IMAGE COURTESY MASTERCRAFT

MasterCraft Boat Holdings Inc. this week announced financial results for its fiscal 2025 first quarter, which ended Sept. 29, 2024.

The company reported consolidated net sales of $65.4 million, down $28.9 million from the first quarter of 2024. The decrease in net sales was attributed to lower unit volumes and “unfavorable model mix,” the company said in a statement.

Gross margin percentage declined 570 basis points during the quarter compared to the prior-year period. Lower margins were attributed to planned decreases in production volume and higher dealer incentives, including measures taken by MasterCraft to assist dealers in the competitive retail environment.

Operating expenses decreased $1.1 million for the first quarter of fiscal year 2025, and adjusted EBITDA was $3.8 million compared to $14 million in the prior-year period.

For the quarter, the company reported a net loss of $5.1 million, compared to a net profit of $6.1 million for the prior-year period.

“Our business executed well during the quarter as we delivered results above expectations despite facing a backdrop of continued economic and industry headwinds,” MasterCraft CEO Brad Nelson said in the statement. “Our strong quarter was led by significant progress rebalancing dealer inventories and sets a strong foundation for the rest of the fiscal year.”

The company’s sale of rights and assets of the Aviara brand to MarineMax Inc. was completed on Oct. 18, 2024, and the sale of the Aviara manufacturing facility in Florida for $26.5 million is expected to be completed in the company’s fiscal 2025 second quarter.

In its outlook, the company raised the lower end of its full-year guidance for 2025. It now expects consolidated net sales to be between $270 million and $300 million, with adjusted EBITDA between $17 million and $26 million.

“We are encouraged by recent industry and economic developments, including easing interest rates, which could commence a return to a more normalized environment by catalyzing wholesale and retail demand for recreational boats,” Nelson added.