MasterCraft surges 4% on earnings beat, Marine Products deal
Luxury boat maker raises full-year guidance after 81% EPS surprise and announces $232M transformational acquisition
MasterCraft Boat Holdings shares jumped 3.9% on Thursday after the luxury boat manufacturer delivered a stronger-than-expected quarterly performance and unveiled a transformative acquisition that will more than double its consumer reach.
The Vonore, Tennessee-based company reported fiscal second-quarter adjusted earnings of $0.29 per share, easily beating Wall Street estimates of $0.16, as revenue climbed to $71.8 million against analyst projections of $69.2 million. The earnings surprise of 81% came alongside a significant improvement in profitability, with gross margins expanding 440 basis points to 21.6%.
Building on the momentum, MasterCraft raised its full-year fiscal 2026 guidance to earnings per share of $1.45 to $1.60, with revenue projected between $300 million and $310 million. The company anticipates third-quarter earnings of $0.35 per share on approximately $75 million in revenue.
Perhaps more consequential for the company's long-term trajectory, MasterCraft announced a definitive agreement to acquire Marine Products Corporation in a cash-and-stock transaction valued at $232.2 million, net of acquired cash. Under the deal terms, Marine Products shareholders will receive $2.43 in cash and 0.232 MasterCraft shares for each MPX share held, representing an implied value of $7.79 per share based on February 4 pricing.
The combination will create a powerhouse in the recreational marine industry, bringing together five established brands across four distinct categories: MasterCraft's premium wake sports boats will join Marine Products' Crest pontoon boats, Balise bay boats, and Chaparral and Robalo fishing boats. The combined entity will more than double MasterCraft's addressable consumer base and create a more diversified portfolio less dependent on any single segment of the marine market.
"This strategic combination creates a uniquely positioned platform with leading brands across the recreational marine market," the company said in its announcement. "The transaction is expected to be accretive to MasterCraft's adjusted earnings per share in fiscal year 2027."
Following the deal's close, MasterCraft shareholders are expected to own approximately 66.5% of the combined company, with the transaction anticipated to finalize in the second calendar quarter of 2026. The deal arrives amid continued pressure on recreational vehicle demand from elevated interest rates and inflation, factors that have weighed on discretionary spending throughout 2025 and into 2026.
Despite broader macroeconomic headwinds, MasterCraft has demonstrated operational resilience. The company's institutional ownership stands at 96.2%, reflecting confidence among sophisticated investors. In December 2025, Coliseum Capital and related entities purchased shares worth $2.65 million, according to regulatory filings.
Analyst sentiment has been cautiously improving. Wall Street Zen upgraded the stock to a "strong-buy" rating in January 2026, while the consensus price target sits at $22.80, slightly below current trading levels. The company's forward price-to-earnings ratio of 17.18 suggests investors are pricing in modest growth expectations despite today's rally.
For the broader recreational boating industry, the MasterCraft-Marine Products combination could signal a new wave of consolidation as smaller players seek scale to weather challenging market conditions. By combining manufacturing, distribution, and administrative functions, the merged company expects to generate operational efficiencies while expanding its product lineup to capture a larger share of the marine enthusiast market.
Investors will be watching closely for integration updates as the deal progresses toward its expected second-quarter closing, as well as commentary on retail demand trends when MasterCraft reports third-quarter results later this fiscal year.