Marine Products Corporation shares Q1 results
Marine Products Corporation has announced its unaudited results for the first quarter ended March 31, 2025.
“We started off 2025 with a continuation of challenging marine industry trends while we focused on supporting our dealers, managing inventories and controlling costs,” said Ben M. Palmer, president and CEO of Marine Products. “First quarter sales were down 15%, reflecting lower volumes and hesitation from dealers to place orders in the current demand environment. However, first quarter sales were up 23% sequentially versus the fourth quarter of 2024.
“Our field inventories are at a reasonable level, and we will begin working with our dealer network for model year 2026 introductions,” he continued. “It is likely we will 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.”
In the first quarter of 2025, net sales decreased 15% year-over-year to $59 million, and net income was $2.2 million, down 52% year-over-year. The company stated that these results reflect continued demand softness in the marine industry, and uncertainties related to macroeconomic conditions limit visibility.
“Beyond our specific industry, we are clearly seeing heightened uncertainty driven by tariff-related headlines,” Palmer said. “Potential boat component and material 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.”
Q1 results year-over-year
Net sales were $59.0 million, down 15%. The decrease in net sales was primarily due to a 19% decrease in the number of boats sold during the quarter, partially offset by a price/mix increase of 4%. Dealers continued to tightly manage their inventories as consumer demand remained modest. The year-over-year sales decline, however, was significantly less pronounced than the 30%-plus quarterly decreases the Company experienced during 2024. Comparisons are beginning to ease and field inventories are returning to more acceptable levels after being elevated since late 2023. The Company’s field unit inventory at the end of 1Q:25 was approximately 18% below 1Q:24.
Gross profit was $11.0 million, down 22%. Gross margin was 18.6%, down 160 basis points. The year-over-year gross margin decline reflected weak sales, which more than offset manufacturing cost controls. Production schedules and labor costs continue to be adjusted to align with market demand as relayed to the Company through dealer orders and feedback with respect to consumer sentiment.
EBITDA was $3.4 million, down from $5.9 million. EBITDA margin was 5.8%, down 270 basis points from last year’s first quarter.
Source: https://boatingindustry.com/news/2025/04/24/marine-products-corporation-shares-q1-results/
