Q4 2025 MarineMax Inc Earnings Call

At this time all participants are in a listen only mode.

A question and answer session will follow the formal presentation.

I would now like to turn the call over to Scott Solomon of the company's Investor Relations firm Sharon Merrill Advisors. Please go ahead Sir.

James Hardiman: Hey, good morning. Thanks for taking my questions. Obviously, the same-store sales number accelerated nicely from Q3 to Q4. I was hoping you could help us out just splitting sort of how much of that was units versus ASPs. I guess, similar question on the month of October. I think you said positive same-store sales for October. Are you actually seeing unit acceleration into the off-season? Thanks.

Thank you operator, and good morning, everyone hosting todays call are Brett Mcgill Marine Max as Chief Executive Officer, and President and Mike Mclamb, The Companys Chief Financial Officer.

Greg will begin the call by discussing marine Max as operating performance and recent highlights.

Nick will review the financial results and provide the Companys fiscal 2026 financial guidance, Brett will make some concluding comments and then management will be happy to take your questions. The earnings release and supplemental presentation associated with today's announcement can be found in the investor that marine Max Dot com.

Mike McLamb: Yeah, great question, James. Obviously, you guys follow the industry. The industry, for the core categories that we're in, has seen softness, double-digit declines in July, August, and September, in some categories, 25%, etc., from a unit perspective. We typically outperform the industry. Our units for the quarter are down in the mid-single-digit range, which is better than the industry overall. The difference from down mid-single digit to up 2% is the increase in average unit selling price during the quarter. On the month of October, you got to keep in mind the month of October last year, we were dealing with a hurricane in Florida, but our units were up in the month of October, and we also did see a modest increase in average unit selling price.

With that I'll turn the call over to Mike Mike.

Thank you Scott good morning, everyone and thank you for joining this call I'd like to start by reminding you that certain of our comments are forward looking statements as defined by the private Securities Litigation Reform Act of $19 95.

Any forward looking statements speak only as of today. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations.

This include but are not limited to the impact of seasonality and weather global economic conditions and the level of consumer spending the comp.

<unk> ability to capitalize on opportunities or grow its market share and numerous other factors identified in the company's most recently filed 10-K and 10-Q and other filings with the Securities and Exchange Commission.

James Hardiman: That's really helpful. Just very briefly, just wanted to dig into the rate environment. Obviously, we've gotten a couple of 25 basis point rate cuts. I think the 10-year is modestly lower than maybe the last time we spoke. Are you seeing that show up in terms of relief from your lenders, and is that having any impact from a consumer perspective as they contemplate lower payments? Thanks.

The company disclaims any intention or obligation to update or revise any forward looking statements.

Whether as a result of new information future events or otherwise.

On today's call, we will make comments, referring to non-GAAP financial measures. We believe that the inclusion of these financial measures helps investors gain a meaningful understanding of the changes in the company's core operating results. These measures can also help investors who wish to make comparisons between marine Max and <unk>.

Mike McLamb: Yeah, James, good question. I think rates for the consumer, obviously, we're kind of dealing in a higher-end segment, as we've always talked about. Monthly payment maybe isn't driving the need to just rush out and buy something. I've said before, a lot of our customers are small business owners, construction companies, etc. When there's a rate environment that's more favorable for their business, they get a little more excited and optimistic about things, and they come forward with a boat purchase. I think both of those things are helping, but consumer feeling better about the rate, I think we see some of that, like even at Lauderdale, feeling better about that things are going to come down is giving a positive news that they haven't had in a while.

Other companies on both a GAAP and a non-GAAP basis.

Reconciliation to non-GAAP financial measures to the most directly comparable GAAP measures is available in today's earnings release with that let me turn the call over to Brett Brett.

Thank you Mike Good morning, everyone and thank you for joining us today to discuss our fiscal fourth quarter and full year 2025 performance.

Let me begin by recognizing our team's exceptional dedication throughout what has been a challenging year for the recreational boating industry.

Elevated interest rates persistent inflation and the uncertainty stemming from the trade wars and geopolitical tensions have resulted in many consumers deferring their boat purchases.

James Hardiman: Got it. That's helpful color. Thanks, guys.

Mike McLamb: Thanks, James.

Operator: We take the next question from the line of Mike Obliz from The Benchmark Company. Please go ahead.

In the face of these headwinds our team has remained focused on delivering world class customer experiences that continue to set us apart as reflected in our industry, leading net promoter scores.

Michael Albanese: Hey, good morning, guys. Thanks for taking my question. I just want to ask about gross margins. Obviously, jumped, I think, 34% in the quarter. You've been pretty consistent keeping them above 30% here in a tough market. Obviously, some of that is mix, but it appears your adjacencies are holding up well. Could you just kind of tap into that a little bit deeper? I'd love to kind of understand how much of that has been kind of strategic initiatives, cross-sell synergies, etc., versus just sustainable demand within those segments. Thank you.

Our full year adjusted earnings and adjusted EBITDA were in line with the guidance, we gave last quarter for the fourth quarter, we achieved revenue of over $552 million with same store sales growth of more than 2%.

Despite significant pressure on new boat margins due to the sustained elevated inventory level across the retail industry. Our gross margins expanded to 34, 7% demonstrating the strength of our diversified business model and the benefits of our strategic focus on higher margin businesses.

Mike McLamb: I can comment. I'll take a first stab. Yeah, in the current environment, boat margins are the second lowest I've seen in 27 years. They're not down as far as they were in the Great Financial Crisis, but they're very low. They're like 3 to 350 basis points below normal. Hopefully, over time, we'll see some upside in boat margins as inventories normalize. I do think our strategy of expanding in these higher-margin categories, whether it's the marinas, superyacht services, finance and insurance, service, parts, and accessories, there's a lot of different higher-margin components that we've been expanding with, I think really shines in an environment like this and helps us maintain elevated gross margins overall. It comes through in the quarter.

Such as finance and insurance parts and service Super Yacht services, and marine operations, including <unk>.

Our full year adjusted earnings and adjusted IBA were in line with the guidance. We gave last quarter for the fourth quarter. We achieved revenue of over 552%.

These diversified revenue sources provide important balance and support our financial resilience through different macro economic and industry cycles.

We also benefit from cross selling opportunities between <unk> Super Yacht services, and Marina operations, and we are regularly finding new ways to unlock synergies between each of these businesses and deliver greater value for our customers and our shareholders.

