Brunswick (NYSE:BC) Posts Earnings Results

Key Points

• Brunswick beat quarterly earnings expectations: Adjusted EPS rose 63% year over year to $1.58, topping the $1.35 consensus, while revenue increased 6.9% to $1.45 billion, slightly below estimates.
• Management raised full-year adjusted EPS guidance to approximately $4.65 while maintaining revenue guidance of $5.7 billion to $5.8 billion. All reporting segments grew sales and expanded margins, supported by strong propulsion demand, cost reductions and premium-brand resilience.
• Despite solid results, Brunswick expects challenging consumer conditions, high borrowing costs, cautious dealer inventories and trade uncertainty to pressure fourth-quarter performance. The company generated $140 million in free cash flow during the quarter and increased its full-year share-repurchase target to more than $80 million.

Brunswick (NYSE:BC - Get Free Report) released its quarterly earnings results on Thursday. The company reported $1.58 EPS for the quarter, beating the consensus estimate of $1.35 by $0.23, FiscalAI reports. The firm had revenue of $1.45 billion during the quarter, compared to analyst estimates of $1.46 billion. Brunswick had a negative net margin of 1.53% and a positive return on equity of 15.28%. The business's revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.97 EPS.

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

• Brunswick reported a strong third quarter, with sales up 7% to $1.5 billion, adjusted EPS up 63% to $1.58, and adjusted operating margin expanding 230 basis points to 10.1%. Management raised full-year adjusted EPS guidance to approximately $4.65 while maintaining revenue guidance of $5.7 billion-$5.8 billion.
• All reporting segments grew sales and expanded margins. Propulsion benefited from strong high-horsepower outboard demand, Engine Parts and Accessories posted its highest third-quarter sales since 2020 with a 24.6% margin, Navico Group continued its transformation, and the Boat segment benefited from premium-brand resilience, cost reductions, and Freedom Boat Club growth.
• Management highlighted several potential 2027 tailwinds, including three new Mercury outboard launches, continued repower and distribution share gains, Navico product introductions and OEM wins, the reversal of Boat Group facility-consolidation costs, and further efficiency improvements. Executives reiterated confidence in their strategic-plan targets of 5%-8% sales growth and 20%-25% operating leverage.
• Consumer and industry conditions remain challenging, particularly for value-oriented buyers, due to inflation, geopolitical uncertainty, and high borrowing costs. Additional material inflation, cautious dealer stocking, uncertainty around tariff refunds, and economic and trade volatility are expected to weigh on fourth-quarter results, while the company expects only modest pricing and further rationalization of value boat models.
• Brunswick generated $140 million of third-quarter free cash flow, repurchased $75 million of shares year to date, and retired $100 million of debt. The company raised its full-year share-repurchase target to more than $80 million and remains on track to meet or exceed its $160 million debt-reduction target.

Brunswick Price Performance

Shares of NYSE:BC traded up $4.56 during mid-day trading on Thursday, reaching $73.41. The stock had a trading volume of 853,383 shares, compared to its average volume of 811,249. The business's 50 day moving average price is $69.16 and its 200 day moving average price is $77.57. Brunswick has a 1 year low of $59.06 and a 1 year high of $90.25. The company has a market cap of $4.76 billion, a P/E ratio of -56.14 and a beta of 1.38. The company has a current ratio of 1.45, a quick ratio of 0.65 and a debt-to-equity ratio of 1.08.

Brunswick Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, November 24th will be given a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Tuesday, November 24th. Brunswick's payout ratio is currently -134.35%.

Wall Street Analysts Forecast Growth

BC has been the subject of a number of recent analyst reports. DA Davidson reaffirmed a "neutral" rating and issued a $76.00 price objective on shares of Brunswick in a research note on Monday, August 17th. JPMorgan Chase & Co. decreased their target price on Brunswick from $80.00 to $66.00 and set a "neutral" rating on the stock in a research note on Friday, October 23rd. Royal Bank Of Canada set a $66.00 price target on Brunswick in a report on Friday, October 23rd. Robert W. Baird set a $92.00 price target on Brunswick in a research note on Friday, July 31st. Finally, Morgan Stanley set a $74.00 price target on Brunswick in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $84.60.

About Brunswick

Brunswick Corporation NYSE: BC is a marine recreation company that designs, manufactures and distributes products used in boating and related recreational activities. Its portfolio includes marine propulsion systems, boats, engines, electronics, boat control systems and other components, as well as parts and accessories.

The company's marine businesses include Mercury Marine, which produces outboard, sterndrive and inboard engines, and a range of boat brands such as Boston Whaler, Sea Ray, Bayliner, Lund, Harris and Princecraft.

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