Here are 1-3 brief analogies to describe Malibu Boats (MBUU):

• The Porsche of premium powerboats.
• The Harley-Davidson of recreational boats.
• The Callaway Golf of wake and surf boats.

• Malibu Boats: Manufactures performance sport boats primarily designed for wakeboarding and wakesurfing.
• Axis Wake Research Boats: Produces value-oriented performance sport boats focused on wakeboarding and wakesurfing.
• Cobalt Boats: Offers luxury sterndrive and outboard runabouts, sport yachts, and day boats.
• Pursuit Boats: Builds premium offshore and dual console fishing boats.
• Maverick Boat Group Boats (Maverick, Hewes, Pathfinder): Manufactures high-end shallow water fishing boats, including flats and bay boats.

Malibu Boats (MBUU) primarily sells its products to other companies rather than directly to individuals. Its major customers are:

• Independent Dealerships: Malibu Boats distributes its products through a network of independent, authorized dealers across North America and internationally. These dealerships operate as standalone businesses that purchase boats from Malibu Boats and then sell them to individual consumers.

  As is common in the recreational boat manufacturing industry, Malibu Boats does not publicly disclose the names of specific individual dealerships that would be considered "major customers" (e.g., representing a significant portion of their revenue) in their financial filings. These dealerships are typically privately owned businesses and do not have stock symbols.

• Indmar Marine Engines
• Yamaha Motor Co., Ltd. (YAMHF)

Steven D. Menneto joined Malibu Boats as CEO in August 2024. Prior to this, he spent over 27 years at Polaris, Inc., where he held significant leadership roles. Most recently, he served as President of the Off-Road Vehicle Division, where he nearly doubled the division's revenue to over $7 billion in four years. From May 2009 to December 2019, Menneto was President of Polaris' Motorcycle Division, during which he grew the Indian Motorcycle business from $3 million to approximately $500 million in revenue. Early in his career, he owned his own Polaris dealership. He is also slated to assume the role of President of Malibu Boats, Inc., effective February 7, 2025.

Bruce W. Beckman was appointed Chief Financial Officer of Malibu Boats, Inc., effective November 27, 2023. He joined Malibu Boats in late 2023. Before joining Malibu, Beckman served as Senior Vice President of Finance at Entegris for over eight years, where he held various positions of increasing responsibility and led a global team of over 200 professionals in finance and accounting, driving financial performance for the semiconductor industry. Prior to Entegris, he held numerous senior financial positions at General Mills, Inc., including Vice President of Finance for the Meals Division, Director of Corporate Planning & Analysis, and Director of Internal Controls. Beckman holds a Bachelor of Science and an MBA from the University of Minnesota.

Ritchie L. Anderson will retire as President of Malibu Boats, Inc. effective February 7, 2025, culminating a career in the powerboat manufacturing industry that spans over four decades. He served 12 years with Malibu Boats, during which he held roles as Vice President of Operations, Chief Operating Officer, and most recently, President. Before joining Malibu, Mr. Anderson spent 28 years at MasterCraft Boat Company, where he held various leadership positions, including Vice President of Operations.

Donna Tallent is the Senior Vice President of Operations at Malibu Boats, Inc. She is a seasoned professional in the boating industry with extensive experience in operations, process engineering, and environmental health and safety. Ms. Tallent has held various leadership roles at both Malibu Boats and Sea Ray Boats. Following the retirement of Ritchie Anderson, she will assume leadership for MBI operations.

Michael K. Hooks assumed the role of Executive Chair of Malibu Boats, Inc. in February 2024. He has been a member of the company's board of directors since 2006. Hooks was a co-founder of Black Canyon Capital LLC, a private equity firm that acquired Malibu Boats in 2006, positioning the company to capitalize on the wakeboarding market and expand its market share during the Great Recession.

The key risks to Malibu Boats' business are primarily driven by external economic factors and internal operational challenges related to its distribution network and competitive landscape.

