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Marine Products Corporation Fourth Quarter and Annual Report

Marine Products Corporation (NYSE: MPX), renowned for manufacturing high-quality fiberglass boats, has just published its financial results for the fourth quarter and the entire year ending December 31, 2025. In a year of ups and downs, the company's net sales experienced notable increases, but profit margins faced challenges.

Fourth Quarter Highlights

The fourth quarter of 2025 saw Marine Products Corporation achieve a robust net sales total of $64.6 million, a phenomenal growth of 35% compared to the same quarter in the previous year. However, the company's net income took a hit, recording $2.4 million, a decrease of 45% year-over-year. This translated to a diluted earnings per share (EPS) of $0.07, which was significantly lower than the previous year's $0.12 per share.

Despite the decline in net income margin, which fell by 520 basis points to 3.7%, the adjusted net income in Q4 was pegged at $3.4 million, resulting in an adjusted diluted EPS of $0.10. This adjustment was necessary due to the tax implications arising from the liquidation of a non-qualified supplemental retirement income plan. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was recorded at $4.5 million, marking a modest 3% rise year-over-year with an EBITDA margin of 7.0%.

Full Year Performance

In the full year, Marine Products reported net sales of $244.4 million, a 3% increase from the previous year’s $236.6 million. However, net income for 2025 fell to $11.4 million, a 36% decrease from 2024, contributing to a diluted EPS of $0.32 compared to $0.50 in the prior year. The decline in the net income margin was also notable, down 280 basis points to 4.7% for the year.

The company's full year adjusted net income saw minor improvement, sitting at $12.4 million with an adjusted diluted EPS of $0.35. The EBITDA for 2025 was reported at $17.2 million, reflecting an 18% drop from the previous year and an EBITDA margin of 7.0%, down 190 basis points.

Key Financial Metrics and Performance Analysis

• - Net Sales:

- Q4 2025: $64.6 million (up 35% YOY)
- Full Year 2025: $244.4 million (up 3% YOY)

• - Net Income:

- Q4 2025: $2.4 million (down 45% YOY)
- Full Year 2025: $11.4 million (down 36% YOY)

• - Diluted EPS:

- Q4 2025: $0.07
- Full Year 2025: $0.32

The gross profit for the fourth quarter was $12.7 million, a 39% increase, leading to a gross margin improvement of 40 basis points to 19.6%. While the selling, general, and administrative expenses surged by 61% to $8.9 million, this increase represented 13.9% of net sales, showing a significant rise compared to the previous year's metrics.

The rise in expenses came with reduced interest income, which amounted to $376 thousand this quarter. The company's income tax provision rose to $1.8 million, impacted primarily by taxes on the liquidation of certain life insurance policies.

Robust Cash Position

At the end of Q4 2025, the company reported a total of approximately $43.5 million in cash and cash equivalents, with no outstanding debt remaining under its revolving credit facility. Operating activities yielded a substantial net cash flow of $16.5 million for the year, along with free cash flow calculated at $14.9 million.

Dividend and Future Insights

Payment of dividends totaled $19.6 million for 2025, emphasizing a commitment to return value to shareholders despite fluctuating profit levels. Marine Products Corporation has positioned itself to further explore growth opportunities and navigate market uncertainties moving forward.

In light of the financial results and their implications, stakeholders await further updates from the upcoming announcements expected in collaboration with MasterCraft Boat Holdings, Inc. As the boating industry continues to evolve, the company remains optimistic about its strategic direction and market position.

For more information about Marine Products Corporation and their product offerings, interested individuals can visit their official websites for Chaparral and Robalo brands. With an eye on the future, they aim to balance profitability with sustained innovation in the boating market.