Q3 2026 MarineMax Inc Earnings Call

July 23, 2026

Speaker #1: Good day, and welcome to the MarineMax Incorporated third quarter fiscal year 2026 earnings call. Today's call is being recorded. At this time, all participants are to listen-only mode.

Operator: Good day, and welcome to the MarineMax, Inc. Third Quarter Fiscal Year 2026 Earnings Call. Today's call is being recorded. 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.

Speaker #1: A question and answer session will follow the formal presentation. If anyone—I'm sorry. I would now like to turn the call over to Scott Solomon of the company's investor relations firm, Sharon Merrill Advisors.

Speaker #1: Please go ahead, sir.

Speaker #2: Thank you, operator, and good morning, everyone. Hosting today's call are Brett McGill, MarineMax's chief executive officer, and president, and Mike McLamb, the company's executive vice president and chief financial officer.

Scott Solomon: Thank you, operator, good morning, everyone. Hosting today's call are Brett McGill, MarineMax's Chief Executive Officer and President, and Mike McLamb, the company's Executive Vice President and Chief Financial Officer. Brett will begin the call by discussing MarineMax's operating performance, strategic priorities, and recent highlights. Mike will review the financial results and the company's fiscal 2026 financial guidance. Brett will make some concluding comments, then management will be happy to take your questions. The earnings release and supplemental presentation associated with today's announcement can be found at investor.marinemax.com. With that, I'll turn the call over to Mike. Mike?

Scott Solomon: Thank you, operator, good morning, everyone. Hosting today's call are Brett McGill, MarineMax's Chief Executive Officer and President, and Mike McLamb, the company's Executive Vice President and Chief Financial Officer. Brett will begin the call by discussing MarineMax's operating performance, strategic priorities, and recent highlights. Mike will review the financial results and the company's 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 at investor.marinemax.com. With that, I'll turn the call over to Mike. Mike?

Speaker #2: Brett will begin the call by discussing MarineMax's operating performance, strategic priorities in recent highlights, Mike will review the financial results, and the company's fiscal 2026 financial guidance.

Speaker #2: 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 at investor.marinemax.com.

Speaker #2: And with that, I'll turn the call over to Mike. Mike?

Speaker #3: 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 1995.

Michael H. McLamb: Thank you, Scott. Good morning, everyone, 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 1995. 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. These risks include, but are not limited to, the impact of seasonality and weather, global economic conditions, and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our most recently filed 10-K and 10-Q and other filings with the Securities and Exchange Commission. 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.

Mike McLamb: Thank you, Scott. Good morning, everyone, 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 1995. 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. These risks include, but are not limited to, the impact of seasonality and weather, global economic conditions, and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our most recently filed 10-K and 10-Q and other filings with the Securities and Exchange Commission. 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.

Speaker #3: 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. These risk include, but are not limited to, the impact of seasonality and weather, global economic conditions and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our most recently filed 10-K and 10-Q, and other filings with the Securities and Exchange Commission.

Speaker #3: 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.

Speaker #3: 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.

Michael H. McLamb: 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 MarineMax and other companies on both a GAAP and a non-GAAP basis. The reconciliation of 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?

Mike McLamb: 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 MarineMax and other companies on both a GAAP and a non-GAAP basis. The reconciliation of 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?

Speaker #3: These measures can also help investors who wish to make comparisons between MarineMax and other companies on both a GAAP and a non-GAAP basis. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available on today's earnings release.

Speaker #3: With that, let me turn the call over to Brett. Brett.

Speaker #4: Thank you, Mike. Good morning, everyone, and thank you for joining us today to discuss our fiscal third quarter results. Before reviewing the quarter, I want to recognize our team's across MarineMax who make this company special.

Brett McGill: Thank you, Mike. Good morning, everyone, and thank you for joining us today to discuss our fiscal third-quarter results. Before reviewing the quarter, I want to recognize our teams across MarineMax who make this company special. In each operation, we have such tenure and expertise that help ensure we are fulfilling our customers' needs while also driving results. As reflected in our industry-leading Net Promoter Scores, our teams work hard every day to deliver an exceptional customer experience. Whether we are helping a customer purchase their first boat, supporting them through service and marina operations, or assisting with yacht brokerage, charter, or finance and insurance, we strive to build lasting relationships at every stage of the journey. The customer-centric approach remains a meaningful competitive advantage and an important driver for our long-term success.

Speaker #4: In each operation, we have such tenure and expertise that help ensure we are fulfilling our customers' needs while also driving results. As reflected in our industry-leading net promoter scores, our team's work hard every day to deliver an exceptional customer experience.

Speaker #4: Whether we are helping a customer purchase their first boat, supporting them through service and marina operations, or assisting with yacht brokerage, charter, or finance and insurance, we strive to build lasting relationships at every stage of the journey.

Speaker #4: The customer-centric approach remains a meaningful competitive advantage and an important driver for our long-term success. Turning to our results, our third quarter performance reflects the benefits of the diversified and resilient business we have built.

Brett McGill: Turning to our results, our third-quarter performance reflects the benefits of the diversified and resilient business we have built. As reflected in industry registration data, US retail demand has remained challenged amid economic and geopolitical uncertainty, with the premium end of the market generally being more resilient. In this environment, the strategic investments we have made to diversify our business, strengthen our operating capabilities, and enhance the customer experience have helped to drive our performance. Perhaps the clearest evidence of the success of our strategy is the gross margin performance we delivered during the quarter. While market conditions weighed on revenue, gross margin increased 530 basis points to 35.7%.

Speaker #4: As reflected in industry registration data, U.S. retail demand has remained challenged amid economic and geopolitical uncertainty, with the premium end of the market generally being more resilient.

Speaker #4: In this environment, the strategic investments we have made to diversify our business strengthen our operating capabilities and enhance the customer experience have helped to drive our performance.

Speaker #4: Perhaps the clearest evidence of the success of our strategy is the gross margin performance we delivered during the quarter. While market conditions weighed on revenue, gross margin increased 530 basis points to 35.7%.

Speaker #4: This result underscores the durability of our business model supported by a premium product mix disciplined inventory management and the growing contribution of high-margin less cyclical revenue streams such as our brokerage, finance, and insurance, marina operations, including IGY, are superyachts division, and our parts and service businesses.

Brett McGill: This result underscores the durability of our business model, supported by a premium product mix, disciplined inventory management, and the growing contribution of high-margin, less cyclical revenue streams, such as our brokerage, finance and insurance, marina operations, including IGY, our Superyacht Division, and our parts and service businesses. All these businesses performed well in the quarter, helping to offset lower boat revenue while driving growth in gross profit dollars. The actions we have taken to reduce inventory and maintain pricing discipline are also contributing to healthier boat margins and improved profitability. Consistent with prior comments, as industry inventory levels continue to normalize, we believe the margin environment should gradually become more favorable across the industry, particularly for well-capitalized dealers that have managed inventory responsibly. Together with our diversified business model, these dynamics support our ability to deliver attractive profitability across the cycle.

