Brunswick : Earnings Presentation PDF Q1 2026

Published: 2026-04-30 06:26:33 ET BC

Published on 04/30/2026 at 06:26 am EDT

Q1 2026 Earnings

Conference Call

APRIL 30, 2026

BRUNSWICK CORPORATION - EARNINGS RELEASE

Use of Non-GAAP Financial Information and Constant Currency Reporting

In this presentation, Brunswick uses certain non-GAAP financial measures, which are numerical measures of a registrant's historical or future financial performance, financial position, or cash flows that exclude amounts, or are subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets, or statements of cash flows of the registrant; or include amounts, or are subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Brunswick has used certain non-GAAP financial measures that are included in this presentation for several years, both in presenting its results to shareholders and the investment community and in its internal evaluation and management of its businesses. Brunswick's management believes that these measures and the information that they provide are useful to investors because they permit investors to view Brunswick's performance using the same tools that Brunswick uses and to better evaluate Brunswick's ongoing business performance. In addition, in order to better align Brunswick's reported results with the internal metrics used by the Company's management to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to acquisitions, and certain restructuring, exit and impairment charges, among other adjustments.

For additional information and reconciliations of GAAP to non-GAAP measures, please see Brunswick's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 30, 2026, which is available at https://www.brunswick.com, and the Appendix to this presentation.

Brunswick does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include restructuring, exit and impairment costs, special tax items, acquisition-related costs, and certain other unusual adjustments.

For purposes of comparison, 2026 net sales growth is also shown using 2025 exchange rates for the comparative period to enhance the visibility of the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. We refer to this as "constant currency" reporting.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Business Overview -David Foulkes,

CEO

BRUNSWICK CORPORATION - EARNINGS RELEASE

$0.70

Adjusted1 EPS

(+25% vs. Q1 2025)

$1.4B

Net Sales

(+13% vs. Q1 2025)

Q1 sales increased for all

segments vs. prior year

Strong operating leverage drove EPS growth, overcoming the impact of incremental tariffs

Q1 2026

Exceptional start to 2026, continuing improving second-half 2025 trends

Sales and EPS up over Q1 2025 and ahead of expectations

Q1 U.S. outboard retail share up 200 bps YoY

Boat and engine pipeline inventories remain extremely healthy with wholesale acceleration

Boat pipeline flat to Q4 2025 and vs. Q1 2025:

Global boat pipeline down

~2,000 units

U.S. boat pipeline down

~1,300 units

~Flat Global BC Boat Retail in Q1

Third consecutive quarter of improving retail with wholesale matching retail in the quarter

$20M

Shares Repurchased YTD

14th consecutive annual dividend increase

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Q1 2026 - All Segments Grew YoY Sales for Third Consecutive Quarter

Propulsion

Record MIBS outboard show share: 60% overall and 84% on-the-water; 70% overall at PIBS

Wholesale acceleration drove significant YoY sales growth

Steady R12 47% outboard share; YTD retail share up 200 bps and strong wholesale share gain

Five outboard engine development programs progressing from midrange to ultra-high hp

Engine P&A

Continued strength in both Products and Distribution drove significant YoY sales growth

Operating margin improved YoY despite tariff impact

Strong boater participation supporting solid demand

Land 'N' Sea R12 distribution

share increased 150 bps

Navico Group

Sales growth and operating margin YoY improvement reflect new product traction and diligent operational execution

Launched Simrad NSO 4 and

B&G Zeus SRX at MIBS

Lowrance ActiveTarget 2XL received innovation award

Executing plans with leading OEMs for Simrad AutoCaptain integration

Boat1

Trend of retail acceleration from the second-half of 2025 continues with wholesale also up YoY

Solid performance at boat shows compared to a strong 2025 - show revenue up HSD

U.S. gas prices remain within historical norms; not materially impacting demand or participation

Freedom Boat Club acquired largest franchise club serving Boston and Cape Cod

1BOAT SEGMENT INCLUDES BUSINESS ACCELERATION.

