Marine Products Corporation reported its third‑quarter 2025 financial results, showing net sales of $53.1 million, a 7 % year‑over‑year increase driven by a 7 % price and mix lift that offset a modest decline in units sold.
Gross profit rose to $10.2 million, giving a 19.2 % gross margin, up 80 basis points from the same period last year. Net income fell to $2.7 million, or $0.07 per share, down from $3.4 million and $0.10 per share in the prior year.
Operating highlights include a 6 % reduction in field inventory relative to the same quarter last year, reflecting the company’s inventory‑right‑size program. Selling, general and administrative expenses increased 31 % to $7.4 million, largely due to higher research and development outlays and warranty cost adjustments. Interest income declined to $443 thousand as cash balances fell.
Cash flow metrics remained strong, with operating cash flow of $11.7 million and free cash flow of $10.8 million for the nine‑month period. Cash and cash equivalents stood at $47.4 million, with no debt on the balance sheet.
The board declared a regular quarterly dividend of $0.14 per share, payable December 10, 2025, and the company expects capital expenditures of $1.0 to $1.5 million for the full year.
Management remains cautiously optimistic about demand recovery, citing stabilizing dealer inventory and positive feedback on the 2026 model line. The company expects lower interest rates to support financing demand and believes tariff uncertainty will not materially affect 2026 costs. Continued investment in product innovation and inventory correction positions Marine Products for a rebound in the second half of 2025.
Marine Products operates in the fiberglass motorized boat manufacturing industry under the Chaparral and Robalo brands. The industry is experiencing a cautious recovery amid economic uncertainties and fluctuating demand. The company’s inventory‑right‑size program and focus on product innovation aim to improve efficiency and strengthen its competitive position. With significant cash reserves and no debt, Marine Products maintains financial flexibility and a history of consistent dividend payments.
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