Marine Products Corporation reports first quarter 2026 financial results

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Marine Products Corporation (NYSE: MPX) (the "Company"), a leading manufacturer of fiberglass boats, announced its unaudited results for the first quarter ended March 31, 2026.

*Non-GAAP measures, including adjusted net income, adjusted net income margin, adjusted diluted earnings per share, (LBITDA) EBITDA, (LBITDA) EBITDA margin, adjusted EBITDA margin, and free cash flow are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.
*All comparisons are year-over-year to 1Q:25 unless stated otherwise.

First Quarter 2026 Results:

• Net sales increased 13% year-over-year to $66.5 million.
• Net (loss) income was ($2.1) million, versus $2.2 million in the prior year period, and Diluted Earnings (Loss) Per Share (EPS) was ($0.06); Net income margin decreased 680 basis points to (3.1%). Net Income was negatively impacted by $5.0 million of pretax merger related costs.
• Adjusted net income was $1.8 million, and adjusted diluted Earnings Per Share (EPS) was $0.05.
• (Loss) Earnings Before Interest, Taxes, Depreciation and Amortization (LBITDA) EBITDA was ($1.9) million, versus $3.4 million in the prior year period; (LBITDA) EBITDA margin decreased 870 basis points to (2.9%).
• The Company ended the quarter with approximately $45.8 million in cash and no debt.

1Q:26 Consolidated Financial Results (year-over-year comparisons versus 1Q:25)

Net sales were $66.5 million, up 13%. The increase in net sales was primarily due to a price/mix increase of 15% offset slightly by a 1% decrease in the number of boats sold during the quarter. The Company's field unit inventory at the end of 1Q:26 was approximately 2% below 1Q:25.

Gross profit was $11.1 million, up 1%. Gross margin was 16.6%, down 200 basis points from the prior year period. Gross margin decreased due primarily to higher labor and overhead costs.

Selling, general and administrative expenses were $8.8 million, up 6%, and represented 13.3% of net sales, down 80 basis points versus 1Q:25.

Merger related costs for the three months ended March 31, 2026 were $5.0 million.

Interest income of $325 thousand decreased due to lower cash balances.

Income tax (benefit) provision was ($329.0) thousand, or 13.7% of loss before income taxes, down 1,410 basis points primarily due to the impact of detrimental discrete adjustments on a pretax loss in 2026 compared to a pretax income in 2025.

Net (loss) income and Diluted (Loss) Earnings Per Share were ($2.1) million and ($0.06) down from $2.2 million net income and $0.06 earnings per share, respectively, in 1Q:25. Net loss margin was (3.1%), down 680 basis points.

(LBITDA) EBITDA was ($1.9) million, down from $3.4 million. (LBITDA) EBITDA margin was (2.9%), down 870 basis points from last year's first quarter.

Balance sheet, cash flow and capital allocation

Cash and cash equivalents were $45.8 million at the end of 1Q:26, with no outstanding borrowings under the Company's $20 million revolving credit facility.

Net cash provided by operating activities and free cash flow were $9.1 million and $8.6 million, respectively, year-to-date.

Payment of dividends totaled $4.9 million year-to-date through the end of 1Q:26. Additionally, the Board of Directors declared a regular cash quarterly dividend of $0.14 per share payable on May 14, 2026, to common stockholders of record at the close of business on May 8, 2026.

Proposed transaction with MasterCraft

As previously announced, on February 5, 2026, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement"), by and among MasterCraft Boat Holdings, Inc., a Delaware corporation ("MasterCraft"), Titan Merger Sub 1, Inc., a Delaware corporation and a wholly owned, direct subsidiary of MasterCraft ("Merger Sub I"), Titan Merger Sub 2, LLC, a Delaware limited liability company and a wholly owned, direct subsidiary of MasterCraft ("Merger Sub II") and the Company. The Merger Agreement, among other things, provides for the combination of MasterCraft and Marine Products in a stock-and-cash transaction whereby (i) Merger Sub I will merge with and into Marine Products (the "First Merger"), with Marine Products surviving the First Merger as a direct wholly owned subsidiary of MasterCraft, and (ii) immediately following the First Merger, Marine Products will merge into Merger Sub II (the "Second Merger" and, together with the First Merger, the "Mergers"), with Merger Sub II surviving the Second Merger as a wholly owned subsidiary of MasterCraft. Shareholders of each company will vote to approve all of the proposals necessary for MasterCraft to complete its acquisition of the Company at their respective Special Meetings of Stockholders to be held on May 12, 2026. Additionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on April 6, 2026. The transaction is expected to close in the second calendar quarter of 2026, subject to satisfaction of other customary closing conditions as described in the Merger Agreement.

Conference Call Information

Due to the pending transaction with MasterCraft, the Company does not intend to hold a quarterly conference call or webcast.