Brunswick (BC)
NYSE:BC
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Brunswick
(NYSE:BC)
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Rating:58Neutral
Price Target:
$74.00
▼(-8.90% Downside)
Action:ReiteratedDate:01/30/26
The score reflects weakened earnings and a 2025 net loss as the biggest constraint, partially offset by solid cash generation and a materially improved leverage profile. Technicals are mixed (longer-term trend positive but near-term momentum soft), valuation is pressured by negative earnings despite a modest dividend yield, and the latest earnings call supports the outlook with improving 2026 guidance but notable tariff and near-term headwinds.
Positive Factors
Balance sheet deleveraging
Sharp debt reduction materially lowers financial risk and increases strategic flexibility. With a much smaller interest burden and targeted further paydowns, Brunswick can prioritize capex for product programs, support dividends/buybacks, and better withstand cyclical revenue swings over coming quarters.
Negative Factors
Profitability deterioration / 2025 net loss
A swing to a net loss signals persistent margin pressure and cost or mix challenges. Even with cash flow, weaker profitability reduces internal reinvestment capacity and makes future margin recovery contingent on sustainable pricing, mix improvement, or structural cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet deleveraging
Sharp debt reduction materially lowers financial risk and increases strategic flexibility. With a much smaller interest burden and targeted further paydowns, Brunswick can prioritize capex for product programs, support dividends/buybacks, and better withstand cyclical revenue swings over coming quarters.
Read all positive factors
Brunswick (BC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.17B
Dividend Yield2.27%
Average Volume (3M)873.90K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth2.40%
EPS Growth-210.07%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.58
Shares Outstanding65,112,930
10 Day Avg. Volume788,079
30 Day Avg. Volume873,903
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.00
Price to Sales (P/S)0.91
P/FCF Ratio12.29
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda27.27
Forecast
1Y Price Target
$86.60Price Target Upside6.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.26
Revenue Forecast (FY)$5.72B
Brunswick Business Overview & Revenue Model
Company Description
Brunswick Corporation designs, manufactures, and markets recreation products worldwide. It operates through Propulsion; Parts & Accessories; and Boat segments. The Propulsion segment provides outboard, sterndrive, and inboard engines for independe...
How the Company Makes Money
Brunswick primarily makes money by selling (1) marine propulsion products and (2) boats, with additional revenue from (3) parts, accessories, and related marine technology offerings. In propulsion, revenue is generated from the sale of outboard en...
Brunswick Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
Overall the call conveys a broadly positive outlook: Brunswick finished 2025 ahead of recent expectations with revenue growth, strong free cash flow ($442M, +56% YoY), margin expansion in several segments, market-share gains (notably Mercury), product momentum and tangible capital deployment (debt retirement, buybacks, dividend increase). Key near-term negatives are tariff-related costs (~$75M in 2025 and an incremental $35–45M expected in 2026), the reinstatement timing of variable compensation (>$100M cash paid in 2026), and lingering first-half 2025 retail volatility and industry inventory pockets. Management’s 2026 guidance, product pipeline, low dealer inventories, and anticipated rate tailwinds support a positive stance despite tariff and near-term investment headwinds.Positive Updates
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.
Negative Updates
Tariff Headwinds
Net incremental tariff impact of approximately $75 million in 2025 despite mitigation (offset >50% of gross exposure); expect further incremental tariffs of ~$35–$45 million in 2026 net of mitigation, with the majority burden falling in Q1 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Brunswick’s 2026 guidance calls for revenue of $5.6–$5.8 billion (assuming a flat to slightly up U.S. retail market and wholesale more closely matching retail), adjusted EPS of $3.80–$4.40 (midpoint $4.10, roughly 25% above 2025) and adjusted operating margins around the mid‑7% area (guidance documentation cites ~7.5%), with Q1 adjusted EPS expected at $0.35–$0.45. The company expects strong cash generation — free cash flow in excess of $350 million (at least 125% free cash flow conversion), roughly $50 million of net working capital improvement, and capex/depreciation roughly flat to 2025 — and plans to retire no less than $160 million of debt in 2026 (≈$400 million total retirements across 2025–26) to target net leverage ≤2.5x, while returning capital via a modest dividend increase and about $50 million of share repurchases. Key assumptions and headwinds included in the outlook are a tariff-related incremental cash cost of ~$35–$45 million (≈$0.60 EPS) net of mitigation, the cash impact of reinstated variable compensation of over $100 million paid in 2026, continued low dealer pipelines (global boat backlog at ~79% of Q1 wholesale forecast, pipelines down ~2,200 units and U.S. outboard pipelines down ~10%), and benefits from pricing, lower discounting and a mix shift toward premium products.Brunswick Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.36B | 5.24B | 6.40B | 6.81B | 5.85B |
| Gross Profit | 1.33B | 1.35B | 1.79B | 1.95B | 1.67B |
| EBITDA | 268.50M | 618.70M | 1.01B | 1.18B | 980.40M |
| Net Income | -137.30M | 130.10M | 420.40M | 677.00M | 593.30M |
Balance Sheet | |||||
| Total Assets | 5.31B | 5.68B | 6.23B | 6.32B | 5.42B |
| Cash, Cash Equivalents and Short-Term Investments | 275.70M | 269.80M | 468.60M | 600.10M | 355.30M |
| Total Debt | 2.43B | 2.51B | 2.59B | 2.63B | 1.92B |
| Total Liabilities | 3.69B | 3.79B | 4.14B | 4.28B | 3.51B |
| Stockholders Equity | 1.63B | 1.89B | 2.09B | 2.04B | 1.91B |
Cash Flow | |||||
| Free Cash Flow | 396.30M | 264.00M | 444.30M | 197.80M | 306.90M |
| Operating Cash Flow | 562.10M | 431.40M | 733.60M | 586.10M | 574.00M |
| Investing Cash Flow | -141.60M | -168.90M | -378.90M | -443.20M | -1.35B |
| Financing Cash Flow | -441.30M | -442.70M | -487.00M | 110.80M | 621.80M |
Brunswick Technical Analysis
Positive
81.23
Price Trends
77.63
Positive
77.58
Positive
69.89
Positive
Market Momentum
0.94
Negative
64.97
Neutral
77.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BC, the sentiment is Positive. The current price of 81.23 is above the 20-day moving average (MA) of 74.79, above the 50-day MA of 77.63, and above the 200-day MA of 69.89, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BC.
Brunswick Risk Analysis
Brunswick disclosed 38 risk factors in its most recent earnings report. Brunswick reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Failure to successfully manage our manufacturing footprint could affect our operating and financial results. Q4, 2025
Brunswick Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $383.07M | 31.53 | 8.43% | ― | 1.58% | ― | |
69 Neutral | $2.91B | 15.99 | 13.76% | 3.72% | 10.18% | 34.83% | |
67 Neutral | $281.52M | 26.91 | 8.92% | 6.03% | 3.32% | -35.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $5.17B | -35.47 | -7.80% | 2.27% | 2.40% | -210.07% | |
57 Neutral | $485.53M | -54.76 | 2.82% | ― | 11.59% | ― | |
49 Neutral | $187.73M | -5.80 | -33.00% | ― | 5.19% | -854.22% |
* Consumer Cyclical Sector Average
BC
Brunswick
79.37
34.07
75.22%
LCII
LCI Industries
120.01
45.25
60.52%
MPX
Marine Products
7.99
0.07
0.87%
MBUU
Malibu Boats
26.10
-2.55
-8.90%
MCFT
MasterCraft Boat Holdings
23.53
7.26
44.62%
ONEW
OneWater Marine
11.30
-3.35
-22.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.