Brunswick Corp. yesterday released financial results for the first quarter of 2025. Brunswick reported consolidated net sales of $1.22 billion, a decrease of 10.5% compared with $1.37 billion in the same quarter a year ago.
The Propulsion segment reported $487 million in net sales, a 16% decrease, primarily due to lower wholesale ordering by dealers and OEMs. The Engine Parts and Accessories segment saw $255.3 million, a 3% decrease in sales. Navico Group reported $208.2 million, a 1% decrease in sales, and the Boat segment experienced a 13% decrease in sales, registering $372.1 million.
Despite the decreases, the company had good performance in its recurring revenue businesses, including the Engine P&A business, Propulsion’s repower business, Freedom Boat Club, and Navico Group’s aftermarket sales, which contributed nearly 60% of the quarter’s adjusted operating earnings.
Additionally, the company reported, Brunswick’s engine business gained 40 basis points of U.S. retail share on a rolling 12-month basis, with strong indications of performance in April following significant share increases at the boat shows.
“All of our businesses delivered a strong first quarter as the resilient composition of our portfolio, together with proactive pipeline management, well-received new products, the benefits of executed and ongoing structural cost reduction measures, and efficient execution, resulted in first quarter financial performance ahead of expectations despite the challenging macro environment,” CEO David Foulkes said in the statement.
“Year-to-date unit retail sales for our core and premium boat brands and product lines are in line with our expectations for a second-half biased year, but we are seeing some weakness in entry-level products, prompting us to consider streamlining our product offerings in the entry-level space while growing Freedom Boat Club as an alternative participation model,” he added. “Early-season boat shows are essentially complete, with retail performance at shows flat to prior year and in line with expectations, while overall retail performance in the quarter resulted in appropriate boat field inventory levels as we enter the primary retail season.”
In its full-year outlook, Brunswick expects net sales between $5 billion and $5.4 billion, adjusted diluted EPS in the range of $2.50 to $4, and free cash flow in excess of $350 million. For the second quarter, the company anticipates revenue between $1.1 billion and $1.3 billion, with adjusted diluted EPS ranging from $0.80 to $1.10.
“As we enter the prime retail season in the U.S., we are keenly aware of the direct impact of tariffs on our business and the new uncertainties faced by our wholesale customers, channel partners, and the end-consumers who buy our products at retail around the world,” Foulkes said. “Although we cannot control the ever-changing conditions in which we do business, we can control our response and continue to push forward our strategic initiatives.”