There are many examples including a 35 meter yacht sale if the recent Fort Lauderdale International boat show, which resulted from touch points across all of these businesses.

Despite significant pressure on new boat margins due to the sustained elevated inventory level across the retail industry, our gross margins expanded to 34.7%, demonstrating the strength of our diversified business model and the benefits of our strategic focus on higher margin businesses, such as finance, insurance, parts and service, superyacht services, and marine operations, including IGY. These diversified revenue sources provide important balance and support our financial resilience through different macroeconomic and industry cycles.

Mike McLamb: Mike, when we set out with this strategy and we're very focused on it with these higher-margin businesses and the growth we've had in those and the investments we've made in those businesses, it does show through. It shines. Yes, good question. Yeah, those businesses have what's close to recurring-type revenue as you can get, so you can kind of rely on those types of things. Of course, you got to manage the business.

This is a great example of how we continue to see tangible results across yacht sales charter bookings and storage through these connected marketing and sales initiatives we.

We are confident that our integrated approach will continue to support retail yacht sales and strengthen the connection between Super Yacht services and Marina operations.

We also benefit from cross-selling opportunities between yacht sales, super yacht services, and marina operations, and we are regularly finding new ways to unlock synergies between each of these businesses and deliver greater value for our customers and our shareholders.

On the retail side, we continue to add customer service capabilities and strengthen our network.

Mike McLamb: We're continuing to unlock different synergies, cross-selling, consumers feeling good about buying a larger yacht at a MarineMax Fort Myers location, let's say, and then feeling good about, wow, what if I want to put that in charter with Fraser Yachts or whatever it might be? They feel comfortable with that all the way up to where are they going to put their boat when they get to the Caribbean through our IGY Marina. We're seeing a lot more of those synergies, and we'll continue to unlock those as well.

There are many examples, including a 35-meter yacht sale at the recent Fort Lauderdale International Boat Show, which resulted from touch points across all of these businesses.

The launch of our flagship yacht sales and service Center in Fort Myers, Florida is representative of Marine Max is focus on innovation and customer service.

This is a great example of how we continue to see tangible results. Across Yacht Sales Charter, bookings and storage through these connected marketing and sales initiatives.

This facility spans more than 30000 square feet and brings together sales maintenance storage and on water services in one convenient location and one of Florida's top yachting and boating markets.

Locations like these which combined world class service and traditional retailing enhance the customer experience and support efficient cross selling of our products and services.

On the retail side, we continue to add customer service capabilities and strengthen our Network.

Michael Albanese: Got it. Thank you, guys.

Mike McLamb: Thank you, Mike.

Operator: Thanks, Mike. We take the next question from the line of Joe Altobello from Raymond James. Please go ahead.

The launch of our Flagship Yacht Sales and Service Center in Fort Meyers. Florida is representative of marine Max's, focus on innovation in customer service.

As the industry's recognized technology leader, we set the standard for digital innovation in recreational Marine services, and we are continuing to invest in technology to support customer growth and engagement.

[Analyst] (Raymond James): Hi, good morning. This is Martin on for Joe. I just want to take a finer point onto the promotional drag in the quarter. Could you give a little bit more color to what that headwind was, and sort of what we can expect entering the new year?

A great example is boat yards are subscription based customer experience platform, which streamline service ordering payment invoicing and estimating making the boating experience frictionless for both customers and dealers.

Mike McLamb: Yeah, if I understand your question right, Martin, good question. I'd say this entire fiscal year, we've seen a very challenged environment because of elevated inventory levels really across the industry. Certainly true in the current quarter. I just commented a little while ago just how soft boat margins are. When we think about 2026 and in our guidance, we're not expecting much of a lift in boat margins. I think I commented in my prepared remarks that at least through the wintertime, when there's a lot of dealers who are feeling softer sales and increased pressure when it comes to carrying costs, etc., I think the pressure will still be there. It is thought that later on in the year, when you get into the summer selling season as inventories begin to normalize, we could see some relief on the margin side.

This facility spans more than 30,000 square feet and brings together. Sales maintenance storage and on water services in 1 Con location and 1 of Florida's top yachting and boating markets locations. Like these which combine world-class service and traditional retailing. Enhance the customer experience and support efficient cross-selling of our products and services.

Since its launch boat yard has been well received by the dealer community and has been recognized as one of the industry's most innovative companies on six occasions.

As the industry's recognized technology leader. We set the standard for digital innovation in recreational marine services and we are continuing to invest in technology to support customer growth and engagement.

Boat yards active subscriber growth has increased by more than 160% over the past 12 months.

And while still in its growth phase this momentum validates our technology leadership and positions us well for continued expansion.

A great example is Boatyard our subscription-based customer experience platform, which streamlines service ordering payment, invoicing and estimating, making the Boating experience frictionless for both customers and dealers.

In addition to boat yard we are harnessing the power of proprietary technology platforms like customer IQ, our business growth intelligence engine custom.

Since its launch Boatyard has been well received by the dealer community, and has been recognized as 1 of the industry's most Innovative companies on 6 occasions.

Customer IQ integrates artificial intelligence and automation to provide us with real time insights, enabling our sales teams to engage more efficiently and effectively with customers and drive conversions.

Boat yards. Active subscriber growth has increased by more than 160% over the past 12 months.

Mike McLamb: Obviously, it won't snap back overnight, but it will potentially begin to improve like in the summertime in the back half of our quarter. Thank you, Martin.

We're in the process of rolling out customer IQ across all marine Max businesses, including <unk> and financial services. It's a step we believe will further amplify the technologies contribution to company wide growth.

And while still in its growth phase, this momentum validates, our technology leadership and positions us well for continued expansion.

Operator: Thank you. We take the next question from the line of Eric Wold from Texas Capital Securities. Please go ahead.

Along with these investments in customer service technology, and innovation, which support long term value creation. We are also taking steps to optimize our business to enhance operational efficiency by.

James Hardiman: Thanks. Good morning. Mike, kind of looking at the guidance for the fiscal 2026, I guess, industry assumptions relative to your same-store sales, it looks like, unless I'm reading this wrong, it looks like you're expecting kind of more inline-ish performance with the industry versus kind of more of the outperformance that you've had before, especially given the mix towards higher-end premium boats. Am I reading that wrong? Are you trying to take a little more cautious view on mix, or how should we think about kind of what's embedded in that guidance in terms of relative performance to the industry?