BRUNSWICK CORPORATION - EARNINGS RELEASE

External, Customer, and Consumer Conditions

External Landscape

2025 year-end rate cuts improved 2026 retail and floorplan financing costs - financial forecast does not assume additional rate cuts

Iran conflict and fuel prices not currently materially impacting demand outside Middle-East and ANZ markets

Stock market volatile but up YTD

and R12

Tariffs

Q1 2026 changes to tariff regulations result in net incremental tariff estimate near lower end of initial

$35M-$45M range

Tariffs remain on Japanese competitors

Potential refund of previously paid IEEPA tariffs not included in forecast

Monitoring recent Sect. 301 probes

for potential additional impact

Dealer & Customer

Sentiment

Improved but still cautious dealer and

customer sentiment

Steady boating participation, record start to the year for FBC

Healthy and fresh inventory heading into key selling season with balanced pre-owned inventory levels and equity value supporting new demand

Incentives remain elevated vs. longterm norms but forecasting continued modest YoY improvement

OEM Environment

Wholesale up for both Propulsion and Boat, closely matching retail

Continued Mercury Marine and Navico Group OEM conquest and consolidation

Navico Group continuing journey from stabilization to growth

BRUNSWICK CORPORATION - EARNINGS RELEASE

Boats

Q1 internal global and U.S. retail approximately flat YoY against a relatively strong Q1 2025 (pre-tariffs)

SSI March YTD U.S. boat industry retail down

~5%, with Brunswick SSI outperforming

Q1 global pipeline down ~2,000 units YoY but

flat to Q4 reflecting wholesale/retail matching

Engines

Q1 U.S. outboard engine industry retail up 6% with Mercury up 11%

Q1 U.S. outboard retail share increased 200bps

YoY; wholesale share also increased

R12 U.S. outboard retail share of 47%

U.S. outboard pipeline down ~10% YoY but flat to Q4 reflecting wholesale/retail matching

Industry Retail

Global Brunswick Q1 Boat Retail Approximately Flat Overall Compared to Prior Year

>90% of Current Boat Group Gross Margin

LSD % LSD %

HSD %

Premium Core Value

Q1 retail up for Mercury engines and P&A and approximately flat for Brunswick boats

SOURCE: STATISTICAL SURVEYS, INC.: PRELIMINARY DATA IS SHOWN ON A COMPARATIVE BASIS USING STATES REPORTING TO DATE AS OF APRIL 2026, APPROXIMATELY 78.25% OF THE U.S. BOAT MARKET. COAST GUARD DATA IS INCOMPLETE.

BRUNSWICK CORPORATION - EARNINGS RELEASE

New Boat Sales and Participation Historically Uncorrelated to Oil Price

Oil Price vs. Retail Unit Sales

Typical Cost of Ownership Breakdown1

Boat Group COGS

2006 2008 2010 2012 2014 2015 2017 2019 2021 2023 2025

Oil Price LTM Retail Units

No historic correlation between oil prices and boating

Typical annual fuel use for recreational boat is 20-30% of comparable passenger vehicle

Boat sales have remained steady during prior oil price spikes - R2 below 0.01 for oil vs. retail and wholesale

Boater participation is not impacted by oil price volatility observed through consistent P&A revenue

Fuel cost the smallest share of annual ownership cost

On average, fuel cost represents less than 10% of annual ownership expenses vs. over 85% of relatively fixed annual boating costs such as storage, maintenance, insurance, financing, and registration expenses

Boaters relatively insulated from fuel price

volatility

Boat Group COGS exposure to oil is low

Resin and other oil derivative products used in boat manufacturing is ~2% of total COGS and under long-term contracts

Brunswick scale and sophistication advantage - comprehensive and risk-managed hedging programs for key commodities such as aluminum (and currency)

1INTERNAL ANALYSIS BASED ON AVERAGE U.S. COSTS.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Financial Overview -Ryan Gwillim,

CFO

BRUNSWICK CORPORATION - EARNINGS RELEASE

Overview of First Quarter 2026 Adjusted Results

Sales and earnings1 growth vs. Q1 2025

Net Sales ($M)

