Shares of Malibu Boats (MBUU) plummeted 21.69% in pre-market trading on Thursday following the company's fourth-quarter earnings release that fell short of analyst expectations and provided a disappointing outlook for the upcoming fiscal year.

The recreational powerboat manufacturer reported adjusted earnings per share of $0.42 for the fourth quarter, missing the consensus estimate of $0.46. Despite the earnings miss, Malibu Boats posted better-than-expected revenue of $207 million, surpassing analysts' projections of $195.28 million.

However, the company's forward-looking guidance appears to have significantly rattled investors. For fiscal year 2026, Malibu Boats anticipates net sales to be flat to down mid-single digits year-over-year, signaling potential challenges in the recreational boating market. CEO Steve Menneto commented, "Fiscal year 2025 was a challenging year for the marine industry, but I am proud of the groundwork we laid by supporting our dealers' efforts to reduce their inventory and refreshing our dealer network, which we believe positions us to outperform the industry." Despite this optimism, the cautious outlook, combined with the earnings miss, likely contributed to the sharp pre-market decline.