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MARINEMAX INC (HZO)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $468.5M and adjusted EPS was $0.17; GAAP diluted EPS was $0.77, boosted by a $25.8M favorable change in contingent consideration fair value; gross margin expanded 290 bps YoY to 36.2% despite lower revenue .
  • Results beat on EPS and missed on revenue versus public consensus: adjusted EPS $0.17 vs. expectations of approximately -$0.26 to -$0.19 (beat), revenue $468.5M vs. ~$484–$486M (miss); S&P Global consensus was unavailable due to access limits .
  • Management reaffirmed FY25 guidance: Adjusted EPS $1.80–$2.80 and Adjusted EBITDA $150–$180M; consolidated gross margin expected in low-30% range; tax rate guided at ~26.5% .
  • Macro headwinds and hurricane disruptions drove an 11% same-store sales decline; non-boat higher-margin businesses (marinas, superyacht services, F&I) helped hold adjusted EBITDA nearly flat YoY .
  • Stock reaction: pre-market rose ~9.6% on EPS beat and margin resilience; drivers include margin mix shift and cost actions; near-term watch items are inventory normalization, Florida recovery pace, and promotional intensity .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 36.2% (+290 bps YoY) on sales mix and contributions from marinas, Superyacht Services, and F&I; adjusted EBITDA held near prior-year despite revenue decline .
  • Management reaffirmed FY25 guidance and cited encouraging early boat show activity; January revenue tracking up YoY (seasonally small month) .
  • Quote: “Our consolidated gross profit margin strengthened, improving 290 basis points to 36.2%… diversification… enhanced our resilience… demonstrated by our relatively stable Adjusted EBITDA despite the revenue decline.” — CEO Brett McGill .

What Went Wrong

  • Same-store sales -11% YoY; demand muted amid macro uncertainty and hurricane disruptions, with Florida weakness driving the shortfall and AUP decline; inventories elevated at quarter-end .
  • Promotional environment and industry-wide boat margin pressure continue; interest expense up YoY on higher inventory (partly offset by lower floorplan rates) .
  • Weather and restructuring charges and hurricane-related asset write-offs weighed on adjusted results (weather +$5.0M charge largely expected to be insured) .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$757.7 $563.1 $468.5
Diluted EPS ($USD)$1.37 $0.17 $0.77
Adjusted Diluted EPS ($USD)$1.51 $0.24 $0.17
Gross Margin %32.0% 34.3% 36.2%
Adjusted EBITDA ($USD Millions)$70.4 $33.5 $26.1
Same-Store Sales %+4% -5% -11%

Segment breakdown (reported):

SegmentQ1 2024 (Dec 31, 2023) Revenue ($M)Q1 2025 (Dec 31, 2024) Revenue ($M)Q1 2024 Op Inc ($M)Q1 2025 Op Inc ($M)
Retail Operations$524.1 $468.3 $14.8 $41.3
Product Manufacturing$46.1 $37.9 $4.0 $0.2
Intersegment / Adj.$(42.9) $(37.8) $0.2 $(2.5)
Total$527.3 $468.5 $19.0 $39.0

Selected KPIs / Balance Sheet YoY:

KPIQ1 2024 (Dec 31, 2023)Q1 2025 (Dec 31, 2024)
Cash & Equivalents ($M)$210.3 $145.0
Inventories ($M)$876.2 $1,035.2
Short-term Borrowings ($M)$664.9 $795.2
Customer Deposits ($M)$74.6 $52.5
Total Shareholders’ Equity ($M)$934.6 $1,003.2

Estimate comparison for Q1 2025 (S&P Global unavailable):

MetricConsensus EstimateActualSurprise
Revenue ($USD Millions)~$484–$486 $468.5 -$16–$18M; miss
Adjusted EPS ($USD)~(-$0.26) to (-$0.19) $0.17 +$0.36–$0.43; beat

Non-GAAP reconciliation highlights:

  • Adjusted net income excludes transaction/other costs ($0.01), intangible amortization ($0.06), weather expenses ($0.21), restructuring ($0.02), tax adjustments ($0.20), and includes a large negative adjustment for contingent consideration (gain) (-$1.10) in Q1 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS ($)FY 2025$1.80–$2.80 (Oct-2024) $1.80–$2.80 (Jan-2025 reaffirmed) Maintained
Adjusted EBITDA ($M)FY 2025$150–$180 (Oct-2024) $150–$180 (Jan-2025 reaffirmed) Maintained
Consolidated Gross Margin %FY 2025Low-30s (Oct-2024) Low-30s (Jan-2025) Maintained
Same-Store SalesFY 2025Flattish (Oct-2024) Flattish (Jan-2025) Maintained
Effective Tax RateFY 2025~26.5% (Oct-2024) ~26.5% (Jan-2025) Maintained

