Brunswick Corp. this morning released its second quarter financial results.
The company reported $1.45 billion in net sales during the period, a 0.2% decline from the previous-year quarter. Operating earnings slid 37.7% to $103.3 million, and operating margin was 7.1%, down from 8.7% a year ago.
The company generated $288 million of free cash in the quarter, a record for any second quarter in Brunswick’s history. This resulted in a record first-half free cash flow of $244 million, a $279 million improvement versus the first half of 2024.
“Brunswick delivered strong second quarter results, as the power of our market-leading products and brands, efficient operational execution and cost control, continued prudent pipeline inventory management, and the benefits from the resilient, recurring, aftermarket-focused portions of our portfolio resulted in second quarter financial performance ahead of expectations,” chairman and CEO David Foulkes said in a statement. “This was despite the challenging macro environment and uncooperative weather in many parts of the U.S. through the first two months of the quarter.”
Foulkes added that “year-to-date boat unit retail sales in the value category are underperforming our initial expectations for the year, but continued overall resilience in the premium and core categories, combined with improving retail sales trends in July, is expected to provide a floor for wholesale performance in the second half of the year.”
He said tariffs continue to impact earnings while adding uncertainty for consumers and channel partners, but that all Brunswick businesses are “executing strongly on their mitigation plans, resulting in a smaller net tariff impact than originally anticipated.”
The propulsion segment reported a 7.2% increase in sales, to $598.2 million, driven largely by strong orders from U.S. OEMs. The engine parts and accessories segment reported a 0.5% increase in sales, to $337.8 million, due to slightly stronger distribution sales.
Navico Group net sales were down 3.7% in the quarter, to $202.3 million, with lower sales, tariffs and a variable compensation reset cited for the decline. The boat segment, which includes Freedom Boat Club, was down 6.6%, to $405.6 million, during the quarter.
Brunswick provided the following guidance for the remainder of 2025:
• net sales of approximately $5.2 billion
• adjusted diluted EPS of approximately $3.25
• free cash flow in excess of $400 million
• third quarter revenue between $1.1 billion and $1.3 billion, and adjusted, diluted EPS of $0.75 to $0.90.
