Full-Year Revenue Growth
Net sales of $5.4 billion in 2025, up 2% year-over-year, marking full-year sales growth for the first time in three years.
Strong Free Cash Flow and Balance Sheet Actions
Generated $442 million of free cash flow in 2025 (up 56% YoY), repurchased $80 million of shares, increased the dividend, retired approximately $240 million of debt, and ended the year with $1.3 billion in liquidity.
Q4 Consolidated Outperformance
Fourth-quarter consolidated sales up 16% and Q4 earnings improved 41% versus prior year, with all segments growing revenue in the quarter.
Propulsion and Outboard Leadership
Propulsion sales up ~23% in the quarter (outboard up as much as 26% called out later), Mercury finished the year with ~47% U.S. retail outboard share, gained 70 basis points in H2, and recorded wholesale share acceleration (up over 400 bps in the quarter and ~900 bps in December).
Recurring Revenue and Aftermarket Strength
Engine parts & accessories (P&A) sales up 15% in Q4; recurring revenue businesses represented ~60% of earnings for the year, helping drive cash generation and resilience.
Boat Segment Recovery and Margin Expansion
Boat segment Q4 sales up 11% with adjusted operating margin expansion of ~290 basis points in the quarter; discounting levels improved ~100 basis points year-over-year.
Navico Group Improvement
Navico Group revenue up 4% in Q4 with operating margin expansion of ~180 basis points due to product refresh and cost actions; launched Connected Solutions and SIMRAD AutoCaptain integrations.
Dealer Pipelines and Order Backlog
Global boat pipelines reduced by ~2,200 units year-over-year; U.S. outboard pipelines down ~10%; year-end global boat order backlog at 79% of Q1 wholesale forecast, up 13 percentage points versus prior year.
2026 Guidance and Capital Priorities
Initial 2026 guidance: revenue $5.6–$5.8 billion, adjusted EPS $3.8–$4.4, expected adjusted operating margin improvement, free cash flow > $350 million (≥125% conversion), and planned debt retirements of at least $160 million in 2026 (total ~$400M across 2025–26).
Product & Market Recognition
Multiple product launches and awards (Mercury 808 concept, Sea Ray SLX360 at CES, SIMRAD AutoCaptain CES pick award, Fort Lauderdale premium brand revenue +15% at show, Mercury outboard share 61% at Fort Lauderdale, multiple boat model awards, and named to Forbes America's Best Companies list).