Malibu's Clean Inventory Position Allows for EBITDA Expansion Despite Still Struggling Boat Market

Malibu is a long-established name in performance sport boats, venturing into the sterndrive, saltwater, and dayboat segments via acquisitions over the last decade. However, the competitive landscape in the fragmented boating industry is rife with new products and choices, making consistent share gains difficult to reach. As such, we believe Malibu's brand-intangible asset is not strong enough to amass a competitive edge, which underpins our no moat rating. While Malibu has innovated to meet evolving customer preferences by bringing new products to market quickly, its peer set has done similarly.