- Marine Products Corporation (MPX, Financial) reports a 15% decline in Q1 2025 net sales, amounting to $59.0 million.
- Net income falls 52% to $2.2 million, with diluted EPS dropping to $0.06 from $0.13 in Q1 2024.
- The Board declares a quarterly dividend of $0.14 per share, payable June 10, 2025.
Marine Products Corporation (MPX), a prominent player in the fiberglass boat manufacturing sector, faced a challenging start to 2025, reporting substantial year-over-year declines in key financial metrics. For the first quarter ending March 31, 2025, net sales plummeted by 15% to $59.0 million, primarily driven by a 19% reduction in boat sales volume. This was slightly offset by a 4% increase in pricing and product mix.
The company's net income witnessed a significant drop, declining by 52% to $2.2 million, resulting in a diluted earnings per share (EPS) of $0.06, down from $0.13 for the same period in the previous year. This downturn mirrors broader industry challenges, with ongoing softness in the marine market and wider economic uncertainties impacting consumer spending on recreational boats.
EBITDA for the quarter was reported at $3.4 million, marking a 43% decrease from the previous year, and the gross margin shrunk by 160 basis points to 18.6%. Despite the adversities, MPX maintained a robust financial stance, ending the quarter with $57.1 million in cash and no debt obligations.
In a bid to maintain investor confidence, Marine Products Corporation's Board of Directors announced a quarterly dividend of $0.14 per share, scheduled for payment on June 10, 2025, to shareholders of record as of May 9, 2025.
Looking ahead, the company plans to adopt a cautious approach towards the model year 2026 introductions and inventory management, factoring in concerns over potential tariff impacts and economic uncertainties. This strategy is indicative of MPX's commitment to sustaining its market position amidst a volatile economic landscape.
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