Marine Products Corporation Reports First Quarter Financial Results And Declares Regular Quarterly Dividend
Marine Products (NYSE: MPX) reported challenging first quarter 2025 results, with significant year-over-year declines across key metrics. Net sales decreased 15% to $59.0 million, primarily due to a 19% decrease in boat sales volume, partially offset by a 4% price/mix increase. Net income fell 52% to $2.2 million, with diluted EPS of $0.06, down from $0.13 in Q1 2024.
The company's performance reflected ongoing marine industry softness and macro-economic uncertainties. Gross margin declined 160 basis points to 18.6%, while EBITDA dropped 43% to $3.4 million. Despite challenges, MPX maintained a strong financial position with $57.1 million in cash and no debt. The Board declared a quarterly dividend of $0.14 per share, payable June 10, 2025.
Management anticipates taking a conservative approach to 2026 model year introductions and inventory management, citing concerns about potential tariff impacts and economic uncertainty affecting consumer spending.
Marine Products (NYSE: MPX) ha riportato risultati difficili nel primo trimestre 2025, con cali significativi su base annua nelle principali metriche. Le vendite nette sono diminuite del 15%, attestandosi a 59,0 milioni di dollari, principalmente a causa di una riduzione del 19% nel volume delle vendite di barche, parzialmente compensata da un aumento del prezzo/mix del 4%. L'utile netto è sceso del 52%, raggiungendo 2,2 milioni di dollari, con un utile per azione diluito di 0,06 dollari, in calo rispetto a 0,13 dollari nel primo trimestre 2024.
Le prestazioni dell'azienda riflettono la debolezza continua del settore marittimo e le incertezze macroeconomiche. Il margine lordo è sceso di 160 punti base al 18,6%, mentre l'EBITDA è diminuito del 43%, attestandosi a 3,4 milioni di dollari. Nonostante le difficoltà, MPX ha mantenuto una solida posizione finanziaria con 57,1 milioni di dollari in liquidità e nessun debito. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale di 0,14 dollari per azione, pagabile il 10 giugno 2025.
La direzione prevede un approccio prudente per le introduzioni dei modelli 2026 e la gestione dell'inventario, citando preoccupazioni riguardo a possibili impatti tariffari e incertezze economiche che influenzano la spesa dei consumatori.
Marine Products (NYSE: MPX) reportó resultados difíciles en el primer trimestre de 2025, con descensos significativos interanuales en métricas clave. Las ventas netas disminuyeron un 15% hasta 59,0 millones de dólares, principalmente debido a una caída del 19% en el volumen de ventas de embarcaciones, parcialmente compensada por un aumento del 4% en precio/mezcla. El ingreso neto cayó un 52% hasta 2,2 millones de dólares, con una ganancia diluida por acción de 0,06 dólares, frente a 0,13 dólares en el primer trimestre de 2024.
El desempeño de la empresa reflejó la continua debilidad de la industria marítima y las incertidumbres macroeconómicas. El margen bruto disminuyó 160 puntos básicos hasta 18,6%, mientras que el EBITDA cayó un 43% hasta 3,4 millones de dólares. A pesar de los desafíos, MPX mantuvo una posición financiera sólida con 57,1 millones de dólares en efectivo y sin deuda. La Junta declaró un dividendo trimestral de 0,14 dólares por acción, pagadero el 10 de junio de 2025.
La dirección anticipa adoptar un enfoque conservador para las introducciones de modelos del año 2026 y la gestión de inventarios, citando preocupaciones sobre posibles impactos arancelarios e incertidumbre económica que afectan el gasto del consumidor.
Marine Products (NYSE: MPX)는 2025년 1분기 어려운 실적을 보고했으며, 주요 지표에서 전년 대비 큰 폭의 감소를 기록했습니다. 순매출은 15% 감소한 5,900만 달러로, 이는 주로 보트 판매량이 19% 줄었기 때문이며, 4%의 가격/믹스 상승으로 일부 상쇄되었습니다. 순이익은 52% 감소한 220만 달러로, 희석 주당순이익은 2024년 1분기 0.13달러에서 0.06달러로 하락했습니다.
회사의 실적은 해양 산업의 지속적인 부진과 거시경제 불확실성을 반영합니다. 총 마진은 160 베이시스 포인트 하락한 18.6%를 기록했고, EBITDA는 43% 감소한 340만 달러였습니다. 어려움에도 불구하고 MPX는 5,710만 달러의 현금과 무부채 상태로 견고한 재무 상태를 유지했습니다. 이사회는 주당 0.14달러의 분기 배당금을 선언했으며, 2025년 6월 10일에 지급될 예정입니다.
