Core Insights - Adelayde Exploration Inc. has successfully closed an acquisition of the Sisson NW Tungsten Project, which consists of 89 claims over approximately 4,890 contiguous acres in New Brunswick, adjacent to Northcliff Resources Ltd.'s Sisson Tungsten Mine [1][2] Company Developments - The acquisition allows Adelayde to expand its footprint to a total of 9,780 acres prospective for tungsten, coinciding with rising global demand for critical metals amid trade tensions between the USA and China [2] - The company plans to initiate work plans for the Sisson Tungsten and George Lake South Antimony projects, along with a maiden drill program on the Esmeralda County gold project in Nevada in 2025 [2] Financial Terms of Acquisition - Under the option agreement, Adelayde will earn a 100% interest in the Sisson NW Tungsten Project by issuing 6,000,000 common shares at a deemed price of $0.11 per share and making a cash payment of $5,000 [2] - The payment structure includes an immediate payment of $5,000 and the issuance of 4,500,000 shares, followed by an additional 1,500,000 shares after incurring a minimum of $200,000 in exploration expenditures within 18 months [2] Industry Context - The global supply of tungsten and antimony is tight, with China producing approximately 80-90% of each, while demand is increasing for applications in electronics, defense, and energy technologies [2] - The strategic stockpiling and supply risks are contributing to higher prices for these critical metals as Western nations seek alternative sources [2]

Core Viewpoint - Brunswick reported a strong third quarter with nearly 8% sales growth across all business units, indicating a stable consumer demand in the boating industry [1][3][4]. Sales Performance - The third quarter sales showed a significant recovery from the second quarter, which was affected by tariff announcements and market fluctuations [3]. - All four reporting segments of Brunswick exceeded guidance and consensus for both top and bottom lines, reflecting a solid quarter and positive consumer trends [4]. Consumer Behavior - The demand for premium boats remains robust, while value boat purchases have also stabilized, suggesting a strengthening consumer base [3][4]. - Gas prices have historically been low, and only when prices exceed $5 per gallon does it impact boating behavior, primarily leading to reduced usage rather than abandonment of boating [8]. Tariff Impact - Brunswick's tariff exposure is estimated to be around $75 million, primarily due to tariffs on components imported from China, despite only 5% of their supply base being from China [5][6]. - The company is actively working to reduce its reliance on imported components by increasing domestic sourcing and vertical integration [6][10]. Competitive Position - As a predominantly domestic manufacturer with production facilities in 21 states, Brunswick is well-positioned to handle a long-term environment of persistent tariffs, especially compared to competitors facing higher import tariffs [10][11].

Financial Performance - Brunswick reported a nearly 8% increase in third-quarter sales across all business units [1] - All four reporting segments of Brunswick beat guidance and consensus on both top and bottom lines [4] Consumer Spending & Market Trends - Third-quarter sales have stabilized nicely [3] - Premium boat buyers are stronger than value boat buyers, but even value boat purchases have stabilized [3] - Gas prices are stable and historically low, not currently inhibiting boating [8] Tariff Impact & Mitigation - The full impact of tariffs on Brunswick's business is estimated to be around $75 million this year [5] - China-based tariffs are the primary driver, even though China represents less than 5% of the supply base, equating to roughly $150 million in exposure [6] - Brunswick is working to reduce tariff exposure by reducing content purchased from China, increasing domestic sourcing, and vertically integrating [6] Competitive Advantages - Brunswick is primarily a domestic manufacturer with production facilities in 21 US states, positioning it favorably in an environment of persistent tariffs [10] - Mercury Marine manufactures most of its engines in the US, giving it a competitive advantage over Japanese competitors facing 15% import tariffs [10][11]

Financial Data and Key Metrics Changes - Brunswick's third-quarter sales reached $1.4 billion, representing a 7% increase compared to the prior year [5][17] - Adjusted EPS was $0.97, impacted by reinstated variable compensation and tariffs, but showed year-over-year growth when excluding these items [5][18] - Free cash flow for the third quarter was $111 million, totaling $355 million year-to-date, marking a $348 million improvement over the same period last year [6][15] Business Line Data and Key Metrics Changes - The propulsion business saw a 10% sales growth, with all product categories (outboard, stern drive, and controls rigging) performing well [19] - Engine parts and accessories segment sales increased by 8%, benefiting from strong boater participation and favorable weather [20] - The boat segment reported a 4% sales growth, driven by strong performance in aluminum boat brands and Freedom Boat Club, which contributed approximately 13% of segment sales [22] Market Data and Key Metrics Changes - U.S. main power boat industry retail was down over 9% year-to-date, but Brunswick's brands outperformed the industry [12][13] - Mercury maintained a stable market share of 49.4% in the U.S. outboard engine market, with strong share gains internationally [13][19] - Dealer inventory levels remained historically low, supporting steady wholesale shipments [10][40] Company Strategy and Development Direction - Brunswick is focusing on financial and operational efficiencies, including margin-accretive footprint actions and tariff mitigation initiatives [4][10] - The company announced a strategic rationalization of its fiberglass boat manufacturing footprint, consolidating production to improve profitability [10][14] - The introduction of innovative products like the SIMRAD AutoCaptain autonomous boating system reflects Brunswick's commitment