MasterCraft Boat Holdings, Inc. Reports Fiscal 2025 Results
MasterCraft Boat Holdings (NASDAQ: MCFT) reported its fiscal 2025 Q4 and full-year results. Q4 net sales increased 46.4% to $79.5 million, with income from continuing operations of $5.5 million ($0.33 per share). However, full-year net sales declined 11.8% to $284.2 million, with income from continuing operations of $10.7 million ($0.65 per share).
The company generated $29.0 million in Free Cash Flow and ended with $79.4 million in cash and investments, maintaining a strong financial position with no outstanding debt. For fiscal 2026, MasterCraft projects net sales between $295-310 million and Adjusted EBITDA of $29-34 million.
The company successfully reduced dealer inventory levels by approximately 30% through planned production decreases while returning nearly $10 million to shareholders through share repurchases.MasterCraft Boat Holdings (NASDAQ: MCFT) ha reso noti i risultati del quarto trimestre e dell'intero esercizio fiscale 2025. Le vendite nette del Q4 sono salite del 46,4% a $79,5 milioni, con un risultato operativo continuativo di $5,5 milioni ($0,33 per azione). Tuttavia, le vendite nette annuali sono diminuite dell'11,8% a $284,2 milioni, con un utile dalle attività operative continuative di $10,7 milioni ($0,65 per azione).
La società ha generato $29,0 milioni di Free Cash Flow e ha chiuso con $79,4 milioni in liquidità e investimenti, mantenendo una solida posizione finanziaria senza debiti in essere. Per l'esercizio 2026 MasterCraft prevede vendite nette tra $295-310 milioni e un EBITDA rettificato compreso tra $29-34 milioni.
L'azienda ha ridotto con successo le scorte presso i concessionari di circa il 30% attraverso diminuzioni produttive programmate, restituendo inoltre quasi $10 milioni agli azionisti tramite riacquisti di azioni.
MasterCraft Boat Holdings (NASDAQ: MCFT) publicó sus resultados del cuarto trimestre y del año fiscal 2025. Las ventas netas del Q4 aumentaron un 46,4% hasta $79,5 millones, con ingresos procedentes de operaciones continuas de $5,5 millones ($0,33 por acción). No obstante, las ventas netas del año completo cayeron un 11,8% hasta $284,2 millones, con ingresos de operaciones continuas de $10,7 millones ($0,65 por acción).
La compañía generó $29,0 millones en flujo de caja libre y cerró con $79,4 millones en efectivo e inversiones, manteniendo una posición financiera sólida sin deuda pendiente. Para el ejercicio 2026, MasterCraft proyecta ventas netas entre $295-310 millones y un EBITDA ajustado de $29-34 millones.
La empresa logró reducir el inventario en concesionarios en aproximadamente un 30% mediante reducciones de producción planificadas y devolvió casi $10 millones a los accionistas mediante recompra de acciones.
MasterCraft Boat Holdings (NASDAQ: MCFT)가 2025 회계연도 4분기 및 연간 실적을 발표했습니다. 4분기 순매출은 46.4% 증가한 $79.5백만을 기록했으며, 계속 영업이익은 $5.5백만(주당 $0.33)였습니다. 다만 연간 순매출은 11.8% 감소한 $284.2백만으로, 계속 영업이익은 $10.7백만(주당 $0.65)였습니다.
회사는 $29.0백만의 잉여현금흐름(Free Cash Flow)을 창출했고 $79.4백만의 현금 및 투자자산을 보유하며 부채 없는 견실한 재무구조를 유지하고 있습니다. 2026 회계연도에는 순매출을 $295–310백만, 조정 EBITDA를 $29–34백만으로 예상합니다.
회사는 계획된 생산 축소를 통해 딜러 재고를 약 30% 줄였고, 자사주 매입을 통해 주주들에게 거의 $10백만을 환원했습니다.