1. Soft Retail Demand and Macroeconomic Headwinds: Malibu Boats faces significant risk from macroeconomic uncertainty, including elevated interest rates and inflation, which directly impact consumer discretionary spending on luxury items like boats. This has led to reduced retail demand and wholesale shipments, negatively affecting the company's net sales, gross margins, and net income. The company has noted that its premium segments are particularly vulnerable to economic uncertainty.
2. Dealer Inventory Management and Relationships: Challenges in accurately forecasting product demand have led to issues with elevated dealer inventory levels, resulting in reduced wholesale shipments as dealers work to "destock." Furthermore, Malibu Boats has faced a securities fraud class action lawsuit alleging an "elaborate scheme to over manufacture and pump nearly $100 million of its highest priced, highest margin, slow moving boat inventory into fifteen Tommy's dealerships," and withholding incentives and rebates. This poses a significant risk of litigation and damage to critical dealer relationships.
3. Intense Competition and Industry Fragmentation: The boating industry is highly competitive and fragmented, making it difficult for Malibu Boats to consistently gain market share. Competitors such as MasterCraft, Correct Craft, and Sea Ray are also vying for market share and innovating, which can pressure Malibu's pricing power and margins.

The clear emerging threats for Malibu Boats (MBUU) include:

• Electrification of recreational boats: While Malibu Boats has its own electric propulsion brand (Ingenity Electric), the rapid development and market entry by dedicated electric boat manufacturers (e.g., Arc Boats, Candela) and other established competitors (e.g., Brunswick's Fathom system, Nautique's electric concepts) pose a significant emerging threat. These companies are advancing battery technology, range, and performance, appealing to a growing segment of consumers seeking quieter, cleaner, and potentially lower-maintenance boating experiences. If a competitor were to achieve a breakthrough in electric boat technology or market adoption, it could quickly erode demand for traditional internal combustion engine boats, akin to how electric vehicles are disrupting the automotive industry.
• Growth of boat-sharing and club models: The increasing popularity and expansion of boat-sharing services and boat clubs (e.g., Brunswick's Freedom Boat Club) represent an emerging threat to traditional boat ownership models. These services offer access to a fleet of boats without the high upfront cost, maintenance, storage, and operational hassles of owning a boat. As these models gain traction, they could reduce the overall demand for new boat sales over the long term, directly impacting manufacturers like Malibu Boats whose business relies on individual boat purchases.

The addressable markets for Malibu Boats' main products and services are as follows:

Watersports Towboats (Malibu and Axis Brands)

Malibu Boats is the world's largest manufacturer of watersports towboats, which include wakeboard, wakesurf, and ski boats under their Malibu and Axis brands.

• Global Wakeboard Boat Market: The global wakeboard boat market size was approximately USD 2.42 billion in 2024, is expected to rise to USD 2.55 billion in 2025, and is forecasted to reach USD 3.86 billion by 2033, expanding at a compound annual growth rate (CAGR) of 5.2% during the period 2025-2033. Another estimate values the global wakeboard boat market at approximately USD 2.8 billion in 2023, projected to reach USD 4.8 billion by 2032, with a CAGR of 5.8%.
• Global Ski and Wake Boat Market: The global ski and wake boat market size is projected to reach a valuation of USD 3.5 billion by 2033, growing at a CAGR of 5.2% from 2025 to 2033. It was also projected to reach US$ 1.94 billion in 2024.
• North America: North America dominates the wakeboard boat market and is expected to remain the largest ski and wake boat market, with the USA being the primary growth driver. The United States is a significant market due to its extensive waterways and strong boating culture.

Other Recreational Powerboats (Cobalt, Pursuit, Maverick Boat Group Brands)

Malibu Boats' acquisitions, such as Cobalt Boats, Pursuit Boats, and Maverick Boat Group, expand their product offerings into sterndrive, outboard, offshore, fishing, bay, dual-console, and center-console boats.

• North America Recreational Boating Market: The market size in North America was USD 10.06 billion in 2024. It is anticipated to grow at a CAGR of 4.53% from 2025 to 2033, reaching USD 14.99 billion by 2033. The United States accounted for 87.2% of the North American recreational boating market in 2025.
• North America Boats Market: The North America boats market size was USD 16.58 billion in 2023. This region dominated the global boats market with a share of 51.06% in 2023.
• Global Boats Market: The global boats market size was valued at USD 32.47 billion in 2023 and is projected to grow from USD 34.25 billion in 2024 to USD 61.19 billion by 2032, exhibiting a CAGR of 7.5%.
• United States Leisure Boat Market: The leisure boat market in the United States generated a revenue of USD 11,110.3 million in 2023 and is expected to reach USD 14,332.9 million by 2030, with a CAGR of 3.7% from 2024 to 2030. Another estimate indicates the market size reached USD 11,427.36 million in 2024 and is expected to reach USD 15,172.71 million by 2033, with a CAGR of 3.20% during 2025-2033.
• Global Leisure and Defense Power Boats Market: The global leisure and defense power boats market was estimated to be worth USD 24,165.2 million in 2022 and is expected to reach USD 36,096.25 million by 2028, growing at a substantial CAGR of 5.9%. North America currently leads this global market.