to integrated solutions and innovation [26][27] Management Comments on Operating Environment and Future Outlook - Management noted a challenging but improving macro environment, with expectations for continued sales and earnings growth into 2026 [4][29] - The company anticipates a modestly stronger 2026, driven by lower interest rates and stable retail market conditions [10][29] - Brunswick's vertically integrated U.S. manufacturing base positions it well in a persistent tariff environment [11][29] Other Important Information - Brunswick's balance sheet remains healthy, with no debt maturities until 2029 and a commitment to reducing debt by $200 million in 2025 [16] - The company has generated $1.6 billion in free cash flow since 2021, with a record $635 million over the last 12 months [15][16] Q&A Session Summary Question: Retail outlook and SSI numbers - Management indicated that retail performance has stabilized, with premium and core products outperforming value segments [32][34] Question: Inventory levels and wholesale to retail ratio - Brunswick's inventory levels are historically low, with over 80% being less than a year old, indicating a healthy inventory situation [39][40] Question: Impact of U.S. tariffs on competitors - Management noted that competitors are beginning to implement price increases in response to tariffs, while Brunswick continues to gain market share [44] Question: Clarification on 2026 outlook - The company expects mid to high single-digit revenue growth in 2026, driven by market share gains and improved discounting [76][78] Question: Transition impacts from plant consolidation - Short-term inefficiencies during the transition are expected to impact Q4 by a couple of million, but long-term savings of over $10 million annually are anticipated [80][83]

Financial Data and Key Metrics Changes - Brunswick reported third quarter sales of $1.4 billion, a 7% increase year-over-year, with adjusted earnings per share (EPS) of $0.97, impacted by variable compensation and tariffs but showing growth excluding those items [5][20][21] - Free cash flow for the third quarter was $111 million, totaling $355 million year-to-date, marking a $348 million improvement over the same period last year [5][18][21] - The company is on track to retire approximately $375 million of debt by year-end 2025, increasing its debt reduction guidance for the year to $200 million [18][19] Business Line Data and Key Metrics Changes - The propulsion business saw a 10% sales growth, with all product categories (outboard, sterndrive, and controls rigging) performing well [22] - Engine Parts and Accessories segment sales increased by 8%, benefiting from strong boater participation and favorable weather [22][24] - The boat segment reported a 4% sales growth, with premium brands performing particularly well, and Freedom Boat Club contributing approximately 13% of segment sales [25][26] Market Data and Key Metrics Changes - U.S. retail powerboat industry was down over 9% year-to-date, but Brunswick's brands outperformed the industry, maintaining a stable market share of 49.4% in the outboard engine segment [12][13] - Dealer inventory levels are historically low, with Brunswick's global pipeline down over 2,200 units compared to 2024 [14][15] - The company anticipates a modestly stronger retail market in 2026, driven by interest rate reductions and macroeconomic stability [34][35] Company Strategy and Development Direction - Brunswick is focusing on financial and operational efficiencies, including consolidating boat manufacturing facilities to reduce costs and improve profitability [9][17] - The introduction of innovative products, such as the CIMRAD AutoCaptain autonomous boating system, reflects the company's commitment to technological advancement and market leadership [32][33] - The company aims to maintain a competitive edge through its vertically integrated U.S. manufacturing base and tariff mitigation strategies [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail environment, noting a positive inflection point and stable dealer sentiment despite previous macroeconomic shocks [42][43] - The company expects to continue generating strong free cash flow and is comfortable with its full-year EPS guidance despite increased tariff impacts [26][35] - Management highlighted the importance of ongoing product development and operational efficiency improvements in driving future growth [68][89] Other Important Information - Brunswick's liquidity remains strong, with $1.3 billion available, including access to an undrawn revolving credit facility [19] - The company has seen significant improvements in gross margins and operational performance through strategic initiatives [25][68] Q&A Session Summary Question: Retail outlook and 2026 expectations - Management noted that retail performance has stabilized, with premium and core products outperforming value segments, and expressed confidence in a flat to slightly up market for 2026 [42][43] Question: Impact of U.S. tariffs on competitors - Management confirmed that competitors are beginning to implement price increases in response to tariffs, while Brunswick continues to gain market share [52][54] Question: Navico's operating earnings and margin expansion - Management confirmed that Navico's margins would have improved absent the impacts of tariffs and variable compensation, with expectations for further expansion as headwinds are lapped [62][68] Question: Inventory levels and market share growth - Management indicated that dealer inventory levels are healthy, with a focus on maintaining fresh inventory as they enter 2026, and expressed confidence in continued market share growth for Mercury [85][86] Question: 2026 guidance and destocking effects - Management clarified that mid to high single-digit revenue growth for 2026 will be driven by a combination of market share gains, pricing actions, and improved discounting, with minimal impact from lapping destocking [94][95]

