Recreational Equipment Inc

Recreational Equipment Inc is operating in a consumer discretionary market where boat demand still looks uneven. Malibu Boats said lower retail activity cut wholesale shipments across its Malibu, Saltwater Fishing and Cobalt segments, and it also said dealers were carrying less inventory in some parts of the portfolio. There are early signs of stabilization. Even so, macro disruptions are still weighing on buyers and slowing a broader recovery, and Malibu said it remains positioned well relative to the industry while staying cautious on the cycle outlook.

Portfolio expansion is the main strategic theme. Malibu pointed to the Saxdor acquisition as the key growth driver in fiscal 2026, said it contributed meaningful revenue and unit volume, and is shifting Saxdor production to its Fort Pierce, Florida facility, with the first domestically built boats expected in the first half of fiscal 2027. Eleven new models were also added to the Model Year 2026 lineup, and management said it is continuing vertical integration initiatives and disciplined growth efforts.

Investor signals look mixed, but constructive. Malibu ended fiscal 2026 with $74.4 million of cash and $165.0 million of long-term debt, finished a credit facility refinancing that extends maturity to July 2031, and the board approved a new $70 million share repurchase program for fiscal 2027. Full-year net sales rose 13.3%, while net income fell 88.8%. Guidance for fiscal 2027 calls for net sales of $1.08 billion to $1.12 billion and Adjusted EBITDA of $101 million to $109 million, which points to confidence in a recovery even as the company stays cautious.