Speaker #4: All these businesses performed well in the quarter, helping to offset lower boat revenue while driving growth and gross profit dollars. The actions we have taken to reduce inventory and maintain pricing discipline are also contributing to healthier boat margins and improved profitability.

Speaker #4: Consistent with prior comments, as industry inventory levels continue to normalize, we believe the margin environment should gradually become more favorable across the industry, particularly for well-capitalized dealers that have managed inventory responsibly.

Speaker #4: Together with our diversified business model, these dynamics support our ability to deliver attractive, profitability across the cycle. In late June, supported by strong cash flow, a solid financial position, and long-standing strong relationships with our lending partners, we successfully refinanced all of our term debt on improved terms, extended maturities to 2031, and further enhanced our financial flexibility.

Brett McGill: In late June, supported by strong cash flow, a solid financial position, and longstanding strong relationships with our lending partners, we successfully refinanced all of our term debt on improved terms, extended maturities to 2031, and further enhanced our financial flexibility. This positions us to execute our strategy with confidence, including selectively pursuing higher margin growth opportunities aligned with our long-term objectives while continuing to invest in initiatives that strengthen our market position and expand our premium product portfolio. During the quarter, we also launched an industry-leading Certified Pre-Owned Program to help capitalize on the strength and attractiveness of the used boat market. Late-model pre-owned boats continued to be an excellent opportunity for individuals desiring the boating lifestyle. Thus far, the interest in the program is high, and the initial successes reflect improved gross margins while providing excellent comfort to our customers.

Speaker #4: This positions us to execute our strategy with confidence, including selectively pursuing higher-margin growth opportunities aligned with our long-term objectives, while continuing to invest in initiatives that strengthen our market position and expand our premium product portfolio.

Speaker #4: During the quarter, we also launched an industry-leading certified pre-owned program to help capitalize on the strength and attractiveness of the used boat market. Late-model pre-owned boats continued to be an excellent opportunity for individuals desiring the boating lifestyle.

Speaker #4: Thus far, the interest in the program is high, and the initial successes reflect improved gross margins while providing excellent comfort to our customers. More recently, we announced a strategic partnership with NextBoat that expands the distribution opportunities for our financing and insurance offerings through our new coast financial services subsidiary.

Brett McGill: More recently, we announced a strategic partnership with NextBoat that expands the distribution opportunities for our financing and insurance offerings through our Newcoast Financial Services subsidiary. The partnership provides access to a broader network of pre-owned marine transactions and marketplace participants, creating additional avenues to grow one of our strategically important higher-margin businesses. Together, the CPO Program and NextBoat announcements underscore how we are strengthening the MarineMax platform and sharpening our execution. These actions continue to enhance the quality and durability of our earnings stream. The marine market remains highly segmented. That dynamic plays to our strengths. Demand has generally remained more resilient in premium categories where our industry-leading brands, customer relationships, and service capabilities provide meaningful competitive advantages. While conditions remain challenging in some parts of the market, we continue to outperform broader industry trends in the categories that are most important to our business.

Speaker #4: The partnership provides access to a broader network of pre-owned marine transactions and marketplace participants, creating additional avenues to grow one of our strategically important higher-margin businesses.

Speaker #4: Together, the CPO program and NextBoat announcements underscore how we are strengthening the MarineMax platform and sharpening our execution. These actions continue to enhance the quality and durability of our earnings stream, the marine market remains highly segmented, and that dynamic plays to our strengths.

Speaker #4: Demand has generally remained more resilient and premium categories, where our industry-leading brands customer relationships and service capabilities provide meaningful competitive advantages. While conditions remain challenging in some parts of the market, we continue to outperform broader industry trends in the categories that are most important to our business.

Speaker #4: With that, let me turn the call over to Mike for the financial review. Mike?

Brett McGill: With that, let me turn the call over to Mike for the financial review. Mike?

Speaker #3: Thank you, Brett. I also want to thank our team's across the globe for their efforts to strengthen our business while driving industry-leading performance. Third quarter revenue of $611 million reflected continued softness in boat sales across the industry.

Michael H. McLamb: Thank you, Bret. I also want to thank our teams across the globe for their efforts to strengthen our business while driving industry-leading performance. Q3 revenue of $611 million reflected continued softness in boat sales across the industry. Same-store sales declined 7%, driven primarily by lower unit sales, although our performance was meaningfully better than that of the unit declines reported for the industry. Gross profit rose to $218 million for the quarter, despite lower boat sales due to strong gross margins of nearly 36%. As Bret noted, our margins were up 530 basis points over last year, reflecting the strength of our higher-margin businesses and the progress we are making improving profitability across the business. For context, the tariff refund contributed approximately 110 basis points during the quarter.

Mike McLamb: Thank you, Bret. I also want to thank our teams across the globe for their efforts to strengthen our business while driving industry-leading performance. Q3 revenue of $611 million reflected continued softness in boat sales across the industry. Same-store sales declined 7%, driven primarily by lower unit sales, although our performance was meaningfully better than that of the unit declines reported for the industry. Gross profit rose to $218 million for the quarter, despite lower boat sales due to strong gross margins of nearly 36%. As Bret noted, our margins were up 530 basis points over last year, reflecting the strength of our higher-margin businesses and the progress we are making improving profitability across the business. For context, the tariff refund contributed approximately 110 basis points during the quarter.

Speaker #3: Same store sales declined 7%, driven primarily by lower unit sales. Although our performance was meaningfully better than that of the unit declines reported for the industry.

Speaker #3: Gross profit rose to $218 million for the quarter, despite lower boat sales due to strong gross margins of nearly 36%. As Brett noted, our margins were up 530 basis points over last year, reflecting the strength of our higher-margin businesses and the progress we are making improving profitability across the business.

Speaker #3: For context, the tariff refund contributed approximately 110 basis points during the quarter. The remaining 420 basis points of improvement reflected a combination of stronger new and used boat margins, and the growing contribution from our higher-margin businesses.

Michael H. McLamb: The remaining 420 basis points of improvement reflected a combination of stronger new and used boat margins and the growing contribution from our higher-margin businesses. The Q3 marked the second consecutive quarter of improving boat margins, a positive development considering the current stage of the industry cycle. As we have commented on prior calls, as industry inventory normalizes, boat margins should rise. For the March and June quarters, that is what we experienced, with trends improving meaningfully on a sequential basis during the June quarter. SGA expenses increased modestly year-over-year, excluding the items noted in the press release. The increase in expenses is largely a function of growth of our higher-margin businesses, which naturally carry a higher operating expense structure but also generate stronger margins and earnings than traditional boat sales.

