Marine Products Corporation Reports Second Quarter 2025 Financial Results And Declares Regular Quarterly Dividend
Rhea-AI Summary
Marine Products Corporation (NYSE: MPX) reported its Q2 2025 financial results, showing a 3% decrease in net sales to $67.7 million and a 25% decline in net income to $4.2 million. The company's diluted EPS was $0.12, down from $0.14 in Q2 2024.
Key metrics include a 13% decrease in boats sold, offset by a 10% price/mix increase. The company maintained strong financials with $50.2 million in cash and no debt. Gross margin improved to 19.1%, up 20 basis points year-over-year. The Board declared a regular quarterly dividend of $0.14 per share payable September 10, 2025.
Management noted stabilizing demand and expressed optimism about 2026 model year introductions, while acknowledging ongoing challenges from tariffs and macroeconomic uncertainties.
Positive
- Strong balance sheet with $50.2 million cash and no debt
- Gross margin improved 20 basis points to 19.1%
- 10% increase in price/mix effectiveness
- Field inventory 11% below previous year, indicating healthy dealer stock levels
- Generated $9.2 million in operating cash flow year-to-date
Negative
- Net sales decreased 3% year-over-year to $67.7 million
- Net income declined 25% to $4.2 million
- 13% decrease in number of boats sold
- SG&A expenses increased 9%
- Net income margin decreased 190 basis points to 6.1%
News Market Reaction 1 Alert
On the day this news was published, MPX gained 1.35%, reflecting a mild positive market reaction. This price movement added approximately $4M to the company's valuation, bringing the market cap to $327M at that time.
Data tracked by StockTitan Argus on the day of publication.
* Non-GAAP measures, including EBITDA, EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendices of this earnings release.
* All comparisons are year-over-year to 2Q:24 unless stated otherwise.
Second Quarter 2025 Results
- Net sales decreased
3% year-over-year to$67.7 million - Net income was
$4.2 million 25% year-over-year, and diluted Earnings Per Share (EPS) was$0.12 6.1% - Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was
$5.6 million 13% year-over-year; EBITDA margin decreased 100 basis points to8.3% - The Company generated strong operating cash flow and free cashflow and ended the quarter with approximately
$50.2 million - Effective management of field inventory has allowed us to maintain reasonable production levels and manage operational efficiencies during the quarter
Management Commentary
"Second quarter results reflected a stabilization of demand and a more balanced environment," stated Ben M. Palmer, Marine Products' President and Chief Executive Officer. "Second quarter sales were down
"Tariffs and macro risks remain top of mind, with dealers and retail consumers remaining cautious overall. Thus far, supplier cost increases have been manageable, alleviating the concern that the 2026 model year pricing would be up significantly, but risks still persist as tariff policies continue to evolve. The interest rate outlook continues to be cloudy although there are market expectations for rate cuts later this year."
"We are extremely proud of the responsiveness and resiliency our employees, operations, and dealers have shown in this environment. Our strong balance sheet, cash position and disciplined management of production levels relative to retail demand and field inventory afford us the ability to continue to invest in the business internally and through strategic opportunities," concluded Palmer.
2Q:25 Consolidated Financial Results (year-over-year comparisons versus 2Q:24)
Net sales were
Gross profit was
Selling, general and administrative expenses were
Interest income of
Income tax provision was
Net income and diluted EPS were
EBITDA was
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were
Net cash provided by operating activities and free cash flow were
Payment of dividends totaled
Conference Call Information
Marine Products Corporation will hold a conference call today, July 24, 2025, at 8:00 a.m. Eastern Time to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of Marine Products' website at www.marineproductscorp.com. Additionally, the live conference call can be accessed by calling (888) 660-6357, or (929) 201-6127 for international callers, and using conference ID number 9979064. A replay will be available in the investor relations section of Marine Products' website beginning approximately two hours after the call and for a period of 90 days.
