Marine Products Corp, the parent of Chaparral and Robalo, released its first-quarter earnings yesterday. Net sales were down 15% to $59 million from the prior-year quarter. The decrease was primarily due to a 19% drop in the number of boats sold, partially offset by a price/mix increase of 4%, the company said in a statement.

Gross profit was $11 million, down 22%. Gross margin was 18.6%, down 160 basis points. The year-over-year gross margin decline reflected weak sales, which more than offset manufacturing cost controls.

“We started off 2025 with a continuation of challenging marine-industry trends while we focused on supporting our dealers, managing inventories and controlling costs,” president and CEO Ben M. Palmer said in the statement. “First-quarter sales were down 15%, reflecting lower volumes and hesitation from dealers to place orders in the current demand environment. However, first-quarter sales were up 23% sequentially versus the fourth quarter of 2024. Our field inventories are at a reasonable level, and we will begin working with our dealer network for model year 2026 introductions. It is likely we will take a conservative approach to the rollout and inventory management but still deliver innovative designs and enhanced features to maintain our leading reputation with our dealers and consumers.”

On tariffs and the macroeconomic outlook, Palmer said that “beyond our specific industry, we are clearly seeing heightened uncertainty driven by tariff-related headlines. Potential boat component and materials cost increases would likely result in model price increases. In addition, a broader sense of economic uncertainty and risk aversion are likely to impact consumer spending. Further, the interest rate outlook has become less clear with respect to inflation and economic growth as the Fed navigates a dynamic backdrop.”

The company generated strong operating cash flow, made minimal capital investments and ended the quarter with approximately $57.1 million in cash and no debt, the statement said.