Malibu Boats Posts Q4 Earnings Above Street View

Malibu Boats Inc MBUU reported fourth-quarter FY23 sales growth of 5.4% year-on-year to $372.30 million, beating the analyst consensus of $327.25 million.

The revenue increase was driven primarily by increased unit volumes in the Saltwater Fishing segment and a favorable model mix across all segments, partially offset by lower unit volumes in the Malibu and Cobalt segments and by increased dealer flooring program costs in the Malibu segment resulting from higher interest rates and increased inventory levels. Unit volume decreased 1.8% to 2,550 units.

Gross profit increased 14.3% Y/Y to $102.5 million, with the margin expanding 210 basis points Y/Y to 27.5%.

The operating loss for the quarter was $(22.6) million compared to an income of $65.4 million last year.

The company held $78.9 million in cash and equivalents as of June 30, 2023.

Adjusted EBITDA rose 21.9% Y/Y to $90.1 million with an adjusted EBITDA margin of 24.2%.

Adjusted EPS of $2.98 beat the analyst consensus of $2.30.

Outlook: Malibu sees FY24 sales decline percentage in the mid to high teens and Adjusted EBITDA margin down 300 basis points to 400 basis points.

"Despite the uncertain macro environment, we remain confident in our operational prowess to match wholesale and retail demand and provide what we believe are the highest quality boats on the market," commented Jack Springer, Chief Executive Officer of Malibu Boats.

Price Action: MBUU shares are trading lower by 1.38% at $52.69 on the last check Tuesday.