NASDAQ MEA Basic Resources Larg

What they do

Brunswick designs, manufactures, and markets recreational marine products, including outboard and inboard engines under Mercury, boats, and parts and accessories for the marine and RV markets. It also operates Freedom Boat Club, the world's largest boat club. The company operates in three segments: Propulsion, Engine Parts & Accessories, and Boat.

Revenue drivers

• Propulsion — Net sales of $2,177.2 million in 2025. Sells engines, controls, rigging, and propellers to over 900 boat builders and 9,000+ dealers, with Mercury outboards from 2.5 to 600 hp and sterndrives up to 1,550 hp, plus electric propulsion.
• Engine Parts & Accessories — Net sales of $1,217.5 million in 2025. Sells engine parts, consumables like oils and lubricants, electrical products, and boat parts, largely to aftermarket retailers, dealers, and OEMs.
• Boat segment — Includes boat manufacturing and Freedom Boat Club; contributed to growth in Q2 2026 with premium and core brand focus and record club membership trips.
• Navico Group — Part of the Boat segment or standalone? The 10-K mentions Navico Group under technology, but its sales are not separately broken out in the provided excerpts. Note: It is mentioned as contributing to sales growth and margin improvement in Q2 2026.

Recent performance

For Q2 2026, net sales were $1,557.8 million, up 7.7% year-over-year, with GAAP diluted EPS of $1.66 and adjusted EPS of $1.56. The company saw sales growth across all segments for the fourth consecutive quarter, helped by IEEPA tariff refunds recognized in cost of sales. For the full year 2025, revenue was $5.36 billion with a net loss of $137.3 million, reflecting challenging market conditions. Cash flow from operations improved to $562.1 million in 2025 from $431.4 million in 2024.

Strategy

Brunswick's strategy focuses on a balanced, cycle-resistant portfolio across marine categories, investing in product innovation and technology like autonomy, connectivity, electrification, and shared access. The company emphasizes synergistic ecosystems, premium and core brand focus, and disciplined capital allocation with debt reduction and moderate share repurchases. Management highlights investments in engine programs, Navico Group's unmanned surface vessels, and Freedom Boat Club expansion.

Risks

• Economic cyclicality — Recreational marine products are discretionary; economic downturns reduce consumer spending and could hurt sales.
• Trade policy and tariffs — U.S. and foreign tariffs, including IEEPA tariffs, have impacted costs; while some refunds are recognized, new tariffs could arise.
• Value segment pressure — Parts of the new boat market, especially value segments, remain pressured due to macro uncertainty and geopolitical conflict.
• Geopolitical conflict — Prolonged conflict in Iran and other tensions weigh on consumer sentiment and could affect demand.

Outlook

Management raised 2026 full-year adjusted diluted EPS guidance to $4.35–$4.75. The company expects continued sales growth across segments, driven by OEM demand and healthy participation, while monitoring tariff impacts and refining the product mix. It also plans to retire at least $160 million of debt in 2026, with $35 million in share repurchases year-to-date.