Education
About Us
Working with TipRanks
Follow Us
Brunswick (BC)
NYSE:BC
Top Page
Brunswick
(NYSE:BC)
Select Model
Select Model
Rating:58Neutral
Price Target:
$72.00
▲(4.48% Upside)
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 / Leverage reduction
A dramatic reduction in gross debt materially lowers financial risk and increases flexibility for capex, buybacks and continued debt paydown. Over the next 2–6 months this healthier leverage profile supports strategic optionality and resilience through cyclical demand swings.
Free cash flow generation
Robust free cash flow provides a durable source of funding for debt retirement, dividends and selective buybacks while supporting reinvestment in product programs. Sustained cash conversion cushions earnings volatility and underpins capital allocation over the medium term.
Market position & recurring aftermarket revenue
A large, recurring aftermarket and parts base smooths revenue cycles and drives higher cash returns per installed unit. Combined with strong outboard share gains (Mercury leadership), this scale supports cross-selling, pricing power and more predictable earnings over time.
Negative Factors
Profitability deterioration / 2025 net loss
A swing to a net loss signals meaningful margin pressure and cost headwinds versus prior profitable years. Persistent weaker profitability would erode equity, reduce reinvestment capacity and limit the durability of returns, especially if structural cost or mix issues persist.
Tariff and trade uncertainty
Material and recurring tariff costs act as a structural margin headwind and create pricing or competitiveness challenges. Ongoing legal and geopolitical uncertainty means these costs could persist or recur, pressuring margins and requiring continual mitigation or higher prices over months.
Demand volatility and dealer/inventory dynamics
End-market weakness and lower dealer pipelines increase revenue cyclicality and lengthen replenishment cycles. Persistent soft retail demand or industry inventory pockets can delay recovery in wholesales and weigh on near-to-medium term unit volumes and margin recovery.
Brunswick (BC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.47B
Dividend Yield2.27%
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-4.78%
EPS Growth-189.89%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.58
Shares Outstanding64,850,980
10 Day Avg. Volume1,270,582
30 Day Avg. Volume1,007,788
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 Cap1.52
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda25.28
Forecast
1Y Price Target
$87.45Price Target Upside26.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.24
Revenue Forecast (FY)$5.69B
Brunswick Business Overview & Revenue Model
Company DescriptionBrunswick 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 independent boat builders and governments through marine dealers and distributors, specialty marine retailers, and marine service centers; and propulsion-related controls, rigging, and propellers to original equipment manufacturers and aftermarket retailers, distributors, and distribution businesses. This segment offers its products under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, and Mercury Diesel brands. The Parts & Accessories segment provides engine parts and consumables, electrical products, boat parts and systems, engine oils and lubricants, marine electronics and control systems, instruments, trolling motors, fuel systems, and electrical systems, as well as specialty vehicle, mobile, and transportation aftermarket products for aftermarket retailers, distributors, and distribution businesses, as well for as for the original equipment manufacturers in marine and non-marine markets; and supplies parts and accessories. This segment offers its products under the under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands. The Boat segment provides Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts and Heyday wake; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Cypress Cay, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; and Thunder Jet heavy-gauge aluminum boats, as well as the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.
How the Company Makes MoneyBrunswick 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 engines and other propulsion systems to boat manufacturers (OEM channels) and to end customers through dealer networks, with ongoing aftermarket demand for replacement parts and service supporting recurring sales. In boats, revenue comes from the sale of Brunswick-manufactured boats, typically distributed through independent dealers and, in some cases, direct-to-consumer or brand-controlled retail formats where applicable. Beyond original equipment sales, Brunswick also earns revenue from marine parts and accessories—such as electronics and other onboard systems—sold through distribution channels that serve both new-boat builds and the large installed base of existing boats. Key factors that contribute to earnings include the scale and breadth of its marine brands (supporting cross-selling of engines, boats, and accessories), dealer and OEM relationships that drive unit volume, and aftermarket parts/accessories demand tied to the installed base of engines and boats.
Brunswick Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 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.Q4-2025 Updates
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.
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).
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.
Adjusted EPS Impact and Compensation Timing
Adjusted EPS in 2025 ($3.27) was below the prior year and impacted materially by tariffs and the reinstatement of variable compensation; over $100 million cash impact of 2025 variable compensation will be paid in 2026, pressuring near-term cash/earnings.
