Brunswick (BC) investor relations material

Strategic vision and growth drivers

• Focus on premium brands, innovation, and operational excellence to drive organic growth, margin expansion, and resilience across all divisions.

• Recurring revenue businesses, vertical integration, and enterprise synergies underpin earnings stability and cash flow.

• Expansion into new commercial, government, and defense markets, including uncrewed/unmanned service vessels, with $80M+ incremental revenue targeted by 2030.

• AI and automation initiatives are expected to deliver over $50 million in value and transform core processes, with 100+ use cases in development.

• Conservative market assumptions guide financial targets, with upside potential from market recovery and strategic portfolio shifts toward premium, fishing, and adventure segments.

Division highlights and innovation

• Mercury Marine targets 5%-8% revenue CAGR, >400 bps margin growth, and >50% U.S. market share, driven by new products and supply chain optimization.

• Navico Group aims for 7%-12% revenue CAGR, >600 bps margin expansion, and >37% gross margins, leveraging integrated technology and operational excellence.

• Boat Group targets $2.2B–$2.6B revenue, 7–11% CAGR, and 600+ bps margin expansion, focusing on premium segments and ecosystem integration.

• Business Acceleration, anchored by Freedom Boat Club, expects >$300 million revenue, >75,000 members, and high recurring revenue, compounding value across the enterprise.

• Propulsion segment aims for $2.8B–$3.2B revenue, 11–15% CAGR, and 400+ bps margin expansion by 2030.

Financial guidance and shareholder returns

• Projected annual revenues of $7B–$8B, EPS of $8–$12, and >$550M free cash flow by plan end, with systematic share repurchases and debt reduction.

• Five-year plan targets 20–30% EPS CAGR, 400+ bps margin expansion, and recurring revenue up 10 percentage points since 2019.

• CapEx and R&D to remain at ~3% of sales, focused on new products, technology, and AI.

• Net leverage targeted below 1.5x by 2027, with continued dividend increases and $100M annual share repurchases starting in 2027.

• Total shareholder return since 2019 is 112%, outpacing peers and major indexes.