Brunswick (NYSE:BC) Announces Quarterly Earnings Results, Misses Expectations By $0.83 EPS

Key Points

• Brunswick reported $0.70 EPS for Q1, missing the Street consensus of $1.53 (a $0.83 miss) even as net sales rose about 13% to $1.4B; management set Q2 guidance at $1.10–$1.20 and raised FY2026 adjusted EPS guidance to $4.00–$4.50.
• Management warned of meaningful tariff and geopolitical headwinds (Q2 tariffs now expected near the low end of a prior $35–$45M range) and reported a negative net margin, while continuing capital returns with $20M of buybacks YTD and a higher quarterly dividend ($0.44); notable insider share sales were also disclosed.

Brunswick (NYSE:BC - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.70 earnings per share for the quarter, missing the consensus estimate of $1.53 by ($0.83), Zacks reports. Brunswick had a negative net margin of 2.56% and a positive return on equity of 12.22%. The firm's revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period last year, the business earned $0.56 earnings per share. Brunswick updated its FY 2026 guidance to 4.000-4.50 EPS and its Q2 2026 guidance to 1.100-1.20 EPS.

Here are the key takeaways from Brunswick's conference call:

• Brunswick delivered a strong Q1 with $1.4B in net sales (+13%) and adjusted EPS of $0.70 (+25%), and raised full‑year adjusted EPS guidance to $4.00–$4.50 driven by operating leverage and lower‑than‑expected incremental tariffs.
• Market‑share and product momentum is broad‑based—Mercury outboard orders were >15% higher, trade‑show shares were record high, R12 retail share rose 200 bps, and accelerated new high‑horsepower and mid‑range platforms should support further share gains.
• Tariff and geopolitical uncertainty remain meaningful—Brunswick still expects a material Q2 tariff headwind (full‑year incremental impact now expected near the low end of the prior $35–$45M range), IEPA refund (~$50M estimate) is not included in outlook, and Middle East volatility could pressure demand outside the U.S.
• Strong capital allocation and recurring‑revenue growth—$20M of share repurchases YTD, the 14th consecutive dividend increase, and continued Freedom Boat Club expansion (now 446 locations; recent acquisition adds 21 locations and is day‑1 accretive) supporting recurring revenue and cross‑sell synergies.

Brunswick Trading Up 0.2%

Shares of BC traded up $0.17 during mid-day trading on Thursday, reaching $79.52. 1,121,872 shares of the company were exchanged, compared to its average volume of 983,207. Brunswick has a 52 week low of $45.44 and a 52 week high of $90.25. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.61 and a current ratio of 1.44. The stock has a market capitalization of $5.18 billion, a PE ratio of -37.51 and a beta of 1.38. The business has a 50 day simple moving average of $76.38 and a two-hundred day simple moving average of $75.38.

Brunswick Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Monday, February 23rd were given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.2%. This is a positive change from Brunswick's previous quarterly dividend of $0.43. The ex-dividend date was Monday, February 23rd. Brunswick's dividend payout ratio is -83.02%.

Brunswick News Roundup

Here are the key news stories impacting Brunswick this week:

• Positive Sentiment: Revenue and some metric beats — Brunswick reported year-over-year revenue growth (~+12.8% YoY) and beat several lower-model estimates for the quarter, indicating demand resilience in its marine businesses. Brunswick (BC) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Analyst attention and price-target action — JPMorgan raised its price target modestly to $83 (neutral rating), which supports the view that some analysts see upside from current levels. Benzinga
• Neutral Sentiment: Company disclosures and investor access — Brunswick published its Q1 earnings press release, slide deck and hosted a conference call/webcast, giving investors detail to assess results and outlook. Brunswick Corporation 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Index attention — recent notes flag fresh Russell 1000 attention, which can boost passive flows but is not an immediate earnings driver. Brunswick Gains Fresh Russell 1000 Market Attention
• Negative Sentiment: EPS vs. Street: headline confusion and misses — while some outlets show Brunswick beat lower internal estimates, the company reported $0.70 EPS vs. a widely‑cited consensus of $1.53, a notable miss against the larger Street consensus and a key reason for downward pressure. Brunswick Q1 earnings snapshot / Marketbeat
• Negative Sentiment: Softer Q2 and guidance caution — management set Q2 EPS guidance of $1.10–1.20 (well below the ~$1.53 consensus) and FY26 EPS guidance of $4.00–4.50, which, combined with the Q1 print, prompted concern about near-term profitability and margin pressure. Brunswick tops Q1 expectations but issues softer Q2 outlook
• Negative Sentiment: Insider sales and margin signal — recent filings show meaningful insider selling activity, and the company reported a negative net margin for the quarter, which may amplify investor caution about near-term cash earnings. Brunswick Corporation Reports First Quarter 2026 Financial Results

Insider Transactions at Brunswick

In other news, CEO David M. Foulkes sold 38,266 shares of the firm's stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $86.56, for a total transaction of $3,312,304.96. Following the completion of the transaction, the chief executive officer directly owned 271,169 shares in the company, valued at $23,472,388.64. This trade represents a 12.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Christopher F. Dekker sold 4,981 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $87.38, for a total value of $435,239.78. Following the transaction, the vice president owned 39,740 shares of the company's stock, valued at $3,472,481.20. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.99% of the stock is owned by company insiders.

Institutional Investors Weigh In On Brunswick

Hedge funds have recently added to or reduced their stakes in the business. Quarry LP increased its holdings in Brunswick by 38.4% in the fourth quarter. Quarry LP now owns 440 shares of the company's stock worth $33,000 after purchasing an additional 122 shares in the last quarter. Danske Bank A S bought a new stake in Brunswick in the third quarter worth approximately $38,000. Larson Financial Group LLC increased its holdings in Brunswick by 705.4% in the third quarter. Larson Financial Group LLC now owns 596 shares of the company's stock worth $38,000 after purchasing an additional 522 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Brunswick by 477.0% in the first quarter. Geneos Wealth Management Inc. now owns 727 shares of the company's stock worth $39,000 after purchasing an additional 601 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in Brunswick by 15.2% in the third quarter. NewEdge Advisors LLC now owns 1,332 shares of the company's stock worth $84,000 after purchasing an additional 176 shares in the last quarter. 99.34% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

BC has been the subject of several research reports. Truist Financial increased their target price on Brunswick from $92.00 to $93.00 and gave the company a "buy" rating in a research report on Monday. Morgan Stanley set a $82.00 target price on Brunswick in a research report on Tuesday, February 17th. Texas Capital upgraded Brunswick from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 10th. JPMorgan Chase & Co. increased their target price on Brunswick from $78.00 to $83.00 and gave the company a "neutral" rating in a research report on Tuesday. Finally, B. Riley Financial reiterated a "neutral" rating and issued a $80.00 target price (up from $70.00) on shares of Brunswick in a research report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $86.71.

About Brunswick

Founded in 1845 by John Moses Brunswick, Brunswick Corporation is a global leader in recreation products. Headquartered in Mettawa, Illinois, the company has evolved from its origins as a billiard table manufacturer into a diversified supplier of leisure equipment, serving both consumer and commercial markets around the world.

Brunswick operates through two primary segments: Marine and Bowling & Billiards. In its Marine segment, the company designs, manufactures and distributes recreational boats, outboard engines and aftermarket parts under recognized brands such as Sea Ray, Bayliner and Mercury Marine.

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