MarineMax (NYSE:HZO) reported fiscal third-quarter results that management said reflected the benefits of a more diversified business model, even as U.S. retail boat demand remained under pressure from economic and geopolitical uncertainty.
On the company’s earnings call, Chief Executive Officer and President Brett McGill said the marine retailer continued to see a segmented market, with premium categories generally proving more resilient than other parts of the industry. He said MarineMax’s investments in higher-margin businesses helped offset weaker boat revenue during the quarter.
Revenue Declines, But Gross Profit and EBITDA Improve
Executive Vice President and Chief Financial Officer Mike McLamb said third-quarter revenue was $611 million, reflecting continued softness in boat sales across the industry. Same-store sales declined 7%, primarily due to lower unit sales, though McLamb said MarineMax’s performance was “meaningfully better” than the unit declines reported for the broader industry.
Gross profit increased to $218 million despite lower boat sales, supported by gross margin of nearly 36%. McLamb said a tariff refund contributed approximately 110 basis points to the margin increase. The remaining 420 basis points of improvement came from stronger new and used boat margins and the growing contribution of higher-margin businesses.
Adjusted EBITDA rose more than 44% to $51 million, up from $35 million in the prior-year period. Reported net income was $0.66 per diluted share, compared with a loss of $2.42 per share a year earlier, which included a $69 million non-cash goodwill impairment charge. Adjusted diluted earnings per share improved to $0.81 from $0.05 when using the same estimated effective tax rate in both periods, McLamb said.
Higher-Margin Businesses Help Support Results
McGill and McLamb emphasized that MarineMax’s higher-margin, less cyclical businesses performed well during the quarter. These included brokerage, finance and insurance, marina operations including IGY, the Superyacht Division, and parts and service.
McLamb said the company’s gross margin improvement, excluding the tariff refund, was driven about 60% by growth in higher-margin businesses and mix, and about 40% by improvement in boat margins. He estimated that underlying boat margins improved by roughly 175 to 200 basis points from the prior year.
“The third quarter marked the second consecutive quarter of improving boat margins, a positive development considering the current stage of the industry cycle,” McLamb said.
McGill added that parts and service revenue remained strong even in a softer sales environment. He said customers were continuing to use their boats and spend money with MarineMax’s parts and service departments “at growing levels.”
Inventory Falls and Debt Refinancing Extends Maturities
MarineMax ended the quarter with nearly $175 million in cash. Inventories declined approximately $118 million from the prior-year June quarter and were also lower than in the March quarter. McLamb said customer deposits increased meaningfully from a year earlier and modestly from March.
The company also completed a refinancing of its senior secured credit facilities during the quarter. McGill said the transaction refinanced all of MarineMax’s term debt on improved terms, extended maturities to 2031 and increased financial flexibility.
McLamb said the refinancing reflected lender confidence in MarineMax’s operating performance and long-term strategy. He added that reduced inventory levels and lower borrowings helped drive a decline in interest expense.
Used Boat Market and Certified Pre-Owned Program
MarineMax launched what McGill described as an industry-leading certified pre-owned program during the quarter, aimed at capturing demand in the used boat market. He said late-model pre-owned boats continue to be attractive to customers seeking entry into the boating lifestyle.
McLamb said late-model used boats are “a pretty hot commodity,” adding that the new certified pre-owned program was being well received. He said used boat turns and margins were improving.
McGill said the early success of the program was partly due to market timing and partly attributable to the program itself. “We’re happy with the early success of the program, and we’ll see it expand,” he said.
The company also announced a strategic partnership with NextBoat, which McGill said expands distribution opportunities for financing and insurance offerings through MarineMax’s Newcoast Financial Services subsidiary. The partnership gives the company access to a broader network of pre-owned marine transactions and marketplace participants.
Guidance Reaffirmed Despite Softer Industry Outlook
MarineMax reaffirmed its fiscal 2026 guidance for adjusted EBITDA of $110 million to $125 million and adjusted net income of approximately $0.40 to $0.95 per diluted share. McLamb said the outlook reflects current operating conditions, recent industry trends, retail performance and the company’s ongoing shift toward higher-margin, recurring and service-oriented revenue streams.
At the industry level, MarineMax now expects unit volumes to finish the year down as much as the mid-single-digit range, citing continued softness, especially in the June quarter. The company also expects fiscal 2026 same-store sales to decline and likely be in a similar range.
McLamb said July trends had remained consistent with May and June, with uneven demand marked by periods of stronger activity followed by softer stretches. He said the company believed July would finish with positive same-store sales, though the final days of the month remained important.
In response to an analyst question about maintaining guidance despite lowering the industry and same-store sales outlook, McLamb said results could land toward the higher end of guidance if MarineMax strings together stronger months with decent margins. Conversely, continued weakness could put results toward the lower end. He said the company remained confident that its higher-margin businesses would continue to perform well.
Management also discussed potential growth opportunities following the refinancing. McLamb said MarineMax maintains an active acquisition pipeline, though he noted that many dealers are not eager to sell based on low earnings. He said improved margins across the industry could help earnings and create opportunities for MarineMax to be “a little more selective and creative.”
The call ended early because of technical difficulties during the question-and-answer portion.
About MarineMax (NYSE:HZO)
MarineMax, Inc is a publicly traded company on the New York Stock Exchange under the ticker HZO and is one of the largest recreational boat and yacht retailers in the United States. The company markets new and used motor yachts, sailing yachts, sport boats and personal watercraft, acting as an authorized dealer for leading manufacturers. In addition to boat sales, MarineMax provides service and maintenance, parts and accessory sales, training and education, and marina operations.
Operating through a network of sales centers, service facilities and marinas, MarineMax serves coastal and inland markets across the continental U.S.