By eliminating underperforming brands and refining our product portfolio, we're aligning more closely with evolving customer demand and driving greater value combined with strategic store optimization, this brand and portfolio rationalization enhances operational efficiency and positions marine Max for stronger return.

In addition to vote yard, we are harnessing the power of proprietary technology platforms. Like customer IQ our business growth, intelligence engine customer IQ integrates artificial intelligence and automation to provide us with real-time insights enabling our sales teams to engage more efficiently and effectively with customers and drive conversions. We're in the process of rolling out, customer IQ across all Marine. Max businesses, including igy, and financial services. It's a step we believe will further amplify the Technologies contribution to companywide growth.

Earns when macroeconomic conditions normalize.

Along with these investments in customer service technology and Innovation which support long-term value creation, we are also taking steps to optimize our business to enhance operational, efficiency.

Before I conclude my prepared remarks, I want to take a moment to update you on the success, we had at Fort Lauderdale, as well as a few other developments.

Marine Max had a significant presence at the recent Fort Lauderdale International Boat show I am happy to report that the show was stronger than last year and several of our displays produced modern era records, which along with great customer engagement is very encouraging collectively we sold more boats at this show than any time Poe.

Mike McLamb: No, Eric, I think you're reading that right. I think the first assumption is, does the industry get the flattest units from negatives? That's one assumption that's in there. Obviously, what happens with mix from our perspective. I think we're trying to be prudent in terms of our guidance figures because you're right, we typically do outperform what the industry does. I think we're really trying to see, let's get through fiscal 2026. Let's see that the industry really does get back to first to zero instead of negative, and then to slightly positive in the second half of the year.

By eliminating underperforming Brands and refining our product portfolio. We're aligning more closely with evolving customer demand and driving greater value combined with strategic store, optimization this brand and portfolio rationalization, enhances operational, efficiency and positions Marine Max for stronger returns when macroeconomic can

Normalize.

<unk> Covid and generated a sizable increase in contracted revenue versus last year.

Before I conclude my prepared remarks, I want to take a moment to update. You on the success, we had at Fort Lauderdale as well as a few other developments.

Across the show, we saw exciting developments and sustainable materials autonomous features and enhanced vessel connectivity from a wide range of Oems.

Innovative brands are advancing the industry and we are exceptionally proud to be partnering with many of these companies.

James Hardiman: Got it. Just quickly, update us on where you are with rationalizing kind of operating expenses in general and overhead, and kind of what you expect as you move through fiscal 2026.

Marine, Max had a significant Presence at the recent Fort Lauderdale International Boat Show. I am happy to report that the show was stronger than last year and several of our displays produce, modern era records. Which along with great customer engagement is very encouraging.

I would add that our brand cruisers yachts launched several new models at the show, including a new 50, Flybridge and the 38 V TR.

Collectively, we sold more boats at the show than any time postco and generated a sizable increase in contracted Revenue versus last year.

Overall cruisers set a post COVID-19 record show in terms of units and dollars.

Mike McLamb: Well, I commented that we have closed 10 stores now since last year, and we've made other cost cuts and savings. There is a current drag that's going on within the business, which is just additional marketing spend, additional inventory maintenance spend, etc., really that the whole industry is having with the slower turns that we've had, which would improve. In our 2026 guidance, we're not baking in any substantial additional cost savings from what we're seeing in the current levels of 2025.

Last month I had the privilege of participating in the <unk> World Marinas conference joining senior executives from the world's largest marino organizations, who is a powerful opportunity to reinforce our role as a strategic voice in marine services share perspectives and emerging global trends and deepen.

Across the show. We saw exciting developments in sustainable materials, autonomous features and enhanced vessel connectivity from a wide range of oems.

Our relationship with key stakeholders across the industry.

Innovative brands are advancing the industry and we are exceptionally proud to be partnering with many of these companies. I would add that our brand Cruisers Yachts launched several new models at the show, including a new fifty fly bridge. And the 38 VTR overall cruiser set, a postco record show in terms of units and dollars.

These platforms not only elevate our visibility. They also ensure we remain at the forefront of shaping the future of marine experiences worldwide.

James Hardiman: Got it. Thanks, Mike.

Mike McLamb: Thanks, Eric.

To support our strategic initiatives and long term positioning we recently added two distinguished new members to our board of directors.

James Hardiman: Thank you, Eric.

Operator: Thank you. We take the next question from the line of Anna Glaessgen from B. Riley Securities. Please go ahead.

<unk> Almeida and Dan Shaffer, <unk> and Dan each have proven track records and driving innovation and scaling complex global operations, and we're confident that their expertise and fresh perspectives will yield immediate contributions to our board and company.

[Analyst] (Raymond James): Hey, good morning. Excuse me. Thanks for taking my question. I'd like to start on same-store sales cadence. On the one hand, it seems that we're assuming some sequential improvement as we get to the back half in terms of market performance. On the other hand, we have some sort of one-time laps, like lapping the hurricane in Florida last year, which drove the easiest comp in Q1. Just trying to understand the puts and takes as we think about the shape of the year.

Last month, I had the privilege of participating in the ikoma world. Marinas conference joining senior Executives from the world's largest Marina organizations. It was a powerful opportunity to reinforce our role as a strategic voice in marine services, shared perspectives and emerging Global Trends and deepen, relationships with key stakeholders across the industry.

These platforms not only Elevate our visibility, they also ensure we remain at the Forefront of shaping, the future of marine experiences worldwide.

Looking at the broader industry landscape. We are optimistic this sector is near or at an inflection point, while the industry is currently managing inventory normalization.

And macroeconomic uncertainty the underlying fundamentals for premium recreational boating remain exceptionally strong.

Mike McLamb: No, it's a great question. You're right. I mean, the state of Florida was impacted by hurricanes. We were down 11% in the December quarter, then up 11% in March. Technically, we do have an easier comparison right now, which is why I said with October being up, it's up against the storms. When you go out throughout the year, obviously, the quarter with Liberation Day, which is the June quarter, in theory, is another easy comp. We were down 9%, and it sort of levels off in September. You do got to bake all that in from the assumption perspective.

Now, let me turn the call over to Mike for our financial review Mike.

Perspectives will yield immediate contributions to our board and company.

