Brunswick Corp

F:BWI

Beat and raise: Brunswick said Q2 sales rose 8% to $1.6 billion and adjusted EPS was $1.56, both ahead of expectations, helped by pricing, mix, new products, steady OEM demand and tariff refunds.

Guidance up: The company raised full-year revenue guidance to $5.7 billion to $5.8 billion, adjusted EPS guidance to $4.35 to $4.75, and free cash flow guidance to more than $400 million.

Demand mixed: Premium and core boating demand stayed resilient, while the softer value boat market remained under pressure from affordability and sentiment; management said first-half U.S. retail was roughly flat after rationalizing value models.

Tariffs and refunds: Brunswick now expects gross tariff refunds of approximately $60 million to $70 million, but also flagged about $40 million of incremental tariff cost in 2026, including a roughly $5 million net negative impact from new Canadian tariffs.

Margins improving: Adjusted operating margins expanded across most of the business, and management expects more expansion over the next two quarters as tariff headwinds ease and product development spending normalizes.

Capital and cash: Brunswick repurchased $35 million of shares year to date and expects to retire $160 million or more of debt by year-end, while generating $278 million of free cash flow in Q2.