Marine Products Corp. reported a 33% year-over-year drop in fourth-quarter net sales to $47.8 million, as dealers managed high inventories and consumer demand remained soft. For the full year, net sales fell 38% to $236.6 million, while net income reached $17.9 million, or $0.50 per diluted share.
“Our year-over-year sales decline in the fourth quarter was 33%, marking our smallest quarterly decrease this year,” president and CEO Ben M. Palmer said in a statement.
Palmer noted that while the industry continues to face challenges, sequential gross margin improvements and controlled production levels have helped preserve profitability. “We have managed our costs aggressively during this challenging demand period to preserve margins, and will remain prudent with hiring and production increases until we have more definitive signals for improved demand,” he said. “Feedback from recent boat shows has been positive, with good attendance and solid interest from buyers.”
The company attributed the revenue declines primarily to a 39% drop in unit sales during the quarter, though a 6% positive price/mix effect helped offset the decline. Gross profit for the quarter fell 32% to $9.2 million, with gross margin rising slightly to 19.2%. Operating expenses decreased 28%, reflecting disciplined cost management in response to market conditions.
Marine Products continued its commitment to shareholder returns, distributing $43.7 million in dividends throughout 2024, including a special dividend of $0.70 per share. The company ended the year with $52.4 million in cash and no debt. It also completed a solar panel installation at its Nashville, Ga., production facility, which is expected to generate long-term cost savings.
Looking ahead, management remains cautious but optimistic about potential demand recovery in the latter half of 2025. Marine Products plans to maintain conservative production levels and hiring practices until clearer demand signals emerge.
“This has been a difficult year for the industry,” Palmer said, “but we are proud of our model year 2025 product launches and lineup improvements, and our ability to exit the year in a very strong financial position.”