Thank you Brett I want to Echo breath depreciation for our team's outstanding performance during this challenging period.

Total revenue for the fourth quarter was over $552 million, which was down modestly from last year due to the impact of our store rationalization efforts, including the strategic closure of 10 stores since December of fiscal 'twenty four during.

Looking at the broader industry landscape. We are optimistic. The sector is near or at an inflection point. While the industry is currently managing inventory, normalization and macroeconomic uncertainty the underlying fundamentals for premium recreational boating remain exceptionally strong.

During the quarter same store sales increased over 2% driven by growth in used boat revenue finance and insurance parts and service and contributions from Super Yacht services, and Marina operations, including <unk> and.

Now, let me turn the call over to Mike for our financial review. Mike

Mike McLamb: I think the point that I was trying to make in my prepared remarks is that when you look at our bottom-line financial performance in the December quarter and the March quarter, we exceeded our thinking in the street and our guidance in those two quarters from an EBITDA and from an earnings perspective. When you're modeling out the whole year, factoring in the same-store sales questions that you're asking, we actually have an easier comparison from an earnings perspective in the back half of the year than the front half of the year also.

Thank you. Brett. I want to Echo Brett's appreciation for our teams outstanding performance during this challenging period.

In terms of units they were down in the quarter as we continue to see a migration to higher average unit prices.

Gross profit was over $191 million and our gross margin increased to 34, 7%.

Total revenue for the fourth. Quarter was over 552 million, which was down modestly from last year due to the impact of our store. Rationalization efforts, including the Strategic closure of 10 stores since December of fiscal, 24.

During the quarter, same-store sales increased over 2%.

The increase in gross margin as Bret noted reflects continued growth in our diversified higher margin businesses and was achieved despite historically low boat margins due to the challenging retail environment.

[Analyst] (Raymond James): Got it. Thanks. Turning back to the boat margin question, understanding the seasonal aspects of maybe getting some improvement once we get through the March quarter when we enter the retail selling season, trying to understand kind of the key drivers of improvement there. Is it getting through some of the aged inventory that maybe competitors feel? Is it improved market performance, or is it really just that seasonal aspect that's impacting the first two quarters of the year? Thanks.

Selling general and administrative expenses were over 177 million. The increase primarily reflects the greater contribution of service related revenue, which drives gross margin dollars, but does have a higher cost dynamic than retail store operations, along with increases in targeted marketing.

Driven by growth and used boat Revenue, finance and insurance parts and service and contributions from super yacht services and Marina operations. Including IGI. In terms of units they were down in the quarter as we continue to see a migration to higher average unit prices

Gross profit was over 191 million and our gross margin increased to 34.7%.

Investments incurred to maximize sales opportunities in a challenging environment.

The increase in gross margin as Brett, noted reflects continued growth in our Diversified higher margin, businesses and was achieved despite historically low boat margins due to the challenging retail environment.

As well as higher foreign currency translation costs due to a weaker dollar.

Mike McLamb: Yeah, I'll comment. Yeah, I think that aged inventory, getting rid of that, getting inventory levels down to a more manageable level, and kind of balancing the supply-demand side is fundamental to everything. The promotional activity is strong. There's also, I think, a consumer sentiment. Boat prices have really increased over the last five years. There's pressure on just a consumer feeling like they need a discount, even if there's not an aged inventory or too much inventory. We just got to kind of lap through that and let customers get back to a more normal buying pattern. Inventory levels are definitely going to help get the margins squared away.

Interest expense was down slightly year over year.

The reported net loss in the quarter was just under $1 million.

<unk> <unk> per share, which was the same as the adjusted loss per share.

Adjusted EBITDA was $17 $3 million in the quarter.

For fiscal 2025 revenue was $2 31 billion, reflecting our same store sales decline of just over 2% due to the challenging industry environment, while total revenue declined 5%, given our strategic store and brand optimization efforts.

Selling General and administrative expenses were over 177 million. The increased primarily reflects the greater contribution of service related Revenue which drives gross margin dollars. But does have a higher cost Dynamic than retail store operations along with increases in targeted marketing, Investments, incurred to maximize sales opportunities in a challenging environment as well as higher foreign currency translation costs. Due to a weaker Dollar in the expense was down slightly year-over-year.

But our full year gross margin was 32, 5% down slightly from last year. Despite historically low boat margins across the industry.

That reported net loss in the quarter was just under $1 million or 4 cents per share, which was the same as the adjusted loss per share.

Adjusted Eva was 17.3 million in the quarter.

Our reported net loss per share was $1 43 with adjusted earnings per diluted share of <unk> 61.

James Hardiman: Yeah, industry levels. Yep.

Mike McLamb: Yeah.

For fiscal, 2025 Revenue was 2.31 billion reflecting the same store sales decline of just over 2%.

[Analyst] (Raymond James): Great. Thanks, guys.

James Hardiman: Thanks, Anna.

Adjusted EBITDA for the full year was about $110 million compared with $160 million in the prior year.

Operator: Thank you. Ladies and gentlemen, I will now hand the conference over to Mr. McGill for his closing comments.

Due to the challenging industry environment while total revenue declined 5%, given our strategic store and brand optimization efforts.

Our balance sheet remains strong with cash of more than $170 million. Despite buying back a significant amount of shares this year acquiring a great Marina and retail operation and shelter Bay in the keys as well as making regular investments in our business, including the opening of <unk> Savannah.

Mike McLamb: Well, thank you, everybody, for joining us today, and I look forward to keeping you updated on our next call. Have a great day.

Our full year, gross margin was 32.5% down slightly from last year, despite historically low boat margins across the industry.

Operator: Thank you. Ladies and gentlemen, the conference of MarineMax has now concluded. Thank you for your participation. You may now disconnect your lines.

Marine expansion and the opening of the expanded Fort Myers operation among other initiatives.

A reported net loss per share was $1.43, with adjusted earnings per diluted share of $0.61. Adjusted EBITDA for the full year was about $110 million, compared with $160 million in the prior year.

Inventories decreased by nearly $40 million year over year, reflecting our continued efforts to optimize inventory levels with our manufacturing partners.

Our net debt to adjusted EBITDA ratio was about two times at quarter end, providing substantial financial flexibility.

Our balance sheet remains strong with cash of more than 170 million despite buying back a significant amount of shares. This year acquiring a great Marina and Retail operation in Shelter Bay and the keys as well as making regular investments in our business, including the opening of IGI. Savannah,

Based on current business conditions.