MasterCraft Boat Holdings (NASDAQ: MCFT) a publié ses résultats du quatrième trimestre et de l'exercice fiscal 2025. Les ventes nettes du T4 ont augmenté de 46,4% à 79,5 M$, avec un résultat des activités poursuivies de 5,5 M$ (0,33 $ par action). En revanche, les ventes nettes annuelles ont diminué de 11,8% à 284,2 M$, avec un résultat des activités poursuivies de 10,7 M$ (0,65 $ par action).
La société a généré 29,0 M$ de flux de trésorerie disponible et clôturé avec 79,4 M$ de trésorerie et d'investissements, conservant une solide position financière sans dettes en cours. Pour l'exercice 2026, MasterCraft prévoit des ventes nettes comprises entre 295 et 310 M$ et un EBITDA ajusté de 29 à 34 M$.
La société a réduit avec succès les stocks chez les concessionnaires d'environ 30% grâce à des réductions de production planifiées et a rendu près de 10 M$ aux actionnaires via des rachats d'actions.
MasterCraft Boat Holdings (NASDAQ: MCFT) veröffentlichte die Ergebnisse für das vierte Quartal und das Geschäftsjahr 2025. Die Nettoumsätze im Q4 stiegen um 46,4% auf $79,5 Mio., mit Erträgen aus fortgeführten Geschäftstätigkeiten von $5,5 Mio. ($0,33 je Aktie). Für das Gesamtjahr sanken die Nettoumsätze jedoch um 11,8% auf $284,2 Mio., bei Erträgen aus fortgeführten Geschäftstätigkeiten von $10,7 Mio. ($0,65 je Aktie).
Das Unternehmen erzielte $29,0 Mio. Free Cash Flow und schloss mit $79,4 Mio. an liquiden Mitteln und Anlagen, bei keiner ausstehenden Verschuldung und einer soliden finanziellen Lage. Für das Geschäftsjahr 2026 prognostiziert MasterCraft Nettoumsätze zwischen $295–310 Mio. und ein bereinigtes EBITDA von $29–34 Mio.
Durch geplante Produktionskürzungen konnte der Händlerbestand um rund 30% gesenkt werden, zudem wurden fast $10 Mio. durch Aktienrückkäufe an die Aktionäre zurückgeführt.
- Q4 net sales increased 46.4% to $79.5 million
- Strong cash position with $79.4 million in cash and zero debt
- Generated $29.0 million in Free Cash Flow
- Q4 gross margin percentage improved 740 basis points
- Share repurchases of $4.5 million during Q4
- Projected revenue growth for fiscal 2026 to $295-310 million
- Full-year net sales declined 11.8% to $284.2 million
- Full-year income from continuing operations decreased to $10.7 million from $23.2 million
- Operating expenses increased by $3.3 million in Q4
- Gross margin percentage declined 220 basis points for fiscal 2025
- Adjusted EBITDA margin decreased to 8.6% from 12.5% year-over-year
Insights
MasterCraft shows Q4 recovery with 46% revenue growth amid annual decline; strategic inventory reduction positions for future growth.
MasterCraft's fiscal 2025 results demonstrate a strategic balancing act between short-term financial impact and long-term market positioning. The company's fourth quarter shows impressive sequential improvement with
The full-year results tell a different story, with annual revenue declining
Despite reduced production, MasterCraft maintained strong financial discipline, generating
Looking ahead, management's fiscal 2026 guidance projects a return to growth with revenue between
VONORE, Tenn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced financial results for its fiscal 2025 fourth quarter and year ended June 30, 2025.
The overview, commentary, and results provided herein relate to our continuing operations, which consists of our MasterCraft and Pontoon segments.
