Malibu Boats (MBUU) Stock Forecast & Price Target

Malibu Boats demonstrated significant financial improvements in its recent performance, with net sales in the Malibu segment increasing by 114% year-over-year to reach $80.3 million and an impressive 78.7% increase in unit volumes. The company's overall gross margin expanded by 790 basis points to 15.8%, primarily driven by reduced promotional activities and a favorable model mix towards higher-margin products. Additionally, the company's fourth-quarter adjusted EBITDA rose to $19.7 million, a notable increase from a prior year loss, reflecting a strong recovery and positive momentum in the boating market.

Malibu Boats is facing a challenging financial outlook, with a significant downward adjustment in its guidance for FY26, reflecting expectations of flat to declining net sales and reduced adjusted EBITDA margins ranging from 8% to 9%, well below current market estimates. The company's Saltwater Fishing and Cobalt segments have reported notable declines in unit volumes of 9.3% and 11.4% year-over-year, respectively, amid rising macroeconomic uncertainties that are expected to further dampen consumer confidence and retail activity. Additionally, the company's proactive destocking measures and reliance on financing for boat purchases highlight potential vulnerabilities to adverse market conditions, including economic downturns and seasonal demand fluctuations.