Mike McLamb: The remaining 420 basis points of improvement reflected a combination of stronger new and used boat margins and the growing contribution from our higher-margin businesses. The Q3 marked the second consecutive quarter of improving boat margins, a positive development considering the current stage of the industry cycle. As we have commented on prior calls, as industry inventory normalizes, boat margins should rise. For the March and June quarters, that is what we experienced, with trends improving meaningfully on a sequential basis during the June quarter. SGA expenses increased modestly year-over-year, excluding the items noted in the press release. The increase in expenses is largely a function of growth of our higher-margin businesses, which naturally carry a higher operating expense structure but also generate stronger margins and earnings than traditional boat sales.

Speaker #3: The third quarter marked improving boat margins, a positive development considering the current stage of the industry cycle. As we have commented on prior calls, as industry inventory normalizes, boat margins should rise.

Speaker #3: For the March and June quarters, that is what we experienced, with trends improving meaningfully on a sequential basis during the June quarter. SG&A expenses increased modestly year over year, excluding the items noted in the press release.

Speaker #3: The increase in expenses is largely a function of the growth of our higher-margin businesses, which naturally carry a higher operating expense structure but also generate stronger margins and earnings than traditional boat sales.

Speaker #3: Interest expense declined, driven by lower inventory levels and reduced borrowings, further reflecting our strong balance sheet and prudent capital management. Building on our improved profitability, adjusted EBITDA increased over 44% to $51 million from $35 million.

Michael H. McLamb: Interest expense declined, driven by lower inventory levels and reduced borrowings, further reflecting our strong balance sheet and prudent capital management. Building on our improved profitability, adjusted EBITDA increased over 44% to $51 million from $35 million. Reported net income per diluted share was $0.66, compared with a loss of $2.42 last year, which included a non-cash goodwill impairment charge of $69 million. Using the same estimated effective tax rate in both periods, adjusted diluted earnings per share improved to $0.81 from $0.05. Turning to our balance sheet, we ended the quarter with cash of almost $175 million. Inventories declined approximately $118 million from last June and are also down from the March quarter. Customer deposits at quarter end increased meaningfully from last year and modestly from March, an encouraging sign. Importantly, we completed the refinancing of our senior secured credit facilities during the quarter.

Mike McLamb: Interest expense declined, driven by lower inventory levels and reduced borrowings, further reflecting our strong balance sheet and prudent capital management. Building on our improved profitability, adjusted EBITDA increased over 44% to $51 million from $35 million. Reported net income per diluted share was $0.66, compared with a loss of $2.42 last year, which included a non-cash goodwill impairment charge of $69 million. Using the same estimated effective tax rate in both periods, adjusted diluted earnings per share improved to $0.81 from $0.05. Turning to our balance sheet, we ended the quarter with cash of almost $175 million. Inventories declined approximately $118 million from last June and are also down from the March quarter. Customer deposits at quarter end increased meaningfully from last year and modestly from March, an encouraging sign. Importantly, we completed the refinancing of our senior secured credit facilities during the quarter.

Speaker #3: Reported net income per diluted share was $0.66, compared with a loss of $2.42 last year, which included a non-cash goodwill impairment charge of $69 million.

Speaker #3: Using the same estimated effective tax rate in both periods, adjusted diluted earnings per share improved to $0.81 from $0.05. Turning to our balance sheet, we ended the quarter with cash of almost $175 million.

Speaker #3: Inventories declined approximately 118 million from last June, and are also down from the March quarter. Customer deposits at quarter end increased meaningfully from last year and modestly from March, and encouraging sign.

Speaker #3: Importantly, we completed the refinancing of our senior secured credit facilities during the quarter. Successfully refinancing the facilities on improved terms in the current environment reflects the confidence our lending group has in MarineMax, our operating performance, and our long-term strategy.

Michael H. McLamb: Successfully refinancing the facilities on improved terms in the current environment reflects the confidence our lending group has in MarineMax, our operating performance, and our long-term strategy. Our continued focus on inventory reduction and cash flow generation contributed to improvement across all balance sheet metrics. We believe MarineMax remains well-positioned to navigate the current environment while continuing to pursue opportunities that enhance long-term value for our shareholders. Turning to guidance, after considering operating conditions, recent industry trends, retail performance, and other relevant factors, we are reaffirming our fiscal 2026 expectation for adjusted EBITDA for the year to be in the range of $110 million to $125 million, and adjusted net income to be in the range of approximately $0.40 to $0.95 per diluted share.

Mike McLamb: Successfully refinancing the facilities on improved terms in the current environment reflects the confidence our lending group has in MarineMax, our operating performance, and our long-term strategy. Our continued focus on inventory reduction and cash flow generation contributed to improvement across all balance sheet metrics. We believe MarineMax remains well-positioned to navigate the current environment while continuing to pursue opportunities that enhance long-term value for our shareholders. Turning to guidance, after considering operating conditions, recent industry trends, retail performance, and other relevant factors, we are reaffirming our fiscal 2026 expectation for adjusted EBITDA for the year to be in the range of $110 million to $125 million, and adjusted net income to be in the range of approximately $0.40 to $0.95 per diluted share.

Speaker #3: Our continued focus on inventory reduction and cash flow generation contributed to improvement across all balance sheet metrics. We believe MarineMax remains well positioned to navigate the current environment while continuing to pursue opportunities that enhance long-term value for our shareholders.

Speaker #3: Turning to guidance after considering operating conditions, recent industry trends, retail performance, and other relevant factors, we are reaffirming our fiscal 2026 expectation for adjusted EBITDA for the year to be in the range of $110 million to $125 million, and adjusted net income to be in the range of approximately $40 cents to $95 cents per diluted share.

Speaker #3: This outlook reflects our disciplined approach to the current environment and the progress we are making in shifting our business mix toward higher-margin, recurring, and service-oriented revenue streams.

Michael H. McLamb: This outlook reflects our disciplined approach to the current environment and the progress we are making in shifting our business mix towards higher margin, recurring, and service-oriented revenue streams. At the industry level, based on continued industry softness, especially in the meaningful June quarter, we now anticipate industry unit volumes will finish the year down as much as the mid-single-digit range. Same-store sales for fiscal 2026 are now expected to be down and likely in the same ballpark, reflecting continued macroeconomic uncertainty and a slower pace of retail recovery than anticipated earlier in the year. Although industry inventory levels are improving, retail conditions remain competitive, and promotional activity, while moderating, remains elevated. We believe the continued normalization of inventory is an important positive development that should support a healthier operating environment over time.

