Executive Summary

Q4 FY2024 was severely depressed by wholesale destocking and mix, with net sales $67.2M (-59.7% YoY), gross margin 12.2% (-1,360 bps YoY), adjusted EPS of ($0.04), and a GAAP diluted EPS from continuing ops of ($0.49) due largely to a $9.8M Aviara impairment .
Management exited Aviara via an asset exchange (to close in Q1 FY2025), will classify it as discontinued ops starting Q1 FY2025, and is winding down the Merritt Island facility—tightening focus on MasterCraft, Crest and the new luxury pontoon brand Balise .
FY2025 outlook guides another step down as the company prioritizes dealer health: net sales $265–$300M, adjusted EBITDA $15–$26M, adjusted EPS $0.36–$0.87; Q1 FY2025 implied trough with sales ≈$61M and adj. EPS ≈$0.04 .
Street consensus from S&P Global for Q4 FY2024 was not retrievable at query time; as a result, we cannot assess beats/misses vs consensus. We will update when available (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Executed wholesale destocking and preserved dealer health; field inventories improved ≈20% vs FY2023 (near the low end of the target), with continued focus on pipeline management into FY2025; management expects positive FCF in FY2025 despite cycle pressures .
Strategic portfolio refocus: Aviara divestiture to MarineMax’s Cruisers Yachts (closing expected in Q1 FY2025) and reclassification to discontinued ops, allowing resources to shift to MasterCraft, Crest, and Balise .
Product innovation and brand development: Balise luxury pontoon launched with accretive margins and targeted dealer network; MasterCraft and Crest feature upgrades (new software/dashes, stern thruster option, Ilmor 5.3L GDI HO engine) .
- “MasterCraft delivered results ahead of our latest expectations…destocked field inventory levels, advanced consumer-centric initiatives, and returned capital to shareholders…” — CEO Brad Nelson .

What Went Wrong

Significant volume deleverage and mix drove sharp declines in sales and profitability: Q4 net sales $67.2M (-59.7% YoY), adjusted EBITDA $0.8M (1.3% margin) vs $32.7M (19.6%) prior year; gross margin fell 1,360 bps YoY .
Non-cash Aviara impairment ($9.8M) inflated operating expenses and drove a GAAP loss from continuing operations of ($8.1)M, diluted EPS ($0.49) .
Competitive and macro headwinds intensified: elevated rates, higher dealer carrying costs, and competitor dealer disruptions/liquidation pressures weighed on ordering and pricing; EBITDA margin guidance pressure in FY2025 is “primarily” from volume deleverage and higher G&A (bonuses at 100%) .

Financial Results

Metric	Q2 FY2024	Q3 FY2024	Q4 FY2024
Revenue ($USD Millions)	$99.5	$95.7	$67.2
Diluted EPS - Continuing Ops (GAAP)	$0.35	$0.23	($0.49)
Adjusted EPS (Non-GAAP)	$0.37	$0.37	($0.04)
Gross Margin (%)	18.8%	19.2%	12.2%
Adjusted EBITDA ($USD Millions)	$9.8	$9.7	$0.8
Adjusted EBITDA Margin (%)	9.8%	10.1%	1.3%
YoY Revenue Change	(37.5%)	(42.6%)	(59.7%)

Segment breakdown (Q4 FY2024 vs Q4 FY2023)

Segment KPI	Q4 FY2023	Q4 FY2024
MasterCraft Net Sales ($USD Millions)	$129.341	$44.417
MasterCraft Units	950	302
MasterCraft Net Sales/Unit ($000s)	$136	$147
Pontoon Net Sales ($USD Millions)	$24.652	$9.901
Pontoon Units	492	216
Pontoon Net Sales/Unit ($000s)	$50	$46
Aviara Net Sales ($USD Millions)	$12.573	$12.864
Aviara Units	34	42
Aviara Net Sales/Unit ($000s)	$370	$306
Consolidated Units	1,476	560
Consolidated Net Sales/Unit ($000s)	$113	$120

KPIs and balance sheet highlights

KPI	Q2 FY2024	Q3 FY2024	Q4 FY2024
Consolidated Units Sold	884	805	560
Consolidated Net Sales/Unit ($000s)	113	119	120
Share Repurchases ($USD Millions)	$4.4	$1.6	$4.5
Cash & Investments (Period End)	$108.8	$105.7	$86.2
Total Debt (Period End)	—	$50.4	$49.3

Notes: “Adjusted” metrics are non-GAAP as defined and reconciled in company disclosures .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($M)	FY2025	—	$265–$300	New
Adjusted EBITDA ($M)	FY2025	—	$15–$26	New
Adjusted EPS ($)	FY2025	—	$0.36–$0.87	New
Capex ($M)	FY2025	—	≈$12	New
Net Sales ($M)	Q1 FY2025	—	≈$61	New
Adjusted EBITDA ($M)	Q1 FY2025	—	≈$2	New
Adjusted EPS ($)	Q1 FY2025	—	≈$0.04	New
Net Sales ($M)	FY2024	$400–$412 (Q2 guide)	$360–$365 (Q3 update)	Lowered
Adjusted EBITDA ($M)	FY2024	$42–$47 (Q2)	$28–$30 (Q3)	Lowered
Adjusted EPS ($)	FY2024	$1.53–$1.78 (Q2)	$0.95–$1.05 (Q3)	Lowered

No explicit forward OpEx, OI&E, tax-rate, dividend guidance was provided beyond the above; adjusted tax rate used for non-GAAP reconciliations was 20% historically .

