Marine Products Corp. this week reported its third quarter financial results.
The Chaparral and Robalo parent reported net sales of $49.9 million, down 36% year-over-year. Gross profit was $9.2 million, down 52%, and gross margin was 18.4%, down 630 basis points. Net income of $3.4 million was down 67% year-over-year, and EBITDA was $4.3 million, down from $13 million.
“As we approach the end of the year, our industry remains challenged by continued soft consumer demand and tepid dealer order flow,” president and CEO Ben M. Palmer said in a statement. “Our dealer inventories are at reasonable levels, lower versus the year-ago quarter as well as sequentially versus the second quarter of 2024, as we have scaled down production to allow the channel to destock.”
The company reported strong cash flow, ending the quarter with approximately $54 million on hand and no debt.
“We were pleased to see the first decrease in interest rates announced during the quarter, with more hopefully on the way before year-end,” Palmer added. “While one rate cut won’t change the market, we believe it is an important first step toward lowering floorplan carrying costs for dealers and financing costs for consumers, as well as providing some optimism on the direction of interest costs going forward.”