About Marine Products
Marine Products Corporation is a leading manufacturer of high-quality fiberglass boats under the brand names Chaparral and Robalo. Chaparral's sterndrive models include SSi Sportboats and SSX Luxury Sportboats, and the SURF Series. Chaparral's outboard offerings include OSX Luxury Sportboats and the SSi Outboard Bowriders. Robalo builds an array of outboard sport fishing models, which include Center Consoles, Dual Consoles and Cayman Bay Boats. The Company continues to diversify its product lines through product innovation. With these premium brands, a solid capital structure, and a strong independent dealer network, Marine Products Corporation is prepared to capitalize on opportunities to increase its market share and generate superior financial performance to build long-term shareholder value. For more information on Marine Products Corporation visit our website at www.marineproductscorp.com.
Forward Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations, hopes or strategies. In particular, such statements include, without limitation: our belief in demand stabilization and a more balance environment; our excitement about the model year 2026 introductions; our belief in product enhancements and our thoughtful approach to the market; our belief that tariffs and macro risks remain top of mind causing dealers and retail consumers to remain cautious overall; our belief that supplier cost increases have been manageable and have alleviated pricing concerns that the 2026 model year pricing would be up significantly; our belief that tariffs remain a risk as tariff policies continue to evolve; our belief that the interest rate outlook remains cloudy and that the market expects rate cuts this year; our belief in the responsiveness and resiliency our employees, operations, and dealers in the current environment; our belief that our strong balance sheet, cash position and disciplined management of production levels relative to retail demand and field inventory afford us the ability to invest in the business internally and through strategic opportunities; our expectation that full year 2025 capital expenditures will be approximately
For information about Marine Products Corporation or this event, please contact:
Joshua Large
Vice President, Corporate Finance and Investor Relations
(404) 321-2152
jlarge@marineproductscorp.com
Michael L. Schmit
Chief Financial Officer
(404) 321-7910
irdept@marineproductscorp.com
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | 2025 | 2024 | 2025 | 2024 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Net sales | $ | 67,698 | $ | 69,547 | $ | 126,700 | $ | 138,887 | |||||
Cost of goods sold | 54,789 | 56,373 | 102,838 | 111,729 | |||||||||
Gross profit | 12,909 | 13,174 | 23,862 | 27,158 | |||||||||
Selling, general and administrative expenses | 8,098 | 7,424 | 16,438 | 16,166 | |||||||||
Operating income | 4,811 | 5,750 | 7,424 | 10,992 | |||||||||
Interest income, net | 476 | 879 | 918 | 1,730 | |||||||||
Income before income taxes | 5,287 | 6,629 | 8,342 | 12,722 | |||||||||
Income tax provision | 1,125 | 1,044 | 1,974 | 2,540 | |||||||||
Net income | $ | 4,162 | $ | 5,585 | $ | 6,368 | $ | 10,182 | |||||
EARNINGS PER SHARE | |||||||||||||
Basic | $ | 0.12 | $ | 0.14 | $ | 0.18 | $ | 0.28 | |||||
Diluted | $ | 0.12 | $ | 0.14 | $ | 0.18 | $ | 0.28 | |||||
AVERAGE SHARES OUTSTANDING | |||||||||||||
Basic | 34,985 | 34,708 | 34,931 | 34,670 | |||||||||
Diluted | 34,985 | 34,708 | 34,931 | 34,670 | |||||||||
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 50,171 | $ | 52,379 | ||
Accounts receivable, net | 6,053 | 4,176 | ||||
Inventories | 51,185 | 49,960 | ||||
Income taxes receivable | 154 | 439 | ||||
Retirement plan assets | 19,064 | — | ||||
Prepaid expenses and other current assets | 4,509 | 3,040 | ||||
Total current assets | 131,136 | 109,994 | ||||
Property, plant and equipment, net | 23,210 | 24,247 | ||||
Goodwill | 3,308 | 3,308 | ||||
