Brunswick Corporation, the parent of the Bayliner, Boston Whaler, Crestliner, Cypress Cay, Meridian, Sea Ray boat brands, among others, reported 2025 fourth quarter consolidated net sales amounted to $1.33 billion, up 16 percent from $1.15 million in the fourth quarter of 2024. Sales were said to be above the prior-year quarter due to improved market conditions, increased wholesale shipments to channel partners, pricing actions taken earlier in the year, a lower discounting environment, and continued solid boating participation driving growth in the P&A and aftermarket businesses.

Diluted EPS for the quarter was 28 cents per share on a GAAP basis and 58 cents on an as adjusted basis. Adjusted operating earnings increased 41 percent and adjusted operating margin increased 90 basis points versus the fourth quarter of 2024 as the impact of higher sales, along with increased absorption from comparatively higher production levels and operational improvements, more than offset the enterprise headwinds of incremental tariffs and the reinstatement of variable compensation, which affected each business.

“We finished 2025 ahead of recent expectations, with each business reporting sales and earnings growth in the quarter, leading to full-year net sales growth for the first time in three years and significantly higher free cash flow generation, all supported by a strengthening boat market in the second half of the year,” offered David Foulkes, chairman and CEO, Brunswick Corporation. “In addition to improved retail conditions, our performance was underpinned by solid boating participation driving stability in our recurring-revenue businesses, and outstanding operating execution across the enterprise. The retail demand stabilization in the second half of the year followed a challenging second quarter influenced primarily by tariff-induced economic uncertainty. While U.S. boat market unit retail sales finished the year down approximately 9 percent, Brunswick’s leading boat brands outperformed the U.S. industry and Brunswick global retail unit sales were down only 5 percent.”

Foulkes said dealer inventory levels and freshness remain extremely healthy.

Propulsion Segment
Propulsion segment reported a 23 percent increase in sales with double-digit increases across all business lines resulting primarily from strong OEM orders heading into the early 2026 retail season. Adjusted operating earnings increased by 43 percent and adjusted operating margin increased by 90 basis points.

“Our propulsion segment had an outstanding fourth quarter, increasing revenues and earnings versus prior year in each of its three business lines: outboard; sterndrive; and controls, rigging, and propellers,” Foulkes detailed. He said the Mercury business continues to be the outboard market share leader in the U.S., Canada, and Europe and is increasing its investment in ground-breaking new products.

Engine Parts and Accessories Segment
Engine Parts and Accessories segment reported a 15 percent increase in sales, reflecting strong boater participation and continued share gains in our distribution business line. Sales from the products business were up 7 percent, while distribution business sales were up 22 percent. Segment adjusted operating earnings increased 7 percent with slightly lower adjusted operating margin due to a higher mix of distribution sales.

“Our recurring-revenue, high-margin engine parts and accessories business delivered higher sales and earnings in the fourth quarter versus prior year in both of its products and distribution business lines, fueled by strong boating participation and our growing share in marine distribution. Our market-leading U.S. distribution business gained 210 basis points of share in 2025,” the CEO added.

Navico Group Segment
Navico Group segment reported a 4 percent increase in sales driven by solid OEM orders and steady aftermarket performance during the critical holiday selling season. Segment adjusted operating earnings increased by 33 percent and adjusted operating margin increased by 180 basis points reflecting the higher sales, traction gained from new product investments, portfolio optimization, and cost control measures.

“Navico Group increased both revenue and operating margin in the fourth quarter versus prior year, reflecting the steadily increasing benefits of our continued focus on a refreshed product portfolio and operational, commercial, and financial improvement actions,” Foulkes noted. “The introduction of our Simrad AutoCaptain autonomous boating system was another example of Brunswick’s unique ability to deliver seamlessly integrated systems solutions co-developed by Navico Group, Mercury Marine, and Brunswick Boat Group.