경영진은 잠재적인 관세 영향과 소비자 지출에 영향을 미치는 경제 불확실성을 고려하여 2026년형 모델 출시와 재고 관리를 보수적으로 접근할 계획이라고 밝혔습니다.
Marine Products (NYSE : MPX) a annoncé des résultats difficiles pour le premier trimestre 2025, avec des baisses significatives d'une année sur l'autre sur les indicateurs clés. Le chiffre d'affaires net a diminué de 15% pour atteindre 59,0 millions de dollars, principalement en raison d'une baisse de 19% du volume des ventes de bateaux, partiellement compensée par une augmentation de 4% du prix/mix. Le bénéfice net a chuté de 52% pour s'établir à 2,2 millions de dollars, avec un BPA dilué de 0,06 dollar, contre 0,13 dollar au premier trimestre 2024.
La performance de la société reflète la faiblesse persistante du secteur maritime et les incertitudes macroéconomiques. La marge brute a diminué de 160 points de base pour atteindre 18,6%, tandis que l'EBITDA a chuté de 43% à 3,4 millions de dollars. Malgré les difficultés, MPX a maintenu une position financière solide avec 57,1 millions de dollars en liquidités et aucune dette. Le conseil d'administration a déclaré un dividende trimestriel de 0,14 dollar par action, payable le 10 juin 2025.
La direction prévoit d'adopter une approche prudente pour les lancements des modèles 2026 et la gestion des stocks, invoquant des préoccupations liées aux impacts potentiels des tarifs douaniers et à l'incertitude économique affectant les dépenses des consommateurs.
Marine Products (NYSE: MPX) meldete herausfordernde Ergebnisse für das erste Quartal 2025 mit deutlichen Rückgängen im Jahresvergleich bei wichtigen Kennzahlen. Der Nettoumsatz sank um 15% auf 59,0 Millionen US-Dollar, hauptsächlich aufgrund eines 19%igen Rückgangs des Bootsverkaufsvolumens, teilweise ausgeglichen durch eine 4%ige Steigerung des Preis-/Mix-Effekts. Der Nettogewinn fiel um 52% auf 2,2 Millionen US-Dollar, bei einem verwässerten Ergebnis je Aktie von 0,06 US-Dollar, verglichen mit 0,13 US-Dollar im ersten Quartal 2024.
Die Unternehmensleistung spiegelte die anhaltende Schwäche der Marinebranche und makroökonomische Unsicherheiten wider. Die Bruttomarge sank um 160 Basispunkte auf 18,6%, während das EBITDA um 43% auf 3,4 Millionen US-Dollar zurückging. Trotz der Herausforderungen hielt MPX eine starke Finanzlage mit 57,1 Millionen US-Dollar in bar und keiner Verschuldung. Der Vorstand erklärte eine Quartalsdividende von 0,14 US-Dollar je Aktie, zahlbar am 10. Juni 2025.
Das Management plant einen vorsichtigen Ansatz bei der Einführung der Modelle für das Jahr 2026 und der Lagerverwaltung, wobei Bedenken hinsichtlich möglicher Zollauswirkungen und wirtschaftlicher Unsicherheiten, die das Konsumverhalten beeinflussen, genannt werden.
- Strong cash position with $57.1 million and no debt
- Generated $10.8 million in operating cash flow
- Field inventory 18% below previous year's levels
- 23% sequential sales increase from Q4 2024
- Net sales decreased 15% year-over-year to $59.0 million
- Net income declined 52% to $2.2 million
- Gross margin decreased 160 basis points to 18.6%
- EBITDA fell 43% to $3.4 million
- 19% decrease in number of boats sold
Insights
MPX reports significant Q1 earnings declines amid marine industry weakness, maintains strong balance sheet but faces continuing market headwinds.
Marine Products 's Q1 2025 results reveal substantial financial deterioration amid persistent marine industry challenges. Net sales fell
The company's profitability metrics show concerning compression across the board. Gross margin contracted
Despite these challenges, there are silver linings. Field inventory has been reduced
Notably, while year-over-year comparisons remain negative, Q1 sales improved
The marine industry appears to be in a continued cyclical downturn, with consumers hesitant to make large discretionary purchases amid economic uncertainty. MPX's results suggest that while the worst declines may be moderating (compared to
* Non-GAAP measures, including EBITDA, EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendices of this earnings release.
