Marine Products Q1 Sales Rise 13% to $66.5M Despite $2.1M Loss on Merger Costs
Marine Products posted Q1 net sales of $66.5 million, up 13%, but swung to a $2.1 million net loss and negative $1.9 million EBITDA after $5 million in merger-related charges. The company held $45.8 million in cash, no debt, generated $8.6 million free cash flow and declared a $0.14 dividend as its MasterCraft merger nears closing.
1. First Quarter Financial Results
Marine Products reported Q1 net sales of $66.5 million, a 13% year-over-year increase driven by a 15% price/mix gain offset by a 1% unit decline. The company recorded a $2.1 million net loss and $1.9 million negative EBITDA, primarily reflecting $5.0 million in one-time merger-related expenses, with adjusted net income of $1.8 million and adjusted EPS of $0.05.
2. Balance Sheet and Cash Flow
The business ended the quarter with $45.8 million in cash and no debt under its $20 million credit facility. Operating activities generated $9.1 million and free cash flow was $8.6 million year-to-date, while dividends of $4.9 million were paid and a $0.14 per share quarterly dividend was declared.
3. Proposed MasterCraft Merger
Under the February 5 merger agreement, Marine Products will combine with MasterCraft in a stock-and-cash deal following a May 12 shareholder vote. The Hart-Scott-Rodino waiting period has expired and the transaction is expected to close in Q2 2026, subject to customary conditions.