Mike McLamb: This outlook reflects our disciplined approach to the current environment and the progress we are making in shifting our business mix towards higher margin, recurring, and service-oriented revenue streams. At the industry level, based on continued industry softness, especially in the meaningful June quarter, we now anticipate industry unit volumes will finish the year down as much as the mid-single-digit range. Same-store sales for fiscal 2026 are now expected to be down and likely in the same ballpark, reflecting continued macroeconomic uncertainty and a slower pace of retail recovery than anticipated earlier in the year. Although industry inventory levels are improving, retail conditions remain competitive, and promotional activity, while moderating, remains elevated. We believe the continued normalization of inventory is an important positive development that should support a healthier operating environment over time.

Speaker #3: At the industry level, based on continued industry softness—especially in the meaningful June quarter—we now anticipate industry unit volumes will finish the year down.

Speaker #3: As much as the mid-single-digit range. Same-store sales for fiscal 2026 are now expected to be down and likely in the same ballpark.

Speaker #3: Reflecting continued macroeconomic uncertainty and a slower pace of retail recovery than anticipated earlier in the year. Although industry inventory levels are improving, retail conditions remain competitive and promotional activity while moderating remains elevated.

Speaker #3: We believe that continued normalization of inventory is an important positive development that should support a healthier operating environment over time. We now expect our full-year tax rate to be in the range of the mid-30s and expect our diluted share count to approximate 22.9 million shares.

Michael H. McLamb: We now expect our full-year tax rate to be in the range of the mid-30s and expect our diluted share count to approximate 22.9 million shares. These estimates exclude the impact of any material acquisitions or other unexpected events, including changes in the broader global economic environment. As for July, trends have remained consistent with what we experienced in May and June. Demand continues to be uneven, with periods of stronger activity followed by softer stretches. Based on what we see today, we believe July will finish with positive same-store sales, although the final days of the month remain important as they always do in our business. Regardless, though, of how the month concludes on boat sales, we remain confident that our higher margin businesses will continue to perform well. I'll turn the call back over to Brett for closing comments. Brett?

Mike McLamb: We now expect our full-year tax rate to be in the range of the mid-30s and expect our diluted share count to approximate 22.9 million shares. These estimates exclude the impact of any material acquisitions or other unexpected events, including changes in the broader global economic environment. As for July, trends have remained consistent with what we experienced in May and June. Demand continues to be uneven, with periods of stronger activity followed by softer stretches. Based on what we see today, we believe July will finish with positive same-store sales, although the final days of the month remain important as they always do in our business. Regardless, though, of how the month concludes on boat sales, we remain confident that our higher margin businesses will continue to perform well. I'll turn the call back over to Brett for closing comments. Brett?

Speaker #3: These estimates exclude the impact of any material acquisitions or other unexpected events including changes in the broader global economic environment. As for July, trends have remained consistent with what we experienced in May and June.

Speaker #3: Demand continues to be uneven, with periods of stronger activity followed by softer stretches. Based on what we see today, we believe July will finish with positive same-store sales, although the final days of the month remain important, as they always do in our business.

Speaker #3: Regardless, though, of how the month concludes on boat sales, we remain confident that our higher-margin businesses will continue to perform well. Now, I'll turn the call back over to Brett for closing comments.

Speaker #3: Brett?

Speaker #2: Thanks, Mike. While macroeconomic and geopolitical uncertainty remains a factor across our industry, we are encouraged by the continued performance of our higher-margin businesses, the strength of our financial position, and the progress being made across the industry toward more normalized inventory levels.

Brett McGill: Thanks, Mike. While macroeconomic and geopolitical uncertainty remains a factor across our industry, we are encouraged by the continued performance of our higher margin businesses, the strength of our financial position, and the progress being made across the industry toward more normalized inventory levels. As challenging as conditions have been at times, customer engagement and participation reinforce the enduring appeal of the boating lifestyle. The investments we've made to broaden and diversify MarineMax, combined with disciplined execution and prudent capital allocation, positions us well to manage through the current cycle while remaining focused on long-term value creation. Now Mike and I'd be happy to take your questions. Operator, please open up the line for Q&A.

Speaker #2: As challenging as conditions have been at times, customer engagement and participation reinforce the enduring appeal of the boating lifestyle. The investments we've made to broaden and diversify MarineMax, combined with disciplined execution and prudent capital allocation, position us well to manage through the current cycle while remaining focused on long-term value creation.

Speaker #2: And now, Mike and I would be happy to take your questions. So, operator, please open up the line for Q&A.

Speaker #1: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator 2: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Mike Albanese with Benchmark. Please proceed with your question.

Operator: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Mike Albanese with Benchmark. Please proceed with your question.

Speaker #1: You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #1: To allow for as many questions as possible, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Mike Albanese with benchmark.

Speaker #1: Please proceed with your question.

Speaker #4: Yeah, hey, good morning, guys. Thanks for taking my question. I just wanted to ask about gross margins, and if we exclude the 110 basis points from the tariff refunds, can you just kind of bifurcate between the remaining 400, I think 420 basis points as a result of improving boat margins versus higher margin service mix?

Michael Albanese: Yeah. Hey, good morning, guys. Thanks for taking my question. I just wanted to ask about gross margins, if we exclude the 110 basis points from the tariff refunds, can you just kind of bifurcate between the remaining 400, I think 420 basis points, as a result of improving boat margins versus higher margin service mix?

Speaker #3: Hey, thanks, Mike. And by the way, I'll mention, we're having a little bit of issues on the call. I think I heard your question.

Michael H. McLamb: Hey, thanks, Mike. By the way, I'll mention we're having a little bit of issues on the call. I think I heard your question. You want to know kind of how does it break down between how the improvement in gross margins, the 420 basis points, how does it break down between growth and higher margin businesses and boat sales? Good question.

Mike McLamb: Hey, thanks, Mike. By the way, I'll mention we're having a little bit of issues on the call. I think I heard your question. You want to know kind of how does it break down between how the improvement in gross margins, the 420 basis points, how does it break down between growth and higher margin businesses and boat sales?

Speaker #3: You want to know kind of how does it break down between how the improvement in gross margins, the 420 basis points, how does it break down between growth and higher margin businesses and boat sales?

Speaker #3: Good question. All the higher margin yeah, all the higher margin businesses continue to perform really well. And when I say that, I mean service in a store, parts in a store, finance and insurance in a store, the marinas, the stores have obviously super yachts IGY are performing well.

Michael Albanese: Good question. Correct.

Michael Albanese: Correct. Yep.

