MarineMax posts record $631m Q2 revenue
Florida-based MarineMax reported financial results for second-quarter revenue of $631.5m, up by 8.3% year-over-year as the company managed to boost revenue from retail operations.
Revenue breakdown showed that while the company booked 8.1% year-over year growth from retail operations, it witnessed declines in revenues from product manufacturing which fell to $35.5m compared with $40.1m in the same period last year.
“Despite facing a weak retail market and an uncertain macroeconomic climate, we delivered a strong second-quarter performance. Our 11% same-store sales growth highlights the exceptional execution by our team,” said Brett McGill, chief executive officer and president of MarineMax.
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While retail operations can be extremely competitive, the company was able to book a gross margin of 30% during the quarter – 270 basis points lower than same period last year. On an absolute basis, the company reported gross profit of $189.5m – flat compared with $190m in the same period of last year.
“The aggressive pricing led to historically low new and used boat margins and with the resulting growth in same-store sales skewed our overall revenue mix towards boat revenue, our lowest margin source,” said McGill in the company’s earnings call.
READ: MarineMax posts lower Q4 earnings, issues cautious outlook
While the company saw lower gross margin due to expansion in sales of lower margin products, it still managed to expand its operating profit to $22.74m compared with $21.4m in the same period last year. This was attributable to the lower SG&A expenses during the quarter which declined from $169m in 2Q 2024 to $166.7m in the second quarter of the ongoing fiscal year.
On the bottom line, the company booked net income of $3.2m translating into diluted earnings of $0.15 per share.
The company also lowered its guidance for fiscal year 2025. MarineMax now expects fiscal year 2025 adjusted net income in the range of $1.40 to $2.40 per diluted share and fiscal year 2025 adjusted EBITDA in the range of $140m to $170m.
Commenting on the guidance, chief financial officer Mike McLamb said: “The main drivers of the change are expected pressure on both the top line and potential margins from the weakened environment. Of course, the tea leaves are very hard to read right now and seemingly can worsen quickly or improve quickly, subject to announcements from Washington.”
Sharing his outlook for the company, especially in the context of tariff announcements by the Trump administration in the US, McLamb said that the industry’s outlook has significantly altered due to tariffs.
“Really, starting here in April, it’s changed what everybody thought about the second half of the year or for us our next two quarters, just given the uncertainty caused by the tariffs. And again, who knows how long the uncertainty lasts and who knows, again, the news cycle that can influence that pretty quickly one way or another,” said McLamb during the earnings call.
