MasterCraft Boat Holdings, Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Mastercraft Boat Holdings Inc. Fiscal Fourth Quarter and Full Year 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Scott Kent, Chief Financial Officer. Please go ahead, sir.

Thank you, operator, and welcome, everyone. Thank you for joining us today as we discuss Mastercraft's fiscal fourth quarter and full year performance for 2025. As a reminder, today's call is being webcast live, and we will also be archived on our website for future listening. With me on this morning's call is Brad Nelson, Chief Executive Officer. We will begin with an overview of our operational performance. After that, I will discuss our financial performance. Brad will then provide some closing remarks before we open the call for questions. Before we begin, we would like to remind participants that the information contained in this call is current only as of today, August 27, 2025. The company assumes no obligation to update any statements, including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to a safe harbor disclaimer in today's press release. Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude items not indicative of our ongoing operations. For each non-GAAP measure, we will also provide the most directly comparable GAAP measure in today's press release, which includes a reconciliation of these non-GAAP measures to our GAAP results. There is also a slide deck summarizing our financial results in the investor section of our website. As a reminder, unless otherwise noted, the following commentary is made on a continuing operations basis, and all references to specific quarters and periods will be on a fiscal basis. With that, I will turn the call over to Brad.

Thank you, Scott, and good morning, everyone. We closed fiscal 2025 with a strong fourth quarter. outperforming expectations in what remains a challenging geopolitical and retail environment. This performance was driven by robust demand for our ultra-premium products and disciplined cost control. Q4 net sales increased $25 million, or 46% year-over-year, and adjusted EBITDA rose nearly $8 million. I would like to thank each of our team members and dealers for their dedication and execution as we continue to navigate through this dynamic industry cycle. From the outset of the year, our priorities were clear. To control what is most meaningful, such as optimizing channel inventory, championing innovation, and positioning us for the next upcycle. We have strengthened dealer health, advanced new product and brand initiatives, returned capital to shareholders, and maintained a strong balance sheet by maximizing earnings and cash flow. Recall that our initial guidance range for fiscal 25 reflected the uncertain demand environment. We carefully planned for multiple scenarios. Over the course of the year, the marine industry faced continued pressure from macroeconomic uncertainty, persistent elevated interest rates, and a volatile trade environment. Consumer sentiment stayed cautious and unit retail performance for our brands ended within the lower end of our projected range. Even so, our operational execution allowed us to deliver results near the high end of our original earnings guidance. Despite recent headwinds and low cycle volumes, we maintain focus on our strategic and operational priorities. Across our Mastercraft and Crest brands, We removed more than 900 units from dealer inventories near the high end of our targeted range. Our production discipline delivered the largest Q3 to Q4 filled inventory reduction in our history, excluding the pandemic. These actions strengthened dealer health. We also expanded distribution in key markets. Our Mastercraft brand launched its flagship X-Star product in fiscal 2025, once again establishing our leadership in the ultra-premium ski weight category, creating a positive halo effect across the lineup. Our team is already preparing another major premium launch for model year 26, which we will detail later. At least, our premium pontoon brand made progress in its first full year, contributing modest incremental volume as production ramped in our Owasso, Michigan facility where Crest has successfully operated for nearly 70 years. We have stayed disciplined in our capital allocation approach. Fiscal 2025 free cash flow was $29 million despite low cycle volumes. This cash flow, in addition to the $26 million proceeds from the sale of our Merritt Island facility, enabled us to fully repay all outstanding debt, strengthen our balance sheet, and reduce interest expense, while deploying nearly $10 million to our share repurchase program. As a result, net cash and investments grew by more than $42 million to $79 million, leaving us debt-free with one of the strongest balance sheets in the industry. This gives us the resilience to withstand a prolonged down cycle while continuing to invest in product innovation, channel development, and operational excellence. We are well positioned well for long-term growth. Looking ahead to fiscal 2026, we're expecting some uncertainty to continue, and we are prepared for a range of demand and inventory scenarios. Consistent across the leisure sector, we are partnering with our dealers to fine-tune inventories, which may result in some modesty stocking in 2026. Additionally, we expect retail units in our markets to decline 5 to 10 percent in fiscal 2026. Our cost control discipline and tight working capital management should allow us to generate positive free cash flow again this year, underscoring the flexibility of our variable operating model. Over the longer term, we see favorable underlying secular trends across the industry. Our brands are well positioned in key markets, and demographic and migration patterns continue to favor voting-friendly, high-income states. Interest in outdoor recreation remains strong across all age groups, benefiting all of our product lines and brands. Mastercraft remains the top-selling brand in the high-margin ski wig space, a testament to our brand strength, strong dealers, and loyal customers. The category weaves premium, and our product innovation strategy supports sustained leadership. In our pontoon segment, we continue to refine our crest lineup to expand our market reach and presence over the long term. This positions us well to weather short-term industry and macro headwinds, including elevated interest rates and inventory levels across the category, and capitalize on the next market recovery. Our new ultra-premium Belize product brings a new level of customer and dealer base, offering a differentiated pontoon experience. Despite near-term market challenges, Our segments have outperformed the broader Powerbolt market over the past decade, and our brands are positioned for long-term growth. Our strong balance sheet supports ongoing investment in innovation, selective and disciplined M&A, and continued shareholder return. We expect shareware purchases in fiscal 2026 to exceed last year's levels. Innovation continues to be the lifeblood of the Mastercraft brand, Our broader model year 26 lineup includes a range of new features and enhancements, such as our advanced stern thruster with proportional control for effortless maneuvering, meridian audio for a premium on-water listening experience, and keyless ignition for safe, convenient startups. Building on the momentum of last year's successful X-Star launch, We are excited to announce the all-new, redesigned Mastercraft X family. This cornerstone of the Mastercraft legacy has been re-engineered, delivering more power, precision, and presence than ever before, combining elite performance with refined luxury. In July, we again sponsored the American Century Championship in Lake Tahoe, showcasing the X-Star 23 and X-Star 25, which was met with strong dealer and consumer response. CREST's new Conquest series and Conquest SE expands and enhances our value offering in pontoons. For model year 2026, We are expanding the Belize family with the launch of our new Halo series, twin engine configurations, and broader customization options, along with expanded dealer coverage. With that, I'll turn it back to Scott to review the financials.