Fourth Quarter Overview:
- Net sales for the fourth quarter were
$79.5 million , up$25.2 million , or46.4% , from the comparable prior-year period - Income from continuing operations was
$5.5 million , or$0.33 per diluted share - Adjusted Net Income, a non-GAAP measure, was
$6.6 million , or$0.40 per diluted share - Adjusted EBITDA, a non-GAAP measure, was
$9.5 million , up$8.0 million from the comparable prior-year period - Share repurchases of
$4.5 million during the quarter
Full Year Overview:
- Net sales were
$284.2 million , down$38.1 million , or11.8% , from the prior-year - Planned decrease in production contributed to approximately
30% lower dealer inventory levels compared to the prior-year - Income from continuing operations was
$10.7 million , or$0.65 per diluted share - Adjusted Net Income, a non-GAAP measure, was
$15.1 million , or$0.92 per diluted share - Adjusted EBITDA, a non-GAAP measure, was
$24.4 million , down$15.8 million from the prior-year - Net cash provided by operating activities was
$38.2 million - Generated
$29.0 million of Free Cash Flow and ended the year with cash and investments of$79.4 million , with$100 million of availability on the revolving credit facility and no outstanding debt
Brad Nelson, Chief Executive Officer, commented, “MasterCraft executed well in fiscal 2025, successfully navigating a challenging economic and industry backdrop. In the face of low cycle volumes, we further strengthened dealer health, advanced our new product initiatives, and generated significant free cash flow. This enabled us to return nearly
Nelson continued, “Our strong financial foundation provides us with the flexibility to pursue our core strategic initiatives including investments in innovation and dealer health. As we manage through a dynamic environment, our leading brand portfolio and cash flow generation position us well to invest for the future and maintain the flexibility to return capital to shareholders.”
Fourth Quarter Results
For the fourth quarter of fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of
Gross margin percentage increased 740 basis points during the fourth quarter of fiscal 2025, compared to the prior-year period. Higher margins were primarily the result of increased net sales, as discussed above.
Operating expenses increased
Income from continuing operations was
Adjusted Net income was
Adjusted EBITDA was
Fiscal 2025 Results
For fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of
Gross margin percentage declined 220 basis points during fiscal 2025, compared to the prior-year. Lower margins were the result of lower cost absorption due to the decreased production volume, material and overhead inflation, and changes in sales price.
Operating expenses increased
Income from continuing operations was
Adjusted Net income was
Adjusted EBITDA was
See “Non-GAAP Measures” below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per share, and Free Cash Flow, which we refer to collectively as the “Non-GAAP Measures”, to the most directly comparable financial measures presented in accordance with GAAP.
Outlook
Concluded Nelson, “Our ongoing destocking progress, product innovation, and expanded distribution network position us well for fiscal 2026 and beyond. We have detailed plans in place for a range of potential retail demand scenarios and will continue to apply the cost discipline and tight working capital management that served us well in 2025. Based on our operating model and execution, we expect to generate positive free cash flow again in fiscal 2026. Regardless of the cycle, our focus will remain on maintaining a healthy dealer network, sustained innovation, and leveraging our competitive advantages to capitalize on the next market upswing.”
The Company’s outlook is as follows:
- For full year fiscal 2026, we expect consolidated net sales to be between
$295 million and$310 million , with Adjusted EBITDA between$29 million and$34 million , and Adjusted Earnings per share between$1.15 and$1.40 . We expect capital expenditures to be approximately$9 million for the year. - For fiscal first quarter 2026, consolidated net sales are expected to be approximately
$67 million , with Adjusted EBITDA of approximately$4 million , and Adjusted Earnings per share of$0.16 .
Conference Call and Webcast Information
MasterCraft Boat Holdings, Inc. will host a live conference call and webcast to discuss fiscal fourth quarter and full year 2025 results today, August 27, 2025, at 8:30 a.m. ET. Participants may access the conference call live via webcast on the investor section of the Company’s website, Investors.MasterCraft.com, by clicking on the webcast icon. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the conference call and webcast will be archived on the Company's website.
About MasterCraft Boat Holdings, Inc.
Headquartered in Vonore, Tenn., MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is a leading innovator, designer, manufacturer and marketer of recreational powerboats through its three brands, MasterCraft, Crest, and Balise. For more information about MasterCraft Boat Holdings, and its three brands, visit: Investors.MasterCraft.com, www.MasterCraft.com, www.CrestPontoonBoats.com, and www.BalisePontoonBoats.com.
