Brunswick(BC) - 2024 Q4 - Annual Results

Financial Performance - Full-Year 2024 GAAP diluted EPS was $2.21, a decrease of 63.9$4.57, down 48.1%[3] - Net sales for FY 2024 were $5,237.1 million, reflecting an 18.2$1,154.9 million, down 15.2% from Q4 2023, with diluted EPS of $(1.07) on a GAAP basis and$0.24 as adjusted[4][11] - Operating loss for Q4 2024 was $(55.7) million, compared to operating earnings of$108.3 million in Q4 2023, representing a significant decline[34] - Net loss from continuing operations for Q4 2024 was $(71.2) million, compared to net earnings of$71.0 million in Q4 2023[34] - The diluted earnings per share for Q4 2024 was $(1.24), a decrease from$0.88 in Q4 2023[34] - Adjusted operating earnings for the total company for the twelve months ended December 31, 2024, were $495.4 million, a decrease of 43.0$869.3 million in 2023[40] - Brunswick Corporation's net earnings from continuing operations were $149.3 million in 2024, down from$432.6 million in 2023[46] Sales Performance - The total net sales for the twelve months ended December 31, 2024, were $5,237.1 million, down 18$6,401.4 million in 2023[34] - The Propulsion segment reported net sales of $452.1 million in Q4 2024, a decrease of 23.5$590.7 million in Q4 2023[37] - The Propulsion segment reported a 25.0% decline in net sales, totaling $2,074.2 million compared to$2,763.8 million in 2023[40] - The Boat segment experienced an 18.0% decline in net sales, falling to $348.3 million from$424.8 million year-over-year[42] - The Navico Group segment reported a net sales decrease of 0.6%, totaling $195.1 million compared to$196.2 million in 2023[41] - Engine Parts & Accessories Segment net sales decreased by 3.3% to $1,160.8 million in 2024 from$1,199.8 million in 2023[43] - Navico Group Segment net sales fell by 12.5% to $800.2 million in 2024 compared to$914.7 million in 2023[43] - Boat Segment net sales declined by 21.9% to $1,553.5 million in 2024 from$1,989.4 million in 2023[43] Cash Flow and Financial Position - Free cash flow conversion for FY 2024 was 92%, with net cash provided by operating activities totaling $449.5 million, down$295.7 million from the prior year[6][16] - The company reported cash and marketable securities of $286.7 million at the end of 2024, a decrease of$193.0 million from year-end 2023[16] - Free cash flow for 2024 was $284.3 million, down from$473.4 million in 2023, indicating a decrease in cash generation[46] - Total assets decreased to $5,677.7 million in 2024 from$6,230.5 million in 2023, reflecting a reduction in cash and cash equivalents[45] - The debt-to-capitalization rate increased to 55.3% in 2024 from 53.8% in 2023, indicating a higher leverage position[45] Future Outlook - Brunswick anticipates 2025 net sales between $5.2 billion and$5.6 billion, with adjusted diluted EPS projected in the range of $3.50 to$5.00[22] - The company plans for first quarter 2025 revenue of $1.0 to$1.2 billion, with adjusted diluted EPS between $0.15 and$0.25[22] Strategic Initiatives - Freedom Boat Club contributed approximately 12% of sales to the boat segment, continuing to grow membership and expand locations globally[10][15] - Brunswick's ongoing investments in new products and technologies are aimed at supporting strategic growth initiatives despite a challenging market environment[6][19] Operational Metrics - Research and development expenses for Q4 2024 were $39.1 million, down 8$42.4 million in Q4 2023[34] - The adjusted operating margin for the total company decreased to 9.5% from 13.6% in the previous year[40] - Brunswick Corporation's effective tax rate decreased to 17.3% for the year ended December 31, 2024, from 31.2% in 2023[34] Recognition and Charges - Brunswick was recognized as America's Best Large Employers for 2024 by Forbes Magazine for the sixth consecutive year[33] - The company reported a significant increase in restructuring, exit, and impairment charges, totaling $121.7 million for the year[47]