+13%

$1,378

$1,222

Operating Earnings1 ($M) Operating Margin1 %

$83

$72

5.9% 6.0%

Third consecutive quarter of sales growth for each segment

Earnings1 growth more than offset

incremental tariffs vs. Q1 2025

Free cash flow1 reflected normal seasonality and 2025 reinstatement of variable compensation paid in Q1 of this year

2025 2026

Diluted EPS1

+25%

$0.70

$0.56

2025 2026

(163%)

Free Cash Flow1 ($M)

($44)

($117)

2025 2026

~$80M YoY incremental variable comp. reinstatement

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Propulsion Segment - Q1'26 Performance1

Significant sales increase resulting from strong OEM orders and continued share gains

19%

$448.3

Q1'26 Net Sales

% Change vs. Q1'25

$571.3

Adjusted Operating Margin of

17%

Down 210 bps vs. Q1'25

(GAAP Operating Margin of 6.0%

down 350 bps vs. Q1'25)

Outboard Engines

($ in millions)

$29.8

(2)%

Sterndrive Engines

$93.2

16%

Controls, Rigging, and Propellers

Total Propulsion

Adjusted Operating Earnings of

Down 9% vs. Q1'25

(GAAP Operating Earnings of

$34.4M down 25% vs. Q1'25)

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Engine P&A Segment - Q1'26 Performance1

Steady boating participation and distribution market share gains driving sales growth and margin expansion

15%

$114.8

Q1'26 Net Sales

% Change vs. Q1'25

14%

$289.8

$175.0

13%

Adjusted Operating Margin of

Up 140 bps vs. Q1'25

(GAAP Operating Margin of 15.7%

up 40 bps vs. Q1'25)

Adjusted Operating Earnings of

Up 24% vs. Q1'25

Products Distribution Total Engine

(GAAP Operating Earnings of $45.6M

($ in millions)

P&A

up 17% vs. Q1'25)

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Navico Group Segment - Q1'26 Performance1

New products and operational improvements continue to drive stronger financial performance

$102.5

Q1'26 Net Sales

% Change vs. Q1'25

11%

$81.1

14%

$39.9

$223.5

Adjusted Operating Margin of

Up 280 bps vs. Q1'25

(GAAP Operating Margin of 2.3% up 360 bps vs. Q1'25)

Adjusted Operating Earnings of

Electronics Power Systems

($ in millions)

Performance Components

Total Navico Group

Up 64% vs. Q1'25

(GAAP Operating Earnings of $5.1M NM2 vs. Q1'25)

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

2NM = NOT MEANINGFUL.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Boat Segment - Q1'26 Performance1

Sales and earnings growth driven by steady early season retail and pipeline maintenance

Q1'26 Net Sales

Adjusted Operating Margin of

3.7%

Up 130 bps vs. Q1'25

(GAAP Operating Margin of 1.6%

down 50 bps vs. Q1'25)

% Change vs. Q1'25

$394.7

$164.8

Adjusted Operating Earnings of

$14.8M

Up 63% vs. Q1'25

(GAAP Operating Earnings of $6.5M down 16% vs. Q1'25)

17% $118.4

1% $76.1 $54.7

(6%)

Aluminum Recreational Saltwater Business

Total

Freshwater Fiberglass Fishing Acceleration

Boat 2

($ in millions)

1SEE THE APPENDIX TO THIS PRESENTATION AND TODAY'S FORM 8-K FOR RECONCILIATIONS TO GAAP FIGURES.

2TOTAL BOAT NET SALES INCLUDES $19.3M OF BOAT ELIMINATIONS.

