MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) shares rose 1.11% to close at $18.25 on Thursday, following the dual announcement of a definitive agreement to acquire Marine Products Corporation and financial results for the fiscal 2026 second quarter. The stock fluctuated between an intraday low of $22.50 and a high of $25.73 during the session.
Market Capitalization
At the latest close, MasterCraft’s market capitalization stood at approximately $362 million.
Latest Quarterly Results
For the fiscal second quarter ended December 28, 2025, MasterCraft reported consolidated net sales of $71.8 million, an increase of 13.2% from the $63.4 million reported in the year-ago quarter. Income from continuing operations was $2.5 million, up from $0.4 million in the prior year period. Diluted income per share was $0.15, compared with $0.03 a year earlier. Adjusted EBITDA on a non-GAAP basis was $7.5 million, up from $3.6 million in the prior-year quarter. The company ended the quarter with $81.4 million in cash and short-term investments.
Segment performance for the period included:
• MasterCraft Segment: Net sales rose to $61.3 million from $55.0 million. The company attributed the increase to favorable model mix, higher option sales, and increased pricing.
• Pontoon Segment: Net sales grew to $10.5 million from $8.4 million. The segment reduced its operating loss compared to the previous year.
Gross margin expanded 440 basis points to 21.6%, primarily driven by effective cost controls and increased unit volumes. Operating expenses rose by $2.1 million to $12.8 million, reflecting costs associated with a new enterprise resource planning system and business development consulting.
YTD Results Context
Trailing twelve-month revenue as of the quarter was approximately $296 million, up about 10.9% compared with the prior year, according to available data. Annual results for the fiscal year ended June 30, 2025 showed revenue of about $284.2 million, down on a year-ago basis.
Business & Operations Update
On February 5, 2026, MasterCraft and Marine Products Corporation announced they entered into a definitive merger agreement. Under the terms, Marine Products shareholders will receive $2.43 in cash and 0.232 MasterCraft shares for each share they own based on MasterCraft’s closing share price of $23.12 on February 4, 2026. The transaction is valued at approximately $232.2 million net of acquired cash and is expected to close in the second quarter of 2026, subject to regulatory and shareholder approvals. Upon closing, MasterCraft shareholders will own about 66.5% of the combined company, with Marine Products shareholders holding 33.5%.
Simultaneously with the earnings release, MasterCraft amended and extended its credit agreement to include a $75 million revolving credit facility maturing in February 2031.
M&A or Strategic Moves
The proposed acquisition of Marine Products brings together brands including MasterCraft, Crest, Balise, Chaparral, and Robalo, expanding product offerings and dealer network reach. The combined entity is expected to benefit from diversified portfolios and operational synergies, with annual cost savings of roughly $6 million projected from reduced public company overhead.
Equity Analyst Commentary
Institutional research notes show a range of views: analysts continue to assign a consensus Hold rating with average price targets in the low-to-mid $20s, while select research firms have upgraded to more positive stances following earnings and guidance. Commentary has highlighted the earnings beat and improved profitability metrics reflected in recent quarters.
Guidance & Outlook
Company-issued guidance for fiscal 2026 anticipates consolidated net sales between $300 million and $310 million, adjusted EBITDA of $36 million to $39 million, and adjusted earnings per share of $1.45 to $1.60. For the third quarter of fiscal 2026, the company expects net sales around $75 million and adjusted EPS of about $0.35. These figures exclude impacts from the Marine Products combination.
Performance Summary
MasterCraft shares rose in response to quarterly revenue growth of 13.2% and improved net income. The company reported increased sales and profitability in Q2, expanded liquidity via credit facilities, and announced a strategic merger with Marine Products. Consensus analyst coverage remains mixed, and company guidance outlines expected net sales and earnings ranges for FY 2026.