What Malibu Boats, Inc. told the SEC could break it.

Malibu's sales are concentrated in a few dealers — dealers under common control of OneWater Marine were ~24.7% of consolidated net sales in FY2025 (up from 17.2% in 2023), and the top-10 dealers were 51-66% of each segment's sales — so loss or financial distress of a major dealer would materially hurt results.

“Sales to our dealers under common control of OneWater Marine, Inc. represented approximately 24.7%, 23.7% and 17.2% of consolidated net sales in fiscal years 2025, 2024 and 2023, respectively,”

Malibu estimates 18-20% of its cost of sales is sourced outside the U.S. and expects new tariff exposure to add approximately 1.5%-3% of cost of sales in fiscal 2026, materially raising input costs amid an uncertain trade environment and retaliatory countermeasures.

“We estimate that 18-20% of our cost of sales are sourced from outside the United States and thus we have the potential to be materially impacted by tariffs in future periods.”

Several key components — including GM engines, boat windshields, certain electrical components and gel coats — come from sole or limited suppliers; replacing them is difficult and a sole supplier could exert pricing/warranty leverage, with Malibu having incurred $2.6M securing extra engine blocks amid shortages.

“Some components used in our manufacturing processes, including engines, boat windshields, certain electrical components and gel coats are available from a sole supplier or a limited number of suppliers.”

Malibu relies on a global supply chain for raw materials including resins, fiberglass and vinyl, plus parts and components; volatile prices for these inputs (amid inflation) directly drive its material and labor costs and gross margin.

“We rely on a global supply chain of third parties to supply raw materials used in our manufacturing process, including resins, fiberglass, and vinyl, as well as parts and components. The prices for these raw materials, parts, and components fluctuate depending on market conditions”