Brunswick (BC) Q4 2025 earnings summary

Executive summary

• 2025 finished ahead of expectations, with all businesses reporting sales and earnings growth in Q4, leading to the first full-year net sales growth in three years and significantly higher free cash flow generation, supported by a strengthening boat market in H2 2025.

• Full-year 2025 net sales reached $5.4B, up 2% year-over-year, with free cash flow increasing by $158M to $442M compared to 2024.

• Adjusted EPS for 2025 was $3.27, down 28% from 2024, but Q4 saw sales and adjusted earnings growth across all segments versus Q4 2024.

• Dealer pipelines for boats and engines are at record low levels, indicating strong retail demand and healthy inventory management.

• Comprehensive cost containment, robust capital strategy, and working capital management resulted in $442M free cash flow, enabling investments, share repurchases, dividend increases, and $240M debt retirement.

Financial highlights

• Q4 2025 net sales were $1.33B, up 16% year-over-year; adjusted diluted EPS was $0.58, up 142% from Q4 2024.

• Full-year adjusted operating earnings were $371M (6.9% margin), down from $495M (9.5%) in 2024.

• Free cash flow for 2025 was $442M, up 56% from $284M in 2024, the third highest in company history.

• Q4 adjusted operating margin improved by 90 bps to 5.0%; full-year adjusted operating margin was 6.9%, down 260 bps.

• Cash and marketable securities at year-end totaled $275.7 million.

Outlook and guidance

• 2026 revenue guidance: $5.6–$5.8B; adjusted operating margins: 7.5%–8%; adjusted EPS: $3.80–$4.40.

• Free cash flow expected to exceed $350M, with at least 125% free cash flow conversion.

• Q1 2026 guidance: net sales growth over Q1 2025, adjusted EPS $0.35–$0.45, burdened by most of the full-year incremental tariff costs and increased product investments.

• Wholesale and retail expected to closely match in 2026, with healthy dealer pipelines and improving sentiment.

• 2026 adjusted EPS midpoint of $4.10 reflects 25% growth over 2025.