Financial Data and Key Metrics Changes - Brunswick reported third-quarter sales of $1.4 billion, a 7% increase compared to the prior year, with adjusted EPS of $0.97, impacted by variable compensation and tariffs but up year over year excluding those items [4][16] - Free cash flow for the third quarter was $111 million, totaling $355 million year to date, marking a $348 million improvement over the same period last year [4][13] - Year-to-date sales are down 1%, primarily due to planned lower first-half production levels, but third-quarter sales growth was seen across all businesses [17][18] Business Line Data and Key Metrics Changes - The propulsion business saw a 10% sales growth in the quarter, with all product categories (outboard, stern drive, and controls rigging and props) increasing [18] - Engine parts and accessories segment sales increased by 8% year over year, benefiting from strong boater participation and favorable weather [19] - The boat segment reported a 4% sales growth, with strong performance from aluminum boat brands and Freedom Boat Club contributing approximately 13% of segment sales [22] Market Data and Key Metrics Changes - Brunswick's boat retail sales were flat year over year, showing notable improvement from the first half of the year, with premium and core categories performing well [3][11] - The U.S. outboard engine market share for Mercury remained stable at 49.4%, despite competitive promotional activity [11][18] - Internationally, Mercury gained strong market share in most markets, indicating robust global performance [11][56] Company Strategy and Development Direction - Brunswick is focusing on financial and operational efficiencies, including margin-accretive footprint actions and tariff mitigation initiatives [3][4] - The company announced a strategic rationalization of its fiberglass boat manufacturing footprint, consolidating production into existing U.S. facilities by mid-2026 [8][12] - The introduction of innovative products like the SIMRAD AutoCaptain autonomous boating system reflects Brunswick's commitment to integrated solutions and differentiated innovation [26][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is improving, with expectations for continued growth in 2026 driven by lower interest rates and stable dealer sentiment [8][30] - The company anticipates a modestly stronger 2026, with revenue growth projected in the mid to high single-digit percentage range [30] - Management expressed confidence in the company's competitive positioning due to its U.S.-based manufacturing and proactive tariff management strategies [9][30] Other Important Information - Brunswick's investment-grade balance sheet remains healthy, with no debt maturities until 2029 and a commitment to reducing debt by $200 million in 2025 [14] - The company has generated $1.6 billion in free cash flow since 2021, with a record $635 million over the last 12 months [13][14] - Brunswick's full-year guidance remains unchanged, with expected revenue of approximately $5.2 billion and adjusted EPS of approximately $3.25 [23] Q&A Session Summary Question: Current retail trends and outlook for 2026 - Management indicated that retail performance has stabilized, with premium and core products outperforming value segments, and expressed optimism for a flat to slightly up market in 2026 [32][34] Question: Impact of U.S. tariffs on competitors - Management confirmed that competitors are beginning to implement price increases in response to tariffs, while Brunswick continues to gain market share [42][43] Question: Clarification on Navico Group's performance - It was confirmed that Navico's margins would have improved absent the impacts of tariffs and variable compensation resets, with expectations for further margin expansion moving forward [47][51] Question: Inventory levels and expectations for 2026 - Management reported healthy inventory levels, with a focus on maintaining fresh inventory as they prepare for the 2026 season [61][62] Question: Long-term outlook for normalized boat industry demand - Management noted that elevated interest rates have been a headwind, but they expect a return to normalized demand as conditions improve [76]

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©2025 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 2 BRUNSWICK CORPORATION – EARNINGS RELEASE Q3 2025 Earnings Conference Call OCTOBER 23, 2025 BRUNSWICK CORPORATION – EARNINGS RELEASE Forward-Looking Statements Certain statements in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick's business and by their nature address matters th ...

Core Insights - Brunswick reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, but down from $1.17 per share a year ago, indicating an earnings surprise of +15.48% [1] - The company achieved revenues of $1.36 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.89% and up from $1.27 billion year-over-year [2] - Brunswick has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise of +30.34% was noted in the previous quarter, where actual earnings were $1.16 per share against an expectation of $0.89 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.64, with projected revenues of $1.22 billion, while the estimate for the current fiscal year is $3.24 on $5.16 billion in revenues [7] Market Position - Brunswick shares have increased by approximately 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 13.9% [3] - The Zacks Industry Rank places Leisure and Recreation Products in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of Brunswick's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Brunswick was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Brunswick Corporation reported strong Q3 2025 financial results, confirming full-year guidance and highlighting strategic operational achievements [Third Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Financial%20Highlights) Brunswick Corporation reported strong third-quarter 2025 results with sales growth and efficient operational execution driving earnings and record cash generation. The company confirmed its full-year 2025 guidance for adjusted diluted EPS and increased its free cash flow guidance Third Quarter 2025 Financial Highlights | in millions (except per share data) | GAAP Q3 2025 | Change vs Q3'24 | As Adjusted Q3 2025 | Change vs Q3'24 | | :--------------------------------- | :----------- | :-------------- | :------------------ | :-------------- | | Net Sales | $1,360.2 M | 6.8 % | $1,360.2 M | 6.8 % | | Operating Earnings | $(242.2) M | NM | $106.4 M | (15.5) % | | Operating Margin | (17.8) % | NM | 7.8 % | (210) bps | | Diluted EPS from Continuing Operations | $(3.57) | NM | $0.97 | (17.1) % | - Confirmed 2025 Full-Year Guidance for As Adjusted Diluted EPS of Approximately **$3.25**[3](index=3&type=chunk) - Increased Free Cash Flow Guidance to Greater Than **$425 million**[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=1.2%20Management%20Commentary) CEO David Foulkes highlighted strong Q3 results with revenue growth across all segments, outperforming expectations despite a challenging macro-environment. The company achieved outstanding free cash flow, invested in the business, returned capital to investors, and strengthened its balance sheet, while also implementing strategic footprint actions for efficiency - All reporting segments generated revenue growth over Q3 2024, exceeding expectations and guidance[5](index=5&type=chunk) - Propulsion and boat portfolios outperformed their respective markets, with recurring-revenue, parts and accessories, and Freedom Boat Club businesses benefiting from healthy boating activity[5](index=5&type=chunk) - Third quarter boat retail sales were flat year-over-year, a notable improvement from the first half, driven by resilience in premium and core categories[5](index=5&type=chunk) - Generated **$111 million** of free cash flow in Q3, bringing year-to-date free cash flow to **$355 million**, a significant improvement over the prior year[6](index=6&type=chunk) - Announced margin-accretive footprint actions in the boating business, exiting facilities in Reynosa, Mexico, and Flagler Beach, Florida by mid-2026 to consolidate production and reduce fixed costs[5](index=5&type=chunk)[10](index=10&type=chunk) - Completed **$70 million** of share repurchases year-to-date and increased debt reduction target to **$200 million** for the year[11](index=11&type=chunk) [Detailed Financial Results](index=3&type=section&id=Detailed%20Financial%20Results) This section provides an in-depth analysis of Brunswick's consolidated and segment-specific financial performance, alongside a review of its cash flow and balance sheet [Consolidated Financial Performance](index=3&type=section&id=2.1%20Consolidated%20Financial%20Performance) Brunswick reported consolidated net sales of $1,360.2 million for Q3 2025, up 7% from Q3 2024. GAAP diluted EPS was $(3.57), while adjusted diluted EPS was $0.97. Sales growth was driven by strong OEM/dealer orders, healthy P&A/aftermarket business, and pricing actions, but operating earnings were impacted by tariffs and variable compensation reinstatement, and GAAP earnings by impairment charges Consolidated Net Sales and Diluted EPS (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | % Change (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (Adjusted) | | :----- | :------------- | :------------- | :-------------- | :----------------- | :----------------- | :------------------ | | Net Sales | $1,360.2 M | $1,273.3 M | 7 % | $1,360.2 M | $1,273.3 M | 7 % | | Diluted EPS | $(3.57) | $0.71 | NM | $0.97 | $1.17 | (17.1) % | - Sales increased due to strong OEM and dealer orders, steady boating participation driving P&A and aftermarket business strength, and pricing actions[12](index=12&type=chunk) - Adjusted operating earnings were down due to enterprise impacts of tariffs and reinstatement of variable compensation, partially offset by sales increases. GAAP operating earnings were further impacted by impairment charges[12](index=12&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=4&type=section&id=2.2%20Segment%20Performance) All segments reported sales growth in Q3 2025 compared to Q3 2024. Propulsion led with a 10% increase, followed by Engine Parts & Accessories (8%), Boat (4%), and Navico Group (2%). Operating earnings varied, with Boat segment showing significant adjusted operating earnings growth, while others experienced declines primarily due to common enterprise factors [Propulsion Segment](index=2&type=section&id=2.2.1%20Propulsion%20Segment) The Propulsion segment reported a 10.2% increase in net sales for Q3 2025, driven by strong OEM orders and robust market share. However, adjusted operating earnings decreased by 15.3% due to enterprise factors, despite improved absorption from higher production Propulsion Segment Performance (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | % Change (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (Adjusted) | | :----- | :------------- | :------------- | :-------------- | :----------------- | :----------------- | :------------------ | | Net Sales | $535.4 M | $485.9 M | 10.2 % | $535.4 M | $485.9 M | 10.2 % | | Operating Earnings | $45.1 M | $50.1 M | (10.0) % | $45.4 M | $53.6 M | (15.3) % | | Operating Margin | 8.4 % | 10.3 % | (190) bps | 8.5 % | 11.0 % | (250) bps | - Mercury maintained its position as the clear U.S. outboard market share leader with **49.4%** share of outboard engines retail sold in Q3[7](index=7&type=chunk) [Engine Parts & Accessories Segment](index=2&type=section&id=2.2.2%20Engine%20Parts%20%26%20Accessories%20Segment) The Engine Parts & Accessories segment saw an 8.2% increase in net sales for Q3 2025, driven by healthy boater participation. Sales in products business increased by 4% and distribution business by 12%. Adjusted operating earnings decreased by 5.4% due to common enterprise factors Engine Parts & Accessories Segment Performance (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | % Change (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (Adjusted) | | :----- | :------------- | :------------- | :-------------- | :----------------- | :----------------- | :------------------ | | Net Sales | $363.7 M | $336.1 M | 8.2 % | $363.7 M | $336.1 M | 8.2 % | | Operating Earnings | $82.4 M | $86.3 M | (4.5) % | $82.4 M | $87.1 M | (5.4) % | | Operating Margin | 22.7 % | 25.7 % | (300) bps | 22.7 % | 25.9 % | (320) bps | - U.S. market-leading distribution business