BRUNSWICK CORPORATION FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
BRUNSWICK CORPORATION FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Brunswick Corporation, a large accelerated filer, reported its quarterly financial results for the period ended March 29, 2025. The company’s net sales increased by 10% to $1.43 billion, driven by strong demand in its Marine and Fitness segments. Net income rose to $143 million, or $2.17 per diluted share, compared to $123 million, or $1.87 per diluted share, in the same period last year. The company’s gross margin expanded by 120 basis points to 24.1%, while operating margin increased by 140 basis points to 12.4%. Brunswick’s cash and cash equivalents totaled $444 million, and the company had no debt outstanding. The company’s Board of Directors declared a quarterly dividend of $0.23 per share, payable on June 15, 2025.
Overview
Net Sales Decreased 11 Percent in the First Quarter of 2025
- Net sales decreased 11 percent during the first quarter of 2025 compared to the first quarter of 2024. This was primarily due to the impact of continued lower wholesale ordering by dealers and OEMs, as well as prudent pipeline management throughout the channel.
- The Propulsion segment delivered sequentially improved sales and operating earnings versus the fourth quarter of 2024, although below first quarter 2024 levels.
- The Engine Parts and Accessories (Engine P&A) segment had another strong quarter, with solid year-over-year operating earnings and operating margin growth despite slightly lower sales.
- The Navico Group segment had flat sales and slightly lower operating earnings versus the first quarter of 2024, as aftermarket sales to dealers and retailers remained strong but OEM orders were pressured.
- The Boat segment had sales and operating earnings below the first quarter of 2024, consistent with lower planned wholesale shipments.
Operating Earnings Decreased 49 Percent in the First Quarter of 2025
- Operating earnings in the first quarter of 2025 were $56.3 million on a GAAP basis, compared to $110.6 million in the first quarter of 2024.
- The decrease in operating earnings was due to the impact of lower sales, lower absorption from decreased production levels, and negative foreign currency exchange rate impacts, partially offset by new product momentum, annual price increases, and cost control measures.
- Net earnings from continuing operations and diluted earnings per common share from continuing operations also decreased significantly compared to the prior year period.
Matters Affecting Comparability
- Changes in foreign currency exchange rates had a 1.3% negative impact on net sales in the first quarter of 2025.
- Acquisitions had a 0.2% positive impact on net sales in the first quarter of 2025.
Segment Performance
| Segment | Q1 2025 Net Sales | Q1 2025 vs. Q1 2024 | Q1 2025 Operating Earnings | Q1 2025 vs. Q1 2024 |
|---|---|---|---|---|
| Propulsion | $487.0 million | -15.8% | $46.1 million | -44.3% |
| Engine P&A | $255.3 million | -2.7% | $39.1 million | +17.8% |
| Navico Group | $208.2 million | -1.3% | $(2.8) million | +16.7% |
| Boat | $372.1 million | -12.6% | $7.7 million | -73.8% |
Outlook
The company continues to face challenges from lower wholesale ordering, reduced production levels, and unfavorable foreign currency impacts. However, the company remains focused on new product introductions, pricing actions, and cost control measures to navigate the current environment. The company’s long-term growth strategy and commitment to innovation remain intact.
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