Brunswick reports Q2 cont-op EPS 90c, consensus 95c

Reports Q2 revenue $1.45B, consensus $1.26B. “Brunswick (BC) delivered strong Q2 results as the power of our market-leading products and brands, efficient operational execution and cost control, continued prudent pipeline inventory management, and the benefits from the resilient, recurring, aftermarket-focused portions of our portfolio, resulted in second quarter financial performance ahead of expectations. This was despite the challenging macro environment and uncooperative weather in many parts of the U.S. through the first two months of the quarter,” said CEO David Foulkes. “Year-to-date, boat unit retail sales in the value category are underperforming our initial expectations for the year, but continued overall resilience in the premium and core categories, combined with improving retail sales trends in July, is expected to provide a floor for wholesale performance in the second-half of the year. Tariffs continue to directly impact our earnings, while adding uncertainty for both our end-consumers and channel partners, but all our businesses are executing strongly on their mitigation plans, resulting in a smaller net tariff impact than originally anticipated. We had another quarter of outstanding free cash flow generation, with $288M of free cash generated in the quarter, a record for any Q2 in company history…Our Q2 results again demonstrated the resiliency of our portfolio, with our recurring revenue businesses and channels, including our engine P&A business, propulsion’s repower business, Freedom Boat Club, and Navico Group’s aftermarket sales, contributing nearly 60% percent of our Q2 adjusted operating earnings. In addition, our strong cash flow has enabled us to complete $43M in share repurchases through Q2, maintaining our commitment to return value to shareholders.”