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Marine Products Corporation Reports Third Quarter 2025 Financial Results

Marine Products Corporation (NYSE: MPX), a notable name in the fiberglass boat manufacturing sector, has unveiled its unaudited financial results for the third quarter ending September 30, 2025. The company recorded a net sales increase of 7% from the previous year, amounting to $53.1 million. Despite this positive trend in sales, net income saw a decline of 22%, settling at $2.7 million, with diluted earnings per share (EPS) at $0.07. This reduction in profit margins correlates with increased investments in research and development for new products.

Financial Highlights

• - Sales Increase: The primary factor behind the sales increase was a 7% rise in price and product mix, although this was slightly overshadowed by a small depreciation in the number of boats sold during the quarter.
• - Gross Profit: The gross profit registered at $10.2 million, marking an 11% increase, with gross margin improving by 80 basis points to 19.2%. This enhancement was a result of effective production scheduling and targeted incentives that improved manufacturing cost absorption.
• - Operating Expenses: Selling, general, and administrative expenses rose 31% to $7.4 million, primarily due to heightened spending on research and development and adjustments related to warranty costs, reflecting the fluctuating costs associated with sales.
• - EBITDA Performance: Earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded a dip, falling 15% year-over-year, resulting in $3.7 million and an EBITDA margin of 6.9%.
• - Cash Flow: The company maintained a strong cash flow position, concluding the quarter with approximately $47.4 million in cash and zero debt.

Ben M. Palmer, the company’s President and CEO, expressed cautious optimism regarding the results, stating that there seems to be a turning point in the industry as dealer inventories align with stabilizing demand. He emphasized the positive reactions toward their 2026 model year offerings, especially for the larger boat segments, though financing buyers remain cautious due to economic uncertainty.

Dividend Declaration

To reward its shareholders, Marine Products has declared a regular cash dividend of $0.14 per share, scheduled for payment on December 10, 2025, to shareholders on record as of November 10, 2025. Year-to-date, the total dividends paid amounted to $14.7 million, indicating the company’s commitment to maintaining shareholder value through periodic returns.

Future Outlook

Management remains vigilant amid the economic challenges confronting the marine sector, yet there is hope that potential drops in interest rates could assist finance buyers. Palmer hinted at ongoing strategic moves within the company, focusing on innovation, reducing field inventory, and implementing strategic pricing to reinforce their market position.

The marine industry is currently navigating through substantial uncertainties such as rising tariffs and their potential repercussions on model year 2026 operational costs. Marine Products Corporation aims to leverage its solid balance sheet and disciplined management approach to capitalize on opportunities for growth.

Conclusion

In conclusion, while Marine Products Corporation has encountered challenges this quarter, its increase in sales, improved gross profit margins, and the declaration of dividend payments suggest a resilient strategy in addressing market demands and operational obstacles. Stakeholders can tune in for a live conference call scheduled for today at 8:00 AM Eastern Time, where management will further discuss these financial results and outlooks via their investor relations website.

For more on Marine Products Corporation's ongoing innovations and financial performance, visit Marine Products Corporation's website.