Mike McLamb: Yep. All the higher margin businesses continue to perform really well. When I say that, I mean service in a store, parts in a store, finance and insurance in a store, the marinas the stores have. Obviously, Superyacht Side are performing well. Newcoast Financial Services, they're all performing really pretty well. This quarter, what's nice to see is as the industry inventory normalizes, boat margins themselves have really improved a lot. Of the 430 basis points or 420, excuse my math, it's roughly 60% from growth in higher margin businesses and a little bit of mix at about 40%, maybe a little bit more than that is the improvement in boat margins. If you actually do the math, you'll see that we had something like 175 basis point, maybe to 200-point improvement in the underlying boat margins themselves this quarter versus a year ago.

Michael H. McLamb: All the higher margin businesses continue to perform really well. When I say that, I mean service in a store, parts in a store, finance and insurance in a store, the marinas the stores have. Obviously, Superyacht Side are performing well. Newcoast Financial Services, they're all performing really pretty well. This quarter, what's nice to see is as the industry inventory normalizes, boat margins themselves have really improved a lot. Of the 430 basis points or 420, excuse my math, it's roughly 60% from growth in higher margin businesses and a little bit of mix at about 40%, maybe a little bit more than that is the improvement in boat margins. If you actually do the math, you'll see that we had something like 175 basis point, maybe to 200-point improvement in the underlying boat margins themselves this quarter versus a year ago.

Speaker #3: New Coast Financial Services—they're all performing really pretty well. But this quarter, what's nice to see is, as the industry inventory normalizes, boat margins themselves have really improved a lot.

Speaker #3: Of the 430 basis points—or 420, excuse me, my math—it's roughly 60% from growth and higher-margin businesses, and a little bit of mix. About 40%, maybe a little bit more than that, is the improvement in boat margins.

Speaker #3: So if you actually do the math, you'll see that we had something like 175 basis point, maybe to 200 point improvement in the underlying boat margins themselves this quarter versus a year ago.

Speaker #3: And if you remember, we've been saying for a while, as industry inventory is normalized, the real upside even in a choppy environment is having boat margins begin to recover.

Michael H. McLamb: If you remember, we've been saying for a while, as industry inventories normalize, the real upside, even in a choppy environment, is having boat margins begin to recover. We still got a ways to go to get back to pre-COVID levels of 2017, 2018, 2019, but it's good to see. In the Q2, we had very modest improvements, and now in the Q3, we had much more substantial improvement.

Mike McLamb: If you remember, we've been saying for a while, as industry inventories normalize, the real upside, even in a choppy environment, is having boat margins begin to recover. We still got a ways to go to get back to pre-COVID levels of 2017, 2018, 2019, but it's good to see. In the Q2, we had very modest improvements, and now in the Q3, we had much more substantial improvement.

Speaker #3: We still got a ways to go to get back to pre-COVID levels of 17, 18, 19, but it's good to see in the March quarter, we had very modest improvements, and now in the June quarter, we had much more substantial improvement.

Speaker #4: And I'll add to that a little bit. Mike said something at the beginning, our parts and service businesses within our stores is performing well.

Brett McGill: I'll add to that a little bit. Mike said something at the beginning. Our parts and service businesses within our stores

Brett McGill: I'll add to that a little bit. Mike said something at the beginning. Our parts and service businesses within our stores is performing well. In prior decades or other times when we've had down sales environments or a tough economic backdrop, although parts and service do well, they kind of flow down also. In this environment, we're seeing people using their boats, getting out on the water, and they're spending money with our service and parts departments at growing levels, which is nice to see.

Michael H. McLamb: is performing well. In prior decades or other times when we've had down sales environments or a tough economic backdrop, although parts and service do well, they kind of flow down also. In this environment, we're seeing people using their boats, getting out on the water, and they're spending money with our service and parts departments at growing levels, which is nice to see.

Speaker #4: And in prior decades or other times when we've had down sales environments or a tough economic backdrop, although parts and service do well, they kind of flow down also.

Speaker #4: But in this environment, we're seeing people using their boats, getting out on the water, and they're spending money with our service and parts departments at growing levels, which is nice to see.

Speaker #4: That's great context, thank you. And I'll ask just a quick follow-up, or I guess two quick ones, but relevant to what we were just talking about.

Michael Albanese: That's great context. Thank you. I'll ask just a quick follow-up, or I guess two quick ones, but relevant to what we were just talking about. First, in terms of boat margins, and I'm sure it differs segment to segment, so maybe just talk in a blended sense here. Where are you seeing boat margins relative to those pre-COVID levels? Then just quickly on the recurring higher margin service pieces of the business, obviously there's a few within that. Are they all growing? When you say performing well, can you just provide a little more context into what exactly that means? Thank you.

Speaker #4: First, in terms of boat margins—and I'm sure it differs segment to segment—so maybe just talk in a blended sense here. Where are you seeing boat margins relative to those pre-COVID levels?

Speaker #4: And then, just quickly, on the recurring higher-margin service pieces of the business—obviously, there's a few within that—are they all growing? When you say 'performing well,' can you just provide a little more context into what exactly that means?

Speaker #4: Thank you.

Speaker #3: Yeah, I can address the boat margin piece. We've been saying on these calls for probably the last four or five quarters that margins are 300 to 400 basis points below pre-COVID averages of 2017, 2018, and 2019.

Michael H. McLamb: Yeah, I can address the boat margin piece. We've been saying on these calls the last probably four or five quarters that margins are 300 to 400 points below pre-COVID averages of 2017, 2018, 2019, thereabouts. Call it 300 points, 350 points. Let's say we're up 175, so we got another 175 to go, or something like that. This is just one quarter. All the other quarters in the year were not up, they were down. Except for the Q1, which was up a little bit. For one quarter, we've seen nice improvement. We would expect margin improvement in an environment where industry inventory continues to normalize. That's kind of a longer-term outlook. You want to comment on that?

Mike McLamb: Yeah, I can address the boat margin piece. We've been saying on these calls the last probably four or five quarters that margins are 300 to 400 points below pre-COVID averages of 2017, 2018, 2019, thereabouts. Call it 300 points, 350 points. Let's say we're up 175, so we got another 175 to go, or something like that. This is just one quarter. All the other quarters in the year were not up, they were down. Except for the Q1, which was up a little bit. For one quarter, we've seen nice improvement. We would expect margin improvement in an environment where industry inventory continues to normalize. That's kind of a longer-term outlook. You want to comment on that?

Speaker #3: They're about, call it, 300 points—350 points. And let's say we're up 175, so we've got another 175 to go, or something like that.

Speaker #3: But this is just one quarter. All the other quarters in the year, we're not up. They were down. Except for the March quarter, which was up a little bit.

Speaker #3: So, for one quarter, we've seen nice improvement. We would expect margin improvement in an environment where industry inventory continues to normalize, and that's kind of a longer-term outlook.

Speaker #3: You want to comment on that?

Speaker #4: Yeah, no, I was just going to say the higher-margin businesses are expanding. Yeah, it's not a blanket statement across the board, but they are expanding.