Forward-Looking Statements
This press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can often be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “may,” “will,” “should,” “continue” and similar expressions, comparable terminology or the negative thereof, and include statements in this press release concerning economic uncertainty, the resilience of our business model, our intention to drive value, and our financial outlook.
Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: changes in interest rates, general economic conditions, changes in trade priorities, policies and regulations, including increases or changes in duties, current and potentially new tariffs and quotas and other similar measures, as well potential direct and indirect impact of retaliatory tariffs and other actions, demand for our products, persistent inflationary pressures, changes in consumer preferences, competition within our industry, our ability to maintain a reliable network of dealers, our ability to cooperate with our strategic partners, elevated inventories resulting in increased costs for dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products, the success of our strategic divestments, geopolitical conflicts, and financial institution disruptions. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on August 30, 2024, could cause actual results to differ materially from those indicated by the forward-looking statements. The discussion of these risks is specifically incorporated by reference into this press release.
Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue or cause our views to change, whether because of new information, future events, changes in assumptions or otherwise. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
Use of Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures in this release. Reconciliations of the Non-GAAP measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables immediately following the consolidated statements of operations. The Non-GAAP Measures have limitations as analytical tools and should not be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.
Results of Operations for the Three and Twelve Months Ended June 30, 2025
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 79,516 | $ | 54,318 | $ | 284,203 | $ | 322,351 | ||||||||
| Cost of sales | 61,106 | 45,713 | 227,338 | 250,741 | ||||||||||||
| Gross profit | 18,410 | 8,605 | 56,865 | 71,610 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 3,197 | 2,498 | 11,740 | 11,203 | ||||||||||||
| General and administrative | 8,835 | 6,249 | 32,093 | 31,119 | ||||||||||||
| Amortization of other intangible assets | 450 | 450 | 1,800 | 1,812 | ||||||||||||
| Total operating expenses | 12,482 | 9,197 | 45,633 | 44,134 | ||||||||||||
| Operating income (loss) | 5,928 | (592 | ) | 11,232 | 27,476 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | — | (798 | ) | (1,169 | ) | (3,292 | ) | |||||||||
| Interest income | 823 | 1,625 | 3,472 | 5,789 | ||||||||||||
| Income before income tax expense | 6,751 | 235 | 13,535 | 29,973 | ||||||||||||
| Income tax expense (benefit) | 1,299 | (70 | ) | 2,820 | 6,730 | |||||||||||
| Income from continuing operations | 5,452 | 305 | 10,715 | 23,243 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | 245 | (8,341 | ) | (3,672 | ) | (15,443 | ) | |||||||||
| Net income (loss) | $ | 5,697 | $ | (8,036 | ) | $ | 7,043 | $ | 7,800 | |||||||
| Income (loss) per share | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.33 | $ | 0.02 | $ | 0.65 | $ | 1.37 | ||||||||
| Discontinued operations | 0.02 | (0.50 | ) | (0.22 | ) | (0.91 | ) | |||||||||
| Net income (loss) | $ | 0.35 | $ | (0.48 | ) | $ | 0.43 | $ | 0.46 | |||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | 0.33 | $ | 0.02 | $ | 0.65 | $ | 1.36 | ||||||||
| Discontinued operations | 0.02 | (0.50 | ) | (0.22 | ) | (0.90 | ) | |||||||||
| Net income (loss) | $ | 0.35 | $ | (0.48 | ) | $ | 0.43 | $ | 0.46 | |||||||
| Weighted average shares used for computation of: | ||||||||||||||||
