Brunswick rides premium demand to Q3 beat, upbeat full year outlook

[Side view of a motorboat cruising with high speed over the ocean]
SHansche/iStock via Getty Images

After struggling for the first half of 2025 as a result of high interest rates that choked off demand for pricey power boats, Brunswick’s (NYSE:BC [https://seekingalpha.com/symbol/BC]) third quarter sales [https://d1io3yog0oux5.cloudfront.net/_eb1d7a58e43bca6b63d8d2ca13935425/brunswick/db/603/236435/earnings_release/Q3+2025+Earnings+Release+-+Final.pdf] rebounded, increasing by 7% to a better-than-expected $1.36B.

Gains were led by demand for premium boats, aftermarket business strength, and pricing actions with the propulsion segment realizing a 10% increase in sales primarily from strong OEM orders in a low field inventory environment.

This was followed by an 8% increase in sales of engine parts and accessories, and 4% sales increase in the company’s boating segment with the Freedom Boat Club contributing ~13% of segment sales.

However, the company’s profitability was undermined by one-off charges resulting in an unadjusted loss of $3.59 per share versus a profit of $0.67 per share in the same quarter last year.

Stripping out certain items, including restructuring charges, the company earned an adjusted profit of $0.97 per share, down 17% from a year ago, but beating the consensus estimates by 11 cents.

Looking ahead to FY25, with the majority of the retail selling season complete, the U.S. marine retail market is trending down by ~8%, with year-over-year comparisons improving significantly in the back-half of the season. With the benefit of improved OEM ordering, low and healthy dealer inventories, and improved retail for Brunswick boat brands versus the industry, the company confirmed its full year guidance with net sales of $5.2B versus the $5.1B consensus estimate. Adjusted earnings are pegged for $3.25 per share, 3 cents above estimates. Free cash flow is expected to increase to more than $425M, and annual share repurchases of at least $80M.

The better-than-expected results coupled with an upbeat outlook drove shares to their highest level in nine months.

MORE ON BRUNSWICK

* Brunswick Corporation 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4832563-brunswick-corporation-2025-q3-results-earnings-call-presentation]
* Brunswick beats top-line and bottom-line estimates; reaffirms FY outlook [https://seekingalpha.com/news/4507342-brunswick-beats-top-line-and-bottom-line-estimates-reaffirms-fy-outlook]
* Brunswick Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506847-brunswick-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Brunswick [https://seekingalpha.com/symbol/BC/ratings/quant-ratings]
* Historical earnings data for Brunswick [https://seekingalpha.com/symbol/BC/earnings]