MasterCraft Charts a Bold New Course with Acquisition and Earnings Beat

MasterCraft Boat Holdings, Inc. has delivered a powerful one-two punch to the market, combining a significant strategic acquisition with quarterly financial results that handily surpassed expectations. This dual announcement signals a potentially transformative period for the recreational boat manufacturer.

For its fiscal second quarter ending in December, MasterCraft reported robust operational strength. Revenue climbed 13.2% year-over-year to reach $71.8 million. A standout figure was the earnings per share of $0.29, which dramatically outperformed the market consensus estimate of $0.16.

Profitability metrics showed substantial improvement. The company's gross margin expanded by 440 basis points to 21.6%. Furthermore, the adjusted EBITDA margin nearly doubled compared to the prior year, coming in at 10.4%. A key contributor to this healthier operational position was a 25% reduction in dealer inventory levels over the past year, easing sales pressure within the network.

Strategic Move: Acquiring Marine Products Corporation

Concurrently, MasterCraft unveiled a major expansion strategy: the acquisition of competitor Marine Products Corporation (MPX). The all-stock-and-cash transaction carries an estimated value of approximately $232.2 million.

Should investors sell immediately? Or is it worth buying MasterCraft Boat?

Under the terms finalized by management on Thursday, Marine Products shareholders will receive $2.43 in cash plus 0.232 of a MasterCraft share for each MPX share they own. This values Marine Products stock at about $7.79 per share. The deal, expected to close in the second calendar quarter of 2026, will bring established brands like Chaparral and Robalo into MasterCraft's portfolio.

Upon completion, existing MasterCraft shareholders will own approximately 66.5% of the combined entity. The company's leadership anticipates annual cost synergies of $6 million from the merger, with the acquisition projected to become accretive to adjusted earnings per share by fiscal year 2027.

Revised Outlook and Strong Balance Sheet

Bolstered by its strong quarterly performance, MasterCraft has raised its guidance for the full fiscal year 2026. The company now forecasts revenue in the range of $300 million to $310 million. It is also targeting adjusted earnings per share between $1.45 and $1.60.

MasterCraft enters this new phase of growth from a position of financial strength. The company reported a cash reserve exceeding $81 million and a debt-free balance sheet prior to announcing the acquisition, providing a solid foundation for the upcoming integration process.