| Basic earnings per share | 16,299,885 | 16,710,544 | 16,428,485 | 16,930,348 | ||||||||||||
| Diluted earnings per share | 16,440,388 | 16,710,544 | 16,525,773 | 17,038,305 | ||||||||||||
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 28,926 | $ | 7,394 | ||||
| Short-term investments | 50,518 | 78,846 | ||||||
| Accounts receivable, net of allowances of | 4,086 | 11,455 | ||||||
| Income tax receivable | 208 | 499 | ||||||
| Inventories, net | 30,469 | 36,972 | ||||||
| Prepaid expenses and other current assets | 7,006 | 8,686 | ||||||
| Current assets associated with discontinued operations | — | 11,222 | ||||||
| Total current assets | 121,213 | 155,074 | ||||||
| Property, plant and equipment, net | 53,576 | 52,314 | ||||||
| Goodwill | 28,493 | 28,493 | ||||||
| Other intangible assets, net | 31,850 | 33,650 | ||||||
| Deferred income taxes | 18,914 | 18,584 | ||||||
| Other long-term assets | 5,902 | 8,189 | ||||||
| Non-current assets associated with discontinued operations | — | 21,680 | ||||||
| Total assets | $ | 259,948 | $ | 317,984 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 8,255 | $ | 10,431 | ||||
| Income tax payable | 1,773 | — | ||||||
| Accrued expenses and other current liabilities | 55,182 | 55,068 | ||||||
| Current portion of long-term debt, net of unamortized debt issuance costs | — | 4,374 | ||||||
| Current liabilities associated with discontinued operations | — | 8,063 | ||||||
| Total current liabilities | 65,210 | 77,936 | ||||||
| Long-term debt, net of unamortized debt issuance costs | — | 44,887 | ||||||
| Unrecognized tax positions | 9,067 | 8,549 | ||||||
| Other long-term liabilities | 2,085 | 2,551 | ||||||
| Long-term liabilities associated with discontinued operations | — | 182 | ||||||
| Total liabilities | 76,362 | 134,105 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY: | ||||||||
| Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 16,406,788 shares at June 30, 2025 and 16,759,109 shares at June 30, 2024 | 164 | 167 | ||||||
| Additional paid-in capital | 52,559 | 59,892 | ||||||
| Retained earnings | 130,663 | 123,620 | ||||||
| MasterCraft Boat Holdings, Inc. equity | 183,386 | 183,679 | ||||||
| Noncontrolling interest | 200 | 200 | ||||||
| Total equity | 183,586 | 183,879 | ||||||
| Total liabilities and equity | $ | 259,948 | $ | 317,984 | ||||
Supplemental Operating Data
The following table presents certain supplemental operating data for the periods indicated:
| Three Months Ended | For the Years Ended | |||||||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Unit sales volume: | ||||||||||||||||||||||||
| MasterCraft | 352 | 302 | 16.6 | % | 1,548 | 1,755 | (11.8 | ) | % | |||||||||||||||
| Pontoon | 218 | 216 | 0.9 | % | 745 | 1,241 | (40.0 | ) | % | |||||||||||||||
| Consolidated | 570 | 518 | 10.0 | % | 2,293 | 2,996 | (23.5 | ) | % | |||||||||||||||
| Net sales: | ||||||||||||||||||||||||
| MasterCraft | $ | 65,906 | $ | 44,417 | 48.4 | % | $ | 240,763 | $ | 262,736 | (8.4 | ) | % | |||||||||||
| Pontoon | 13,610 | 9,901 | 37.5 | % | 43,440 | 59,615 | (27.1 | ) | % | |||||||||||||||
| Consolidated | $ | 79,516 | $ | 54,318 | 46.4 | % | $ | 284,203 | $ | 322,351 | (11.8 | ) | % | |||||||||||
| Net sales per unit: | ||||||||||||||||||||||||
| MasterCraft | $ | 187 | $ | 147 | 27.2 | % | $ | 156 | $ | 150 | 4.0 | % | ||||||||||||
| Pontoon | 62 | 46 | 34.8 | % | 58 | 48 | 20.8 | % | ||||||||||||||||
| Consolidated | 140 | 105 | 33.3 | % | 124 | 108 | 14.8 | % | ||||||||||||||||
| Gross margin | 23.2 | % | 15.8 | % | 740 bps | 20.0 | % | 22.2 | % | (220) bps | ||||||||||||||
Non-GAAP Measures
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin
We define EBITDA as income from continuing operations, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, the adjustments include share-based compensation and Senior leadership transition and organizational realignment costs. We define EBITDA margin and Adjusted EBITDA margin as EBITDA and Adjusted EBITDA, respectively, each expressed as a percentage of Net sales.
