Brunswick Corporation reported consolidated net sales of $1.38 billion in the 2026 first quarter, an increase of 13 percent versus the first quarter of 2025.
Sales growth reportedly reflected improved wholesale and retail trends, continued market share gains in propulsion and several boat categories, strong OEM demand for propulsion, components and electronics, favorable changes in foreign currency exchange rates, pricing actions commencing in the second half of 2025, and solid boating participation driving aftermarket performance, according to the company’s earnings release on Thursday, April 30.
Segment Summary — As Adjusted Segment Summary – GAAP
Propulsion segment reported a 17 percent year-over-year (y/y) increase in sales resulting primarily from strong OEM orders, wholesale acceleration, and continued global share gains.
Segment Adjusted operating earnings and margin were lower, as the benefits from higher sales and improved absorption were slightly more offset by incremental tariffs and planned accelerated investments in new product development.
Engine Parts and Accessories segment sales registered a 14 percent y/y increase, led by healthy boater participation, driving a 15 percent y/y increase in the products business and a 13 percent y/y increase in the distribution business further supported by continued distribution market share gains.
Segment Adjusted operating earnings increased 24 percent reflecting the segment’s robust operating leverage.
Navico Group segment reported a 7 percent y/y increase in sales for the quarter with growth across all business lines supported by improving OEM demand, steady aftermarket performance, and operational efficiency.
Segment Adjusted operating earnings increased 64 percent and adjusted operating margin increased by 280 basis points reflecting the progressive benefits of product portfolio optimization, operational improvements, and disciplined cost control actions which more than offset incremental tariffs.
Boat segment sales posted a 6 percent increase driven by higher wholesale shipments and stabilized retail conditions, favorable mix, and continued momentum in the Business Acceleration portfolio.
Segment Adjusted operating earnings increased 63 percent, reflecting the leverage from higher sales and favorable mix.
Freedom Boat Club continued to deliver strong growth in key metrics including the number of trips which increased 20 percent to start the year.
Profitability
Diluted EPS for the quarter was 32 cents on a GAAP basis and 70 cents on an as Adjusted basis, or an increase of 25 percent versus the first quarter of 2025.
Strong earnings growth in the quarter was said to be supported by the increased sales, favorable mix, improved absorption, and disciplined cost management more than offsetting the impact of incremental tariffs implemented after the first quarter of last year.
Cash Flow and Balance Sheet Summary
Cash and marketable securities totaled $289.3 million at the end of the first quarter, up $13.6 million from 2025 year-end levels.
Net cash used for operating activities of continuing operations during the first three months of 2026 was $63.7 million, primarily reflecting operating results and changes in working capital.
Investing and financing activities resulted in net cash provided of $78.3 million during the first three months of 2026, said to be primarily due to $195.0 million of proceeds from the issuance of short-term debt, net of $57.2 million of capital expenditures, $28.7 million of dividend payments, and $16.2 million of share repurchases.
2026 Outlook
“As we enter the core retail selling season in the U.S., we are encouraged by the stable market conditions and by the strength of our first quarter performance,” offered David Foulkes, chairman and CEO, Brunswick Corporation. “We believe steady dealer and customer sentiment, exceptionally healthy and lean pipelines, disciplined wholesale-to-retail alignment, and sustained boating participation are sources of confidence as we move through the remainder of 2026.
“While direct sales and operational impacts remain limited, heightened geopolitical volatility has introduced new uncertainties. Rate cuts enacted late in 2025 are supporting improved retail and floorplan financing as we enter the peak selling season with recent rate volatility having no clear impact on demand. While expectations for incremental rate relief have moderated, our forecast does not rely on additional cuts. Fuel prices have risen recently due to geopolitical events but generally remain within historical bounds and we are not experiencing any meaningful impact on retail or OEM demand or on boating participation, which remains strong.
“The tariff environment remains dynamic. During the quarter, IEEPA tariffs were repealed and replaced with Section 122. More recently, Section 232 tariff applications were amended. Based on current regulations, we believe that our full-year incremental net tariff impact will ultimately land near the lower end of our original $35 to $45 million estimate shared at the beginning of the year. Potential refunds related to previously paid IEEPA tariffs are not yet factored into our outlook.”
Foulkes said the company’s operating priorities remain clear.
“We are focused on closely aligning production and wholesale with retail demand, driving continued market share gains, maintaining disciplined cost control, and investing in product innovation, technology, and system-level integration across our portfolio,” said Foulkes. “Recurring-revenue and aftermarket businesses remain a key strength, supported by sustained boater participation, and are expected to continue to provide consistent earnings and cash generation.”
Brunswick updated its full-year guidance:
Brunswick Corporation said the outlook reflects its confidence in expected continued share gains, broad-based revenue growth, and strong operating leverage in a flat-to-slightly-improving market environment.
Image courtesy Sea Ray/Brunswick Corporation