BRUNSWICK CORPORATION - EARNINGS RELEASE

2026 Guidance1

$4.25 EPS guidance midpoint up 30% from 2025

$5.65B to $5.8B

Revenue

Previously: $5.6B to $5.8B

7.5% to 8.0%

Operating Margin

No change

$4.00 to $4.50

EPS

Previously: $3.80 to $4.40

$350M+

Free Cash Flow

No change

$1.45B to $1.55B

Q2 Revenue

$1.10 to $1.20

Q2 EPS

1EACH ON AN "AS ADJUSTED" BASIS WHERE APPLICABLE.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Wrap-Up David Foulkes, CEO

BRUNSWICK CORPORATION - EARNINGS RELEASE

Freedom Boat Club - the World's Largest Boat Club

Freedom Boat Club

Profitable, high-growth, recurring-revenue business model

Expands boating participation to broader demographic

Drives synergies across the Brunswick portfolio

Key Stats

Grown from ~170 (in 2019) to 446 corporate-owned and franchisee locations

63k memberships and over 100k members

640k+ annual trips

High customer retention, ~90% retention rate

Freedom Corporate Freedom

Franchise

Acquired FBC of Greater Boston & Cape Cod

21 locations with ~3k memberships

Highly profitable operations with strong talent

Day-one earnings accretive

Synergy and margin unlock through efficiency and fleet strategy focus -acquired Maintenance Operations Center that can support other in-region, corporate locations

BRUNSWICK CORPORATION - EARNINGS RELEASE

Cutting-Edge Product Innovation

330 Outrage

Boost

Keyless System

SLX 360 NSO 4

Flite RACE

BRUNSWICK CORPORATION - EARNINGS RELEASE

Secured Nearly 50 Awards in Q1

On track to again surpass 100 enterprise awards

Thank You and Q&A

Save the Date

Mercury Marine Headquarters - Fond du Lac, Wisconsin August 11, 2026

9:00 (Arrival & Continental Breakfast)

10:00 - 3:30 Event

Participants will experience a site tour,

live Q&A with management and on-water experiences showcasing the latest Brunswick innovations

Scan to Register -

or contact Pamela Eriksen at [email protected]

BRUNSWICK CORPORATION - EARNINGS RELEASE

Appendix

2026 Outlook - Segment Guide1

Propulsion

Engine P&A

Navico Group

Boat

High

Low-to-Mid

Mid

High

Single-Digit Percent

Previously: M-HSD%

No change

Previously: M-HSD%

Up 30+

Basis Points

~20%

Up 100+

Basis Points

Up 100+

Basis Points

Previously: Up 0-30+ bps

No change

Previously: Up 50+ bps

No change

Revenue Growth Guide2

Operating

Margin Guide

1EACH ON AN "AS ADJUSTED" BASIS WHERE APPLICABLE, VERSUS COMPARABLE PRIOR YEAR.

2SEGMENT NET SALES GUIDANCE FIGURES ARE EXCLUSIVE OF SEGMENT ELIMINATIONS.

BRUNSWICK CORPORATION - EARNINGS RELEASE

2026 Outlook -

Capital Strategy and Other Assumptions1

Debt Retirement

~$160M

Average Diluted Shares Outstanding

~65.5M

Net Interest Expense

~$95M

Effective Tax Rate

As Adjusted2

~22%

Net Working Capital

Generation

~$50M

Capital Expenditures

~$200M

Share Repurchases

~$50M+

Depreciation3

~$225M

Positive Currency Impact

$15M - $25M

Net Incremental Tariff Impact

$35M - $45M

1EACH ON AN "AS ADJUSTED" BASIS WHERE APPLICABLE.

2TAX PROVISION, AS ADJUSTED FOR SPECIAL TAX ITEMS.

3REFLECTS DEPRECIATION ONLY; EXCLUDES ~$75M OF TOTAL INTANGIBLE ASSET AMORTIZATION. ONLY PURCHASE ACCOUNTING AMORTIZATION IS ADJUSTED WITHIN THE NON-GAAP OPERATING EARNINGS RECONCILIATIONS FOUND IN THE APPENDIX.

