Note 14: Business Segment

MPC has one reportable segment — its Powerboat Manufacturing business. The Chief Operating Decision Maker (CODM) makes resource allocation and performance assessment decisions based on this segment as a whole. MPC's CODM is the Chief Executive Officer.

Significant segment expenses for the years ended December 31, 2025, 2024 and 2023 are shown in the following table:

(in thousands)

2025

2024

2023

Materials

$

128,705

$

123,441

$

203,847

Overhead

23,124

22,987

25,575

Labor costs

26,660

25,887

33,907

Other cost of goods sold (1)

19,155

18,742

30,021

Cost of goods sold

$

197,644

$

191,057

$

293,350

Employment costs

$

18,016

$

17,580

$

28,439

Warranty expense

4,536

3,616

5,829

Other selling, general and administrative expenses (2)

10,195

6,180

8,945

Selling, general and administrative expenses

$

32,747

$

27,376

$

43,213

(1)

Comprised primarily of accessories costs.

(2) Includes professional fees, transactions costs related to the Mergers, advertising and promotions, and other costs.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.