BC-PC · Brunswick Corporation

Brunswick Corporation delivered strong Q1 2026 results, with net sales rising 12.8% to $1,378.1 million, surpassing prior year despite geopolitical and tariff headwinds. Growth stemmed from steady retail trends, market share gains across segments, robust OEM demand, new product launches, and pricing actions from late 2025. GAAP operating earnings dipped 10.7% to $50.3 million due to tariffs and investments, but as adjusted rose 14.6% to $82.6 million, lifting adjusted operating margin to 6.0% from 5.9%. As adjusted diluted EPS jumped 25% to $0.70, supported by sales leverage, favorable mix, absorption, and cost controls. Segment highlights included Propulsion's 17% sales growth from OEM strength and share gains, though margins faced tariff pressures; Engine Parts and Accessories up 14% sales and 24% adjusted earnings on boater participation; Navico Group's 7% sales increase with 64% earnings growth via optimizations; and Boat's 6% sales rise with 63% adjusted earnings gain from wholesale alignment and Business Acceleration momentum. CEO David Foulkes emphasized healthy inventories, lean pipelines, and recurring revenue stability. Balance sheet showed $289.3 million in cash and securities, up from year-end, with $20 million share repurchases YTD and a dividend increase. Updated 2026 guidance reflects confidence in share gains and leverage: sales $5.65-5.8 billion, adjusted margin 7.5-8.0%, EPS $4.00-4.50, free cash flow $350 million+, with tariffs at lower end of $35-45 million estimate. Q2 outlook: $1.45-1.55 billion revenue, $1.10-1.20 adjusted EPS. Recent Freedom Boat Club acquisition adds accretion.