What revenue and margin trends were highlighted, and are there any notable changes in the business model or segment performance?

Revenue & Margin Take‑aways

The management commentary for the FY 2025 Q4/Full‑Year call underscored a mid‑single‑digit revenue growth trajectory versus the prior year, driven largely by a rebound in the recreational‑craft segment and a modest uptick in commercial‑off‑shore workboats. Gross margin showed a steady improvement of roughly 150 bp on a YoY basis, reflecting better mix‑shift toward higher‑margin premium models and the successful rollout of the new “Performance‑Plus” package that adds a $12,000‑average price premium per hull. Operating margin, however, softened slightly (≈ 30 bp) as the company absorbed higher SG&A spend linked to expanded dealer‑support programs and a ramp‑up of its direct‑to‑consumer (DTC) e‑commerce platform.

Business‑model / Segment evolution

A key strategic pivot highlighted in the call is the transition from a pure dealer‑distribution model to a hybrid DTC channel. The DTC rollout, now accounting for ~ 8 % of total unit sales, is expected to rise to 12‑15 % by FY 2026, delivering incremental margin upside (≈ 3 % gross‑margin lift) while compressing dealer‑related costs. Additionally, the “Adventure‑Series” sub‑segment—targeting higher‑margin, tech‑enabled sport‑craft—has out‑performed the core “Family‑Series” line, posting a 15 % YoY volume acceleration and a 20 % higher gross margin. This mix‑shift is a clear driver behind the overall margin expansion.

Trading implications

The top‑line growth and margin tailwinds suggest the stock could price in a mid‑term upside if the DTC channel scales as projected and the higher‑margin Adventure‑Series continues to dominate the product mix. On the downside, any delay in DTC execution or a softening of discretionary‑spending in the recreation market could erode the margin gains. From a technical standpoint, the shares have been testing the $28 resistance (≈ 2‑month high) and have found support near $24. A breakout above $28 with volume confirmation would validate the bullish narrative, while a dip back below $24 could signal the market is still pricing in execution risk. A position‑sizing approach—30 % long near $28–$30 and 20 % short near $24–$22—captures the upside while hedging against potential margin‑compression headwinds.