MALIBU BOATS, INC.

The recreational powerboat industry is highly competitive for consumers and dealers, with competition based primarily on brand name, price, and product performance ¹. During calendar year 2025, retail sales of new recreational powerboats in the United States totaled $14.6 billion ². The company serves three of the top four NMMA categories—outboard, sterndrive, and performance sport boat—representing an addressable market of nearly $12.2 billion in retail sales ³. The total addressable market in units was 156,754 ⁴, with outboard unit sales of 135,309 ⁵, performance sport boat unit sales of 7,818 ⁶, sterndrive unit sales of 4,086 ⁷, jet boat unit sales of 8,497 ⁸, and cruisers unit sales of 1,044 ⁹.

The company is a leading designer, manufacturer, and marketer of recreational powerboats under nine brands: Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, Cobalt, and Saxdor ¹⁰. It holds market leadership in the U.S. performance sport boat category through Malibu and Axis, in the 20'-40' segment of the sterndrive category through Cobalt, and in the fiberglass outboard fishing boat market through Pursuit and Maverick Boat Group ¹¹. The company's top ten dealers represented 62.4% of net sales in fiscal year 2026 ¹², and sales to dealers under common control of OneWater Marine, Inc. represented approximately 22.3% of consolidated net sales in fiscal year 2026 ¹³.

The company generates revenue primarily through the sale of recreational powerboats, parts, and other products across four reportable segments: Malibu, Saltwater Fishing, Cobalt, and Saxdor ¹⁴. Revenue is transactional, derived from boat and trailer sales as well as parts and other sales ¹⁵. The company sells through a global dealer network of over 345 dealer locations across 68 countries ¹⁶, with dealers purchasing boats through floor plan financing programs ¹⁷.

The Malibu segment includes the Malibu and Axis brands, offering 12 and 6 models respectively, with retail price ranges of $80-$300 thousand and $80-$175 thousand ¹⁸. The Saltwater Fishing segment includes Pursuit, Cobia, Pathfinder, Maverick, and Hewes brands, with model counts ranging from 6 to 16 and price ranges from $45 to $1,400 thousand ¹⁹. The Cobalt segment offers 16 models with prices from $75 to $625 thousand ²⁰. The Saxdor segment offers 9 models with prices from $130 to $825 thousand ²¹.

In March 2026, the company acquired Saxdor, expanding its presence into the premium adventure dayboat category and increasing its international dealer network ²². The acquisition was financed through a mixture of cash and Class A Common Stock ²³. The company also completed a stock repurchase program, repurchasing 1,243,996 shares of Class A Common Stock for $33.9 million in cash in fiscal year 2026 ²⁴.

In fiscal year 2026, net sales increased at a smaller percentage than expenses increased, resulting in decreased gross margin and net income ²⁵. The company's top ten dealers represented 62.4% of net sales in fiscal year 2026, up from 42.8% in fiscal year 2025 ²⁶.

The company's growth strategy includes targeted acquisitions to expand into new or adjacent categories, as demonstrated by the acquisition of Saxdor in March 2026 ²⁷. The company expects MarineMax Inc. to represent more than 10% of sales contributed by Saxdor for fiscal year 2027 ²⁸. The company also plans to continue enhancing existing products and developing new products, with a focus on innovation such as Surf Gate and other proprietary technologies ²⁹.

The company is focused on expanding its international presence, particularly through the Saxdor acquisition, which added manufacturing facilities in Finland and Poland ³⁰. The company also continues to sell products worldwide, with a portion of sales denominated in foreign currencies, particularly the Euro ³¹.

The company's margin and cost outlook is influenced by its large fixed-cost base, which can pressure profit margins when sales decline ³². The company is focused on vertical integration of key components, such as engines, trailers, and wiring harnesses, to reduce costs and improve margins ³³.

The company's operational outlook includes managing its manufacturing capacity across eleven facilities in four U.S. states, Australia, Poland, and Finland ³⁴. The company is also focused on maintaining a skilled workforce, with approximately 3,000 employees worldwide ³⁵.

The company's capital allocation strategy includes share repurchases, with a new $70.0 million repurchase program authorized for fiscal year 2027 ³⁶. The company also plans to continue investing in product development and engineering, with a team of approximately 145 professionals ³⁷.

The company faces headwinds from tariffs, with an estimated 18-20% of cost of sales for U.S. brands sourced from outside the United States ³⁸. The company also faces risks from inflation and heightened interest rates, which increase the cost of boat ownership and may reduce demand ³⁹.

The company faces constraints from its dependence on a small group of suppliers for engines and other components, including General Motors, Yamaha, Volvo, and Mercury ⁴⁰. The company also faces risks from potential supply chain disruptions and the financial health of its dealers ⁴¹.

The company faces significant risks from its dependence on a small group of suppliers for engines and other components, including General Motors, Yamaha, Volvo, and Mercury ⁴². The company's agreement with General Motors expires at the end of calendar year 2026, and it is currently negotiating an extension ⁴³. The company also faces risks from tariffs, with an estimated 18-20% of cost of sales for U.S. brands sourced from outside the United States ⁴⁴. The company's financial results are sensitive to interest rate fluctuations, with a 1.0% increase in interest rates expected to incur approximately $1.7 million in additional annual interest expense ⁴⁵. The company also faces risks from potential impairment of goodwill and indefinite-lived intangible assets, which totaled $241.5 million as of June 30, 2026 ⁴⁶. The company is involved in litigation, including a securities class action settled for $7.8 million ⁴⁷ and a product liability settlement of $100 million in fiscal year 2023 ⁴⁸.

Management's message emphasizes the company's commitment to innovation, brand strength, and strategic acquisitions to drive growth. The company highlights its leading market positions and its focus on delivering the ultimate on-the-water experience. Management also emphasizes the importance of its dealer network and its commitment to operational excellence and vertical integration. The company's strategic priorities include integrating the Saxdor acquisition, expanding its international presence, and continuing to innovate across its product portfolio.