tiprankstipranks
Trending News
More News >
Brunswick Corporation (BC)
:BC
Advertisement

Brunswick (BC) AI Stock Analysis

Compare
579 Followers

Top Page

BC

Brunswick

(NYSE:BC)

Rating:72Outperform
Price Target:
$66.00
▲(8.57%Upside)
Brunswick's overall stock score is driven by strong cash flow generation and positive technical indicators, offset by high leverage and valuation concerns. The earnings call highlighted operational strengths, but market challenges and declining revenues remain significant risks. Valuation is a concern with a high P/E ratio, though the technical outlook is positive, providing a balanced view.
Positive Factors
Earnings
BC reported 1Q25 results that beat expectations, with its margins beating street estimates.
Market Performance
The stock has shown recent outperformance with a +21% increase since mid-May, compared to the S&P's +8%.
Product Demand
Demand for boating is in a secular upswing, and Mercury's new lineup of outboard engines is expected to continue gaining market share.
Negative Factors
Guidance
BC's 2025 guidance was reduced due to tariff and retail pressure.
Retail Trends
Retail trends have weakened sequentially in 2Q, which could pressure production and promotional levels.
Tariff Impact
Tariffs are estimated to create a significant headwind, negatively impacting EPS by approximately $1.00.

Brunswick (BC) vs. SPDR S&P 500 ETF (SPY)

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 Corporation generates revenue primarily through the sale of its marine products. The Marine Engine segment is a significant contributor, with Mercury Marine engines being a key product. The Boat segment includes the manufacture and sale of various types of boats, which are sold to both individual consumers and commercial entities. Additionally, the Parts & Accessories segment provides a steady revenue stream through the sale of marine-related components, which are necessary for the maintenance and enhancement of marine equipment. Brunswick's revenue is bolstered by its expansive dealer network and strategic partnerships, allowing the company to reach a wide customer base globally. The company's earnings are further supported by aftermarket sales, which include services and equipment that maintain and upgrade its products.

Brunswick Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -6.03%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Brunswick Corporation's Q2 2025 earnings call highlighted strong cash flow generation and growth in the Propulsion business, alongside positive retail momentum in July. However, challenges remain with declines in Boat and Navico Group sales, as well as ongoing tariff impacts. The sentiment reflects a cautious optimism with strong operational execution but market-driven challenges persist.
Q2-2025 Updates
Positive Updates
Record-Breaking Free Cash Flow
Brunswick generated $288 million of free cash in Q2, a record for any second quarter in company history. The first half free cash flow was $244 million, a $279 million improvement versus the first half of 2024.
Propulsion Business Growth
The Propulsion business reported a 7% increase in sales, driven by strong orders from U.S. OEMs and market share gains, including a 300 basis points gain in U.S. retail share in outboard engines over 300 horsepower.
Positive Retail Momentum
July retail for Brunswick businesses accelerated and is trending positively versus July 2024, giving positive momentum for the second half of the year.
Reduction in Tariff Impact
Tariffs had a smaller net impact than anticipated due to strong mitigation plans. Total potential net exposure was revised down.
Strong Financial Health
Brunswick increased its 2025 debt reduction target by $50 million to $175 million, aiming to retire $350 million of debt since 2023. The company maintains significant financial flexibility with $1.3 billion in liquidity.
Negative Updates
Decline in Boat Sales
The Boat segment reported a 7% decrease in sales due to cautious wholesale ordering. While Freedom Boat Club saw growth, overall segment operating earnings were impacted.
Navico Group Sales Decline
Navico Group sales decreased by 4% versus Q2 2024, attributed to modestly lower sales to aftermarket channels and marine OEMs.
Value Category Underperformance
Boat unit retail sales in the value category underperformed expectations, leading to a 25% rationalization of the value fiberglass model lineup for the 2026 model year.
Continued Tariff Challenges
Despite mitigation, tariffs continue to impact earnings and add uncertainty, particularly affecting the Propulsion segment.
Company Guidance
During Brunswick Corporation's second quarter 2025 earnings call, the company reported robust financial performance, with sales reaching $1.4 billion and earnings per share of $1.16, both surpassing the top end of their guidance. Despite challenges such as tariffs and uncooperative weather, Brunswick achieved a record $288 million in free cash flow for the quarter, contributing to a first-half free cash flow of $244 million, a $279 million improvement from the prior year. The Propulsion business saw strong year-over-year sales growth, and Mercury gained over 300 basis points of U.S. retail share in outboard engines over 300 horsepower. Meanwhile, Brunswick's Boat business introduced 30 new models year-to-date, contributing to overall market share gains. The company continues to manage its tariff exposure effectively, anticipating a significant positive cash flow impact from positive policy changes and maintaining a healthy balance sheet with no debt maturities until 2029.

