MasterCraft Boat Holdings Inc. reported fourth-quarter 2026 adjusted earnings per share of $0.67, beating Wall Street estimates of $0.64 by nearly 5%, as total net sales jumped 63.4% to $129.9 million, crushing expectations of $93.04 million.
The Fort Lauderdale-based boat manufacturer saw its shares rise 5.75% to $24.10 in premarket trading after the release, moving from a previous close of $22.79. The stock was trading about 40% above its 52-week low of $17.19 and roughly 15% below its high of $28.44 at the time of publication.
Q4 adjusted EBITDA more than doubled to $20.5 million, reflecting a 114.9% increase year over year, with an adjusted EBITDA margin of 15.8%. Legacy net sales — excluding the impact of the Chaparral and Robalo acquisitions — rose 21.5% to $96.6 million.
The results were heavily influenced by the May 15 acquisition of Chaparral and Robalo from Marine Products Corporation. Those brands contributed $33.3 million in revenue and $1.8 million in adjusted EBITDA during the six weeks they were part of MasterCraft’s portfolio in the quarter.
On a GAAP basis, however, MasterCraft posted a loss from continuing operations of $7 million, or $0.35 per diluted share, compared to income of $5.5 million, or $0.33 per diluted share, a year earlier. The shift was driven by purchase-accounting charges: a $2.8 million inventory step-up, $2.9 million in intangible amortization — including $2.6 million for a short-lived backlog intangible that fully amortized during fiscal 2026 — and a $10.1 million non-cash impairment charge on Crest brand intangibles tied to weakness in the pontoon category.
For the full fiscal year 2026, legacy net sales totaled $315.6 million, up 11% from fiscal 2025. Total net sales, including the six weeks of Chaparral and Robalo, reached $348.9 million, a 22.8% increase. Legacy adjusted EBITDA climbed 79.6% to $43.8 million from $24.4 million, while total adjusted EBITDA rose 87.1% to $45.6 million. Legacy adjusted EBITDA margin expanded 530 basis points to 13.9%, and legacy gross margin improved 520 basis points to 25.2%.
Free cash flow for the full year came in at $22.3 million after $8.1 million in capital expenditures. MasterCraft ended the year with $43.9 million in cash, no debt outstanding, full availability under a $75 million revolving credit facility, and a current ratio of 1.83.
The company also announced it is transitioning its fiscal year-end from September to December, with a six-month transition period running from July through December 2026. For that interim period, MasterCraft guided for net sales of $287 million to $291 million, adjusted EBITDA of $29 million to $32 million, and adjusted EPS of $0.66 to $0.76, with capital expenditures of approximately $9 million. For the September quarter alone — the first quarter of the transition period — the company projected net sales of approximately $147 million, adjusted EBITDA of roughly $16 million, and adjusted EPS of about $0.40.
CEO Brad Nelson called fiscal 2026 a "defining year" for the company. "Strong execution across our legacy business drove results to significantly outperform expectations despite a challenging macroeconomic and retail environment," he said, adding that conviction in the long-term opportunities from the Chaparral and Robalo combination had only increased.
CFO Scott Kent emphasized the strength of the adjusted figures, stating, "We believe our adjusted results better reflect the underlying strength and operating performance of the business." He noted the balance sheet and cash flow position would support investment in both acquisition synergies and new product development.
Looking ahead, management expects the broader retail boating market to decline 5% to 10% over the next six months. Field inventory for the legacy business ended the year down approximately 30% year over year, with combined inventory down about 20%.
