Marine Products Corporation Reports Fourth Quarter and Full Year 2025 Financial Results
MWN-AI** Summary
Marine Products Corporation (NYSE: MPX), a prominent fiberglass boat manufacturer, reported its financial results for the fourth quarter and full year of 2025. In the fourth quarter, the company saw a 35% increase in net sales, reaching $64.6 million, driven primarily by a 12% rise in pricing and a 22% increase in boat units sold. However, net income decreased by 45% year-over-year to $2.4 million, with diluted earnings per share (EPS) dropping to $0.07. The adjusted net income was slightly better at $3.4 million, equating to an adjusted EPS of $0.10, reflecting the tax impacts from the liquidation of certain life insurance policies.
For the full year, net sales increased by 3% to $244.4 million, but net income fell 36% to $11.4 million, with diluted EPS at $0.32. The EBITDA for the year was reported at $17.2 million, a decline of 18% from the previous year. The company maintained strong cash flow, generating approximately $43.5 million in cash with no debt, and free cash flow of $14.9 million for the year.
Overall, while Marine Products Corporation showed robust sales growth in the fourth quarter, profitability was impacted by significant expenses and tax adjustments, resulting in declines in net income and margins. The company also announced dividend payments totaling $19.6 million during the year. Notably, there was no earnings conference call due to a simultaneous announcement with MasterCraft Boat Holdings, indicating a strategic move in the industry.
MWN-AI** Analysis
Marine Products Corporation’s (NYSE: MPX) fourth quarter and full year 2025 financial results reveal a mixed performance that investors should consider carefully. While net sales surged by 35% year-over-year to $64.6 million in 4Q2025, the decline in net income, which fell by 45% to $2.4 million, raises concerns about profitability amid rising operational costs. The company's net income margin dropped significantly from the previous year, indicating potential weaknesses in cost management or adverse effects from higher selling, general, and administrative expenses.
The annual results prompt a deeper look: total sales increased by only 3% to $244.4 million, while net income declined by 36% year-over-year. The adjusted net income of $12.4 million reflects some resilience; however, a consistent reduction in both gross and EBITDA margins suggests the company faces pressure on profitability.
From a cash flow perspective, Marine Products ended the year with $43.5 million in cash and no debt, a solid foundation that provides flexibility, particularly in uncertain economic climates. With $14.9 million in free cash flow generated, the company has room for investments, albeit down from 2024.
Investors should remain cautious before making new commitments. The company’s current challenges, including rising operational expenses and a significant decline in profitability metrics, warrant a conservative approach. The planned announcement of a combination with MasterCraft may provide future synergies, yet the successful execution depends on various external factors, including regulatory approvals that could pose risks.
In conclusion, while Marine Products shows potential for growth, exacerbated costs and dwindling margins signal that potential investors might prefer a "wait-and-see" approach until the impact of these operational challenges and the MasterCraft transaction are clearer.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
ATLANTA, Feb. 5, 2026 /PRNewswire/ -- Marine Products Corporation (NYSE: MPX) (the "Company"), a leading manufacturer of fiberglass boats, announced its unaudited results for the fourth quarter and full year ended December 31, 2025.
* Non-GAAP measures, including EBITDA, EBITDA margin, adjusted net income, adjusted net income margin, and free cash flow are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.
* All comparisons are year-over-year to 4Q:24 unless stated otherwise.
Fourth Quarter 2025 Results
- Net sales increased 35% year-over-year to $64.6 million
- Net income was $2.4 million, down 45% year-over-year, and diluted Earnings Per Share (EPS) was $0.07; Net income margin decreased 520 basis points to 3.7%
- Adjusted net income, was $3.4 million, and adjusted diluted Earnings per Share (EPS) was $0.10. Adjustments relate to taxes on company owned life insurance policies liquidated in 4Q:25 as part of the previously announced dissolution of the non-qualified supplemental retirement income plan
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $4.5 million, up 3% year-over-year; EBITDA margin decreased 220 basis points to 7.0%
- The Company generated strong operating and free cash flow, ending the quarter with approximately $43.5 million in cash and no debt
Full Year 2025 Results
- Net sales increased 3% year-over-year to $244.4 million
- Net income was $11.4 million, down 36% year-over-year, and diluted Earnings Per Share (EPS) was $0.32; Net income margin decreased 280 basis points to 4.7%
- Adjusted net income was $12.4 million, and adjusted diluted Earnings per Share (EPS) was $0.35. Adjustments relate to taxes on company owned life insurance policies liquidated in 4Q:25 as part of the previously announced dissolution of the non-qualified supplemental retirement income plan
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $17.2 million, down 18% year-over-year; EBITDA margin decreased 190 basis points to 7.0%
4Q:25 Consolidated Financial Results (year-over-year comparisons versus 4Q:24)
Net sales were $64.6 million, up 35%. The increase in net sales was primarily due to a price/mix increase of 12%, and a 22% increase in the number of boats sold during the quarter.