<unk> industry registration data retail trends and other relevant factors.

The Stuart Marine expansion and the opening of the expanded Fort Meyers operation among other initiatives.

We expect fiscal 2026, adjusted EBITDA to be in the range of $110 million to 125 million with adjusted net income in the range of 40 to 95 per diluted share are.

Inventories decreased by nearly 40 million year-over-year reflecting our continued efforts to optimize inventory levels with our manufacturing partners.

Our net debt adjusted the debit. Our ratio was about 2 times at quarter end.

Providing substantial Financial flexibility.

Our guidance assumes industry units for our fiscal year will be down slightly to up slightly depending on the various factors that have affected consumer demand.

This implied same store sales growth will be flattish to slight growth subject to mix.

Retail margin pressure is expected to continue across the industry through the end of our fiscal second quarter, which corresponds to the seasonally slower winter months.

Based on current business conditions, recent industry registration data, retail Trends and other relevant factors. We expect fiscal 2026 adjusted. Evida to be in the range of 110 million, to 125 million with adjusted net income in the range of 400 cents to 95 cents per diluted share.

We expect industry inventory levels to be healthier in the second half of the fiscal year than the same period in fiscal 2025.

Our guidance assumes industry units for our fiscal year will be down slightly to up slightly depending on the various factors that have effective consumer demand.

Given the success of our higher margin business expansion, we expect to be able to maintain our annual consolidated gross margins in the low thirties.

This implies same store, sales growth will be flattish to slight growth subject to mix.

Our guidance incorporates the currently announced interest rate cuts and uses an annual effective tax rate of 26, 5% with a share count of around $22 8 million shares.

Retail margin pressure is expected to continue across the industry. Through the end of our fiscal second quarter, which corresponds to the seasonally slower winter months.

These projections exclude the potential impact of material acquisitions or other unforeseen developments, including changes in global economic conditions.

Given the success of our higher margin business expansion. We expect to be able to maintain our annual Consolidated, gross margins in the low 30s.

When you think about 2026 keep in mind, our revenue EPS and EBITDA was tracking well for the first six months of 2025 through March despite the challenging environment.

It wasn't until after liberation day that things grew much more challenging.

Our guidance incorporates, the currently announced interest rate cuts and uses an annual effective tax rate of 26.5% with a share count of around 22.8%.

As such our front half comparisons overall are more difficult in the back half comparisons.

these projections exclude, the potential impact of material Acquisitions, or other unforeseen developments, including changes in global economic conditions

Now let me comment on current trends October finished with positive same store sales growth and Bret discussed the successes, we had at the Fort Lauderdale boat show.

In both cases, we are encouraged but we also recognize the undeniable softness that has persisted at the industry as evidenced by a soft September.

When you think about 2026, keep in mind our Revenue Epps and Ava was tracking. Well, for the first 6 months of 2025 through March, despite the challenging environment.

It wasn't until after Liberation Day that things grew much more challenging.

Especially for fiberglass boat sales. So while we are encouraged we are also balanced now let me turn the call back to Bret for closing comments Bret.

As such our front half comparisons overall, are more difficult than the back half comparisons?

Now, let me comment on current trends.

Thank you Mike.

Although our fiscal 2026 outlook reflects a prudent approach in light of macroeconomic uncertainty and persistent industry headwinds, we remain confident in marine Max as long term strategy and growth opportunities. Our management team has guided the company through multiple challenging economic cycles, and we believe that the continue.

October finished with positive same-store sales growth, and Brett discussed the successes we had at the Fort Lauderdale Boat Show.

In both cases, we are encouraged. But we also recognize the undeniable softness that has persisted in the industry as evidenced by a soft September.

Especially for fiberglass, boat sales. So while we are encouraged, we are also balanced.

<unk> execution of our strategy will drive sustainable and profitable growth for our shareholders.

Now, let me turn the call back to Brett for closing comments.

Brett, thank you, Mike.

Our diversification across higher margin businesses combined with our strong balance sheet support our resiliency in the face of industry headwinds, while also providing us with the flexibility to invest in growth and seize emerging opportunities. We will continue to focus on strategic initiatives and product innovation.

Digital engagement and customer experience areas that are becoming increasingly valuable as buyers become more discerning.

Although, our fiscal 2026 Outlook reflects a prudent approach in light of macroeconomic uncertainty and persistent industry. Headwinds, we remain confident in Marine Max's long-term strategy, and growth opportunities. Our management team has guided the company through multiple challenging economic cycles and we believe that the continued execution of our strategy will drive sustainable and profitable growth for our shareholders.

The recreational boating industry is approaching several potentially positive inflection points industry wide inventories are expected to reach more normalized levels over the coming quarters, which should provide margin relief.

Additionally, interest rate cuts are generally positive for our consumer and the further rate cuts that many expect to occur over the coming months should support improved customer demand the fundamental.

Our diversification across higher margin, businesses combined, with our strong, balance sheet, support our resiliency in the face of Industry, headwinds while also providing us with the flexibility to invest in growth and seize emerging opportunities, we will continue to focus on strategic initiatives and product Innovation, digital engagement, and customer experience areas that are becoming increasingly valuable as buyers become more discerning.

<unk> supporting recreational boating remain exceptionally strong interest in the boating lifestyle continues to accelerate as evidenced by robust activity levels at our marinas service centers and at the recent Fort Lauderdale boat show.

The recreational boating industry is approaching several potentially positive inflection points. Industry-wide, inventories are expected to reach more normalized levels over the coming quarters, which should provide margin relief.

Premium consumers increasingly view boating, not as a discretionary purchase but as an essential lifestyle.

Additionally, interest rate cuts are generally positive for our consumer and the further rate cuts that many expect to occur over the coming months should support improved customer demand.

As macroeconomic conditions improve our strategy positions us to emerge more resilient more diversified and uniquely poised to capture the long term opportunities in the global recreational marine market.

With that Mike and I'll be happy to take your questions. So operator, please open up the line for Q&A.

The fundamental supporting recreational boating, remain exceptionally, strong interest in the Boating lifestyle continues to accelerate as evidenced by robust activity levels at our marinas service centers and at the recent Fort Lauderdale Boat Show.

Thank you.

Ladies and gentlemen, we will now begin the question and answer session.

