MBUU Malibu Boats, Inc.
$29.33
Malibu Boats, Inc. Q3 F2026 Earnings Call Transcript
Thursday, May 7, 2026
AI Conference Call Analysis
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Chief Financial Officer
flat to down mid-sickle digits range we communicated previously. On a legacy adjusted EBITDA margin, we expect to finish toward the lower end of the previously communicated range of 8% to 9%. Q3 benefited from a more favorable mixed tailwind that we expect to be less pronounced in Q4. Shifting to fourth quarter. On the SAC store business, we expect fourth quarter net sales of approximately $57 million to $59 million and adjust EBITDA margin of 10% to 11%, a meaningful sequential step from Q3 and consistent with the near-term margin expectation we communicated when we announced the transaction. Note, SACSTOR's Q3 margin reflected only one month of revenue against its full fixed cost structure, while Q4 is a full quarter that captures the peak of SACSTOR's European sales season. On a combined basis for Q4, we expect consolidated net sales of $261 million to $267 million and a just EBITDA of $29 million to $31 million, or roughly 11% to 12% margins. Our intent is to return to a single consolidated outlook when we provide fiscal 2027 guidance in August. To close, we delivered a strong third quarter on both sides of the business. Our legacy operations exceeded expectations, our centralized sourcing initiative is meaningfully contributing to margin as we planned, and we closed and began integrating a transformational acquisition while continuing to return capital at an attractive price. With healthier dealer inventories, a differentiated product portfolio, and a strong balance sheet, we are well positioned to execute through the remainder of the fiscal 2026 and into fiscal 2027. With that, I'd like to open the call up for questions.
Operator
Conference Operator
At this time, if you would like to ask a question, press star 1 on your touchstone telephone. If your question has been answered or you wish to withdraw your question, press star 1 again. We ask that you please limit your questions to one question and one follow-up. Please stand by while we compile the Q&A roster.
Operator
Conference Operator
Your first question is from Joe Altabello with Raymond James.
Martin
Analyst, Raymond James
Hey, good afternoon. This is Martin on for Joe. I kind of want to quickly touch on your guide for SACSTOR next quarter, trying to get an idea of how many units we can expect, just trying to get an idea of what ASPs might look like for next quarter and next year as well.
David
Chief Financial Officer
Yeah. Hey, this is David. I think, you know, we don't typically guide on ASP and volume, but if you look at our ASP for SACSTOR for Q3, I think that'd be a pretty good proxy and you should build it back into the volume expectation for Q4.
Martin
Analyst, Raymond James
Great. And would you mind sort of touching on why you're turning toward the bottom range of the legacy EBITDA margin of a 90%?
David
Chief Financial Officer
Yeah, it's really just a function of the higher mix impact that we had in Q3 that we don't expect to continue into the following quarter. So it's really just a positive mix impact for that quarter. Got it.
Martin
Analyst, Raymond James
Great.
Operator
Conference Operator
Thank you, and best of luck. Thanks. Thanks.
Operator
Conference Operator
Your next question is from Garrick Johnson with Seaport Research Partners.
Garrick Johnson
Analyst, Seaport Research Partners
Hey, good afternoon. A couple of SACSTAR questions here. First, on your comment about your shipments to Europe being different than they are to the North American markets, can you talk about the phasing between the quarters and how that is different?
David
Chief Financial Officer
Yeah, Garrick, it's still early on, but the way that I would characterize it is you know, the back half of our fiscal year is heavier from the sales side than the first half, with Q1 being the lowest on the sales side of things. So it's really a ramping into that back half of the year with it being about 60% of the revenue at that point in that quarter.
Garrick Johnson
Analyst, Seaport Research Partners
Okay. And then on SACSTOR, there are about five models, I think, from 27 to 46 feet. Is there room for more models, or is that a full portfolio for SACSTOR?
Derek
Chief Executive Officer
No, Derek, I think we're pretty excited about the product plan that we have in place over the next three to five years. So we think there's a lot more opportunity in their model plan as we go forward. So pretty excited about it.
Operator
Conference Operator
Okay, great. Thank you.
Operator
Conference Operator
Your next question is from Jamie M. Katz with Morningstar.
Jamie M. Katz
Analyst, Morningstar
Hey, good afternoon, guys. There was a pretty good uptick in gross margin compression this quarter, so sort of when we would expect that to maybe flatten out or turn positive given the cost initiatives that you guys have already undertaken.
David
Chief Financial Officer
Yeah. Hey, Jamie. This is David. So, you know, I think if you're looking in the context on quarter over quarter, or year over year, I think the way to think about it is sequential, so quarter over quarter. We're up 420 basis points versus the previous quarter, and so that really translates from the centralized sourcing initiatives that we've been talking about, plus the other cost savings actions that we've been taking across the business. So as you think about moving into Q4, I think you'll see sequential increase as well on a flow-through basis from those initiatives.
Jamie M. Katz
Analyst, Morningstar
Okay. And then is there any insight you guys have to sort of what you expect for input cost inflation over the next couple quarters? Just do you expect that to slow and maybe be a little bit easier to manage? Or are we looking at sort of levels of input cost growth that we've seen in recent quarters?
David
Chief Financial Officer
Yeah, no, that's definitely an evolving topic. You know, I think from the cost savings initiatives that we've taken, we're able to manage through all those. Right now, we're not seeing significant uptick in input costs, but we are keeping our eye on it as things, you know, change in this geopolitical world we live in.
Operator
Conference Operator
Great. Helpful. Thanks. I'm not showing any further questions at this time.
Operator
Conference Operator
With that, we'll conclude today's conference call. Thank you for participating. You may now disconnect.