MarineMax CEO: Recovery May Be Slower Than Anticipated

The US firm is approaching the spring selling season with increased caution.

Despite a seemingly strong second quarter with record revenue, but margins off 30%, boat retailer, marina operator and yacht services provider MarineMax CEO Brett McGill doesn’t see a strong start to Q3, either.

“Given the increasing level of market uncertainty about future economic conditions because of the tariffs, we are approaching the spring selling season with increased caution.

“As a result, we are tempering our expectations for near-term growth and recognizing that the pace of industry recovery may be slower and more uneven than previously anticipated,” McGill told financial analysts during an earnings call late last week.

While tariffs have yet to directly impact pricing, they have already taken a toll on sales and led to lower margins through OEM and dealer promotions.

Uncertainty Lingers Around Tariffs

CEO Brett McGill: “I think given the current environment, with the increased uncertainty, I would expect margins to be somewhat under pressure, more so than dealers perhaps originally thought, for the foreseeable future.”

“In channel checks with lenders and other dealers and manufacturers there is a consistent theme of general consumer softness, caused by the uncertainties related to the tariffs,” reported CFO Mike McLamb, adding industry-wide margins are about 150 basis points below last year and perhaps 200 basis points below ‘normal’.

“I think given the current environment, with the increased uncertainty, I would expect margins to be somewhat under pressure, more so than dealers perhaps originally thought, for the foreseeable future.”

Expensive larger boats have been keeping the industry’s bottom line afloat for about six fiscal quarters, but McGill said despite the record revenue in Q2, “there was definitely some softness across all segments.”

One bright spot for MarineMax and the industry, McLamb said, is current inventory levels.

“Speaking to the major floorplan lenders in our industry, they continue to think that by summertime – and maybe this has moved out a month or so because of the current environment – industry inventory levels should be below normal levels in terms of weeks-on-hand. There could be a little bit of an ageing problem, but overall dealers should start feeling much better about their stocking and the environment as they look forward to 2026.”

And while a model year price increase is inevitable, McGill said MarineMax and its OEM partners are trying to figure out how to mitigate expenses and offset any tariff.

“And really, candidly, trying to understand what that tariff will be. It feels like they’re thinking it’s going to be less than originally thought 15 days ago, so we’re trying to mitigate how much price goes into the new model year product, which equates to a price increase, and the manufacturers are working hard on that.”