Brunswick Financial Statement Overview

Summary
Brunswick faces challenges in revenue growth and profitability, with declining margins indicating cost pressures. The balance sheet shows high leverage, raising potential risks in a declining revenue environment, but a reasonable equity ratio provides some stability. Cash flow metrics are strong, with significant free cash flow growth and solid cash flow ratios, offering some resilience. Overall, while cash flow strength is a positive, the company needs to address revenue and margin pressures to improve financial health.
Income Statement
65
Positive
Brunswick has shown a decline in total revenue from $5.24 billion in 2024 to $5.09 billion in the TTM (Trailing-Twelve-Months) period of 2025. This represents a revenue decline of approximately 2.75%, which is a concern for growth. Gross Profit Margin in the TTM is approximately 24.56%, a decrease from 25.79% in 2024, indicating pressure on profitability. The Net Profit Margin has also decreased to 1.61% in the TTM from 2.49% in 2024, showing reduced profitability. The EBIT Margin stands at 5.13%, down from 5.95% in 2024, while the EBITDA Margin is 9.48%, down from 11.82% in 2024. Overall, the declining margins signal challenges in cost management and profitability.
Balance Sheet
70
Positive
Brunswick's Debt-to-Equity Ratio in the TTM is approximately 1.40, which is relatively high, indicating significant leverage. However, the Equity Ratio of 31.97% suggests a reasonable level of equity to total assets. Return on Equity (ROE) is low at 4.40% in the TTM, down from 6.87% in 2024, reflecting decreased profitability relative to equity. While the company maintains a solid equity base, the high leverage poses potential risks, especially if revenue and profitability continue to decline.
Cash Flow
75
Positive
The Free Cash Flow in the TTM has increased to $406.3 million from $264 million in 2024, indicating a strong growth of 53.94%, which is a positive sign. The Operating Cash Flow to Net Income Ratio is robust at 6.77, showcasing strong cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio is also strong at 4.94, suggesting effective cash management. Overall, the cash flow situation appears strong despite the challenges in income and balance sheet metrics.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.24B6.40B6.81B5.85B4.35B
Gross Profit1.35B1.72B1.85B1.67B1.18B
EBITDA618.80M1.01B1.18B980.50M693.50M
Net Income130.10M420.40M677.00M593.30M372.70M
Balance Sheet
Total Assets5.68B6.23B6.32B5.42B3.77B
Cash, Cash Equivalents and Short-Term Investments269.80M468.60M600.10M355.30M576.30M
Total Debt2.51B2.59B2.63B1.92B1.04B
Total Liabilities3.79B4.14B4.28B3.51B2.26B
Stockholders Equity1.89B2.09B2.04B1.91B1.51B
Cash Flow
Free Cash Flow264.00M444.30M197.80M306.90M615.90M
Operating Cash Flow431.40M733.60M586.10M574.00M798.30M
Investing Cash Flow-168.90M-378.90M-443.20M-1.35B-246.90M
Financing Cash Flow-442.70M-487.00M110.80M621.80M-361.80M

Brunswick Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.79
Price Trends
50DMA
56.18
Positive
100DMA
53.29
Positive
200DMA
62.60
Negative
Market Momentum
MACD
1.55
Positive
RSI
55.50
Neutral
STOCH
50.71
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 60.79 is above the 20-day moving average (MA) of 59.55, above the 50-day MA of 56.18, and below the 200-day MA of 62.60, indicating a neutral trend. The MACD of 1.55 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 50.71 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 39 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 0 New Risks

Brunswick Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.47B16.5711.44%4.60%1.04%65.90%
72
Outperform
$3.90B48.965.16%2.80%-15.42%-77.50%
72
Outperform
$315.30M22.5110.54%6.26%-32.30%-58.15%
71
Outperform
$333.26M-1.50%-41.66%-123.04%
63
Neutral
$17.10B10.79-8.01%2.94%1.62%-25.73%
59
Neutral
$676.86M-1.68%-27.18%84.33%
57
Neutral
$245.68M-1.88%-6.22%91.93%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BC
Brunswick
60.79
-18.81
-23.63%
LCII
LCI Industries
99.28
-12.25
-10.98%
MPX
Marine Products
8.95
-0.83
-8.49%
MBUU
Malibu Boats
35.22
-3.35
-8.69%
MCFT
MasterCraft Boat Holdings
20.41
-0.76
-3.59%
ONEW
OneWater Marine
15.37
-15.09
-49.54%

Brunswick Corporate Events

Executive/Board ChangesShareholder Meetings
Brunswick Elects Directors and Approves Key Resolutions
Neutral
May 13, 2025

At the May 7, 2025 Annual Meeting of Shareholders, Brunswick Corporation elected ten directors for terms expiring at the 2026 Annual Meeting. The shareholders also approved a non-binding resolution on executive compensation and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect shareholder support for the current leadership and financial oversight, potentially impacting the company’s governance and financial strategy.

The most recent analyst rating on (BC) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Brunswick stock, see the BC Stock Forecast page.

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.Date of analysis: Jul 25, 2025