Adjusted Net Income and Adjusted Net Income per share
We define Adjusted Net Income and Adjusted Net Income per share as income from continuing operations, adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include other intangible asset amortization, share-based compensation, and Senior leadership transition and organizational realignment costs.
Free Cash Flow
We define Free Cash Flow from continuing operations as net cash flows from operating activities less purchases of property, plant, and equipment.
The Non-GAAP Measures are not measures of net income, operating income, or net cash flows as determined under GAAP. The Non-GAAP Measures are not measures of performance in accordance with GAAP and should not be considered as an alternative to net income, net income per share, or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of cash flows. We believe that the inclusion of the Non-GAAP Measures is appropriate to provide additional information to investors because securities analysts and investors use the Non-GAAP Measures to assess our operating performance across periods on a consistent basis and to evaluate the relative risk of an investment in our securities. We use Adjusted Net Income and Adjusted Net Income per share to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than does GAAP measures alone. We believe Adjusted Net Income and Adjusted Net Income per share assists our board of directors, management, investors, and other users of the financial statements in comparing our net income on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. The Non-GAAP Measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and the Non-GAAP Measures do not reflect any cash requirements for such replacements;
- Certain Non-GAAP Measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- Certain Non-GAAP Measures do not reflect changes in, or cash requirements for, our working capital needs;
- Certain Non-GAAP Measures do not reflect our tax expense or any cash requirements to pay income taxes;
- Certain Non-GAAP Measures do not reflect interest expense, or the cash requirements necessary to service interest payments on our indebtedness; and
- The Non-GAAP Measures do not reflect the impact of earnings or charges resulting from matters we do not consider to be indicative of our core and/or ongoing operations, but may nonetheless have a material impact on our results of operations.
In addition, because not all companies use identical calculations, our presentation of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies, including companies in our industry.
We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.
The following table presents a reconciliation of income from continuing operations as determined in accordance with GAAP to EBITDA and Adjusted EBITDA, and income from continuing operations margin to EBITDA margin and Adjusted EBITDA margin (each expressed as a percentage of net sales) for the periods indicated:
| (Dollars in thousands) | Three Months Ended | For the Years Ended | ||||||||||||||||||||||||||
| June 30, | % of Net | June 30, | % of Net | June 30, | % of Net | June 30, | % of Net | |||||||||||||||||||||
| 2025 | sales | 2024 | sales | 2025 | sales | 2024 | sales | |||||||||||||||||||||
| Income from continuing operations | $ | 5,452 | 6.9 | % | $ | 305 | 0.6 | % | $ | 10,715 | 3.8 | % | $ | 23,243 | 7.2 | % | ||||||||||||
| Income tax expense (benefit) | 1,299 | (70 | ) | 2,820 | 6,730 | |||||||||||||||||||||||
| Interest expense | — | 798 | 1,169 | 3,292 | ||||||||||||||||||||||||
| Interest income | (823 | ) | (1,625 | ) | (3,472 | ) | (5,789 | ) | ||||||||||||||||||||
| Depreciation and amortization | 2,554 | 2,063 | 9,579 | 8,375 | ||||||||||||||||||||||||
| EBITDA | 8,482 | 10.7 | % | 1,471 | 2.7 | % | 20,811 | 7.3 | % | 35,851 | 11.1 | % | ||||||||||||||||
| Share-based compensation | 835 | 66 | 2,915 | 2,602 | ||||||||||||||||||||||||
| Senior leadership transition and organizational realignment costs(a) | 211 | 31 | 659 | 1,708 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 9,528 | 12.0 | % | $ | 1,568 | 2.9 | % | $ | 24,385 | 8.6 | % | $ | 40,161 | 12.5 | % | ||||||||||||
