Brunswick Corp

Latest Results (21.11.2025):

Brunswick Corporation reported results for the third quarter of 2025: consolidated net sales of $1,360.2 million (up 6.8% year‑over‑year), GAAP diluted EPS of $(3.57) and as‑adjusted diluted EPS of $0.97, adjusted operating earnings of $106.4 million (down 15.5% YoY) with a 7.8% adjusted operating margin, and strong cash generation with $111 million of free cash flow in the quarter and $355 million year‑to‑date. Management affirmed 2025 full‑year as‑adjusted EPS guidance of approximately $3.25, raised free cash flow guidance to greater than $425 million, and cited enterprise impacts (tariffs, reinstated variable compensation) and non‑cash impairment charges as drivers of the GAAP results.

Key financials

Q3 2025 net sales $1,360.2M (+6.8% vs Q3 2024); GAAP diluted EPS $(3.57) and as‑adjusted EPS $0.97 (‑17.1% vs prior adjusted); adjusted operating earnings $106.4M (‑15.5%) and adjusted operating margin 7.8% (‑210 bps). GAAP results were further impacted by impairment charges.

Segment performance

Propulsion sales +10% driven by strong OEM orders and Mercury market leadership (49.4% U.S. outboard retail share); Engine Parts & Accessories sales +8% with products +4% and distribution +12%; Navico Group sales +2% led by marine electronics; Boat segment sales +4% with Freedom Boat Club contributing ~13% of segment sales.

Cash flow and balance sheet

Cash and marketable securities $316.4M at quarter end. Net cash from operations for the first nine months $451.1M. Free cash flow $111M in Q3, $355M YTD; company raised FY free cash flow guidance to >$425M.

Capital allocation

Management completed ~$70M of share repurchases year‑to‑date (report cites $70M and also net $65M repurchases in cash‑flow detail), paid $84.6M of dividends YTD, and increased the debt reduction target to $200M for the year. Investing/financing YTD included $116.5M capex and significant debt repayments.

Strategic & operational actions

Announced rationalization of fiberglass boat footprint (exit Reynosa, Mexico and Flagler Beach, FL by mid‑2026) to reduce fixed costs and improve productivity; ongoing tariff mitigation initiatives and pipeline management cited as margin actions; recurring‑revenue businesses contributed >60% of adjusted operating earnings.

Market context and outlook

Company noted U.S. marine retail trend down ~8% for 2025 with improvements late in the season; management affirmed full‑year as‑adjusted EPS ~ $3.25 and highlighted continued focus on margin improvement, free cash flow generation, and strategic growth (e.g., Freedom Boat Club ~440 global locations).