Gross profit was $12.7 million, up 39%. Gross margin was 19.6%, up 40 basis points versus the prior year period.
Selling, general and administrative expenses were $8.9 million, up 61%, and represented 13.9% of net sales, up 230 basis points versus 4Q:24.
Interest income of $376 thousand decreased due to lower cash balances and lower interest rates.
Income tax provision was $1.8 million, or 42.5% of income before income taxes, up primarily due to the tax impact of the liquidation of company-owned life insurance policies that were part of the previously announced dissolution of a non-qualified supplemental retirement income plan.
Net income and diluted EPS were $2.4 million and $0.07, respectively, down from $4.3 million and $0.12, respectively, in 4Q:24. Net income margin was 3.7%, down 520 basis points.
EBITDA was $4.5 million, up from $4.4 million. EBITDA margin was 7.0%, down 220 basis points from last year's fourth quarter.
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $43.5 million at the end of 4Q:25, with no outstanding borrowings under the Company's $20 million revolving credit facility.
Net cash provided by operating activities and free cash flow were $16.5 million and $14.9 million, respectively, year-to-date through 4Q:25.
Payment of dividends totaled $19.6 million year-to-date through 4Q:25.
Conference Call Information
Due to this morning's joint announcement with MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT), the Company will not be hosting a conference call to discuss results for the quarter.
About Marine Products
Marine Products Corporation is a leading manufacturer of high-quality fiberglass boats under the brand names Chaparral and Robalo. Chaparral's sterndrive models include SSi Sportboats and SSX Luxury Sportboats, and the GTS SURF Series. Chaparral's outboard offerings include OSX Luxury Sportboats, the SSi Outboard Bowriders, and SSX Luxury Sportboats. Robalo builds an array of outboard sport fishing models, which include Center Consoles, Dual Consoles and Cayman Bay Boats. For more information on Marine Products Corporation visit our website at www.marineproductscorp.com, charparralboats.com, and robalo.com.
Forward Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations, hopes or strategies. In particular, such statements include, without limitation, those relating to the proposed transaction with MasterCraft. Risk factors that could cause such future events not to occur or our strategies not to succeed as expected include the following: our ability to consummate the pending combination with MasterCraft on the proposed terms or on the proposed timeline, or at all, including risks and uncertainties related to securing the necessary regulator and stockholder approvals and the satisfaction of other closing conductions; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement relating to the transition with MasterCraft, effects relating to the announcement of the pending combination with MasterCraft, including on the market price of our common stock and our relationships with customers, employees, dealers and suppliers, and the risk of potential stockholder litigation associated with the pending combination with MasterCraft; negative economic conditions, including increased tariffs, unavailability of credit and possible decreases in the level of consumer confidence impacting discretionary spending; business interruptions due to, e.g., adverse weather conditions, supply chain disruptions and/or further increased interest rates; our retail incentives and allowances may not successfully increase consumer demand as anticipated; due to negative impacts to the overall economy, industry; competition; our adjustments to production levels may not match demand; increased cost of boat ownership makes it more difficult to raise prices in the future to compensate for increased costs; our new model launches may not match dealer and consumer preferences, which are inherently uncertain; and our ability to manage manufacturing costs may be constrained in light of lower production levels and/or higher materials costs due to unexpected or increased tariffs and/or higher inflation. Additional factors that could cause the actual results to differ materially from management's projections, forecasts, estimates and expectations are contained in Marine Products' Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the "SEC") for the year ended December 31, 2024.
