidity or cash flow.
Dealer Inventories and Retail Trends
Nelson said dealer health remained a competitive advantage. Field inventory in the legacy business ended the year down about 30% year over year, while dealer turns improved to better than pre-pandemic levels. Chaparral and Robalo also ended the year with lower inventory and higher turns, according to management.
Management said MasterCraft retail sales rose in the low single digits during fiscal 2026, outperforming both the ski/wake category and the broader powerboat market. Robalo retail sales increased in the high single digits, benefiting from product momentum in sport fishing, Nelson said. The broader powerboat industry declined in the mid- to high-single-digit range, according to the company.
However, management expects retail demand across its markets to decline approximately 5% to 10% over the next six months, in line with current calendar-year trends. The company said entry-level pontoon and runabout categories remain particularly pressured, while premium and core customers have been more resilient.
Kent said MasterCraft intends to keep production aligned with retail demand rather than pursue further inventory reductions unless market conditions worsen. He added that the industry has generally improved inventory levels over the past two years.
Acquisition Integration and Product Plans
Management said the initial profitability reported by the Recreation and Sport Fishing segment does not represent its long-term earnings potential. The acquired business incurred purchase accounting effects, including a $2.6 million inventory step-up recognized in fourth-quarter cost of sales. Chaparral and Robalo’s reported gross margin was 0.9% for the six-week period, but would have been about 9% without the inventory step-up, Kent said.
The company also recorded $2.9 million of intangible amortization expense in the quarter, including $2.6 million related to a backlog intangible asset that fully amortized during fiscal 2026. Going forward, MasterCraft expects amortization of roughly $0.6 million per quarter and depreciation of approximately $2.7 million per quarter for Chaparral and Robalo.
Management said it has moderated production at the acquired businesses because of the delayed retail recovery, with shipments and average selling prices expected to remain near fourth-quarter exit rates. The company has also temporarily paused production of the Chaparral Surf Series while it works to improve the technology and customer experience using MasterCraft’s wake and surf expertise.
Nelson said integration work includes product innovation, dealer relationships, sourcing, manufacturing practices and technology sharing. He said the company has already seen some dealers add additional brands from the combined portfolio.
Six-Month Outlook
For the September quarter, MasterCraft expects approximately $147 million in net sales, about $16 million in adjusted EBITDA and adjusted earnings per share of roughly $0.40.
For the six-month transition period from July through December 2026, the company expects:
- Net sales of $287 million to $291 million.
- Adjusted EBITDA of $29 million to $32 million.
- Adjusted earnings per share of $0.66 to $0.76.
- Capital expenditures of approximately $9 million.
MasterCraft generated $22.3 million in free cash flow during fiscal 2026 after $8.1 million in capital expenditures and transaction-related costs. It ended the year with $43.9 million in cash, no debt outstanding and full availability under its $75 million revolving credit facility.
About Mastercraft Boat (NASDAQ:MCFT)
MasterCraft Boat Holdings, Inc (NASDAQ: MCFT) is a designer, manufacturer and marketer of high-performance recreational powerboats. The company’s portfolio includes the MasterCraft®, Aviara®, Crest® Classic and Supra® brands, each of which features multiple model lines tailored for activities such as wakeboarding, waterskiing, cruising and luxury day boating. MasterCraft oversees the full product lifecycle from hull design and propulsion engineering to interior appointments and final assembly.
Founded in 1968 and headquartered in Vonore, Tennessee, MasterCraft has built a reputation for innovation in hull design, ballast systems and tower architecture to enhance wake performance and ride quality.