Boat Segment
Boat segment reported an 11 percent increase in sales from increased wholesale boat sales and growth in the Business Acceleration business portfolio. Segment adjusted operating earnings increased by 115 percent and adjusted operating margin increased by 290 basis points primarily from the higher sales, including annual pricing actions taken earlier in the year and lower discount levels, along with increased production driving improved absorption. Freedom Boat Club continued its expansion, with network-wide gains in trips, members, and locations during the quarter and contributed approximately 10 percent of total segment sales.

“Freedom Boat Club had another strong quarter, growing to 442 global locations and with member trips finishing the year at over 640,000 up 5 percent over 2024,” Foulkes noted.

“Our boat business capitalized on the continued improvement in the retail market, driving sales growth and significantly expanding margins versus prior year,” Foulkes continued. “Discounting levels in 2025 also improved approximately 100 basis points over the prior year. We experienced continued strength in our premium and core brands, highlighted by 15 percent overall revenue growth across our premium brands at the Ft. Lauderdale Boat Show, as well as recovering some momentum in value products.”

Cash Flow and Balance Sheet Summary
Cash and marketable securities totaled $275.7 million at the end of 2025, down $11.0 million from year-end 2024 levels.

Net cash provided by operating activities of continuing operations totaled $585.7 million during the year including net earnings net of non-cash items and the impact of changes in working capital. Investing and financing activities resulted in net cash usage of $582.9 million during 2025, primarily including $412.6 million of long-term debt repayments, $165.8 million of capital expenditures, $112.6 million of dividend payments, and $80.0 million of share repurchases, net of $173.1 million of net proceeds from short-term debt.

“Our continued focus on cost containment, robust capital strategy execution, and diligent working capital management resulted in full-year free cash flow of $442 million, enabling us to support our planned investments in industry-leading new products and technology, return capital to shareholders, and efficiently retire more debt than previously planned,” Foulkes added.

2026 Outlook
Brunswick Corporation believes it is extremely well positioned to benefit from the building market tailwinds that were evident in the retail market stabilization experienced in the second half of 2025.

“Given the very dynamic geopolitical and trade backdrop, we will continue to relentlessly drive operating efficiencies, however, we are encouraged by the strong reception for our many new and exciting products, our low and fresh boat and engine field pipelines, the improving sentiment across our network, and market expectation for further interest rate cuts,” Foulkes said. “We remain intensely focused on further optimizing our manufacturing operations, production footprint, and global supply chain as well as increasing vertical integration to increase resilience and amplify our inherent operating leverage to deliver EPS growth, in support of continued strong shareholder returns.”

The CEO said the company’s anticipated results are reinforced by stable-to-increasing boating participation supporting the Brunswick’s aftermarket businesses and the continuing strong performance of its leading, premium brands that are expected to launch “many exciting new products in 2026.”

“Brunswick has proven that its unique business model can generate solid earnings and exceptional cash flow, even in the most difficult market conditions, and in a potential market growth scenario, we are excited to showcase the performance that Brunswick can deliver. Our 2026 outlook assumes a flat-to-slightly up retail industry environment. With record low and fresh pipeline inventories in the field and retail sales significantly outpacing our wholesale activity in 2025 for both boats and engines, we are favorably set up in a range of scenarios that enable us to align our production and wholesale more closely to retail,” said Foulkes.

Brunswick Corporation provided the following guidance for 2026, anticipating:

  • U.S. marine industry boat unit retail sales flat-to-slightly up versus 2025;
  • Net sales between $5.6 billion and $5.8 billion;
  • Adjusted operating margin of between 7.5 and 8.0 percent;
  • Free cash flow in excess of $350 million;
  • Adjusted diluted EPS in the range of $3.80 to $4.40; and
  • First quarter 2026 revenue of between $1.2 to $1.4 billion, and adjusted diluted EPS of 35 cents to 45 cents per share.

Image courtesy Boston Whaler/Brunswick Corporation