The following table sets forth a reconciliation of income from continuing operations as determined in accordance with GAAP to Adjusted Net Income for the periods indicated:
| (Dollars in thousands, except per share data) | Three Months Ended | For the Years Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income from continuing operations | $ | 5,452 | $ | 305 | $ | 10,715 | $ | 23,243 | |||||||
| Income tax expense | 1,299 | (70 | ) | 2,820 | 6,730 | ||||||||||
| Amortization of acquisition intangibles | 450 | 450 | 1,800 | 1,812 | |||||||||||
| Share-based compensation | 835 | 66 | 2,915 | 2,602 | |||||||||||
| Senior leadership transition and organizational realignment costs(a) | 211 | 31 | 659 | 1,708 | |||||||||||
| Adjusted Net Income before income taxes | 8,247 | 782 | 18,909 | 36,095 | |||||||||||
| Adjusted income tax expense(b) | 1,650 | 156 | 3,782 | 7,219 | |||||||||||
| Adjusted Net Income | $ | 6,597 | $ | 626 | $ | 15,127 | $ | 28,876 | |||||||
| Adjusted net income per common share | |||||||||||||||
| Basic | $ | 0.40 | $ | 0.04 | $ | 0.92 | $ | 1.71 | |||||||
| Diluted | $ | 0.40 | $ | 0.04 | $ | 0.92 | $ | 1.69 | |||||||
| Weighted average shares used for the computation of(c): | |||||||||||||||
| Basic Adjusted net income per share | 16,299,885 | 16,710,544 | 16,428,485 | 16,930,348 | |||||||||||
| Diluted Adjusted net income per share | 16,440,388 | 16,710,544 | 16,525,773 | 17,038,305 | |||||||||||
The following table presents the reconciliation of income from continuing operations per diluted share to Adjusted Net Income per diluted share for the periods indicated:
| Three Months Ended | For the Years Ended | ||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income from continuing operations per diluted share | $ | 0.33 | $ | 0.02 | $ | 0.65 | $ | 1.36 | |||||||
| Impact of adjustments: | |||||||||||||||
| Income tax expense | 0.08 | — | 0.17 | 0.39 | |||||||||||
| Amortization of acquisition intangibles | 0.03 | 0.03 | 0.11 | 0.11 | |||||||||||
| Share-based compensation | 0.05 | — | 0.18 | 0.15 | |||||||||||
| Senior leadership transition and organizational realignment costs(a) | 0.01 | — | 0.04 | 0.10 | |||||||||||
| Adjusted Net Income per diluted share before income taxes | 0.50 | 0.05 | 1.15 | 2.11 | |||||||||||
| Impact of adjusted income tax expense on net income per diluted share before income taxes(b) | (0.10 | ) | (0.01 | ) | (0.23 | ) | (0.42 | ) | |||||||
| Adjusted Net Income per diluted share | $ | 0.40 | $ | 0.04 | $ | 0.92 | $ | 1.69 | |||||||
The following table presents the reconciliation of net cash flow by operating activities of continuing operations to Free Cash Flow for the periods presented:
| For the Years Ended | ||||||||
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Net cash provided by operating activities of continuing operations | $ | 38,222 | $ | 12,200 | ||||
| Less: | ||||||||
| Purchases of property, plant and equipment | (9,198 | ) | (10,525 | ) | ||||
| Free cash flow | $ | 29,024 | $ | 1,675 | ||||
(a) Represents amounts paid for legal fees and recruiting costs associated with the CEO and CFO transitions, as well as non-recurring severance costs incurred as part of the Company's strategic organizational realignment undertaken in connection with the transition.
(b) For fiscal 2025 and 2024, income tax expense reflects an income tax rate of
(c) Represents the Weighted Average Shares used for the computation of Basic and Diluted earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income per diluted share for all periods presented herein.
Investor Contact:
MasterCraft Boat Holdings, Inc.
Email: investorrelations@mastercraft.com
FAQ
What were MasterCraft's (MCFT) key financial results for fiscal 2025?
How much cash and debt does MasterCraft (MCFT) have as of Q4 2025?
What is MasterCraft's (MCFT) financial guidance for fiscal 2026?
How did MasterCraft's (MCFT) Q4 2025 performance compare to the previous year?
What capital return initiatives did MasterCraft (MCFT) implement in fiscal 2025?
