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Brunswick (BC) investor relations material

Brunswick Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary23 Oct, 2025

Executive summary

  • Q3 2025 net sales rose 7% year-over-year to $1.36 billion, with all segments reporting revenue growth despite a challenging macro environment, driven by strong OEM and dealer orders, robust aftermarket business, and pricing actions.

  • Adjusted EPS was $0.97, down 17% year-over-year due to variable compensation and tariffs; GAAP diluted EPS was $(3.57) due to $333.8 million in restructuring and impairment charges, including a $305.8 million goodwill impairment in Navico Group.

  • Generated $111 million in free cash flow for Q3 and $355 million year-to-date, a substantial improvement over the prior year.

  • Dealer pipelines and inventory levels remain healthy and at record lows, supporting future growth.

  • Boat segment announced consolidation of fiberglass manufacturing, exiting two facilities by mid-2026 to improve efficiency and reduce costs.

Financial highlights

  • Q3 2025 net sales: $1,360.2 million, up 7% year-over-year; adjusted operating earnings: $106.4 million, down 15.5%; GAAP operating loss: $(242.2) million due to $333.8 million in restructuring and impairment charges.

  • Adjusted operating margin was 7.8%, down from 9.9% in Q3 2024.

  • Net loss from continuing operations was $(234.3) million, compared to net earnings of $47.3 million in Q3 2024.

  • Free cash flow for the first nine months reached $354.6 million, up from $6.6 million in the prior year period.

  • Year-to-date 2025 net sales: $4,029 million, down 1% year-over-year due to planned lower first-half production.

Outlook and guidance

  • 2025 full-year guidance: net sales of ~$5.2 billion, adjusted EPS of ~$3.25, free cash flow above $425 million, and at least $80 million in annual share repurchases; debt reduction target increased to $200 million.

  • 2026 initial outlook: mid- to high-single-digit percent revenue growth, >25% EPS growth, and 125%+ free cash flow conversion, assuming stable macro and tariff environments.

  • Anticipates modestly stronger 2026 as interest rates decline and industry restocking occurs.

  • Tariff mitigation strategies and a vertically integrated U.S. manufacturing base are expected to support future performance.

  • Ongoing monitoring of macroeconomic trends, tariffs, and consumer demand; expects to maintain sufficient liquidity and covenant cushion.

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Frequently asked questions

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. The company operates in four segments: Marine Seating and Tables, Billiards Products and Accessories, Fitness Products, and Boat Products. The Marine Seating and Tables segment offers premium marine seating products; connects, primes, paints, assembles, and packages boat sections; produces custom extruded plastic boat components; and preassembles deck structures. This segment also sells marine seating systems with integrated tables; and related accessories primarily under the BSI Sports brand name. Brunswick Corporation is based in Mettawa, Illinois.

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