U.S. Retail Market Weakness
U.S. industry retail units finished 2025 down roughly 9% for the year; Brunswick global retail unit sales down ~5%, with notable weakness in value products during the year.
First-Half Volatility
Challenging first half of 2025 due primarily to tariff-induced economic uncertainty, which depressed early-year retail and contributed to year-over-year headwinds.
Margin Pressure in Engine P&A Distribution Mix
Engine P&A operating margin was down slightly in the quarter due to stronger growth in the lower-margin distribution side of the business (mix impact).
Ongoing Trade & Regulatory Uncertainty
Supreme Court decision re: AIP tariffs remains pending, creating uncertainty; tariffs and dynamic geopolitical/trade environment pose ongoing risk to cost and competitive positioning.
Q1 Burden and Investment Timing
Q1 2026 EPS expected to be burdened (guidance $0.35–$0.45) by the bulk of incremental tariff costs and front-loaded investments in critical product programs, creating near-term earnings pressure despite full-year optimism.
Industry Inventory Pockets Outside Brunswick
While Brunswick reports very low and fresh inventories, management acknowledged pockets of stubbornly high inventories elsewhere in the industry which could slow broader replenishment dynamics.
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 trends are the main drag: revenue softened after the 2021–2022 peak and profitability deteriorated to a net loss in 2025. Offsetting this, cash flow improved in 2025 (higher operating cash flow and solid free cash flow despite losses) and leverage appears to have improved sharply with materially lower debt, supporting liquidity and flexibility.Income Statement
Revenue has been volatile: strong expansion in 2021–2022, followed by contraction in 2023–2024 and only a modest rebound in 2025. Profitability has also deteriorated meaningfully—net income fell from strong profits in 2021–2024 to a net loss in 2025, signaling margin pressure and/or elevated costs. Gross profit dollars were relatively stable, but the swing to losses and a weaker earnings profile versus prior years weigh on the score.44
Neutral
Balance Sheet
Leverage improved sharply in 2025, with total debt dropping to ~$0.30B from ~$2.5–2.6B in 2022–2024, which reduces financial risk and improves flexibility. However, equity has trended down from 2023 to 2025, and total assets also declined versus the 2022–2023 period—suggesting a smaller capital base and potentially less cushion if profitability remains weak. Overall, the balance sheet looks healthier on leverage, but with some erosion in equity.63
Positive
Cash Flow
Cash generation is a relative bright spot: operating cash flow rose to ~$0.59B in 2025 from ~$0.43B in 2024, and free cash flow improved to ~$0.42B from ~$0.26B. The main weakness is volatility—free cash flow has swung materially year to year (including sizable declines in 2021–2022 and again in 2024–2025), which is typical of a cyclical business but still a risk. Notably, 2025 free cash flow remained solid despite net losses, supporting liquidity.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
Negative
68.91
Price Trends
82.36
Negative
75.33
Negative
67.49
Positive
Market Momentum
-3.82
Positive
27.28
Positive
18.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BC, the sentiment is Negative. The current price of 68.91 is below the 20-day moving average (MA) of 79.11, below the 50-day MA of 82.36, and above the 200-day MA of 67.49, indicating a neutral trend. The MACD of -3.82 indicates Positive momentum. The RSI at 27.28 is Positive, neither overbought nor oversold. The STOCH value of 18.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $316.74M | 31.53 | 8.43% | ― | -12.17% | ― | |
69 Neutral | $2.99B | 15.99 | 13.76% | 3.72% | 5.74% | 39.40% | |
67 Neutral | $249.52M | 26.91 | 8.92% | 6.03% | -12.30% | -29.51% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $4.47B | -35.47 | -7.80% | 2.27% | -4.78% | -189.89% | |
57 Neutral | $479.02M | -54.76 | 3.72% | ― | 11.54% | ― | |
45 Neutral | $140.22M | -5.80 | -33.00% | ― | 5.62% | -1706.59% |
* Consumer Cyclical Sector Average
BC
Brunswick
68.91
11.21
19.43%
LCII
LCI Industries
123.35
37.46
43.62%
MPX
Marine Products
7.08
-0.77
-9.76%
MBUU
Malibu Boats
25.75
-5.61
-17.89%
MCFT
MasterCraft Boat Holdings
19.63
2.14
12.24%
ONEW
OneWater Marine
8.44
-8.17
-49.19%
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.