gained **140 basis points** of market share year-to-date[8](index=8&type=chunk) [Navico Group Segment](index=3&type=section&id=2.2.3%20Navico%20Group%20Segment) Navico Group reported modest sales growth of 1.5% in Q3 2025, primarily from strong marine electronics performance. Adjusted operating earnings decreased slightly by 3.3%, mainly due to enterprise factors, but GAAP operating earnings were significantly impacted by non-cash intangible asset impairment charges Navico Group Segment Performance (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | % Change (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (Adjusted) | | :----- | :------------- | :------------- | :-------------- | :----------------- | :----------------- | :------------------ | | Net Sales | $186.9 M | $184.1 M | 1.5 % | $186.9 M | $184.1 M | 1.5 % | | Operating Earnings | $(328.9) M | $(8.7) M | NM | $8.8 M | $9.1 M | (3.3) % | | Operating Margin | NM | (4.7) % | NM | 4.7 % | 4.9 % | (20) bps | - Growth was led by strong performance in marine electronics product lines, benefiting from technology investments and new product introductions[9](index=9&type=chunk) - Introduced the Simrad AutoCaptain autonomous boating system, developed in collaboration with Mercury Marine and Brunswick Boat Group[9](index=9&type=chunk) [Boat Segment](index=3&type=section&id=2.2.4%20Boat%20Segment) The Boat segment achieved a 4.3% increase in net sales for Q3 2025, driven by improved retail sales and steady wholesale orders amidst lean dealer inventories. Adjusted operating earnings significantly increased by 65.1%, benefiting from higher sales and improved gross margins, partially offset by enterprise factors Boat Segment Performance (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | % Change (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (Adjusted) | | :----- | :------------- | :------------- | :-------------- | :----------------- | :----------------- | :------------------ | | Net Sales | $360.2 M | $345.3 M | 4.3 % | $360.2 M | $345.3 M | 4.3 % | | Operating Earnings | $(3.3) M | $(0.1) M | NM | $7.1 M | $4.3 M | 65.1 % | | Operating Margin | (0.9) % | — % | (90) bps | 2.0 % | 1.2 % | 80 bps | - Freedom Boat Club continued its growth, contributing approximately **13%** of segment sales[16](index=16&type=chunk) - Announced strategic rationalization of fiberglass boat manufacturing footprint, consolidating production to reduce fixed costs and improve efficiency[10](index=10&type=chunk) [Cash Flow and Balance Sheet Review](index=4&type=section&id=2.3%20Cash%20Flow%20and%20Balance%20Sheet%20Review) Brunswick's cash and marketable securities increased to $316.4 million at the end of Q3 2025. Net cash provided by operating activities of continuing operations significantly improved to $451.1 million for the first nine months of 2025. Investing and financing activities resulted in net cash used of $410.7 million, including substantial debt repayments and share repurchases Key Cash Flow and Balance Sheet Data (Nine Months Ended Sep 27, 2025) | Metric | Amount (Millions) | | :---------------------------------------------- | :---------------- | | Cash and marketable securities (Q3 end) | $316.4 | | Net cash provided by operating activities of continuing operations (YTD) | $451.1 | | Net cash used for investing and financing activities (YTD) | $410.7 | | Repayments of short-term debt (YTD) | $318.7 | | Repayments of long-term debt (YTD) | $128.4 | | Capital expenditures (YTD) | $116.5 | | Share repurchases (YTD) | $65.0 | - Cash and marketable securities increased by **$29.7 million** from 2024 year-end levels[17](index=17&type=chunk) [2025 Outlook](index=5&type=section&id=2025%20Outlook) Brunswick confirmed its full-year 2025 guidance, anticipating approximately $5.2 billion in net sales, $3.25 in adjusted diluted EPS, and over $425 million in free cash flow. The company expects to benefit from an industry recovery in 2026, driven by improving market conditions, effective tariff mitigation, and declining interest rates - The 2025 U.S. marine retail market is trending down by approximately **8%**, with significant improvement in the back-half of the season[19](index=19&type=chunk) - Brunswick's revenue growth is driven by improved OEM ordering, low dealer inventories, improved retail for Brunswick boat brands, propulsion market share gains, and resilient boating participation[19](index=19&type=chunk) - Strategic actions, including manufacturing capacity optimization, are expected to drive significant improvements in medium-term profitability[19](index=19&type=chunk) Confirmed Full-Year 2025 Guidance | Metric | Guidance | | :---------------------- | :------------------- | | Net sales | Approximately $5.2 billion | | Adjusted diluted EPS | Approximately $3.25 | | Free cash flow | In excess of $425 million | | Annual share repurchases | At least $80 million | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles Brunswick's non-GAAP financial measures, providing clearer insights into operational performance by excluding specific adjustments [Explanation of Non-GAAP Measures](index=6&type=section&id=4.1%20Explanation%20of%20Non-GAAP%20Measures) Brunswick uses non-GAAP financial measures, such as adjusted operating earnings, adjusted operating margin, free cash flow, and adjusted diluted EPS, to better align reported results with internal performance metrics and provide clearer comparisons. These measures exclude items like purchase accounting amortization, restructuring costs, and other unusual adjustments - Non-GAAP measures are used to align with internal metrics, evaluate business performance, and provide better comparisons to prior periods and peer data[22](index=22&type=chunk) - Adjustments typically exclude purchase accounting amortization related to acquisitions, restructuring, exit and impairment costs, special tax items, and acquisition-related costs[22](index=22&type=chunk)[23](index=23&type=chunk) [Consolidated Non-GAAP Reconciliation](index=11&type=section&id=4.2%20Consolidated%20Non-GAAP%20Reconciliation) This section provides a reconciliation of GAAP operating earnings and diluted EPS to their 'As