* All comparisons are year-over-year to 1Q:24 unless stated otherwise.
First Quarter 2025 Results
- Net sales decreased
15% year-over-year to$59.0 million - Net income was
$2.2 million 52% year-over-year, and diluted Earnings Per Share (EPS) was$0.06 3.7% - Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was
$3.4 million 43% year-over-year; EBITDA margin decreased 270 basis points to5.8% - Results reflected continued demand softness in the marine industry; uncertainties related to macro-economic conditions limit visibility
- The Company generated strong operating cash flow, made minimal capital investments and ended the quarter with approximately
$57.1 million
Management Commentary
"We started off 2025 with a continuation of challenging marine industry trends while we focused on supporting our dealers, managing inventories and controlling costs," stated Ben M. Palmer, Marine Products' President and Chief Executive Officer. "First quarter sales were down
"Beyond our specific industry, we are clearly seeing heightened uncertainty driven by tariff related headlines. Potential boat component and materials cost increases would likely result in model price increases. In addition, a broader sense of economic uncertainty and risk aversion are likely to impact consumer spending. Further, the interest rate outlook has become less clear with respect to inflation and economic growth as the Fed navigates a dynamic backdrop. Facing limited visibility in this environment, Marine Products will manage with prudence and conservatism, as we always have. Our balance sheet remains strong, our capital needs are minimal, and our strong cash position affords us the opportunity to make attractive strategic investments if the right opportunity arises," concluded Palmer.
1Q:25 Consolidated Financial Results (year-over-year comparisons versus 1Q:24)
Net sales were
Gross profit was
Selling, general and administrative expenses were
Interest income of
Income tax provision was
Net income and diluted EPS were
EBITDA was
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were
Net cash provided by operating activities and free cash flow were
Payment of dividends totaled
Conference Call Information
Marine Products Corporation will hold a conference call today, April 24, 2025, at 8:00 a.m. Eastern Time to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of Marine Products' website at www.marineproductscorp.com. Additionally, the live conference call can be accessed by calling (888) 660-6357, or (929) 201-6127 for international callers, and using conference ID number 9979064. A replay will be available in the investor relations section of Marine Products' website beginning approximately two hours after the call and for a period of 90 days.
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 SURF Series. Chaparral's outboard offerings include OSX Luxury Sportboats and the SSi Outboard Bowriders. Robalo builds an array of outboard sport fishing models, which include Center Consoles, Dual Consoles and Cayman Bay Boats. The Company continues to diversify its product lines through product innovation. With these premium brands, a solid capital structure, and a strong independent dealer network, Marine Products Corporation is prepared to capitalize on opportunities to increase its market share and generate superior financial performance to build long-term shareholder value. For more information on Marine Products Corporation visit our website at www.marineproductscorp.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: our plans to begin working with our dealer network for model year 2026 introductions and our intention to take a conservative approach to the rollout and inventory management but still deliver innovative designs and enhanced features to maintain our leading reputation with our dealers and consumers; our statement that beyond our specific industry, we are clearly seeing heightened uncertainty driven by tariff related headlines, and our belief that potential boat component and materials cost increases are likely to result in higher model prices; our belief that there is a broader sense of economic uncertainty and risk aversion which is likely to impact consumer spending; our belief that the interest rate outlook has become less clear with respect to inflation and economic growth as the Fed navigates a dynamic backdrop; our plans to manage with prudence and conservatism, as we always have; our belief that our balance sheet remains strong, our capital needs are minimal, and our strong cash position affords us the opportunity to make attractive strategic investments if the right opportunity arises; our expectation that full year 2025 capital expenditures will be approximately
