Malibu Boats, Inc. (MBUU) increased the authorized amount of its share repurchase program from $50 million to $70 million, adding $20 million in new buy‑back capacity. The board’s decision was announced on December 19, 2025, and the program now remains in effect through the end of 2026.
The expansion follows a $20.7 million repurchase in the second quarter of the fiscal year, demonstrating that the program is being actively used rather than merely authorized. Malibu Boats has a strong balance sheet, holding more cash than debt and a perfect Piotroski Score of 9, which gives management confidence to commit additional capital to shareholders.
Management cited robust cash‑flow generation and a view that the current share price represents an attractive entry point for buybacks. The company’s recent Q1 fiscal 2026 earnings—$0.15 per share versus the consensus estimate of $0.12—beat expectations by $0.03, driven by higher revenue of $194.7 million, a $12 million increase over the $182.72 million forecast. The revenue beat was largely supported by solid demand in the core Malibu and Cobalt segments, offsetting softer performance in the Saltwater Fishing line.
CFO David Black said the board’s decision “reflects MBI’s sustained business and our continued confidence in the long‑term prospects for the company. We remain focused on investing in our core businesses while returning excess capital to shareholders.” The comment underscores a dual strategy of reinvestment and shareholder return, a balance that has helped maintain the company’s financial flexibility.
The buyback expansion signals to investors that Malibu Boats is confident in its cash‑flow outlook and believes the stock is undervalued relative to its earnings and growth prospects. By increasing the authorized buy‑back amount, the company is positioning itself to take advantage of future market opportunities while continuing to support shareholder value.
The move also aligns with the company’s broader strategy of disciplined capital allocation, ensuring that excess cash is deployed in a manner that maximizes long‑term shareholder returns without compromising investment in core product lines.
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