Adjusted' non-GAAP counterparts for both the three and nine months ended September 27, 2025, and September 28, 2024, detailing the specific adjustments made Consolidated Non-GAAP Reconciliation (Three Months Ended) | | Operating Earnings (Sep 27, 2025) | Operating Earnings (Sep 28, 2024) | Diluted EPS (Sep 27, 2025) | Diluted EPS (Sep 28, 2024) | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------- | :------------------------- | | GAAP | $(242.2) M | $98.4 M | $(3.57) | $0.71 | | Restructuring, exit and impairment charges | $333.8 M | $12.2 M | $4.88 | $0.13 | | Purchase accounting amortization | $14.8 M | $14.5 M | $0.31 | $0.17 | | Acquisition, integration, and IT related costs | — | $0.9 M | — | $0.01 | | IT security incident costs | — | $(0.1) M | — | — | | Special tax items | — | — | $(0.66) | $0.14 | | Loss on early extinguishment of debt | — | — | $0.01 | — | | Release of dissolved entity foreign currency translation | — | — | — | $0.01 | | **As Adjusted** | **$106.4 M** | **$125.9 M** | **$0.97** | **$1.17** | | GAAP operating margin | (17.8)% | 7.7 % | | | | Adjusted operating margin | 7.8 % | 9.9 % | | | Consolidated Non-GAAP Reconciliation (Nine Months Ended) | | Operating Earnings (Sep 27, 2025) | Operating Earnings (Sep 28, 2024) | Diluted EPS (Sep 27, 2025) | Diluted EPS (Sep 28, 2024) | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------- | :------------------------- | | GAAP | $(82.6) M | $367.3 M | $(2.34) | $3.26 | | Restructuring, exit and impairment charges | $342.9 M | $33.6 M | $4.96 | $0.37 | | Purchase accounting amortization | $44.1 M | $43.8 M | $0.64 | $0.49 | | Acquisition, integration, and IT related costs | $0.1 M | $3.3 M | — | $0.04 | | IT security incident costs | — | $0.2 M | — | — | | Special tax items | — | — | $(0.62) | $0.14 | | Loss on early extinguishment of debt | — | — | $0.05 | — | | Release of dissolved entity foreign currency translation | — | — | — | $0.01 | | **As Adjusted** | **$304.5 M** | **$448.2 M** | **$2.69** | **$4.31** | | GAAP operating margin | (2.1)% | 9.0 % | | | | Adjusted operating margin | 7.6 % | 11.0 % | | | [Segment Non-GAAP Reconciliation](index=13&type=section&id=4.3%20Segment%20Non-GAAP%20Reconciliation) This section provides detailed reconciliations of GAAP operating earnings to 'As Adjusted' operating earnings for each of Brunswick's segments (Propulsion, Engine Parts & Accessories, Navico Group, Boat, and Corporate/Other) for both the three and nine months ended September 27, 2025, and September 28, 2024 Propulsion Segment Non-GAAP Reconciliation (Q3 & YTD) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | YTD 2025 (GAAP) | YTD 2024 (GAAP) | YTD 2025 (Adjusted) | YTD 2024 (Adjusted) | | :----- | :------------- | :------------- | :----------------- | :----------------- | :-------------- | :-------------- | :------------------ | :------------------ | | Net Sales | $535.4 M | $485.9 M | $535.4 M | $485.9 M | $1,620.6 M | $1,622.1 M | $1,620.6 M | $1,622.1 M | | Operating Earnings | $45.1 M | $50.1 M | $45.4 M | $53.6 M | $157.0 M | $218.5 M | $159.2 M | $229.8 M | | Operating Margin | 8.4 % | 10.3 % | 8.5 % | 11.0 % | 9.7 % | 13.5 % | 9.8 % | 14.2 % | Engine Parts & Accessories Segment Non-GAAP Reconciliation (Q3 & YTD) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | YTD 2025 (GAAP) | YTD 2024 (GAAP) | YTD 2025 (Adjusted) | YTD 2024 (Adjusted) | | :----- | :------------- | :------------- | :----------------- | :----------------- | :-------------- | :-------------- | :------------------ | :------------------ | | Net Sales | $363.7 M | $336.1 M | $363.7 M | $336.1 M | $956.8 M | $934.6 M | $956.8 M | $934.6 M | | Operating Earnings | $82.4 M | $86.3 M | $82.4 M | $87.1 M | $193.2 M | $195.1 M | $193.6 M | $199.4 M | | Operating Margin | 22.7 % | 25.7 % | 22.7 % | 25.9 % | 20.2 % | 20.9 % | 20.2 % | 21.3 % | Navico Group Segment Non-GAAP Reconciliation (Q3 & YTD) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | YTD 2025 (GAAP) | YTD 2024 (GAAP) | YTD 2025 (Adjusted) | YTD 2024 (Adjusted) | | :----- | :------------- | :------------- | :----------------- | :----------------- | :-------------- | :-------------- | :------------------ | :------------------ | | Net Sales | $186.9 M | $184.1 M | $186.9 M | $184.1 M | $597.4 M | $605.1 M | $597.4 M | $605.1 M | | Operating Earnings | $(328.9) M | $(8.7) M | $8.8 M | $9.1 M | $(339.3) M | $(14.1) M | $30.8 M | $39.8 M | | Operating Margin | NM | (4.7) % | NM | 4.9 % | (56.8) % | (2.3) % | 5.2 % | 6.6 % | Boat Segment Non-GAAP Reconciliation (Q3 & YTD) | Metric | Q3 2025 (GAAP) | Q3 2024 (GAAP) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | YTD 2025 (GAAP) | YTD 2024 (GAAP) | YTD 2025 (Adjusted) | YTD 2024 (Adjusted) | | :----- | :------------- | :------------- | :----------------- | :----------------- | :-------------- | :-------------- | :------------------ | :------------------ | | Net Sales | $360.2 M | $345.3 M | $360.2 M | $345.3 M | $1,137.9 M | $1,205.2 M | $1,137.9 M | $1,205.2 M | | Operating Earnings | $(3.3) M | $(0.1) M | $7.1 M | $4.3 M | $15.5 M | $54.1 M | $29.4 M | $63.0 M | | Operating Margin | (0.9) % | — % | 2.0 % | 1.2 % | 1.4 % | 4.5 % | 2.6 % | 5.2 % | [Corporate Information](index=6&type=section&id=Corporate%20Information) This section provides details on Brunswick's conference call, outlines forward-looking statements and associated risks, and offers an overview of the corporation [Conference Call Details](index=6&type=section&id=5.1%20Conference%20Call%20Details) Brunswick Corporation scheduled a conference call for October 23, 2025, at 10 a.m. CDT to discuss the third-quarter results, featuring key executives. Details for webcast and telephone participation, along with replay information, were provided - Conference call held on **October 23, 2025, at 10 a.m. CDT**[24](index=24&type=chunk) - Hosted by David M. Foulkes (Chairman and CEO), Ryan M. Gwillim (EVP and CFO), and Stephen Weiland (SVP and Deputy CFO)[24](index=24&type=chunk) - Webcast available at www.brunswick.com/investors; telephone participation via **877-900-9524** (North America) or **412-902-0029** (outside North America)[24](index=24&type=chunk)[26](index=26&type=chunk) [Forward-Looking