Joshua Large
Vice President, Corporate Finance and Investor Relations
(404) 321-2152
jlarge@marineproductscorp.com
Michael L. Schmit
Chief Financial Officer
(404) 321-7910
irdept@marineproductscorp.com
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
December 31, | 2025 | 2024 | 2025 | 2024 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Net sales | $ | 64,571 | $ | 47,818 | $ | 244,419 | $ | 236,555 | |||||
Cost of goods sold | 51,886 | 38,660 | 197,644 | 191,057 | |||||||||
Gross profit | 12,685 | 9,158 | 46,775 | 45,498 | |||||||||
Selling, general and administrative expenses | 8,946 | 5,567 | 32,747 | 27,376 | |||||||||
Gain on disposition of assets, net | — | (93) | — | (144) | |||||||||
Operating income | 3,739 | 3,684 | 14,028 | 18,266 | |||||||||
Interest income, net | 376 | 512 | 1,737 | 2,876 | |||||||||
Income before income taxes | 4,115 | 4,196 | 15,765 | 21,142 | |||||||||
Income tax provision (benefit) | 1,750 | (71) | 4,382 | 3,289 | |||||||||
Net income | $ | 2,365 | $ | 4,267 | $ | 11,383 | $ | 17,853 | |||||
EARNINGS PER SHARE (1) | |||||||||||||
Basic | $ | 0.07 | $ | 0.12 | $ | 0.32 | $ | 0.50 | |||||
Diluted | $ | 0.07 | $ | 0.12 | $ | 0.32 | $ | 0.50 | |||||
AVERAGE SHARES OUTSTANDING (1) | |||||||||||||
Basic | 34,999 | 34,707 | 34,965 | 34,689 | |||||||||
Diluted | 34,999 | 34,707 | 34,965 | 34,689 |
(1) | Earnings per share reflects a reduction of $0.01 for the twelve months ended December 31, 2025 and 2024, due to the adjustment for earnings attributable to participating securities under the two-class method. Special dividend paid in Q2 2024 resulted in a reduction of $1,108 for earnings attributable to participating securities during the twelve months ended December 31, 2024. Average shares outstanding were reduced by 910 and 877 shares of participating securities for the years ended December 31, 2025 and 2024, respectively, under the two-class method. Participating securities are share-based payment awards with non-forfeitable rights to dividends. |
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
December 31, | December 31, | |||||
2025 | 2024 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 43,512 | $ | 52,379 | ||
Accounts receivable, net | 6,865 | 4,176 | ||||
Inventories | 54,691 | 49,960 | ||||
Income taxes receivable | 2,208 | 439 | ||||
Prepaid expenses and other current assets | 3,302 | 3,040 | ||||
Total current assets | 110,578 | 109,994 | ||||
Property, plant and equipment, net | 22,650 | 24,247 | ||||
Goodwill | 3,308 | 3,308 | ||||
Other intangibles, net | 465 | 465 | ||||
Deferred income taxes | 5,217 | 9,729 | ||||
Retirement plan assets | — | 18,489 | ||||
Other long-term assets | 5,014 | 5,015 | ||||
Total assets | $ | 147,232 | $ | 171,247 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Accounts payable | $ | 6,648 | $ | 5,499 | ||
Accrued expenses and other liabilities | 13,960 | 13,425 | ||||
Total current liabilities | 20,608 | 18,924 | ||||
Retirement plan liabilities | — | 21,667 | ||||
Other long-term liabilities | 1,659 | 1,653 | ||||
Total liabilities | 22,267 | 42,244 | ||||
Stockholders' Equity | ||||||
Preferred stock | — | — | ||||
Common stock | 3,500 | 3,471 | ||||
Capital in excess of par value | — | — | ||||
Retained earnings | 121,465 | 125,532 | ||||
Total stockholders' equity | 124,965 | 129,003 | ||||
Total liabilities and stockholders' equity | $ | 147,232 | $ | 171,247 |
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
Year Ended December 31, | 2025 | 2024 | |||||
(Unaudited) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 11,383 | $ | 17,853 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 3,138 | 2,786 | |||||
Working capital | (7,818) | 6,036 | |||||
Other operating activities | 9,761 | 2,851 | |||||
Net cash provided by operating activities | 16,464 | 29,526 | |||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (1,541) | (4,596) | |||||
Proceeds from benefit plan financing arrangement | 20,715 | — | |||||
Distribution from benefit plan financing arrangement | (23,855) | — | |||||
Proceeds from sale of assets | — | 163 | |||||
Net cash used for investing activities | (4,681) | (4,433) | |||||
FINANCING ACTIVITIES | |||||||
Payment of dividends | (19,595) | (43,733) | |||||
Cash paid for common stock purchased and retired | (1,055) | (933) | |||||
Net cash used for financing activities | (20,650) | (44,666) | |||||
Net decrease in cash and cash equivalents | (8,867) | (19,573) | |||||
Cash and cash equivalents at beginning of period | 52,379 | 71,952 | |||||
Cash and cash equivalents at end of period | $ | 43,512 | $ | 52,379 | |||
Non-GAAP Measures
Marine Products Corporation has used the non-GAAP financial measures of adjusted net income, adjusted net income margin, adjusted earnings per share, EBITDA, EBITDA margin, and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures enables investors to compare our operating performance consistently over various time periods without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating Marine Products' liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, Marine Products' definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on Marine Products Corporation's investor website, which can be found on the Internet at www.marineproductscorp.com.
