About Brunswick Corporation
4Q 2025 Highlights
Brunswick reported revenue of about $1.33 billion in net sales, roughly 16% higher than Q4 2024. Adjusted diluted earnings per share (EPS) for the quarter were $0.58, up significantly year-over-year, with adjusted operating earnings of around $66.6 million. All major business segments returned to sales growth in the quarter, including propulsion, boat, and parts & accessories.
On a GAAP basis, the company generated operating earnings of $41.9 million, resulting in an operating margin of 3.1%, which declined by 790 basis points year-over-year. Diluted earnings per share (EPS) from continuing operations under GAAP were $0.28, with the year-over-year comparison considered not meaningful.
Full Year 2025 Summary
Full year revenue was approximately $5.36 billion, a modest increase from the prior year. On a GAAP basis, Brunswick posted a loss for the year. However, on an adjusted basis, the company reported $3.27 in diluted EPS, down from the prior year. Brunswick generated strong free cash flow of roughly $442 million, enabling capital returns to shareholders and debt reduction.
On a GAAP basis, the company recorded an operating loss of $40.7 million, resulting in an operating margin of minus 0.8%, a decline of 670 basis points year-over-year. Diluted earnings per share (EPS) from continuing operations under GAAP were a loss of $2.06, with the year-over-year comparison considered not meaningful.
On an as-adjusted basis, Brunswick generated operating earnings of $371.1 million, which was down 25.1% versus FY 2024. The adjusted operating margin was 6.9%, reflecting a 260-basis-point decrease year-over-year.
Segment Highlights
Propulsion (Mercury Marine): Delivered strong Q4 revenue and earnings growth across outboard, sterndrive, and controls/rigging/propellers. Mercury maintained market-share leadership in the U.S., Canada, and Europe and showcased innovation with the new “808” high-horsepower outboard concept.
Parts & Accessories / Distribution: A high-margin recurring-revenue business that posted higher Q4 sales and earnings, supported by solid boating activity and 210 basis-point market-share gains in U.S. distribution.
Navico Group: Increased both revenue and operating margin year-over-year, driven by product refreshes and operational improvements, including the launch of the Simrad AutoCaptain autonomous boating system.
Boats Segment: Benefited from improving retail demand, delivering sales growth and margin expansion. Discounting improved by about 100 basis points, premium brands showed strong momentum (including 15% revenue growth at the Fort Lauderdale Boat Show), and value brands began to recover.
Freedom Boat Club: Continued expansion to 442 global locations, with member trips exceeding 640,000, up 5% year-over-year.
Cash Flow and Balance Sheet
Cash and marketable securities totaled $275.7 million at the end of 2025, down $11.0 million from year-end 2024 levels. Net cash provided by operating activities of continuing operations totaled $585.7 million during the year, including net earnings net of non-cash items and the impact of changes in working capital.
Investing and financing activities resulted in net cash usage of $582.9 million during 2025, primarily including $412.6 million of long-term debt repayments, $165.8 million of capital expenditures, $112.6 million of dividend payments, and $80.0 million of share repurchases, net of $173.1 million of net proceeds from short-term debt.
Outlook for 2026
Brunswick provided positive guidance for 2026, projecting net sales in the range of $5.6 billion to $5.8 billion, and adjusted diluted EPS of $3.80 to $4.40, along with expected margin improvement and continued strong cash flow generation. Brunswick projects U.S. marine industry boat unit retail sales to be flat-to-slightly up versus 2025.
Net sales is expected to be between $5.6 billion and $5.8 billion. Adjusted operating margin is projected to be between 7.5% and 8%. Expects free cash flow in excess of $350 million. First quarter 2026 revenue is expected to be between $1.2 billion to $1.4 billion, and adjusted diluted EPS of $0.35 to $0.45.