MasterCraft Boat Holdings, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the MasterCraft Boat Holdings, Inc. fiscal fourth quarter and full year 2026 earnings conference call. Please be advised that today's call is being recorded. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Alec Harmon, Senior Director, Strategy and Investor Relations. Please go ahead.

Thank you, Rebecca, and welcome, everyone. Thank you for joining us today as we discuss the fiscal fourth quarter and full year 2026 performance of MasterCraft Boat Holdings. As a reminder, today's call is being webcast live and will also be archived on our website for future listening. With me on this morning's call is Brad Nelson, Chief Executive Officer, and Scott Kent, Chief Financial Officer. Brad will begin with an overview of our operational performance. After that, Scott will discuss our financial performance. Brad will then offer 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, September 10th, 2026. 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 the 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 will include a reconciliation of these non-GAAP measures to our GAAP results. Before turning to our results, I would like to provide some important context for the quarter and year. On May 15th, we completed our combination with Marine Products Corporation, welcoming the Chaparral and Ravallo brands to the MaxCraft Boat Holdings, or MCBH, family. As a result, our fourth quarter and full year results include a partial six-week contribution from these brands. To help frame the underlying performance of our business and for comparative purposes, we will speak to our full year results on both a total combined company basis and on a legacy basis. In connection with the combination, we have also realigned our reportable segments. Our former MasterCraft segment is now our performance and wake segment. Our former pontoon segment is now our leisure segment. And the newly combined Shapp and Ravallo brands are reported within our recreation and sport fishing segment. 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. Because we are changing to a December fiscal year end, today's outlook will cover the six month transition period from July 2026 through December 2026, which Scott will discuss in greater detail later in the call. With that, I will turn the call over to Brad.

Thank you, Alec, and good morning, everyone. Fiscal 2026 was a defining year for MasterCraft Boat Holdings. Strong execution across our legacy business drove results to significantly outperform expectations despite a challenging macroeconomic and retail environment. We grew net sales, expanded and adjusted EBITDA nearly 80%, a margin improvement of more than 500 basis points year-over-year, and completed the transformational combination with Chaparral and Raval. These results reflect the durability of our foundation and our discipline execution against the priorities we established at the beginning of the year, which were aligning production with demand, strengthening dealer health, improving operational efficiency, and delivering differentiated innovation that resonates with dealers and consumers. Those actions positioned us to outperform the broader market while building an even stronger foundation for the future. On a legacy basis, fiscal 2026 net sales were $315.6 million and adjusted EBITDA was $43.8 million. These results exceeded the increased guidance we issued last quarter and demonstrate the earnings power of our legacy business in a challenging market. The Mastercraft brand was at the center of that success. Strong retail performance and a successful rollout of the Next Generation X Series drove favorable premium mix, strengthened brand momentum, and improved profitability. This more than offset lower industry volumes and served as a primary driver of growth across our business. Including the initial contribution from Chaparral and Roboto, total company net sales were $348.9 million of 22.8% year-over-year. And adjusted EBITDA was $45.6 million of 87.1% year-over-year. Turning to the fourth quarter, our performance was particularly encouraging given the difficult prior year comparison, which benefited from the launch of the Ultra Premium X-Star. Against that backdrop, Our legacy business delivered 21.5% year-over-year net sales growth and expanded adjusted EBITDA margin 730 basis points to 19.3% from 12.0% in the prior year period. These results reflect the strength of Mastercraft's premium product portfolio, continued momentum across the lineup, healthy dealer inventories, and Discipline Cost Management. Including the six-week contribution from Chaparral and Ravallo, total company fourth quarter net sales were $129.9 million, up 63.4% year-over-year. And adjusted EBITDA was $20.5 million, up 114.9% year-over-year. The new recreation and sport fishing segment contributed $33.3 million of revenue and $1.8 million of adjusted EBITDA during the abbreviated six-week window of ownership. We do not believe the segment's initial reported profitability is representative of its underlying earnings power or long-term potential. Scott will provide additional detail on these items shortly. On a consolidated basis, The key reason for our outperformance was disciplined channel management. Dealer health remains a significant competitive advantage for MCBH. Field inventory in our legacy business finished the year down approximately 30% year-over-year with turns improving to better than pre-pandemic levels. Chaparral and Roboto also ended the year with lower inventory