Premium consumers, increasingly view boating not as a discretionary purchase. But as an essential lifestyle,

If you would like to ask a question. Please press star and one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

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As macroeconomic conditions, improve our strategy positions us to emerge more resilient more Diversified and uniquely poised to capture the long-term opportunities in the global recreational Marine Market.

All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star Keith.

With that mic and I'll be happy to take your questions. So operator, please open up the line for Q&A.

Thank you.

Ladies and gentlemen in the interest of time, please limit yourself to one question.

Ladies and gentlemen, we will now begin the question and answer session.

One moment, please while we poll for questions.

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We take the first question from the line of James Hardiman from Citi. Please go ahead.

you may press star and 2 if you would like to remove your question from the queue,

Okay.

Hey, good morning, Thanks for taking my questions. So.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Obviously, the same store sales number accelerated nicely from <unk> to <unk> I was hoping you could help us out just splitting sort of how much of that with unit versus ASP.

Ladies and gentlemen, in the interest of time, please limit yourself to 1 question.

1 moment, please while we Poll for questions.

And then I guess similar question on the month of October I think you said <unk>.

We take the first question from the line of James Hardman from City. Please. Go ahead.

<unk> same store sales for October are you actually seeing.

Unit acceleration into the off season.

Okay.

Yes, Great question James So obviously you guys followed the industry the industry for the core categories that we're in has seen softness double digit declines in July August and September and some categories, 25% et cetera from a unit perspective, so we typically outperform the.

The industry. So our units for the quarter are down in the mid single digit range, which is better than the industry overall and so the difference from down mid single digit to up 2% as the increase in average unit selling price during the quarter.

Are, are you actually seeing you know unit acceleration uh into the offseason thanks.

And then on the month of October you've got to keep in mind. The month of October last year, we were dealing with a hurricane in Florida, but our our units were up in the month of October and we also did see.

A modest increase in average unit selling price.

That's really helpful and then just.

Very briefly just wanted to dig into the rate environment, obviously, we've gotten a couple of.

Yeah, a great question James. So, obviously, you guys filed the industry, the industry for the core categories that we're in has seen uh, softness double digit declines in, July, August and September in some categories, 25% Etc, from a unit perspective, so we typically outperform the, uh, the industry. So our units for the quarter are down in the mid, single digit range, which is better than the industry overall. And so the difference from down mid cycle digit up 2% is the increase in averaging at sell and price during the quarter.

25 basis point.

Rate cuts I think the 10 years.

Modestly lower than maybe the last time, we spoke.

Are you seeing that show up in terms of relief from your.

Lenders and is that having any impact from a consumer perspective as they contemplate.

And then on the month of October, you got to keep in mind the month of October last year, we were dealing with a hurricane in Florida, but our our, um, our units were up in the month of October and we also did see a modest increase in average in it selling price.

Lower payments thanks.

That's really helpful. And then, just very briefly, I wanted to dig into the rate environment. Obviously, we've gotten a couple of...

Yes, yes, James Good question I think rates for the consumer obviously, we're kind of dealing in a higher end segment as we've always talked about so.

Monthly payment may be isn't driving the need to just rush out and buy something but I've said before a lot of our customers are small business owners construction companies.

Et cetera, and when Theres a rate environment that is more favorable for their business. They get a little more excited and optimistic about things.

25 basis points rate Cuts. I think the 10 year is is modestly lower than than maybe the last time we spoke. Are you seeing that show up in? In terms of relief from your uh lenders? And you know, is that having any impact? Um from a consumer perspective as they contemplate, you know, lower payments. Thanks.

Come forward with a boat purchase so I think both of those things are helping but consumer feeling better about the rate I think we see some of that like even at Lauderdale, feeling better about things are going to come down.

Given our positive news that they haven't had in a while.

Got it that's helpful color. Thanks, guys.

Thanks James.

We take the next question from the line of Mike Albany's from the Benchmark Company. Please go ahead.

Hey, good morning, guys. Thanks for taking my question.

I just wanted to ask about gross margins, obviously jumped I think 34% in the quarter.

Yeah, yeah. James good question. I I think, you know, rates for the consumer, obviously, we are kind of dealing in a higher-end segment as we've always talked about. So, uh, you know, monthly payment maybe isn't driving the need to just rush out and buy something. But I I've said before, a lot of our customers are small business owners, you know, construction companies, uh, Etc. And you know, when there's a rate, uh, environment that's more favorable for their business, uh, they get a little more excited and optimistic about things and, you know, they, they come forward with the, a boat purchase. So, I think both of those things are helping, but, uh, consumer feeling better about the rate. I think we see some of that, like, even at Lauderdale feeling better, about the things are going to come down. Uh, is is, you know, given a positive news that they haven't had in a while.

Pretty consistent keeping them above 30% here in a tough.

Got it. That's helpful caller. Thanks guys.

Market and obviously some of that is mix, but it appears your adjacencies.

Thanks James.

Are holding up well could you just kind of tap into that a little bit deeper and I'd love to kind of understand how much of that has been kind of strategic initiatives cross sell synergies et cetera versus just sustainable demand within those segments. Thank you.

We take the next question from the line of Mike oublie from The Benchmark Company. Please go ahead.

I can comment I'll take a first stab that yes in the current environment boat margins are the second lowest I've seen in 27 years, they're not down as far as they were in the great financial crisis, but they are very low there are like three to 350 basis points below normal.

Hey, good morning guys, thanks for taking my question. Um, I just want to ask about gross margins obviously uh jumps. I think, 34% on the quarter it's you've been pretty consistent. Keeping them above 30% here in a, in a tough, uh, you know, market and obviously, you know, some of that is mixed. But it, it appears you're a Jason's.

And so hopefully over time, we'll see some upside in boat margins as inventories normalized but I do think our strategy.

Are holding up. Well, could you just, you know, kind of tap into that a little bit deeper and I'd love to kind of understand, you know, how much of that has been kind of strategic initiatives cross sell synergies Etc. Versus just sustainable demand within those segments. Thank you.

We are expanding in these higher margin categories, whether it's the marinas Super Yacht services Finance and insurance service parts and accessories, a lot. There's a lot of different higher margin components that we've been expanding with I think really shines in an environment like this it helps us maintain.

Elevated gross margins overall it comes through in the quarter.

