MALIBU BOATS, INC.

Malibu Boats, Inc.

What the company does

• Designer, manufacturer and marketer of recreational powerboats across multiple propulsion types and segments, including performance sport boats, sterndrive boats, outboard boats, and premium adventure dayboats.
• Operates under nine brands and pursues growth through brand development and strategic acquisitions.
• Corporate structure: Malibu Boats, Inc. is a holding company that owns an interest in Malibu Boats Holdings, LLC, the operating company that conducts daily business and owns the boat brands and assets.

Brands and product portfolio

• Nine brands: Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, Cobalt, Saxdor.
• Brand positioning:
  • Malibu: premium performance sport boats with high-end features.
  • Axis: more affordable, high-performance entry-level option with upgradeable features (e.g., Surf Gate).
  • Pursuit: saltwater outboard fishing boats (center consoles, dual consoles, offshore models).
  • Maverick Boat Group: includes Maverick, Cobia, Pathfinder, Hewes (versatile inshore and saltwater/freshwater offerings under 30 feet).
  • Cobalt: luxury sterndrive and outboard boats (20'–40' range; higher-end segment with extended warranties).
  • Saxdor: premium adventure dayboats, expanding the company’s presence in Europe and the international premium dayboat market.
• Product emphasis includes wakeboarding/wake surfing capabilities (Surf Gate, Surf Band), consumer customization, and high average selling prices.

Global footprint and dealer network

• Dealer network of over 345 locations worldwide.
• Presence in 68 countries.
• Top ten dealers represented a substantial portion of net sales in fiscal years 2024–2026.
• Saxdor acquisition (March 2026) expanded the company’s international footprint, including operations in Finland and Poland and an expanded dealer network.

Manufacturing and vertical integration

• Facilities: eleven manufacturing facilities across four U.S. states, Australia, Poland, and Finland.
  • Malibu and Axis: produced in Loudon, Tennessee and Australia.
  • Cobalt: produced in Neodesha, Kansas and Lenoir City, Tennessee.
  • Pursuit and Maverick Boat Group: produced in Fort Pierce, Florida, with additional tooling and production space.
  • Saxdor: produced in Elk and Olecko, Poland, and Larsmo, Finland.
  • Additional operations: California tower and accessory manufacturing; engine-related production in Tennessee.
  • A 260,000 sq. ft. facility in Roane County, Tennessee was completed in 2024 to support expanded production.
• Vertical integration and in-house production:
  • In-house production includes Monsoon engines for Malibu/Axis, boat trailers, towers and tower accessories, machined/billet parts, soft grip flooring, and wiring harnesses.
  • Plans include extending in-house marinization of engines to reduce supplier exposure.
• Engine and supplier arrangements:
  • GM engines supplied to Malibu/Axis under a multi-year agreement through 2026 (extension negotiations ongoing).
  • Yamaha engines used for a significant portion of Pursuit, Cobalt and Maverick boats pre-rigged for outboards (agreement through 2029).
  • Volvo and Mercury supply other engine and sterndrive components for Cobalt and Maverick lines.
• Supply-chain and cost considerations:
  • Broad supplier base for resins, fiberglass, metals and engines; subject to raw material and freight cost fluctuations.
  • Exposure to tariffs and potential supply-chain disruptions; the company experienced disruptions in the 2020–2023 period and monitors geopolitical and energy-cost factors.
• Product testing and quality:
  • Continuous-flow manufacturing process with completion and on-water testing.
  • In-house aluminum fabrication for towers and related components.

Intellectual property and product innovation

• Proprietary technologies and features include Surf Gate, Surf Band, Power Wedge, G10+ Tower, and electronic dashboards.
• Saxdor offers digital ownership experiences, including the MySaxdor app with a digital assistant.
• IP is protected through patents, trademarks and trade-secret practices; the company recognizes the ongoing risk of IP litigation.

Workforce and culture

• Approximately 3,000 employees worldwide (as of June 30, 2026).
• About 75 employees at the Larsmo, Finland facility are covered by a collective bargaining agreement.
• Talent development programs include internal promotions (about 93% of production leaders promoted internally), engineering internships, and leadership initiatives (PACE Values, PACESetter Award).
• Ongoing safety programs and training to meet OSHA and other safety requirements.

Corporate structure, tax agreements and liquidity

• Malibu Boats, Inc. receives distributions from the operating LLC to fund corporate obligations and tax distributions.
• Ownership and tax arrangements:
  • LLC units are held by various LLC members; Malibu Boats, Inc. has rights to distributions and can require exchanges of LLC units for Class A common stock under an exchange agreement.
  • A tax receivable agreement requires Malibu Boats, Inc. to pay 85% of certain realized tax benefits to pre-IPO owners; payments are subject to timing and other contingencies and may be accelerated on certain events (e.g., change in control).
• Debt and liquidity:
  • On July 10, 2026, the company entered a fourth amended and restated credit agreement providing a $100 million term loan and a $250 million revolving credit facility.
  • Estimated annual interest expense at a 4.95% rate is approximately $8.2 million, with sensitivity of about $1.7 million per 1 percentage point increase in interest rates.
• Share repurchase activity:
  • 2026: repurchased 1,243,996 shares for about $33.9 million.
  • Repurchase authorizations: 2025 program increased to $70 million in December 2025; 2026 program up to $70 million.
  • 2027 repurchase program announced in July 2026 for up to $70 million.

Notable events and milestones

• Completed Saxdor acquisition in March 2026, expanding the company’s international presence and entry into the premium adventure dayboat category.
• Ongoing integration of Saxdor into existing operations.
• Continued optimization of production and vertical integration across engines, trailers, towers and wiring harnesses.