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Brunswick (BC)
NYSE:BC

Brunswick (BC) AI Stock Analysis

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BC

Brunswick

(NYSE:BC)

Rating:64Neutral
Price Target:
$62.00
▲(4.31%Upside)
The company's strong cash flow performance and strategic initiatives offer resilience amidst revenue and profitability challenges. However, the stock's high P/E ratio and longer-term bearish technical indicators suggest caution. The earnings call provided mixed signals with achievements in certain segments but highlighted ongoing risks such as tariffs and declining sales.
Positive Factors
Cash Flow
BC expects improved efficiency, guiding for $350M+ in free cash flow, which could support additional buybacks or debt reduction.
Financial Performance
BC reported 1Q25 results that beat expectations, focusing on structural cost reductions and managing production, working capital, and inventory.
Negative Factors
Retail Demand
BC lagged broader industry retail demand, with management highlighting challenges in value product segments.
Tariffs
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:Apr 24, 2025
(Q1-2025)
|
% Change Since: 32.38%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and market share gains in key segments like Mercury engines and Freedom Boat Club expansion. However, challenges such as tariffs and declines in entry-level product sales, as well as overall sales and operating margins, balanced the positives. Despite these challenges, Brunswick's strategic initiatives and awards recognition are notable achievements.
Q1-2025 Updates
Positive Updates
Strong Revenue and Cash Flow Performance
First-quarter financial performance was ahead of expectations, with recurring revenue businesses contributing nearly 60% of adjusted operating earnings. Outstanding free cash flow generation in the quarter resulted in a $160 million improvement versus Q1 2024, marking the second-best first-quarter cash flow on record.
Mercury Outboard Engine Market Share Gains
Mercury's outboard engine lineup gained 40 basis points of US retail share on a rolling twelve-month basis, with strong April performance following significant share increases at 2025 boat shows.
Freedom Boat Club Expansion
Freedom Boat Club continues to expand globally in premier boating locations, delivering steady membership sales growth and a 3% sequential increase in member boat trips in the first quarter.
Awards and Recognition
Brunswick received a pair of Newsweek Awards, including being named to the list of the most trustworthy companies in America for the third consecutive year. Additionally, Brunswick was named to Newsweek's list of America's greatest workplaces for women.
Negative Updates
Entry-Level Product Weakness
There is observed weakness in entry-level products, prompting consideration of streamlining product offerings in the entry-level space. This is attributed to a more economically sensitive consumer.
Tariff and Trade Policy Concerns
The abrupt introduction of tariffs and continued policy confusion are contributing to declining consumer sentiment. Brunswick could incur $100 million to $125 million of incremental net tariff costs in 2025, impacting profitability.
Decrease in Sales and Operating Margins
Versus the first quarter of 2024, net sales in the quarter were down 11%, with adjusted operating margins of 6%. Sales decreases were due to lower wholesale ordering by dealers and OEMs.
Boat Unit Sales Challenges
The US main powerboat industry retail was down modestly in the first quarter, influenced almost entirely by declines in the value segment. Wholesale shipments were down 16%, resulting in an 11% reduction in US pipelines.
Company Guidance
During the Brunswick Corporation's First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a range for the full-year 2025 adjusted EPS between $2.50 and $4.00 per share, highlighting significant uncertainties due to trade policy, foreign exchange rates, and interest rate fluctuations. The company reported that nearly 60% of its first-quarter adjusted operating earnings were contributed by its recurring revenue businesses, such as the engine P&A business and Freedom Boat Club. Brunswick also noted a $160 million improvement in free cash flow over Q1 2024, resulting in $26 million in share repurchases. Despite challenges from tariffs, which could incur up to $100 million to $125 million in additional costs, the company emphasized its mitigation efforts, including supply chain adjustments and pricing strategies. The guidance reflects an anticipated 5% revenue reduction due to softer volumes, largely driven by the uncertain tariff environment.

Brunswick Financial Statement Overview

Summary
Brunswick faces challenges in revenue growth and profitability, with declining margins indicating cost pressures. High leverage poses potential risks, but strong cash flow metrics, including a significant increase in free cash flow, offer some resilience.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.09B5.24B6.40B6.81B5.85B4.35B
Gross Profit1.25B1.35B1.83B1.95B1.67B1.21B
EBITDA482.90M618.80M1.01B1.18B980.50M693.50M
Net Income82.30M130.10M420.40M677.00M593.30M372.70M
Balance Sheet
Total Assets5.86B5.68B6.23B6.32B5.42B3.77B
Cash, Cash Equivalents and Short-Term Investments287.50M269.80M468.60M600.10M355.30M576.30M
Total Debt2.63B2.51B2.59B2.51B1.82B951.40M
Total Liabilities3.98B3.79B4.14B4.28B3.51B2.26B
Stockholders Equity1.87B1.89B2.09B2.04B1.91B1.51B
Cash Flow
Free Cash Flow406.30M264.00M444.30M197.80M306.90M615.90M
Operating Cash Flow557.40M431.40M733.60M586.10M574.00M798.30M
Investing Cash Flow-148.50M-168.90M-378.90M-443.20M-1.35B-246.90M
Financing Cash Flow-658.90M-442.70M-487.00M110.80M621.80M-361.80M

Brunswick Technical Analysis

Technical Analysis Sentiment
Positive
Last Price59.44
Price Trends
50DMA
52.24
Positive
100DMA
53.66
Positive
200DMA
64.15
Negative
Market Momentum
MACD
1.50
Negative
RSI
64.77
Neutral
STOCH
84.34
Negative
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 59.44 is above the 20-day moving average (MA) of 56.61, above the 50-day MA of 52.24, and below the 200-day MA of 64.15, indicating a neutral trend. The MACD of 1.50 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.60B42.6612.90%7.85%79.89%
74
Outperform
$3.25B20.6346.60%1.64%4.42%48.23%
THTHO
73
Outperform
$4.93B22.225.42%2.16%-6.41%-15.85%
SOSON
71
Outperform
$4.59B30.235.54%4.56%-4.58%-61.14%
WEWEN
67
Neutral
$2.24B12.4690.40%4.79%2.18%-5.15%
BCBC
64
Neutral
$3.90B49.005.16%2.89%-15.42%-77.50%
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BC
Brunswick
59.44
-9.74
-14.08%
SON
Sonoco Products
46.51
-0.37
-0.79%
CAKE
Cheesecake Factory
65.70
28.61
77.14%
CHEF
The Chefs' Warehouse
63.94
21.54
50.80%
WEN
Wendy's
11.68
-3.27
-21.87%
THO
Thor Industries
92.60
2.43
2.69%

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 02, 2025