Brett McGill: No, I'm just going to say the higher margin businesses are expanding.

Michael H. McLamb: Yeah.

Mike McLamb: Yeah.

Brett McGill: It's not a blanket statement across the board, they are expanding.

Speaker #4: Okay, that's very helpful. Thanks, guys.

Michael Albanese: Okay, that's very helpful. Thanks, guys.

Speaker #3: Thanks.

Michael H. McLamb: Thanks.

Mike McLamb: Thanks.

Speaker #1: Thank you. Our next question comes from the line of Brandon Rolay with Loop Capital Markets. Please proceed with your question.

Operator 2: Thank you. Our next question comes from the line of Brandon Rollé with Loop Capital Markets. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Brandon Rollé with Loop Capital Markets. Please proceed with your question.

Speaker #5: Good morning. Thank you for taking my questions. First, just on the product manufacturing side, it seemed like from an operating profit standpoint, you started to almost break even there.

Brandon Rollé: Good morning. Thank you for taking my questions. First, just on the product manufacturing side, it seems like from an operating profit standpoint, you started to almost break a profit there. How do you feel about that business heading into fiscal year 2027? Is it reasonable to think that business could potentially break even or even be profitable given inventory levels you said have started to right size?

Speaker #5: How do you feel about that business heading into fiscal year '27? Is it reasonable to think that business could potentially break even, or even be profitable, given inventory levels you said have started to right-size?

Speaker #3: Yeah, thanks, Brandon. We've kind of set a plan in place. We reset things and started a new model refresh in both brands, and those are coming along pretty well.

Michael H. McLamb: Thanks, Brandon. We've kind of set a plan in place. We kind of reset things. Started a new model refresh in both brands that are coming along pretty well. Yes, that trajectory we kind of said would start to kind of tick up at the end of this fiscal year and should carry through to next year as well.

Mike McLamb: Thanks, Brandon. We've kind of set a plan in place. We kind of reset things. Started a new model refresh in both brands that are coming along pretty well. Yes, that trajectory we kind of said would start to kind of tick up at the end of this fiscal year and should carry through to next year as well.

Speaker #3: And yes, that trajectory, we kind of said, would start to tick up at the end of this fiscal year, and should carry through to next year as well.

Brandon Rollé: Okay, great. Then just on the used boat market, could you just talk about what you're seeing there in terms of used boat inventory, demand, and maybe how that's helping out maybe your used sales?

Speaker #5: Okay, great. And then just on the used boat market, could you talk about what you're seeing there in terms of used boat inventory, demand, and maybe how that's helping out your used sales?

Speaker #3: Yeah, I can comment. I mean, late-model used boats are a pretty hot commodity. People like them, which is our trades that we take. Obviously, I think Brett mentioned in his prepared remarks, we did launch our Certified Pre-Owned program this quarter, and it's early days.

Michael H. McLamb: I can comment. Late model used boats are a pretty hot commodity. People like them, which is our trades that we take. Obviously, I think Brett mentioned in his prepared remarks, we did launch our Certified Pre-Owned Program this quarter, and it's early days, but the Certified Pre-Owned Program boats are being well-received and margin improvement is being measured in that type of a product also. Used boats are doing well now. Turns are improving, margins are improving.

Mike McLamb: I can comment. Late model used boats are a pretty hot commodity. People like them, which is our trades that we take. Obviously, I think Brett mentioned in his prepared remarks, we did launch our Certified Pre-Owned Program this quarter, and it's early days, but the Certified Pre-Owned Program boats are being well-received and margin improvement is being measured in that type of a product also. Used boats are doing well now. Turns are improving, margins are improving.

Speaker #3: But the certified pre-owned program boats are being well received and margin improvement is being measured in that type of product also. But used boats are doing well now.

Speaker #3: Turns are improving. Margins are improving.

Speaker #4: Well, I'd say we've had a marked increase. Usually, when you launch programs like this or something new, you need several laps around the track to kind of find out what's going on.

Brett McGill: I'd say we've had a marked increase. Usually when you launch programs like this or something new, you need several laps around the track to kind of find out what's going on. We've seen early success. Some's market timing, but some is truly attributable to the program that we launched. We're happy with the early success of the program, and we'll see it expand.

Speaker #4: We've seen early success. Some is market timing, but some is truly attributable to the program that we launched. So we're happy with the early success of the program, and we'll see it expand.

Speaker #5: Okay. And just finally, just on your appetite for new inventory moving forward as we move to a slower period of retail, in the year, could you just touch on maybe which categories you will have stronger demand for and just kind of your overall inventory level or your desired inventory levels in the off-season?

Brandon Rollé: Okay. Just finally, just on your appetite for new inventory moving forward as we move to a slower period of retail in the year, could you just touch on maybe which categories you will have stronger demand for, and just kind of your overall inventory level or your desired inventory levels in the off-season? Thank you.

Speaker #3: I heard you right up, and I apologize. We're having a little bit of a connectivity issue, but yeah, I think we're watching inventory trends very carefully and managing our order pipeline very carefully, subject to what we're seeing at retail levels.

Michael H. McLamb: If I heard you right, I apologize, we're having a little bit of a connectivity issue, yeah, I think we're watching inventory trends very carefully and managing our order pipeline very carefully, subject to what we're seeing at retail levels. Obviously for the industry, April, May, and the June quarter overall was not as strong as people were expecting. When you see a quarter like that, which is an important quarter, you're obviously adjusting your orders to try to meet your inventory, to try to meet what you're seeing at retail. I'd say overall, there's certainly pockets that are outperforming other segments of the industry, and we order accordingly when we're looking at trends, if I'm addressing your question properly, Brandon.

Mike McLamb: If I heard you right, I apologize, we're having a little bit of a connectivity issue, yeah, I think we're watching inventory trends very carefully and managing our order pipeline very carefully, subject to what we're seeing at retail levels. Obviously for the industry, April, May, and the June quarter overall was not as strong as people were expecting. When you see a quarter like that, which is an important quarter, you're obviously adjusting your orders to try to meet your inventory, to try to meet what you're seeing at retail. I'd say overall, there's certainly pockets that are outperforming other segments of the industry, and we order accordingly when we're looking at trends, if I'm addressing your question properly, Brandon.

Speaker #3: Obviously, for the industry, April, May, and the June quarter overall was not as strong as people were expecting. So when you see a quarter like that, which is an important quarter, you obviously adjusting your orders to try to meet your inventory, try to meet what you're seeing at retail.

Speaker #3: I'd say overall, there are certainly pockets that are outperforming other segments of the industry, and we just order accordingly when we're looking at trends.

Speaker #3: If I'm addressing your question properly, Brandon.

