August 17, 2020
Recreational boating is a popular pastime enjoyed by more than 141 million Americans each year. In fact, annual U.S. sales of boats, marine products and services are estimated to total $42 billion, according to the National Marine Manufacturers Association. These numbers are likely to increase substantially as consumers with disposable incomes look for new ways to spend their downtime outdoors domestically while maintaining a degree of social distancing.
With that in mind, we decided to take a look at those publicly traded companies that may well be in the right industry at the right time.
Brunswick Corporation (Tii:BC) After acquiring the Sea Ray and Bayliner product lines in 1986, Brunswick Corp. became the largest manufacturer of recreational boats in the world. Through these two divisions, Brunswick Corp. provides recreational motorboats under the Sundancer, Bayliner, SLX, SDX, and SPX names. To better engage with its customers, Sea Ray created the Sea Ray Owners Club, a community that connects craft owners through local events, offers exclusive member benefits and technical resources.
Global Boatworks Holdings Inc. (Tii:GBBT) Those with a plethora of disposable income may consider taking to the water in luxe style. That’s where Global Boatworks comes in. The South Florida-based company builds, sells, and charters high-end floating vessels – essentially floating luxury homes. These state-of-the-art luxury living vessels feature Bosch appliances, granite countertops, LED fireplaces, soaking (Roman style) tubs, floor-to-ceiling windows, electric blinds and shades, heated towel racks, and luxury showers.
Malibu Boats, Inc. (Tii:MBUU) Formed in 1982 by six friends with an interest in waterskiing, Malibu Boats lays claim to holding the No. 1 market share position for recreational powerboats in the United States since 2010. The company has three brands of high-performance boats designed to appeal to recreational boaters and water sports enthusiasts – Malibu, Axis Wake Research (Axis), and Cobalt. With a stable of brand ambassadors that include not only champion wakeboarders and wakeskaters, but also country singer Jake Owen, and NASCAR drivers Joey Logano and Kyle Larson, Malibu’s products are positioned to continue to enjoy its appeal with enthusiasts and casual boaters alike.
Marine Products Corp. (Tii:MPX) A leading player in the recreational boating business, Marine Products Corp. designs, manufactures and distributes premium-branded Chaparral sterndrive and outboard pleasure boats, Robalo outboard sport fishing boats and Vortex jet boats through 195 domestic and 93 international independent dealers. One of the company's most popular models, the Chaparral 297 SSX, features an expansive cockpit with a high freeboard, allowing for more seating capacity, and a top speed of 50 miles per hour.
MasterCraft Boat Holdings Inc. (Tii:MCFT) Headquartered in Vonore, Tenn., MasterCraft Boat Holdings is a leading innovator, designer, manufacturer and marketer of recreational powerboats through its four brands, MasterCraft, NauticStar, Crest and Aviara. The company has leading market share positions in performance sport boats, outboard saltwater fishing and pontoon boats, and has entered the luxury day boat segment. The company announced last month that it was expanding its MasterCraft lineup to 13 models with its latest entry, the NXT24.
Winnebago Industries (Tii:WGO) This company is fixing to attract new customers by land and by sea. Thanks in part to the 2018 acquisition of Chris-Craft Corp., the company best known as a leading manufacturer of motorhomes also became a major player in the recreational powerboats industry. Famous for its iconic mahogany-hulled crafts, offerings from the 159-year-old Chris-Craft Corp. include the Corsair, Launch, Calypso and Catalina lines.