levels and higher turns. The broader retail environment remained mixed throughout the year. Premium and core customers remained relatively resilient, while value-oriented customers faced pressure from higher interest rates, inflation, and broader economic uncertainty. Even in that environment, our differentiated products, disciplined execution, and strong dealer health enabled us to outperform the broader market. Mastercraft's retail performance is a clear example of that dynamic. Entering the year, we expected category retail to decline 5% to 10%, with the market finishing slightly lower than our estimated range. We significantly outperformed that expectation, with Mastercraft Retail finishing up low single digits and outperforming both the ski weight category and the broader Powerball market. In our recreation sport fishing segment, Revalo was another standout performer, delivering retail growth in the high single digits and continuing to benefit from strong product momentum within the attractive sport fishing category. Together, Mastercraft and Revalo helped NCBH outperform a broader powerboat industry that declined mid to high single digits. Looking ahead, We continue to plan prudently and currently expect retail market demand to be down approximately 5% to 10% over the next six months, following current calendar year-to-date trends. As we evaluate conditions across the portfolio, retail dynamics remain challenged across marine categories, especially within the entry-level pontoon and runabout markets. Consistent with our disciplined approach to channel management, we continue to expect to align wholesale production with Retail Demand. That assumption is incorporated into the guidance Scott will discuss later in the call. Alongside pipeline management and dealer health, differentiated innovation continues to be one of our most important competitive advantages. Within MasterCraft, the X-Series continue to gain momentum throughout the year. With the reintroduction of the X-23 alongside the X-22 and X-24 and building on the success of the X-Star, dealer and consumer response has been outstanding. The X-Series drove significant revenue and profitability growth throughout both the fourth quarter and full year, and we believe this product expansion has further strengthened our leadership position in the premium skiway category. Within Leisure, we improved segment profitability this year through disciplined cost management and operational efficiencies. Looking ahead to the new model year, we have responded directly to dealer feedback by improving performance across the lineup through meaningful enhancements in both speed, design, and handling. We also introduced the new Press Conquest SE Tri-Tune and announced an industry-first integration of Apple CarPlay and Android Auto with on-water navigation directly from the factory. These initiatives improve the ownership experience and provide consumers with compelling reasons to choose our brands. Within our newly acquired brands, we are encouraged by the product and innovation roadmaps alongside the strength of the existing portfolio. Chaparral recently introduced the all-new SSX-4 OB, expanding the brand's premium outboard plow rider offering. Separately, our stern drive lineup now features the new Easy Step, an innovative water entry design that received a 2026 NMMA Innovation Award. continues to build momentum in the dual console category with products such as the R277 and new R237, fulfilling strategic white space and expanding Revalo's ability to attract incremental customers. As we deepen our understanding of these newly acquired businesses, our approach is clear. Protect what makes each brand strong in its market invest behind the products and categories where we see the greatest opportunity to create value and use the scale and capabilities of MCPH to accelerate that value creation. One early example of how we are creating value across the portfolio is the Chaparral Surf platform. We've temporarily paused production of these models while we enhance the technology and overall customer experience. By combining Chaparral's strength in ride, design, and layout with Mastercraft's deep wake and surf expertise, we believe we can deliver an even stronger product offering for consumers and dealers. This is an early example of how we intend to leverage the capabilities of the combined company to drive product innovation and long-term value creation. Since closing the transaction, we've spent significant time with the Chaparral and Orval teams dealers and products. Our conviction in the long term opportunities created by the combination has only increased. These are strong brands with talented teams, loyal customers and attractive market positions. Our integration and synergy efforts are underway with structured work streams in place. In the near term, we are prioritizing and investing in attractive opportunities to enhance innovation expand dealer relationships with our robust product set, share technologies, and leverage manufacturing and sourcing best practices. Our capital allocation priorities remain unchanged. Maintain a strong balance sheet, invest in innovation and growth, which includes synergy work, returning capital to shareholders through share repurchases, and maintaining a disciplined approach to M&A. Overall, we executed well in a challenging market, delivered results that exceeded expectations, expanded profitability, and completed the transformational acquisition that strengthens the future of MCBH. With that, I'll turn the call over to Scott.