I, I can come and I'll take a first stab that, uh, yeah. In the current environment boat. Margins are the second lowest I've seen in 27 years. They're they're, they're not down as far as they were in the great financial crisis but they're very low, they're like 3 to 350 basis points below normal um, and so, you know, hopefully over time. We'll see some upside and boat margins as inventories normalize.

Mike when we set out with this strategy and we're very focused on it with these higher margin businesses and the growth we've had in those and the investments we've made in those businesses.

It does show through its shines and yes. Good question, yes, those businesses.

Youll have what's close to recurring type revenue as you can get so you can kind of rely on those types of things of course get to manage the business, but we're continue to unlock different synergies cross selling.

<unk> feeling good about buying a larger yacht at our marine Max Fort Myers location, let's say and then feeling good about well what if I want to put that in charter with with Frazier yachts or whatever it might be so that they feel comfortable with that all the way up to.

Where are they going to put their boat when they get to the Caribbean through our <unk> Marina. So we're seeing a lot more of those synergies and we will continue to unlock those as well.

But I do think our strategy of expanding in these higher margin categories. Whether it's the marinas superyacht Services, finance and Insurance Service parts and accessories a lot. There's a lot of different higher margin components that we've been expanding with. I think really shines in an environment like this and helps us maintain uh, elevated gross margins, uh, overall, uh, it comes through in the quarter and Mike when we set out with this strategy and we're very focused on it with these higher margin, businesses, and the growth we've had in those and the Investments we've made in those businesses. That does show through it shines and yes a question. Yeah, those businesses um, you know, have what's close to recurring type Revenue as you can get so you can kind of rely on those types of things. Of course, you got a man

Okay.

Got it thank you guys.

Thank you Mike.

We take the next question from the line of Joseph <unk> from Raymond James. Please go ahead.

Hey, good morning isn't Martin on for Joe I, just want to make a finer point onto the promotional drag in the quarter could you give a little bit more color to what that headwind was in sort of what we can expect entering new year.

As well.

Got it. Thank you guys.

Thank you, Mike.

Yes, if I understand your question right Martin good questions. So I would say this entire fiscal year, we've seen a very challenged environment because of elevated inventory levels.

We take the next question from the line of Joseph Alabalo from Raymond James. Please go ahead.

Really across the industry.

Certainly true in the current quarter I, just comment a little while ago, just how soft boat margins are.

When we think about 2026 and in our guidance, we're not expecting much of a lift in boat margins I think I commented in my prepared remarks that at least through the winter time. When there is a lot of dealers who are.

Hey, good morning. This is Martin on for Joe. I just want to take a finer point on to the promotional drag in the quarter. Could you give a little bit more color to what that headwind was and sort of what we can expect entering the new year?

Our feeling softer sales and increased pressure when it comes to carrying cost et cetera, I think the margin.

Yeah, if I understand your question, right? Martin. Good question. So the I'd say this is entire fiscal year. We've seen a very challenged environment because of elevated inventory levels, really across the industry

The pressure, we will we will still be there.

It is thought that later on in the year when you get into the summer selling season as inventories begin to normalize that we could see some relief on the margin side, but obviously it won't snap back overnight, but it will potentially begin to improve like in the summertime in the back half of March.

Certainly through in the current quarter, I just comment a little while ago, just how soft boat margins are.

Thank you Mark.

Thank you.

We take the next question from the line of Annick vault from Texas Capital Securities. Please go ahead.

Thanks, Good morning.

Mike kind of looking at the <unk>.

When we think about 2026 and then our guidance, we're not expecting much of a lift in boat margins. I think I commented in my prepared remarks that at least through the winter time when there's a lot of dealers who are, you know, are feeling softer sales and increased pressure when it comes to carrying costs, Etc. I think the margin the the the pressure will will still be there. Uh, it is thought that later on in the year when you get into the summer selling season as inventories, begin to normalize that we could see some relief on the margin side, but obviously it won't snap back overnight but it will potentially begin to improve like in the summer time in the back half of our

Guidance for the fiscal 2006 I guess.

Industry.

Assumptions relative to your same store sales it looks like.

Thank you, Mark.

Unless I'm reading is wrong, and we figured you're expecting kind of more in line ish performance with the industry versus.

Thank you.

Kind of more of the outperformance that you've had before especially given.

We take the next question from the line of Eric Walt from Texas Capitol Securities. Please go ahead.

The mix towards higher end premium am I reading that wrong.

Thanks. Good morning. Um,

I'm trying to take a little more cautious view.

Mike, can I look at your the guidance for, um, the fiscal 26? I guess you industry.

On mix or how should we think about kind of what's embedded in that guidance in terms of.

um,

Relative performance to the industry.

No Eric I think you're reading that right I think I think the first assumption as does the industry get to flattish units from negative. So that's one assumption thats in there and then obviously what happens with mix from our perspective, but I think we're we're trying to be prudent in terms of our guidance figures because youre right we tip.

assumptions relative to your same sort of sales. It looks like, I mean, unless I'm reading this wrong, it looks like you're expecting kind of more in line of performance with the industry versus

kind of more of the outperformance that you've had before especially given. Um,

Do outperform what the industry does but I think we're really trying to see lets get through fiscal 2026, let's see that the industry really does get back to.

The the mix towards you know, higher end, premium both, am I reading that wrong? Are you, are you trying to take a little more cautious view, um, on mix? Or how should we think about kind of what's embedded in that guidance in terms of, you know, relative performance to the industry?

First is zero instead of negative and then to slightly positive in the second half of the year.

Got it and then just quickly.

Get us on where you are with them.

You're rationalizing kind of operating expenses and general and overhead and kind of what you expect.

As you've moved through fiscal 'twenty two.

Well I commented that we have closed 10 stores now since last year and we've made other cost cuts in savings, but there is a current drag that's going on within the business, which is just additional marketing spend additional inventory maintenance spend et cetera. It really that the whole industry is having with the with the slower.

No, Eric I think you're reading that, right? I think I think the you know the the first assumption is does the industry get to flyash units from negative? So that's 1 assumption, that's that's in there and then obviously what happens with with mix from our perspective. But but I think we're we're trying to be a prudent in terms of our guidance figures because you're right, we typically do outperform what the industry does, but I think we're really trying to see. Let's let's get through fiscal 2026. Let's see that the industry.

Really does get back to, you know, first is zero instead of negative, and then just slightly positive in the second half of the year.