Speaker #5: No, that addressed it. Thank you.

Brandon Rollé: No, that addressed it. Thank you.

Speaker #1: Thank you. Our next question comes from the line of Joe Altobello with Raymond James. Please proceed with your question.

Operator 2: Thank you. Our next question comes from the line of Joseph Altobello with Raymond James. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Joseph Altobello with Raymond James. Please proceed with your question.

Speaker #6: Thanks. Hey, guys. Good morning. First question on guidance. You obviously left it unchanged in terms of EBITDA and EPS, but took down your industry outlook, took down your sense of sales outlook.

Joseph Altobello: Thanks. Hey, guys. Good morning. First question on guidance. You obviously left it unchanged in terms of EBITDA and EPS, but took down your initial outlook, took down your same-store sales outlook. What are some of the offsets that you're seeing that are allowing you to kind of stay within your prior guidance? Or should we assume that the lower end of those ranges are probably more realistic at this point?

Joe Altobello: Thanks. Hey, guys. Good morning. First question on guidance. You obviously left it unchanged in terms of EBITDA and EPS, but took down your initial outlook, took down your same-store sales outlook. What are some of the offsets that you're seeing that are allowing you to kind of stay within your prior guidance? Or should we assume that the lower end of those ranges are probably more realistic at this point?

Speaker #6: What are some of the offsets that you're seeing that are allowing you to stay within your prior guidance, or should we assume that the lower end of those ranges is probably more realistic at this point?

Michael H. McLamb: A good question, Joe. No, I would tell you, the industry's been volatile, as you know. We did not expect the Q2 to turn out the way it did. We do have periods where trends are strong, followed by periods of weakness. If we can string together a couple of months in the Q2 that are stronger than maybe the Q2 was, along with decent margins overall, the math would tell you we're going to be on the higher side of guidance. The inverse of that's true. If we keep sludging through the industry here and trends are down and we're still seeing some margin improvement, we'll be on the lower end of guidance. In all those scenarios, as I said on the call, we're pretty confident the higher margin businesses in our stores and outside of our stores are going to keep doing very well.

Mike McLamb: A good question, Joe. No, I would tell you, the industry's been volatile, as you know. We did not expect the Q2 to turn out the way it did. We do have periods where trends are strong, followed by periods of weakness. If we can string together a couple of months in the Q2 that are stronger than maybe the Q2 was, along with decent margins overall, the math would tell you we're going to be on the higher side of guidance. The inverse of that's true. If we keep sludging through the industry here and trends are down and we're still seeing some margin improvement, we'll be on the lower end of guidance. In all those scenarios, as I said on the call, we're pretty confident the higher margin businesses in our stores and outside of our stores are going to keep doing very well.

Speaker #3: A good question, Joe. No, I would tell you, the industry has been volatile, as you know. I mean, we did not expect the June quarter did.

Speaker #3: We do have periods where trends are strong followed by periods of weakness. If we can string together a couple of months in the June quarter that are stronger than maybe the June quarter was, along with decent margins overall, the math would tell you we're going to be on the higher side of guidance.

Speaker #3: The inverse of that's true. If we trends are down and we're still seeing some margin, some margin improvement, we'll be on the lower end of guidance.

Speaker #3: And in all those scenarios, as I said on the call, we're pretty confident the higher margin businesses in our stores and outside of our stores are going to keep doing very well.

Speaker #4: Yeah, and Joe, we like how July was kind of starting here, but we've seen that before this in the early part of the summer.

Brett McGill: Joe, we like how July was kind of starting here, but we've seen that before.

Michael H. McLamb: Yeah

Mike McLamb: Yeah

Brett McGill: in the early part of the summer and things going on in the Middle East. It sounds like an excuse, but that uncertainty does. We see it move things meaningfully at the store. Just we got to keep the momentum going here through August, which is a tough month back to school and so on.

Speaker #4: And things going on in the Middle East—it sounds like an excuse—but that uncertainty does, we see it move things meaningfully at the store.

Speaker #4: So, we just have to keep the momentum going here through August, which is a tough month with back-to-school and so on.

Speaker #6: Got it. Very helpful. And maybe just to follow up on that, I think both you, Brett and Mike, referred to higher-margin growth opportunities now that the refinancing is behind you.

Joseph Altobello: Got it. Very helpful. Maybe just to follow up on that, I think both you, Brett, and Mike referred to higher margin growth opportunities, now that the refinancing is behind you. Could you elaborate on what those-

Joe Altobello: Got it. Very helpful. Maybe just to follow up on that, I think both you, Brett, and Mike referred to higher margin growth opportunities, now that the refinancing is behind you. Could you elaborate on what those-

Speaker #6: Could you elaborate on what those might be?

Michael H. McLamb: Hey, Joe. Can you repeat that question? We did not hear the first part of your question. I apologize.

Mike McLamb: Hey, Joe. Can you repeat that question? We did not hear the first part of your question. I apologize.

Speaker #4: Hey Joe, can you repeat that question? We did not hear the first part of your question. I apologize.

Speaker #6: Yeah. Yeah, sure. Both you and Brett talked about higher margin growth opportunities now that the refinancing is behind you. Could you elaborate on some of those?

Joseph Altobello: Yeah. Sure. Both you and Brett talked about higher margin growth opportunities now that the refinancing is behind you. Could you elaborate on some of those, what they might look like?

Joe Altobello: Yeah. Sure. Both you and Brett talked about higher margin growth opportunities now that the refinancing is behind you. Could you elaborate on some of those, what they might look like?

Speaker #6: What they might look like?

Speaker #3: The growth opportunities?

Brett McGill: The growth opportunities.

Speaker #4: Yeah, I can make a comment in general. I mean, we always have an active, acquisition pipeline which we do. Obviously, as dealer earnings have been lackluster, most of the dealers we're talking to aren't real excited about selling off a very low earnings.

Michael H. McLamb: Yeah, I could make a comment in general. We always have an active acquisition pipeline, which we do. Obviously, as dealer earnings have been lackluster, most of the dealers we're talking to aren't real excited about selling off of very low earnings. As we begin to see margins improve, we believe the entire industry is beginning to see margins improve, which should be good for earnings. The comment's also tied to the flexibility we have with our refinance facility, and also the confidence that our lenders have and the extension of the maturity of the debt. It just opens the door to be a little more selective and creative on the pipeline that we have.

Mike McLamb: Yeah, I could make a comment in general. We always have an active acquisition pipeline, which we do. Obviously, as dealer earnings have been lackluster, most of the dealers we're talking to aren't real excited about selling off of very low earnings. As we begin to see margins improve, we believe the entire industry is beginning to see margins improve, which should be good for earnings. The comment's also tied to the flexibility we have with our refinance facility, and also the confidence that our lenders have and the extension of the maturity of the debt. It just opens the door to be a little more selective and creative on the pipeline that we have.

