BRUNSWICK CORP SEC 10-Q Report

Brunswick Corp, a leading manufacturer in the marine industry, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the current market conditions and strategic initiatives undertaken by the company.

Financial Highlights

• Net sales: $1,447.0 million, increased slightly by 0.2% compared to the second quarter of 2024, driven by steady wholesale ordering and modest pricing benefits.
• Gross margin: $369.7 million, decreased by 5.4% compared to the second quarter of 2024, impacted by lower absorption from decreased production levels and material inflation.
• Operating earnings: $103.3 million, decreased by 34.7% compared to the second quarter of 2024, due to reinstated variable compensation and lower production levels.
• Net earnings from continuing operations: $59.6 million, decreased by 43.1% compared to the second quarter of 2024, reflecting lower pretax income.
• Diluted earnings per common share from continuing operations: $0.90, decreased by 41.9% compared to the second quarter of 2024, influenced by the same factors affecting net earnings.

Business Highlights

• Revenue Segments:
  • The Propulsion segment experienced a 7.2% increase in net sales during the second quarter of 2025 compared to the same period in 2024, driven by stable orders from U.S. OEM customers and beneficial mix and pricing actions.
  • The Engine Parts and Accessories (Engine P&A) segment saw a slight increase in net sales by 0.5% in the second quarter of 2025, attributed to stronger distribution sales.
  • The Navico Group segment's net sales decreased by 3.7% in the second quarter of 2025, primarily due to lower sales to aftermarket channels and marine OEMs.
  • The Boat segment's net sales decreased by 6.6% in the second quarter of 2025, reflecting cautious wholesale ordering patterns by dealers.
• Geographical Performance:
  • International sales accounted for 37% of the Propulsion segment's net sales in the second quarter of 2025, with an 8% increase from the prior year on a GAAP basis.
  • The Engine P&A segment's international sales were 27% of net sales in the second quarter of 2025, showing a 1% increase from the prior year.
  • The Navico Group segment's international sales were 44% of net sales in the second quarter of 2025, increasing by 4% from the prior year.
• Sales Units:
  • The Propulsion segment's net sales were positively impacted by stable orders from U.S. OEM customers, while the Boat segment's sales were affected by lower planned wholesale shipments.
• New Product Launches:
  • The Navico Group segment benefited from new product momentum, which partially offset the decrease in sales to aftermarket channels and marine OEMs.
• Future Outlook:
  • The company anticipates continued challenges in consumer demand market conditions but remains focused on gaining market share in key categories, maintaining balanced field inventory levels, and executing structural actions to improve margins.
  • The Propulsion segment is expected to continue benefiting from stable orders and pricing actions, while the Boat segment aims to drive retail activity and expand margins in a tighter market.

SEC Filing: BRUNSWICK CORP [ BC ] - 10-Q - Jul. 30, 2025