Pontoon Boats

Malibu Boats also manufactures pontoon boats.

• Global Pontoon Market: The global pontoon market size was valued at USD 8.5 billion in 2024 and is projected to grow at a CAGR of 7.9% between 2025 and 2034. Other estimations place the market size at USD 8.68 billion in 2023, expected to reach USD 17.27 billion by 2032 with an 8.0% CAGR, and an estimated USD 9.55 billion in 2024, expected to reach USD 23.66 billion by 2035 with a CAGR of approximately 8.60% from 2025 to 2034.
• North America Pontoon Market: The North America pontoon market accounted for 61% of the global revenue share in 2024 and is expected to exceed USD 11 billion by 2034. North America is projected to remain the largest market for pontoon boats.

Malibu Boats (MBUU) anticipates several key drivers to fuel its revenue growth over the next two to three years, primarily focusing on product innovation, market expansion, and strategic pricing in an evolving retail environment.

1. New Product Launches and Innovation: Malibu Boats is consistently introducing new models and prioritizing innovation across its brands. The company launched the Pathfinder 2600 at the Fort Lauderdale International Boat Show and introduced 11 new boat models for Model Year 2026, including top-tier Monsoon engines and a broader range of entry-level Axis options to attract new buyers. This continuous cadence of new and updated products is expected to stimulate demand and drive sales.
2. Expansion into New Market Segments ("White Space"): The company aims to capitalize on its manufacturing footprint to enter new segments it doesn't currently serve, with a particular interest in larger boats. Additionally, expanding its product offerings, such as broadening the range of entry-level Axis options, is intended to attract new buyer demographics and grow the addressable market.
3. Market Share Gains: Malibu Boats intends to drive market share in existing segments, including outboard and sterndrive surf boats, through new products and innovations. The company maintains strong dealer relationships and focuses on operational discipline to outperform the broader industry, positioning itself to capture increased market share as demand stabilizes.
4. Strategic Pricing and Favorable Model Mix: Malibu Boats has implemented inflation-driven year-over-year price increases, which have contributed to net sales growth. A favorable model mix, particularly within its Cobalt and Saltwater Fishing segments, also contributes to increased net sales per unit. While prices may have a ceiling, strategic pricing combined with an optimized product mix is expected to continue supporting revenue.
5. Return to Mid-Cycle Market Conditions: Despite navigating a challenging retail environment, Malibu Boats is positioned for significant revenue growth (up to 50%) when the broader market improves and demand stabilizes. The company's focus on managing inventory levels and maintaining strong dealer relationships helps it prepare for a market rebound.

Share Repurchases

• Malibu Boats repurchased 997,791 shares of Class A Common Stock for $36.0 million in cash during the fiscal year ended June 30, 2025.
• In June 2025, the Board of Directors authorized a new stock repurchase program allowing for the repurchase of up to $50.0 million of the company's Class A Common Stock.
• For the fiscal year 2025, $36 million was returned to shareholders through share repurchases.

Share Issuance

• The number of outstanding shares for Malibu Boats has generally decreased over the last few years, indicating net repurchases rather than significant issuances. For instance, shares outstanding decreased from 20.71 million in 2020 to 19.32 million by October 2025.

Outbound Investments

• In December 2020, Malibu Boats acquired Maverick Boat Group for $170 million.
• The company expanded its vertical integration in 2020 by beginning to produce its own Monsoon engines for its performance sport boats and diversifying into boat trailers and accessories.
• Malibu Boats sees high potential for future acquisitions to further expand its portfolio and gain market share.

Capital Expenditures

• Capital expenditures for the fiscal year ended June 30, 2025, were $27.917 million.
• Capital expenditures peaked at $75.962 million in fiscal year 2024 and averaged $48.892 million from fiscal years 2021 to 2025.
• The company's capital expenditures have been focused on facility expansion initiatives, inventory replenishment, and continuous investment in innovation and vertical integration.