BRUNSWICK CORPORATION - EARNINGS RELEASE

Net Sales - Q1 2026

Segments

Q1 2026

Q1 2025

% Change

Propulsion

$571.3

$487.0

17%

Engine Parts & Accessories

289.8

255.3

14%

Navico Group

223.5

208.2

Boat

394.7

372.1

Segment Eliminations

(101.2)

(100.8)

Total

$1,378.1

$1,221.8

13%

Region

Q1 2026 % of Sales

% Change

Constant Currency Ex Acquisitions

% Change

United States

65%

Europe

17%

24%

12%

Asia-Pacific

Canada

26%

22%

Rest-of-World

16%

Total International

35%

20%

11%

Consolidated

13%

10%

Net Sales increased by $156.3 million, or 13%

(in millions)

BRUNSWICK CORPORATION - EARNINGS RELEASE

GAAP to Non-GAAP Reconciliations - Q1 2026

Operating Earnings and Diluted Earnings per Share

Operating Earnings Diluted Earnings per Share

(in millions, except per share data)

Q1 2026

Q1 2025

Q1 2026

Q1 2025

GAAP

$50.3

$56.3

$0.32

$0.30

Purchase accounting amortization

14.5

14.6

0.18

Supplier bankruptcy expense

10.4

0.13

Restructuring, exit and impairment charges

4.8

1.1

0.05

0.01

Loss on sale of assets

2.2

0.03

Acquisition, integration, and IT related costs

0.4

0.1

Loss on early extinguishment of debt

0.04

Special tax items

(0.01)

0.03

As Adjusted

$82.6

$72.1

$0.70

$0.56

GAAP operating margin

3.6%

4.6%

Adjusted operating margin

6.0%

5.9%

BRUNSWICK CORPORATION - EARNINGS RELEASE

GAAP to Non-GAAP Reconciliations - Q1 2026

Operating Earnings By Segment

Q1 2026

(in millions)

Propulsion

Engine P&A

Navico Group

Boat

Corporate

Net sales

$571.3

$289.8

$223.5

$394.7

GAAP operating earnings (loss)

34.4

45.6

5.1

6.5

(41.3)

Purchase accounting amortization

0.3

13.1

1.1

Supplier bankruptcy expense

7.6

2.8

Restructuring, exit and impairment charges

0.2

4.6

Loss on sale of assets

2.2

Acquisition, integration, and IT related costs

0.4

Adjusted operating earnings (loss)

$42.3

$48.4

$18.4

$14.8

($41.3)

GAAP operating margin

6.0%

15.7%

2.3%

1.6%

Adjusted operating margin

7.4%

16.7%

8.2%

3.7%

Q1 2025

(in millions)

Propulsion

Engine P&A

Navico Group

Boat

Corporate

Net sales

$487.0

$255.3

$208.2

$372.1

GAAP operating earnings (loss)

46.1

39.1

(2.8)

7.7

(33.8)

Restructuring, exit and impairment charges

0.8

0.3

Purchase accounting amortization

0.3

13.2

1.1

Acquisition, integration, and IT related costs

0.1

Adjusted operating earnings (loss)

$46.5

$39.1

$11.2

$9.1

($33.8)

GAAP operating margin

9.5%

15.3%

(1.3%)

2.1%

Adjusted operating margin

9.5%

15.3%

5.4%

2.4%

BRUNSWICK CORPORATION - EARNINGS RELEASE

Tax Rate

Q1 2026

Q1 2025

Effective Tax Rate - GAAP

21.9%

28.1%

Effective Tax Rate - As Adjusted 1

22.1%

(1) TAX PROVISION, AS ADJUSTED, EXCLUDES ($0.6) MILLION AND $1.8 MILLION OF NET PROVISIONS (BENEFITS) FOR SPECIAL TAX ITEMS FOR Q1 2026 AND Q1 2025, RESPECTIVELY.

2026 outlook for the adjusted effective tax rate at ~22%

BRUNSWICK CORPORATION - EARNINGS RELEASE

Free Cash Flow

(in millions)

Q1 2026

Q1 2025

Net cash used for operating activities from continuing operations

($63.7)

($13.4)

Capital expenditures

(57.2)

(37.7)

Proceeds from sale of property, plant, equipment

4.7

3.4

Effect of exchange rate changes

(0.6)

3.3

Free Cash Flow ($116.8) ($44.4)

Q1 Net cash (used for) provided by:

Disclaimer

Brunswick Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:24 UTC.