Shares of Malibu Boats (MBUU) plummeted 5.28% in Thursday's trading session, despite reporting better-than-expected fiscal first-quarter results for 2026. The stark contrast between the strong quarterly performance and the stock's decline highlights investors' concerns about the company's future outlook.

Malibu Boats announced adjusted earnings per share of $0.15, significantly beating the Wall Street consensus estimate of $0.07. The company's Q1 sales also surpassed expectations, coming in at $194.7 million compared to the estimated $181.4 million. Additionally, adjusted EBITDA for the quarter reached $11.8 million, outperforming analyst projections of $10.54 million.

However, the positive quarterly results were overshadowed by Malibu Boats' disappointing outlook for fiscal year 2026. The company anticipates net sales to be flat to down mid-single digits year-over-year, with adjusted EBITDA margin expected to range between 8% and 9%. This conservative guidance suggests that Malibu Boats is facing challenges in maintaining its growth trajectory, likely due to broader economic concerns and potential softening in the recreational boating market. The contrast between the strong Q1 performance and the cautious full-year outlook appears to have spooked investors, leading to the significant stock price drop.