Speaker #4: As we began to see margins improve, we believe the entire industry is beginning to see margins improve, which should be good for earnings. The comments also tie to the flexibility we have with our refinance facility and also the confidence that our lenders have in us, and the extension of the maturity of the debt.

Speaker #4: It just opens the door to be a little more selective and creative on the pipeline that we have.

Speaker #6: Okay. Great. Thank you.

Joseph Altobello: Okay, great. Thank you.

Joe Altobello: Okay, great. Thank you.

Speaker #3: Thanks, Joe.

Michael H. McLamb: Thanks, Joe.

Mike McLamb: Thanks, Joe.

Speaker #1: Thank you. Our next question comes from the line of Gregory Miller with Truist Securities. Please proceed with your question.

Operator 2: Thank you. Our next question comes from the line of Gregory Miller with Truist Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Gregory Miller with Truist Securities. Please proceed with your question.

Speaker #7: Thanks. Good morning, gentlemen. This is actually a related question to what Joe asked. I'm hoping you can provide a little more context in terms of dealership health, particularly for the mom-and-pop.

Gregory Miller: Thanks. Good morning, gentlemen. This is actually a related question to what Joe asked. Hoping you could provide a little more context in terms of dealership health, particularly for the mom-and-pops.

Brett McGill: Operator, we're not picking up on audio here.

Speaker #3: Operator, we're not picking up on the audio here.

Speaker #7: Yeah, if you can hear this, Greg, can you repeat that? Sure. Can you hear me better now? Yes, thank you. Okay. Sorry about that.

Michael H. McLamb: Yeah, if you can hear this, Greg, can you repeat that?

Mike McLamb: Yeah, if you can hear this, Greg, can you repeat that?

Gregory Miller: Sure. Can you hear me better now?

Brett McGill: Yes, we can.

Michael H. McLamb: Yes. Thank you.

Mike McLamb: Yes. Thank you.

Gregory Miller: Okay. Sorry about that. This question's fairly similar to Joe's. I'm curious if you could provide some more context in terms of dealership health, particularly for the mom-and-pops. Do you expect any more dealer consolidation or closings?

Speaker #7: This question is fairly similar to Joe's. I'm curious if you could provide some more context in terms of dealership health, particularly for the mom-and-pops.

Speaker #7: Do you expect any more dealer consolidation or closings?

Michael H. McLamb: Just repeat the last part of that question.

Mike McLamb: Just repeat the last part of that question.

Speaker #3: Just repeat the last part of that question, Greg. We may have to dial back in.

Brett McGill: He's maybe-

Michael H. McLamb: Greg.

Mike McLamb: Greg.

Brett McGill: We may have to dial back in.

Speaker #7: Yeah, we've unfortunately not getting all the questions. I'll try one more time and maybe I'll shoot you an email. Are you expecting any more dealer consolidation or closings particularly from the mom-and-pops?

Michael H. McLamb: Yeah. We've unfortunately not getting all the questions.

Mike McLamb: Yeah. We've unfortunately not getting all the questions.

Gregory Miller: I'll try one more time, and maybe I'll shoot you an email. Are you expecting any more dealer consolidation or closings, particularly from the mom-and-pops?

Speaker #3: Oh, great question. I would think that if we were going to see closings by now, we probably would have. I would think our industry inventory levels are normalizing and margins are beginning to improve.

Michael H. McLamb: Oh, great question. I would think that if we would've seen closings by now, we probably would have. I would think with where industry inventory levels are normalizing and margins are beginning to improve, I think probably the worst of the closings would be behind us. Brett, what do you think?

Mike McLamb: Oh, great question. I would think that if we would've seen closings by now, we probably would have. I would think with where industry inventory levels are normalizing and margins are beginning to improve, I think probably the worst of the closings would be behind us. Brett, what do you think?

Speaker #3: I think probably the worst of the closings would be behind us. Brett, what do you think?

Brett McGill: Yeah. Less things soften.

Speaker #4: Yeah, less things often. Yeah, we're hearing people got inventories corrected, so that's a good sign. I mean, there's always something here or there, but I think we're in good shape as an industry.

Michael H. McLamb: Yeah.

Mike McLamb: Yeah.

Brett McGill: We're hearing people got inventories corrected, that's a good sign. There's always something here or there, I think we're in good shape as an industry.

Speaker #7: Thanks. And that's my second question. Could you provide a little more granularity in terms of how value versus premium boat sales?

Gregory Miller: Thanks. As for my second question, could you provide a little more granularity in terms of how value versus premium boat sales-

Speaker #3: Thank you, Greg.

Michael H. McLamb: Thank you, Greg.

Mike McLamb: Thank you, Greg.

Gregory Miller: Can you hear me? I'll try to repeat it. I was wondering if you could provide a breakout in terms of how value and premium boat sales have been trending in the last couple of months. If you're seeing any positive surprises in terms of changing trends for improvement to the value space.

Speaker #7: Can you hear me? I'll try to repeat it. We're wondering if you could provide a breakout in terms of how value and premium boat sales have been trending in the last couple of months and if you're seeing any positive surprises in terms of changing trends for improvement to the value space.

Speaker #3: Hey, operator, I think we've gotten disconnected somehow. Can you hear us?

Michael H. McLamb: Hey, operator, I think we've gotten disconnected somehow. Can you hear us?

Brett McGill: Hey, operator, I think we've gotten disconnected somehow. Can you hear us?

Operator 2: No, I can hear you. I'm not sure why you're not able to hear Mr. Miller's second question. Do you want him to try again?

Operator: No, I can hear you. I'm not sure why you're not able to hear Mr. Miller's second question. Do you want him to try again?

Speaker #1: No, I can hear you. I'm not sure why you're not able to hear Mr. Miller's second question. Do you want him to try again?

Speaker #3: I'll text.

Gregory Miller: I'll text. Can you hear me?

Speaker #7: Can you hear me?

Speaker #1: Can you hear me? Ladies and gentlemen, it seems we're having some technical difficulties. Please stand by a moment. I'm sorry, ladies and gentlemen. It seems that we have technical difficulties, but we'll need to end the call at this time.

Operator 2: Can you hear me? Ladies and gentlemen, it seems we're having some technical difficulties. Please stand by a moment. I'm sorry, ladies and gentlemen. It seems that we have technical difficulties, we'll need to end the call at this time. We thank you for your participation.

Operator: Can you hear me? Ladies and gentlemen, it seems we're having some technical difficulties. Please stand by a moment. I'm sorry, ladies and gentlemen. It seems that we have technical difficulties, we'll need to end the call at this time. We thank you for your participation.

Q3 2026 MarineMax Inc Earnings Call

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