Brunswick (BC) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $1,557.8 million, up 8% year-over-year, with all segments growing for the fourth consecutive quarter, driven by strong OEM orders, aftermarket demand, and favorable pricing and mix.

• Adjusted EPS was $1.56, a 34% increase over Q2 2025, supported by pricing, mix, new products, and IEEPA tariff refunds, partially offset by inflation and higher compensation.

• Premium and core product lines remained resilient, while value segments faced pressure but were managed through rationalization and focus on operational efficiencies.

• Recurring revenue businesses, including parts, accessories, and Freedom Boat Club, showed robust growth and margin expansion, with Freedom Boat Club reaching 450 locations and member trips up 13%.

• Operational execution and IEEPA tariff refunds contributed to robust earnings despite macroeconomic and geopolitical headwinds.

Financial highlights

• Q2 2026 net sales: $1,557.8 million (up 8%); first half: $2,935.9 million (up 10%).

• Adjusted EPS for Q2: $1.56 (up from $1.16); adjusted operating earnings: $150.1 million (up from $126.0 million); operating margin improved by 90–120 bps.

• Free cash flow for Q2: $278 million; first half: $160.7 million.

• GAAP diluted EPS for Q2: $1.66 (up 84%); net earnings from continuing operations: $109.8 million (up 85%).

• Gross margin for Q2: 28.1% (up 260 bps); adjusted operating margin: 9.6% (up from 8.7%).

Outlook and guidance

• Full-year 2026 guidance: net sales of $5.7–$5.8 billion, adjusted operating margin ~8.0%, adjusted EPS $4.35–$4.75, and free cash flow of $400 million or more.

• Q3 2026 revenue expected at $1.4–$1.5 billion, with adjusted EPS of $1.20–$1.40.

• Guidance reflects anticipated $25–$30 million in net IEEPA refunds and $40 million in incremental tariffs for the year.

• Segment revenue growth guidance: high single-digit for Propulsion and Boat, mid single-digit for Engine P&A and Navico Group.

• Free cash flow guidance raised to over $400 million, supported by strong earnings and IEEPA refunds.