Other intangibles, net | 465 | 465 | ||||
Deferred income taxes | 10,126 | 9,729 | ||||
Retirement plan assets | — | 18,489 | ||||
Other long-term assets | 5,000 | 5,015 | ||||
Total assets | $ | 173,245 | $ | 171,247 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Accounts payable | $ | 7,154 | $ | 5,499 | ||
Retirement plan liabilities | 22,252 | — | ||||
Accrued expenses and other liabilities | 14,880 | 13,425 | ||||
Total current liabilities | 44,286 | 18,924 | ||||
Retirement plan liabilities | — | 21,667 | ||||
Other long-term liabilities | 1,728 | 1,653 | ||||
Total liabilities | 46,014 | 42,244 | ||||
Stockholders' Equity | ||||||
Preferred stock | — | — | ||||
Common stock | 3,499 | 3,471 | ||||
Capital in excess of par value | — | — | ||||
Retained earnings | 123,732 | 125,532 | ||||
Total stockholders' equity | 127,231 | 129,003 | ||||
Total liabilities and stockholders' equity | $ | 173,245 | $ | 171,247 | ||
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
Six Months Ended June 30, | 2025 | 2024 | ||||||
(Unaudited) | (Unaudited) | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 6,368 | $ | 10,182 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,576 | 1,384 | ||||||
Working capital | (1,192) | 6,799 | ||||||
Other operating activities | 2,413 | 1,372 | ||||||
Net cash provided by operating activities | 9,165 | 19,737 | ||||||
INVESTING ACTIVITIES | ||||||||
Capital expenditures | (523) | (1,661) | ||||||
Net cash used for investing activities | (523) | (1,661) | ||||||
FINANCING ACTIVITIES | ||||||||
Payment of dividends | (9,795) | (33,990) | ||||||
Cash paid for common stock purchased and retired | (1,055) | (907) | ||||||
Net cash used for financing activities | (10,850) | (34,897) | ||||||
Net decrease in cash and cash equivalents | (2,208) | (16,821) | ||||||
Cash and cash equivalents at beginning of period | 52,379 | 71,952 | ||||||
Cash and cash equivalents at end of period | $ | 50,171 | $ | 55,131 | ||||
Non-GAAP Measures
Marine Products Corporation has used the non-GAAP financial measures of EBITDA, EBITDA margin, and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting EBITDA and EBITDA margin enables investors to compare our operating performance consistently over various time periods without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating Marine Products' liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, Marine Products' definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on Marine Products Corporation's investor website, which can be found on the Internet at www.marineproductscorp.com.
Appendix A | |||||||||||||
(Unaudited) | Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||
Reconciliation of Net Income to EBITDA | |||||||||||||
Net income | $ | 4,162 | $ | 5,585 | $ | 6,368 | $ | 10,182 | |||||
Adjustments: | |||||||||||||
Add: Income tax provision | 1,125 | 1,044 | 1,974 | 2,540 | |||||||||
Add: Depreciation and amortization | 787 | 702 | 1,576 | 1,384 | |||||||||
Less: Interest income, net | 476 | 879 | 918 | 1,730 | |||||||||
EBITDA | $ | 5,598 | $ | 6,452 | $ | 9,000 | $ | 12,376 | |||||
Net sales | $ | 67,698 | $ | 69,547 | $ | 126,700 | $ | 138,887 | |||||
Net income margin(1) | 6.1 % | 8.0 % | 5.0 % | 7.3 % | |||||||||
EBITDA margin(1) | 8.3 % | 9.3 % | 7.1 % | 8.9 % | |||||||||
(1) | Net income margin is calculated as net income divided by net sales. EBITDA margin is calculated as EBITDA divided by net sales. |
Appendix B | |||||||
(Unaudited) | Six Months Ended | ||||||
June 30, | June 30, | ||||||
(In thousands) | 2025 | 2024 | |||||
Reconciliation of Operating Cash Flow to Free Cash Flow | |||||||
Net cash provided by operating activities | $ | 9,165 | $ | 19,737 | |||
Capital expenditures | (523) | (1,661) | |||||
Free cash flow | $ | 8,642 | $ | 18,076 | |||
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SOURCE Marine Products Corporation
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