Earnings Call Themes & Trends

Topic	Q-2 (Q2 FY2024)	Q-1 (Q3 FY2024)	Current (Q4 FY2024)	Trend
Macro/Promotions	Mixed outlook; competitive retail; rising promotions; production adjusted	Cautious into prime season; competitor dealer distress driving liquidation pressure; reduced production plan	Elevated rates, dealer carrying costs remain high; cautious dealer ordering persists	Persistent headwinds
Dealer Inventory/Wholesale	Rebalancing inventories; adjusting shipments	Ending FY with improved inventories; cautious ordering	~20% field inventory improvement vs FY2023; further destocking in FY2025; 2H-weighted shipments	Improving, but still above optimal
Portfolio Strategy	New luxury pontoon brand (Balise) announced (capital-efficient at Crest)	Balise launch reiterated	Aviara divestiture; Balise ramp with accretive margins; diversified channel	Refocus on core + luxury pontoon
Product/Tech	Investment in growth initiatives	—	MasterCraft upgrades (dash/software, stern thruster); Ilmor 5.3L GDI HO standard on NXT/XT; Crest redesigns	Refresh and innovation
Margin Drivers	Cost absorption, incentives, inflation pressures	Dealer liquidation pressure, margin headwinds	FY2025 margins pressured by volume deleverage and higher G&A (bonuses)	Near-term pressure
Free Cash Flow	Strong balance sheet, focus on cash	—	Expect positive FCF in FY2025 despite cycle trough	Improving discipline

Management Commentary

“Combined with economic and retail uncertainty, elevated interest rates and lingering competitor dealer disruptions have contributed to above optimal inventory levels and increased carrying costs for dealers.” — CEO Brad Nelson .
“In fiscal 2025, we will continue to prioritize a healthy distribution network…our production plan optimizes dealer inventory levels to position us well to capitalize on the next market upswing.” — CEO Brad Nelson .
On Aviara exit vs. Balise launch: Balise is built in existing Crest capacity with broader dealer network and is expected to be profitable in year 1 and margin accretive; Aviara struggled to reach profitable scale in a dedicated start-up facility .
“We expect to generate positive free cash flow in fiscal 2025…particularly notable while being at or near the bottom of the cycle.” — CEO Brad Nelson .

Q&A Highlights

FY2025 margin headwinds: mainly volume deleverage (overhead absorption) plus higher G&A (bonuses at 100%); promotional intensity secondary .
Destocking trajectory: ~600–1,000 boats net destock in FY2024 (lower end achieved); anticipate similar range in FY2025, more weighted to Crest; wholesale skewed to 2H FY2025 .
Competitive pressure: “Tommy’s inventory” flowing to retail remains a significant headwind; early FY2025 is modestly ahead of plan but too early to call a trend .
Strategic rationale: Aviara’s inability to achieve profitable scale vs. Balise’s accretive, capacity-leveraging model and diversified dealer footprint .

Estimates Context

S&P Global consensus for Q4 FY2024 EPS and revenue could not be retrieved at the time of analysis due to access limitations. As a result, we cannot determine beats/misses vs Wall Street for this quarter at this time. We will update this section once S&P Global data is accessible.

Key Takeaways for Investors

FY2025 is a reset year focused on dealer health: guidance ($265–$300M sales; $15–$26M adj. EBITDA; $0.36–$0.87 adj. EPS) sits below FY2024 actuals ($366.6M sales; $32.9M adj. EBITDA; $1.22 adj. EPS) as MCFT manages through destocking and liquidation-driven pricing pressure .
Near-term catalysts: Aviara divestiture closing and reclassification to discontinued ops, evidence of dealer inventory normalization, and Balise ramp (accretive margins) .
Watch margins: management flagged primary pressure from volume deleverage and higher G&A; sequential recovery likely hinges on 2H-weighted shipment plan and easing competitor liquidation .
Liquidity and buyback support: ended FY2024 with $86.2M cash/investments vs $49.3M total debt; $35M+ remain on the $50M repurchase authorization (as of FY2024 end) .
Product/brand refresh: MasterCraft and Crest enhancements and Balise luxury pontoons target resilient, affluent buyers; early dealer uptake (11 dealers, 26 markets) could cushion demand softness .
Trading setup: Numbers likely remain muted in Q1 FY2025 (sales ≈$61M; adj. EPS ≈$0.04) with improvement back-half weighted; stock reaction should be most sensitive to evidence of retail stabilization and cadence of competitor liquidation fading .

Additional Relevant Press Releases (Q4 context)

Asset exchange agreement to transfer Aviara brand to Cruisers Yachts (MarineMax) with MarineMax paying for boats on order and assuming customer care/warranty; MCFT to close the Merritt Island facility and market the property for sale; Aviara to be reported as discontinued ops beginning Q1 FY2025 .

MasterCraft Boat Holdings, Inc. (MCFT)·Q4 2024 Earnings Summary