Statements](index=7&type=section&id=5.2%20Forward-Looking%20Statements) This section serves as a disclaimer, identifying forward-looking statements within the news release and outlining various risks and uncertainties that could cause actual results to differ materially from expectations. These risks include economic conditions, trade policies, interest rates, supply chain disruptions, and cybersecurity events - Forward-looking statements are based on current expectations and projections, addressing matters that are inherently uncertain[27](index=27&type=chunk) - Key risks include adverse general economic conditions (rising interest rates, disposable income), changes to trade policy and tariffs, currency exchange rates, adverse capital market conditions, competitive pricing, higher energy costs, manufacturing footprint management, loss of key customers, international business risks, supply chain disruptions, and adverse weather[27](index=27&type=chunk) - Additional risks cover product development, meeting demand, public health emergencies, strategic plan implementation, labor retention, acquisitions, distribution, dealer financing, inventory reductions, Freedom Boat Club risks, cybersecurity, intellectual property protection, goodwill impairment, product liability, regulatory compliance, joint ventures, tax legislation, and shareholder activism[27](index=27&type=chunk)[28](index=28&type=chunk) [About Brunswick Corporation](index=8&type=section&id=5.3%20About%20Brunswick%20Corporation) Brunswick Corporation is a global leader in marine recreation, known for its innovation and technology-driven solutions. The company boasts over 60 industry-leading brands across marine propulsion, parts & accessories, boat brands, and service businesses, employing approximately 15,000 people in 25 countries - Brunswick Corporation (NYSE: BC) is the global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond[30](index=30&type=chunk) - Portfolio includes over **60 industry-leading brands** across Marine Propulsion (e.g., Mercury Marine), Parts, Accessories, Distribution & Technology (e.g., Lowrance, Simrad), Boat Brands (e.g., Boston Whaler, Sea Ray), and Service, Digital & Shared-Access businesses (e.g., Freedom Boat Club)[30](index=30&type=chunk)[31](index=31&type=chunk) - Headquartered in Mettawa, IL, with approximately **15,000 employees** operating in **25 countries**[31](index=31&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents Brunswick Corporation's comparative condensed consolidated statements of operations, balance sheets, and cash flows [Comparative Condensed Consolidated Statements of Operations](index=10&type=section&id=6.1%20Comparative%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement provides a detailed breakdown of Brunswick Corporation's revenues, costs, and earnings (or losses) for the three and nine months ended September 27, 2025, and September 28, 2024, highlighting significant changes in net sales, operating earnings, and diluted EPS Comparative Condensed Consolidated Statements of Operations | | | | | Three Months Ended | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | Sep 27, | | Sep 28, | | Sep 27, | | Sep 28, | | | | | 2025 | | 2024 | % Change | 2025 | | 2024 | % Change | | Net sales | $ | 1,360.2 M | $ | 1,273.3 M | 7 % | $4,029.0 M | $ | 4,082.2 M | (1)% | | Cost of sales | | 1,009.4 M | | 940.3 M | 7 % | 3,004.6 M | | 2,984.6 M | 1 % | | Selling, general and administrative expense | | 215.8 M | | 180.7 M | 19 % | 640.4 M | | 566.2 M | 13 % | | Research and development expense | | 43.4 M | | 41.7 M | 4 % | 123.7 M | | 130.5 M | (5)% | | Restructuring, exit and impairment charges | | 333.8 M | | 12.2 M | NM | 342.9 M | | 33.6 M | NM | | Operating (loss) earnings | | (242.2) M | | 98.4 M | NM | (82.6) M | | 367.3 M | NM | | Equity earnings | | 1.5 M | | 1.6 M | (6)% | 5.4 M | | 7.0 M | (23)% | | Other expense, net | | (0.4) M | | (1.1) M | (64)% | (0.5) M | | (1.9) M | (74)% | | (Loss) earnings before interest and income taxes | | (241.1) M | | 98.9 M | NM | (77.7) M | | 372.4 M | NM | | Interest expense | | (27.0) M | | (33.0) M | (18)% | (86.7) M | | (94.2) M | (8)% | | Interest income | | 1.8 M | | 4.0 M | (55)% | 5.2 M | | 11.2 M | (54)% | | Loss on early extinguishment of debt | | — | | — | NM | (3.7) M | | — | NM | | (Loss) earnings before income taxes | | (266.3) M | | 69.9 M | NM | (162.9) M | | 289.4 M | NM | | Income tax (benefit) provision | | (32.0) M | | 22.6 M | NM | (8.4) M | | 68.9 M | NM | | Net (loss) earnings from continuing operations | $ | (234.3) M | $ | 47.3 M | NM | $ (154.5) M | $ | 220.5 M | NM | | Net loss from discontinued operations, net of tax | | (1.2) M | | (2.7) M | (56)% | (1.5) M | | (7.9) M | (81)% | | Net (loss) earnings | $ | (235.5) M | $ | 44.6 M | NM | $ (156.0) M | $ | 212.6 M | NM | | Earnings per common share: | | | | | | | | | | | Basic | | | | | | | | | | | (Loss) earnings from continuing operations | $ | (3.57) | $ | 0.71 | NM | $ (2.34) | $ | 3.27 | NM | | Loss from discontinued operations | | (0.02) | | (0.04) | (50)% | (0.02) | | (0.12) | (83)% | | Net (loss) earnings | $ | (3.59) | $ | 0.67 | NM | $ (2.36) | $ | 3.15 | NM | | Diluted | | | | | | | | | | | (Loss) earnings from continuing operations | $ | (3.57) | $ | 0.71 | NM | $ (2.34) | $ | 3.26 | NM | | Loss from discontinued operations | | (0.02) | | (0.04) | (50)% | (0.02) | | (0.12) | (83)% | | Net earnings | $ | (3.59) | $ | 0.67 | NM | $ (2.36) | $ | 3.14 | NM | | Weighted average shares used for computation of: | | | | | | | | | | | Basic earnings per common share | | 65.7 M | | 66.6 M | | 66.0 M | | 67.4 M | | | Diluted earnings per common share | | 65.7 M | | 66.6 M | | 66.0 M | | 67.6 M | | | Effective tax rate | | 12.0 % | | 32.3 % | | 5.2 % | | 23.8 % | | [Comparative Condensed Consolidated Balance Sheets](index=16&type=section&id=6.2%20Comparative%20Condensed%20Consolidated%20Balance%20Sheets) This statement presents Brunswick Corporation's financial position, detailing its assets, liabilities, and shareholders' equity as of September 27, 2025, December 31, 2024, and September 28, 2024, showing