Stock Reaction & Trading Context
Marine Products Corporation (NYSE: MPX) shares fell sharply intraday following the earnings release, declining about 17% to near $8.2 in U.S. trading. The stock now trades closer to the lower end of its 52-week range after a volatile year marked by demand normalization across the recreational boating sector. No analyst rating changes or price-target revisions were reported on the day.
Q4 Revenue Jumps, Profit Falls
Marine Products reported fourth-quarter net sales of $64.6 million, up 35% year over year, driven by a 12% price/mix benefit and a 22% increase in boats sold. Gross profit rose 39% to $12.7 million, while gross margin expanded 40 basis points to 19.6%. However, profitability weakened. Net income fell 45% to $2.4 million, with diluted EPS of $0.07. Net income margin contracted 520 basis points to 3.7%. Adjusted net income was $3.4 million, or $0.10 per share. EBITDA increased 3% to $4.5 million, but margin narrowed 220 basis points to 7.0%. SG&A expenses rose 61% to $8.9 million, representing 13.9% of sales. The company ended the quarter with $43.5 million in cash and no debt.
Full-Year 2025 Performance
For the full year, net sales increased 3% to $244.4 million, reflecting modest recovery after steep declines in the prior year. Net income dropped 36% to $11.4 million, with diluted EPS of $0.32. Net income margin fell 280 basis points to 4.7%. Adjusted net income totaled $12.4 million, or $0.35 per share. EBITDA declined 18% to $17.2 million, with margin down 190 basis points to 7.0%. Operating cash flow remained solid. Year-to-date operating cash flow reached $16.5 million, with free cash flow of $14.9 million.
Balance Sheet & Capital Allocation
Marine Products maintained a debt-free balance sheet and continued shareholder returns. Dividend payments totaled $19.6 million for the year.
Summary
Fourth-quarter sales rebounded strongly on higher volumes and pricing, but earnings declined due to cost pressures and tax impacts. Full-year revenue growth remained modest, while margins compressed, keeping the stock under pressure.