10-Q · May 7, 2026
MasterCraft delivered Q3 2026 earnings results with revenue of $78.2 million, a 3.0% increase compared to $75.96 million in the prior year. However, reported an EPS loss of $0.04, missing the expectation of $0.35. Gross…
Earnings analysis · 10-K
MCFT earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
MasterCraft delivered strong top-line and gross-margin improvement in fiscal 2026, with revenue up 22.8% to $348.9 million and Adjusted EBITDA rising to $45.6 million. However, GAAP diluted EPS was a $(0.10) loss,…
Read full summary
MasterCraft delivered strong top-line and gross-margin improvement in fiscal 2026, with revenue up 22.8% to $348.9 million and Adjusted EBITDA rising to $45.6 million. However, GAAP diluted EPS was a $(0.10) loss, operating income was negative, Leisure recorded a $10.1 million impairment, and the newly acquired Recreation and Sport Fishing segment produced a $6.6 million operating loss. The outlook is mixed: the Marine Products transaction expands the portfolio and growth opportunities, but integration, tariff, dealer, and Leisure-execution risks remain material.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.1
What stood out
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Revenue and gross margin improved
Fiscal 2026 net sales increased 22.8% to $348.9 million from $284.2 million, while gross margin expanded 290 basis points to 22.9% from 20.0%. Management attributed the increase to higher volume, pricing, favorable model mix, option sales, and lower dealer incentives.
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Core segment delivered solid growth
Performance and Wake remained the core growth engine: revenue rose 12.6% to $271.2 million, unit volume increased 5.9% to 1,639 units, and operating income increased 4.3% to $21.5 million.
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Portfolio expanded into new categories
The Marine Products acquisition added the Chaparral and Robalo brands and created the Recreation and Sport Fishing segment. That segment contributed $33.3 million of revenue during the partial period after May 15, 2026, although reported operating loss was $6.6 million due partly to $2.6 million of inventory step-up and $2.9 million of amortization.
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Underlying profitability strengthened
Underlying profitability improved despite GAAP losses: Adjusted EBITDA increased to $45.6 million, or 13.1% of sales, from $24.4 million, or 8.6%, while adjusted diluted EPS increased to $1.76 from $0.92.
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Cash generation remained positive
Free cash flow from continuing operations was $22.3 million versus $29.0 million in fiscal 2025 and $1.7 million in fiscal 2024. Operating cash flow was $30.4 million and capital expenditures were $8.1 million.
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Product and capacity roadmap advanced
The company launched its redesigned X24 and all-new X22 and X23 products in fiscal 2026. It also operates through three manufacturing facilities, including a 1.262-million-square-foot Nashville, Georgia facility for Chaparral and Robalo production.
What to watch
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Large acquisition integration burden
The Marine Products integration is a material execution risk: acquired operations represented 60.3% of total assets and 9.6% of consolidated net sales, yet management excluded them from the fiscal 2026 internal-control assessment. The acquired segment also reported a $6.6 million operating loss and the company incurred $15.2 million of acquisition-related costs.
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Leisure weakness and impairment
Leisure materially deteriorated despite relatively stable revenue. Revenue increased only 2.2% to $44.4 million, operating loss widened to $16.0 million from $9.4 million, and the company recorded $10.1 million of Crest intangible-asset impairments, including $4.1 million for the dealer network and $6.0 million for the trade name.
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Tariffs threaten costs and margins
Tariff exposure increased during fiscal 2026: the company states that U.S. tariffs included baseline duties of 10% or higher, with certain country-specific rates substantially exceeding those levels, and that tariffs increased the cost of raw materials, particularly aluminum. The company implemented a MasterCraft tariff surcharge but warned that competitive conditions or dealer resistance could prevent recovery and pressure margins.
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Dealer inventory and repurchase exposure
Dealer-related contingent exposure increased: obligations under floor-plan agreements totaled approximately $63.5 million at June 30, 2026, versus $41.0 million a year earlier, while the recorded repurchase liability was $1.5 million. A deterioration in retail demand could increase dealer defaults, repurchases, and resale losses.
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Single-source supplier dependence
The company remains dependent on concentrated engine suppliers. It purchased $29.7 million of Performance and Wake engines from one vendor and another $8.4 million of engines for Leisure and Recreation and Sport Fishing during fiscal 2026; the Performance and Wake exclusive contract requires minimum purchases through June 30, 2030.
Management's outlook
The 10-K does not provide numeric fiscal-year guidance; quantitative Transition Period outlook was provided separately in the Q4 earnings release.
Earlier filings 4
10-Q · February 5, 2026
MasterCraft reported a stronger operating quarter with net sales of $71,759 and gross profit of $15,527 for the three months ended December 28, 2025, driven by both MasterCraft and Pontoon product lines. Operating…
10-Q · November 6, 2025
MasterCraft reported a clear quarter-over-quarter and year-over-year operational recovery: net sales rose to $69,002 (from $65,359), gross profit increased to $15,396 (from $11,798) and operating income jumped to $3,778…
10-K · August 27, 2025
MasterCraft’s 10-K emphasizes a product-led strategy: market-leading MasterCraft ski/wake boats (19.2% U.S. share as of March 2025) and a growing pontoon portfolio (Crest and newly launched Balise). The filing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.