Brunswick Corp
NYSE:BC
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
This alert will be permanently deleted.
Brunswick Corp
Just as a seasoned navigator charts a course through the unpredictable waters of the marine industry, Brunswick Corporation has skillfully maneuvered through the ebbs and flows of economic tides. Founded in 1845 by John Brunswick, the company began its journey making billiard tables and has since transformed into a leader in the recreational marine industry. Central to Brunswick's operations are its boat manufacturing and marine engine segments, which make up the backbone of its business. The company's portfolio includes well-known brands like Sea Ray, Bayliner, and Meridian for boats, while Mercury Marine is revered for its powerful and innovative engine solutions. Through these businesses, Brunswick doesn't just sell products; it offers a unique lifestyle, aligning itself with consumers' aspirations of leisure on the water.
Moreover, Brunswick's strategic focus extends beyond manufacturing. The company has harnessed a holistic ecosystem, reinforcing its market position by developing advanced marine technologies and expanding its presence in parts and accessories. With numerous service-oriented offerings under its Advanced Systems Group, Brunswick is adept at creating enduring customer relationships, addressing everything from maintenance needs to sophisticated onboard electronic systems. This approach not only diversifies revenue streams but also ensures recurring income through aftermarket sales. Thus, Brunswick Corporation binds the elegance of luxury boating with the technical prowess of engineering, forging a path of sustainable growth in the modern marine landscape.
Just as a seasoned navigator charts a course through the unpredictable waters of the marine industry, Brunswick Corporation has skillfully maneuvered through the ebbs and flows of economic tides. Founded in 1845 by John Brunswick, the company began its journey making billiard tables and has since transformed into a leader in the recreational marine industry. Central to Brunswick's operations are its boat manufacturing and marine engine segments, which make up the backbone of its business. The company's portfolio includes well-known brands like Sea Ray, Bayliner, and Meridian for boats, while Mercury Marine is revered for its powerful and innovative engine solutions. Through these businesses, Brunswick doesn't just sell products; it offers a unique lifestyle, aligning itself with consumers' aspirations of leisure on the water.
Moreover, Brunswick's strategic focus extends beyond manufacturing. The company has harnessed a holistic ecosystem, reinforcing its market position by developing advanced marine technologies and expanding its presence in parts and accessories. With numerous service-oriented offerings under its Advanced Systems Group, Brunswick is adept at creating enduring customer relationships, addressing everything from maintenance needs to sophisticated onboard electronic systems. This approach not only diversifies revenue streams but also ensures recurring income through aftermarket sales. Thus, Brunswick Corporation binds the elegance of luxury boating with the technical prowess of engineering, forging a path of sustainable growth in the modern marine landscape.
Revenue Beat: Brunswick finished 2025 with $5.4 billion in net sales, up 2% over the prior year and ahead of expectations, with all business segments growing in the fourth quarter.
Strong Free Cash Flow: Free cash flow hit $442 million for the year, up 56% year-over-year and the third highest in company history, giving Brunswick flexibility to invest, pay down debt, and return capital to shareholders.
Margin Expansion: Operating margins improved across most segments, with the Boat group seeing a 290 basis point increase in Q4; only Engine P&A saw a slight margin decline due to mix.
Tariff Headwinds Managed: Tariff costs impacted earnings but effective mitigation offset over half the gross exposure, resulting in $75 million net tariff cost in 2025; another $35–45 million tariff headwind is expected in 2026.
Positive 2026 Outlook: Guidance for 2026 calls for $5.6–5.8 billion in revenue, 7.5–8% operating margin, and EPS of $3.80–4.40, with strong free cash flow projected above $350 million.
Market Share & Orders: Mercury gained outboard market share, especially in high-horsepower engines, and signed over 100 new or renewed OEM agreements; Brunswick's premium brands saw 15% revenue growth at the Fort Lauderdale Boat Show.
Interest Rate Tailwinds: Late-2025 Fed rate cuts lowered consumer financing rates from 10% to around 7.5%, expected to benefit 2026 sales.
Inventory Discipline: Dealer and engine pipelines are at historic lows with plans to closely match wholesale to retail in 2026.
