Malibu Boats (MBUU) Stock Forecast & Price Target

Malibu Boats has demonstrated significant financial improvement, with a consensus estimated EBITDA increasing to $21.3 million from a loss of $4.1 million in the previous year, alongside a substantial 1,210 basis point increase in the Adjusted EBITDA margin to 9.5%. The company's unit volumes surged by 78.7% year-over-year, reaching a total of 570 units, reflecting strong product demand. Additionally, the Malibu segment saw a remarkable 114.0% increase in net sales compared to the previous year, totaling $80.3 million, highlighting robust growth in the company's core business.

Malibu Boats is facing a challenging outlook as the Saltwater Fishing segment has experienced a year-over-year decline in unit volumes of 9.3%, which reflects broader issues in consumer demand for recreational boating. Furthermore, the company anticipates a significant decline in retail activity, projecting a mid-high single-digit percentage decrease for FY26, particularly marked by more severe downturns in the first half of the fiscal year. Additionally, while Malibu may be well-positioned regarding dealer inventory, it plans to destock 1-2 weeks' worth of inventory to better manage demand, indicating cautious optimism amid adverse market conditions.