Appendix A | ||||||||||||
(Unaudited) | Three Months Ended | Year Ended | ||||||||||
December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||
Reconciliation of Net Income to Adjusted Net Income (In thousands) | ||||||||||||
Net income | $ | 2,365 | $ | 4,267 | $ | 11,383 | $ | 17,853 | ||||
Adjustments: | ||||||||||||
Add: Taxes on company owned life insurance liquidation | 1,039 | — | 1,039 | — | ||||||||
Adjusted net income | $ | 3,404 | $ | 4,267 | $ | 12,422 | $ | 17,853 |
(Unaudited) | Three Months Ended | Year Ended | ||||||||||
December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share | ||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.12 | $ | 0.32 | $ | 0.50 | ||||
Adjustments: | ||||||||||||
Add: Taxes on company owned life insurance liquidation | 0.03 | — | 0.03 | — | ||||||||
Adjusted diluted earnings per share | $ | 0.10 | $ | 0.12 | $ | 0.35 | $ | 0.50 | ||||
Weighted average shares outstanding (in thousands) | 34,999 | 34,707 | 34,965 | 34,689 |
Appendix B | |||||||||||||
(Unaudited) | Three Months Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||
Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin | |||||||||||||
Net income | $ | 2,365 | $ | 4,267 | $ | 11,383 | $ | 17,853 | |||||
Adjustments: | |||||||||||||
Add: Income tax provision (benefit) | 1,750 | (71) | 4,382 | 3,289 | |||||||||
Add: Depreciation and amortization | 777 | 698 | 3,138 | 2,786 | |||||||||
Less: Interest income, net | 376 | 512 | 1,737 | 2,876 | |||||||||
EBITDA | $ | 4,516 | $ | 4,382 | $ | 17,166 | $ | 21,052 | |||||
Net sales | $ | 64,571 | $ | 47,818 | $ | 244,419 | $ | 236,555 | |||||
Net income margin(1) | 3.7 % | 8.9 % | 4.7 % | 7.5 % | |||||||||
Adjusted net income margin(1) | 5.3 % | 8.9 % | 5.1 % | 7.5 % | |||||||||
EBITDA margin(1) | 7.0 % | 9.2 % | 7.0 % | 8.9 % |
(1) Net income margin is calculated as Net income divided by Net sales. Adjusted net income margin is calculated as Adjusted net income divided by Revenues. EBITDA margin is calculated as EBITDA divided by Net sales. |
Appendix C | |||||||
(Unaudited) | Year Ended | ||||||
December 31, | December 31, | ||||||
(In thousands) | 2025 | 2024 | |||||
Reconciliation of Operating Cash Flow to Free Cash Flow | |||||||
Net cash provided by operating activities | $ | 16,464 | $ | 29,526 | |||
Capital expenditures | (1,541) | (4,596) | |||||
Free cash flow | $ | 14,923 | $ | 24,930 |
SOURCE Marine Products Corporation
FAQ**
What were the key factors contributing to the 35% year-over-year increase in net sales for Marine Products Corporation MPX in the fourth quarter of 2025?
With a 45% decline in net income year-over-year, what steps is Marine Products Corporation MPX planning to take to improve profitability moving forward?
How will the liquidation of company-owned life insurance policies impact future tax provisions for Marine Products Corporation MPX, given the adjustments in their financial results?
What strategies does Marine Products Corporation MPX have in place to manage rising selling, general, and administrative expenses, which increased by 61% in Q4 2025?
**MWN-AI FAQ is based on asking OpenAI questions about MasterCraft Boat Holdings Inc. (NASDAQ: MCFT).
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