Brunswick Corporation has reported its financial results for the third quarter of 2025. The company recorded consolidated net sales of $1.36bn, representing a 6.8 per cent increase compared with the same period in 2024.
Brunswick swung to a quarterly loss due to one-off impairment and restructuring charges, posting GAAP diluted earnings per share (EPS) from continuing operations of $3.57, while as adjusted diluted EPS stood at $0.97. Operating earnings on a GAAP basis were $242.2m, with as adjusted operating earnings of $106.4m.
The company confirmed its full-year guidance for 2025 with as adjusted diluted EPS of around $3.25 and raised its free cash flow guidance to more than $425m.
“Brunswick delivered strong third-quarter results, with each reporting segment generating revenue growth over the third quarter of 2024, and overall financial performance exceeding expectations and guidance for the quarter,” says Brunswick chairman and chief executive officer, David Foulkes.
“The sales growth reflected strength across all our businesses despite a challenging, albeit improving, macro-environment and industry backdrop. Our market-leading propulsion and boat portfolios outperformed their respective markets, and our recurring-revenue, parts and accessories, and other aftermarket-focused businesses, along with Freedom Boat Club, continued to benefit from healthy boating activity.”
He adds that boat retail sales were flat year-on-year but showed improvement over the first half of 2025, driven by stable demand in premium and core categories. Foulkes highlights continued operational efficiencies, such as footprint rationalisation in the boating business, tariff mitigation efforts and capital strategy execution. The company generated $111m in free cash flow during the quarter and $355m year-to-date, marking a notable increase over the prior year.
The propulsion segment reported a 10 per cent rise in sales, supported by sustained OEM demand and strong market share. Mercury held 49.4 per cent of US outboard engine retail share during the period. Foulkes notes that while competitor engine imports into the US ahead of tariffs have temporarily affected pricing impacts, the company remains well-positioned.
Engine parts and accessories achieved an 8 per cent increase in sales, with higher sales across both product and distribution businesses. The segment’s operating margin improved sequentially compared with the previous quarter. In the US, its distribution business gained 140 basis points of market share year-to-date.
Navico Group reported modest sales growth and stable adjusted margins, with continued performance in marine electronics and aftermarket products, which account for 60 per cent of its revenue. The company also introduced the Simrad AutoCaptain autonomous boating system, developed in collaboration with Mercury Marine and Brunswick Boat Group.
The boat segment recorded 4 per cent sales growth and improved adjusted operating margins. Premium brands maintained performance, and aluminium boat lines reported a strong quarter.
In September, the company announced the closure of manufacturing sites in Reynosa, Mexico, and Flagler Beach, Florida, by mid-2026, consolidating production into existing US facilities. The firm says this is to reduce costs and enhance efficiency.
Foulkes comments that recurring-revenue businesses contributed more than 60 per cent of third-quarter adjusted operating earnings. Freedom Boat Club expanded to about 440 locations globally. Strong free cash flow supported $70m in share repurchases and an increased debt reduction target of $200m for the year.
For the nine months ended September 2025, the company generated $451.1m in net cash from operating activities and held $316.4m in cash and marketable securities at quarter-end. Investing and financing activities used $410.7m during the first nine months of the year.
Foulkes says, “With the large majority of the retail selling season now complete, the 2025 US marine retail market is trending down by approximately 8 per cent, with year-over-year comparisons improving significantly in the back-half of the season following US trade policy and capital market shocks in the second quarter.
“Our businesses continue to drive year-on-year revenue growth, benefiting from improved OEM ordering, low and healthy dealer inventories, improved retail for Brunswick boat brands versus the industry, continued propulsion market share gains and resilient boating participation driving our recurring revenue businesses.
“In this challenging environment, Brunswick continues to drive earnings and exceptional free cash flow, proving our ability to generate returns through the cycle from our differentiated and balanced business model.
“We also remain focused on driving financial performance and improved margins, as evidenced by our recent footprint actions to optimise manufacturing capacity and efficiencies, especially for our entry-level fibreglass boats. We expect that these actions will drive significant improvements in medium-term profitability while retaining the flexibility and capacity for multi-year growth in an industry rebound.”
The company confirmed its full-year outlook, including expected net sales of around $5.2bn, adjusted diluted EPS of about $3.25, free cash flow exceeding $425m and annual share repurchases of at least $80m.
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