Got it. And then just quickly um update us on on where you are with um,

Turns that we've had which would improve but in our 2026 guidance we're not.

Um, you're rationalizing kind of operating expenses and, in general, overhead and kind of what you expect as you move through fiscal 2026.

Baking in any substantial additional cost savings from from what we're seeing in the current levels of 2020.

Five.

Got it thanks, Mike.

Thanks, Eric Thank you Sir.

Thank you we take the next question from the line of Ana <unk> from B Riley Securities. Please go ahead.

Hey, good morning.

Thanks for taking my call good morning.

I'd like to start on.

Okay, then on the one hand it.

Well, I commented that we've uh, we have closed 10 stores. Now, since last year, and we've made other Cost Cuts and savings there, there is a current drive that's going on within the business which is just additional marketing, spend additional inventory, maintenance, spend Etc. Really that the whole industry is having with the with the slower turns that we've had which would improve but in our 2026 guidance we're not uh uh baking in any substantial uh additional cost savings from from what we're seeing in the current levels of 2020 uh 5

We're assuming some sequential improvement as you get to the back half in terms of the market performance, but then on the other hand, we have some sort of one time lap like lapping the hurricane in Florida last year, which drove the easiest comp in <unk>. So just trying to understand the puts and takes as we think about the shape of the year.

got it. Thanks Mike.

Thanks Eric. Thank you Eric.

Thank you. We take the next question from the line of Anna, glezen from B Riley Securities. Please go ahead.

No. It's a great great question and you're right I mean, the state of Florida was impacted by Hurricanes. Our we were down negative 11% of the December quarter, then up 11 in March.

So technically we do have an easier comparison right now which is why I said with October being up it's up against the storms.

And then when you go out throughout the year, obviously the quarter with Liberation day, which is the June quarter.

Hey, good morning, excuse me, thanks for taking my questions. Um, I'd like to start on, uh, same store sales, Cadence, you know, on the 1 hand, it seems that we're assuming some sequential Improvement. As we get to the back half in terms of market performance, but then on the other hand, we have some sort of 1-time laps. Like, you know, lapping the hurricane in Florida last year, which drove, you know, the easiest comp in 1 Q. So just trying to understand the puts and takes as we think about the shape of the year.

In theory is another easy comp were down 9% and then it sort of levels off.

In September so you do get a bake all that in from an up from them assumption perspective, I think the point that I was trying to make in the.

In my prepared remarks is that when you when you look at our our bottom line financial performance in the December quarter in the March quarter.

Have an easier comparison, right now, which is why I said with October being up, it's up against the storms.

We exceeded our our.

My, and then when you go out, throw out the year, obviously, the quarter with Liberation Day, which is the June quarter.

Our thinking in the street and our guidance in those two quarters from an EBITDA and from an earnings perspective, so when you're modeling out the whole year factoring in the same store sales questions that you're asking.

We actually have an easier comparison from an earnings perspective.

In the back half of the year than the front half of the year also.

Got it.

And then turning back to the margin question.

Understanding that.

Back in May.

Getting some improvement once we get through the March quarter permanently answer the retail selling season, I'm trying to understand kind of like the key drivers.

Improvement there or is it getting through some of the aged inventory that may be competitors.

In theories and other easy comp we were down 9%. Um, and then it sort of levels off in in, uh, in September. So, you do got to bake all that in from a, from the Assumption perspective. I think the point that I was trying to make in the, um, in my prepared remarks is that when you, when you look at our our bottom line, financial performance of the December quarter, and the March quarter, we, we exceeded, you know, our our, our our, our our thinking, in the street, and our guidance, and those 2 quarters from an ibida, and from an earnings perspective. So, when you're modeling out the whole year factoring in the same store, sales questions that you're asking, uh, we actually have an easier comparison from an earnings perspective and the, in the, um,

In the back half of the year than the front half of the year. Also.

Improved market performance or is it really just.

That seasonal impact.

Impacting the first two quarters of the year.

Thanks.

Yeah.

Yes, I think that aged inventory getting rid of that getting inventory levels down to a more <unk>.

Manageable level and kind of balancing the supply demand side. It is fundamental to everything the promotional activity is strong.

There is also I think a consumer.

Got it. Uh, thanks and then returning back to to the boat March and the question. Um, you know, understanding the seasonal aspects of maybe getting some improvement. Once we get through the March quarter, um, when we enter the retail selling season but try to understand kind of like the key drivers of of improvement there, is it getting through some of the Aged inventory that may be competitors? Feel is it improved market performance? Or is it really just, you know, that seasonal aspect that

Sentiment boat prices have really increased over the last five years. So theres pressure on just the consumer feeling like they need a discount even if there is.

Impacting, the first 2 quarters of the year, thanks.

Not an aged inventory or too much inventory. So we just got to kind of lap through that and let customers get back to more normal buying pattern, but inventory levels are definitely going to help get the get the margins squared away.

Three levels yet.

Yes.

Okay. Thanks, guys.

Thank you Anna.

Thank you.

Ladies and gentlemen, I will now hand, the conference over to Mr. Mcgill for his closing comments.

Well. Thank you everybody for joining us today and look forward to keeping updated on our next call have a great day.

Thank you.

Ladies and gentlemen, the conference of money and Max incorporated has now concluded. Thank you for your participation you may now disconnect your lines.

Yeah, and I, I'll comment. Yeah. I think that aged inventory, you know, getting rid of that getting inventory levels down to a more, you know, manageable level and and kind of balancing the supply demand side is is fundamental to everything. Uh, the promotional activity is strong. Uh, you know, there's also, I think a consumer, you know, sentiment, you know, boat prices have really increased over the last 5 years, so there's pressure on, you know, just a consumer feeling like they need a discount. Even if there's, uh, you know, not an aged inventory or too much inventory. So we just got to kind of lap through that and let customers, you know, get back to a more normal buying pattern, but inventory levels are definitely going to help um get the get the margins squared away the industry levels. Yeah. Yeah.

Great. Thanks guys.

Thanks Anna.

Thank you.

Ladies and gentlemen, I will now hand the conference over to Mr. Miguel for his closing comments,

Well, thank you everybody for joining us today and I look forward to keeping updated on our next call.

Have a great day.

Thank you.

Ladies and gentlemen, the conference of marine Max Incorporated has now concluded, thank you for your participation. You may now disconnect your lines.