For information about Marine Products Corporation or this event, please contact:
Mark Chekanow, CFA
Vice President, Investor Relations
(404) 419-3809
mchekano@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 | |||||||
March 31, | 2025 | 2024 | |||||
(Unaudited) | (Unaudited) | ||||||
Net sales | $ | 59,002 | $ | 69,340 | |||
Cost of goods sold | 48,049 | 55,356 | |||||
Gross profit | 10,953 | 13,984 | |||||
Selling, general and administrative expenses | 8,340 | 8,742 | |||||
Operating income | 2,613 | 5,242 | |||||
Interest income, net | 442 | 851 | |||||
Income before income taxes | 3,055 | 6,093 | |||||
Income tax provision | 849 | 1,496 | |||||
Net income | $ | 2,206 | $ | 4,597 | |||
EARNINGS PER SHARE | |||||||
Basic | $ | 0.06 | $ | 0.13 | |||
Diluted | $ | 0.06 | $ | 0.13 | |||
AVERAGE SHARES OUTSTANDING | |||||||
Basic | 34,877 | 34,632 | |||||
Diluted | 34,877 | 34,632 | |||||
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
March 31, | December 31, | |||||
2025 | 2024 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 57,103 | $ | 52,379 | ||
Accounts receivable, net | 7,793 | 4,176 | ||||
Inventories | 52,864 | 49,960 | ||||
Income taxes receivable | 61 | 439 | ||||
Prepaid expenses and other current assets | 4,791 | 3,040 | ||||
Total current assets | 122,612 | 109,994 | ||||
Property, plant and equipment, net | 23,581 | 24,247 | ||||
Goodwill | 3,308 | 3,308 | ||||
Other intangibles, net | 465 | 465 | ||||
Deferred income taxes | 9,805 | 9,729 | ||||
Retirement plan assets | 18,110 | 18,489 | ||||
Other long-term assets | 5,002 | 5,015 | ||||
Total assets | $ | 182,883 | $ | 171,247 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Accounts payable | $ | 18,636 | $ | 5,499 | ||
Accrued expenses and other liabilities | 14,902 | 13,425 | ||||
Total current liabilities | 33,538 | 18,924 | ||||
Retirement plan liabilities | 21,264 | 21,667 | ||||
Other long-term liabilities | 1,680 | 1,653 | ||||
Total liabilities | 56,482 | 42,244 | ||||
Stockholders' Equity | ||||||
Preferred stock | — | — | ||||
Common stock | 3,495 | 3,471 | ||||
Capital in excess of par value | — | — | ||||
Retained earnings | 122,906 | 125,532 | ||||
Total stockholders' equity | 126,401 | 129,003 | ||||
Total liabilities and stockholders' equity | $ | 182,883 | $ | 171,247 | ||
MARINE PRODUCTS CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
Three Months Ended March 31, | 2025 | 2024 | ||||||
(Unaudited) | (Unaudited) | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 2,206 | $ | 4,597 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Depreciation and amortization | 789 | 682 | ||||||
Working capital | 6,693 | 9,502 | ||||||
Other operating activities | 1,081 | 1,134 | ||||||
Net cash provided by operating activities | 10,769 | 15,915 | ||||||
INVESTING ACTIVITIES | ||||||||
Capital expenditures | (96) | (883) | ||||||
Net cash used for investing activities | (96) | (883) | ||||||
FINANCING ACTIVITIES | ||||||||
Payment of dividends | (4,894) | (4,852) | ||||||
Cash paid for common stock purchased and retired | (1,055) | (907) | ||||||
Net cash used for financing activities | (5,949) | (5,759) | ||||||
Net increase in cash and cash equivalents | 4,724 | 9,273 | ||||||
Cash and cash equivalents at beginning of period | 52,379 | 71,952 | ||||||
Cash and cash equivalents at end of period | $ | 57,103 | $ | 81,225 | ||||
Non-GAAP Measures
Marine Products Corporation has used the non-GAAP financial measures of 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 EBITDA and EBITDA margin 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 | ||||||
March 31, | March 31, | ||||||
(In thousands) | 2025 | 2024 | |||||
Reconciliation of Net Income to EBITDA | |||||||
Net income | $ | 2,206 | $ | 4,597 | |||
Adjustments: | |||||||
Add: Income tax provision | 849 | 1,496 | |||||
Add: Depreciation and amortization | 789 | 682 | |||||
Less: Interest income, net | 442 | 851 | |||||
EBITDA | $ | 3,402 | $ | 5,924 | |||
Net sales | $ | 59,002 | $ | 69,340 | |||
Net income margin(1) | 3.7 % | 6.6 % | |||||
EBITDA margin(1) | 5.8 % | 8.5 % | |||||
(1) | Net income margin is calculated as net income divided by net sales. EBITDA margin is calculated as EBITDA divided by net sales. |
Appendix B | |||||||
(Unaudited) | Three Months Ended | ||||||
March 31, | March 31, | ||||||
(In thousands) | 2025 | 2024 | |||||
Reconciliation of Operating Cash Flow to Free Cash Flow | |||||||
Net cash provided by operating activities | $ | 10,769 | $ | 15,915 | |||
Capital expenditures | (96) | (883) | |||||
Free cash flow | $ | 10,673 | $ | 15,032 | |||
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SOURCE Marine Products Corporation
FAQ
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