Earnings Call Themes & Trends

TopicQ3 2024Q4 2024Q1 2025Trend
Demand & PromotionsAggressive promos amid elevated inventories; margins pressured; maintained unit share Promotional activity expected high through winter; boat margins below pre-pandemic Promotions continue; OEM support more “normal”; AUP down on Florida mix Persistent promo pressure; OEM support stabilizing
Higher-Margin MixStrategy to expand marinas, SuperYacht, F&I sustaining margins >30% Gross margin 34.3% despite boat margin pressure Gross margin 36.2%; diversification insulated EBITDA Mix increasingly supportive
Hurricanes ImpactNot applicableHelene/Milton damaged FL West Coast; insurance market disruption; asset write-offs Ongoing disruptions; Florida revenues weak; recovery timelines uncertain Lingering headwind; gradual recovery
Inventory & InterestAging better than industry; inventories seasonally rise Elevated inventories; interest expense up; expect decline as inventories normalize Inventory elevated; interest expense tied to inventory; benefit from rate cuts Normalization expected through FY25
Cost ActionsInitiated cost cuts; store consolidations Continued cost reductions; SG&A target toward 2023 % Adjusted SG&A down YoY; ~10 store closures over 3–4 quarters Ongoing execution
Tariffs/RegulatoryNot highlightedMargin/industry commentary Europe import exposure >10% and <15% revenue; manageable with strong USD Watching policy risk
Technology & DigitalBoatyard/Boatzon enhance engagement —Tech used to drive leads; January traffic uptick Positive strategic lever
Regional TrendsBroad-based; Florida strong seasonally —Non-Florida flat; Florida down materially Florida recovery key

Management Commentary

  • “Despite the macroeconomic headwinds, our consolidated gross profit margin strengthened… meaningful contribution from our higher-margin lines of business including, our marinas, Superyacht Services, and finance and insurance operations.” — Brett McGill .
  • “Our GAAP results include a $25.8 million gain from an adjustment to the fair value of contingent consideration… much of the gain is from the earnout reconciliation related to IGY.” — Mike McLamb .
  • “Outside of Florida, our business was flat to last year in the quarter.” — Management Q&A .
  • “Margins do change throughout the year… we keep the margin guidance in that low 30% range.” — Mike McLamb .

Q&A Highlights

  • SG&A leverage: targeting ~2023 levels; ~$20–$25M annualized SG&A reductions via store consolidations, headcount, and vendor renegotiations; inflation remains an offset .
  • Gross margin sustainability: 36% in Q1 is seasonally higher; maintain low-30% full-year guidance; higher-margin businesses key drivers .
  • Interest expense trajectory: primarily inventory-driven; benefit from ~100 bps rate cuts; expect declines as inventory normalizes into back half .
  • Florida vs. Non-Florida: non-Florida flat; Florida weakness drove AUP decline; recovery timing is uncertain given community/marina repairs .
  • Tax rate: one-time IRS benefit lowered Q1 effective rate (~$0.12 EPS impact); full-year still ~26.5% .

Estimates Context

  • S&P Global consensus data was unavailable due to access limits; we relied on public sources for context. Public consensus pointed to adjusted EPS of approximately -$0.26 to -$0.19 and revenue ~$484–$486M; HZO reported adjusted EPS of $0.17 (beat) and revenue $468.5M (miss) .
  • Given margin resilience and SG&A actions, Street estimates may need upward revision on FY25 margin mix and adjusted EPS, while near-term revenue assumptions should reflect ongoing Florida recovery and elevated promotions .

Key Takeaways for Investors

  • Margin mix shift is durable: higher-margin businesses are offsetting boat margin pressure, supporting EBITDA even in a soft retail environment .
  • EPS quality matters: GAAP EPS benefited from a nonrecurring $25.8M contingent consideration gain; focus on adjusted EPS and cash metrics .
  • Inventory normalization is a swing factor for interest expense and promotions; watch March/June quarters for progress in inventory and gross margin trajectory .
  • Florida recovery timing will drive same-store sales path; non-Florida stable but overall retail demand remains cautious .
  • Cost actions provide cushion: ~$20–$25M SG&A run-rate reductions and store rationalization help protect earnings amid macro headwinds .
  • Guidance reaffirmation signals confidence: maintaining Adjusted EPS $1.80–$2.80 and EBITDA $150–$180M with low-30% gross margin; monitor boat show conversions and spring selling season .
  • Near-term trading: EPS beat and margin resilience were catalysts; continued execution on inventory and Florida recovery are key to sustaining momentum .

Appendix: Source Documents

  • Q1 2025 8-K and Exhibit 99.1: MarineMax Reports Fiscal 2025 First Quarter Results .
  • Q1 2025 press release (Business Wire) .
  • Q1 2025 earnings call transcript (Jan 23, 2025) –.
  • Prior quarter materials: Q4 2024 call and release – –; Q3 2024 call and release – –.
  • Other relevant press release: Acquisition of Shelter Bay Marine (Jan 31, 2025) .