changes in key accounts like cash, inventories, goodwill, and debt Comparative Condensed Consolidated Balance Sheets | | | September 27, | | December 31, | September 28, | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | 2025 | | 2024 | 2024 | | | Assets | | | | | | | | Current assets | | | | | | | | Cash and cash equivalents, at cost, which approximates fair value | $ | 297.7 M | $ | 269.0 M | $ | 284.1 M | | Restricted cash | | 17.9 M | | 16.9 M | | 16.8 M | | Short-term investments in marketable securities | | 0.8 M | | 0.8 M | | 0.8 M | | Total cash and short-term investments in marketable securities | | 316.4 M | | 286.7 M | | 301.7 M | | Accounts and notes receivable, net | | 491.4 M | | 429.0 M | | 500.8 M | | Inventories | | | | | | | | Finished goods | | 807.8 M | | 846.9 M | | 937.0 M | | Work-in-process | | 157.1 M | | 148.1 M | | 173.5 M | | Raw materials | | 307.6 M | | 307.6 M | | 354.2 M | | Net inventories | | 1,272.5 M | | 1,302.6 M | | 1,464.7 M | | Prepaid expenses and other | | 77.2 M | | 95.5 M | | 80.8 M | | Current assets | | 2,157.5 M | | 2,113.8 M | | 2,348.0 M | | Net property | | 1,217.7 M | | 1,251.5 M | | 1,278.3 M | | Other assets | | | | | | | | Goodwill | | 679.6 M | | 966.1 M | | 1,059.7 M | | Other intangibles, net | | 866.4 M | | 918.3 M | | 939.9 M | | Deferred income tax asset | | 257.7 M | | 197.5 M | | 187.0 M | | Operating lease assets | | 172.9 M | | 161.8 M | | 162.5 M | | Equity investments | | 30.5 M | | 35.0 M | | 32.9 M | | Other long-term assets | | 31.2 M | | 33.7 M | | 15.2 M | | Other assets | | 2,038.3 M | | 2,312.4 M | | 2,397.2 M | | Total assets | $ | 5,413.5 M | $ | 5,677.7 M | $ | 6,023.5 M | | Liabilities and shareholders' equity | | | | | | | | Current liabilities | | | | | | | | Short-term debt and current maturities of long-term debt | $ | 95.8 M | $ | 242.8 M | $ | 199.2 M | | Accounts payable | | 413.3 M | | 393.4 M | | 369.1 M | | Accrued expenses | | 705.9 M | | 643.7 M | | 625.8 M | | Current liabilities | | 1,215.0 M | | 1,279.9 M | | 1,194.1 M | | Debt | | 2,097.4 M | | 2,097.8 M | | 2,372.7 M | | Other long-term liabilities | | 467.2 M | | 407.7 M | | 422.4 M | | Shareholders' equity | | 1,633.9 M | | 1,892.3 M | | 2,034.3 M | | Total liabilities and shareholders' equity | $ | 5,413.5 M | $ | 5,677.7 M | $ | 6,023.5 M | | Supplemental Information | | | | | | | | Debt-to-capitalization rate | | 57.3 % | | 55.3 % | | 55.8 % | [Comparative Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=6.3%20Comparative%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines Brunswick Corporation's cash flows from operating, investing, and financing activities for the nine months ended September 27, 2025, and September 28, 2024, including a reconciliation of free cash flow, demonstrating a significant increase in cash provided by operating activities Comparative Condensed Consolidated Statements of Cash Flows | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | | | September 27, | | September 28, | | | | 2025 | | 2024 | | Cash flows from operating activities | | | | | | Net (loss) earnings | $ | (156.0) M | $ | 212.6 M | | Less: net loss from discontinued operations, net of tax | | (1.5) M | | (7.9) M | | Net (loss) earnings from continuing operations | | (154.5) M | | 220.5 M | | Depreciation and amortization | | 216.9 M | | 212.0 M | | Stock compensation expense | | 27.6 M | | 20.4 M | | Pension funding, net of expense | | — | | (0.9) M | | Asset impairment charges | | 323.6 M | | 6.7 M | | Deferred income taxes | | (52.0) M | | 8.5 M | | Changes in certain current assets and current liabilities | | 68.7 M | | (323.7) M | | Extended warranty contracts and other deferred revenue | | 10.9 M | | 11.4 M | | Income taxes | | 18.8 M | | (22.9) M | | Other, net | | (8.9) M | | 5.5 M | | Net cash provided by operating activities of continuing operations | | 451.1 M | | 137.5 M | | Net cash used for operating activities of discontinued operations | | (21.9) M | | (12.5) M | | Net cash provided by operating activities | | 429.2 M | | 125.0 M | | Cash flows from investing activities | | | | | | Capital expenditures | | (116.5) M | | (137.1) M | | Purchases of marketable securities | | — | | (80.9) M | | Sales or maturities of marketable securities | | — | | 82.1 M | | Investments | | 5.1 M | | 5.5 M | | Acquisition of businesses, net of cash acquired | | (0.2) M | | (31.8) M | | Proceeds from the sale of property, plant and equipment | | 8.8 M | | 8.2 M | | Other, net | | 5.3 M | | — | | Net cash used for investing activities | | (97.5) M | | (154.0) M | | Cash flows from financing activities | | | | | | Net proceeds from issuances of short-term debt | | 292.6 M | | 200.8 M | | Payments of short-term debt | | (318.7) M | | (7.4) M | | Net proceeds from issuances of long-term debt | | — | | 396.9 M | | Payments of long-term debt including current maturities | | (128.4) M | | (451.9) M | | Common stock repurchases | | (65.0) M | | (190.0) M | | Cash dividends paid | | (84.6) M | | (84.6) M | | Tax withholding associated with shares issued for share-based compensation | | (7.3) M | | (9.3) M | | Other, net | | (1.8) M | | (1.5) M | | Net cash used for financing activities | | (313.2) M | | (147.0) M | | Effect of exchange rate changes | | 11.2 M | | (2.0) M | | Net increase (decrease) in Cash and cash equivalents and Restricted cash | | 29.7 M | | (178.0) M | | Cash and cash equivalents and Restricted cash at beginning of period | | 285.9 M | | 478.9 M | | Cash and cash equivalents and Restricted cash at end of period | | 315.6 M | | 300.9 M | | Less: Restricted cash | | 17.9 M | | 16.8 M | | Cash and cash equivalents at the end of period | $ | 297.7 M | $ | 284.1 M | | Reconciliation | | | | | | Free cash flow | | | | | | Net cash provided by operating activities of continuing operations | $ | 451.1 M | $ | 137.5 M | | Net cash (used for) provided by: | | | | | | Capital expenditures | | (116.5) M | | (137.1) M | | Proceeds from the sale of property, plant and equipment | | 8.8 M | | 8.2 M | | Effect of exchange rate changes on cash and cash equivalents | | 11.2 M | | (2.0) M | | Free cash flow | $ | 354.6 M | $ | 6.6 M |