Brunswick(US:BC)2025-04-24 10:16Financial Performance - First quarter 2025 net sales were $1,221.8 million, a decrease of 10.5% compared to Q1 2024[2] - GAAP diluted EPS for the first quarter was $0.30, while as adjusted diluted EPS was $0.56, reflecting a decline of 70.0% and 58.5% respectively year-over-year[2] - Operating earnings fell to $56.3 million, down 49% from $110.6 million in the same quarter last year[26] - Net earnings from continuing operations decreased by 70% to $20.2 million, compared to $68.4 million in Q1 2024[26] - Adjusted operating earnings for the total company were $72.1 million, down 49% from $141.5 million in Q1 2024[27] Segment Performance - The propulsion segment experienced a 16% decrease in sales compared to Q1 2024, with operating earnings also down due to lower sales and production levels[9] - The engine parts and accessories segment reported a 3% decrease in sales, but operating margin improved to 15%, up more than 100 basis points year-over-year[10] - Freedom Boat Club contributed approximately 11% of the boat segment sales, showing strong membership growth despite a 13% decrease in overall boat segment sales[12] - The Propulsion segment reported net sales of $487.0 million, a decline of 15.8% from $578.2 million in Q1 2024[28] - The Engine Parts & Accessories segment saw a slight decrease in net sales to $255.3 million, down 2.7% from $262.4 million[28] - The Navico Group segment experienced a 1.3% decline in net sales, totaling $208.2 million compared to $210.9 million[28] - Boat segment net sales decreased by $53.6 million, or 12.6%, from $425.7 million in Q1 2024 to $372.1 million in Q1 2025[31] - GAAP operating earnings for the boat segment fell by $21.7 million, or 73.8%, from $29.4 million in Q1 2024 to $7.7 million in Q1 2025[31] - Adjusted operating earnings for the boat segment decreased by $22.5 million, or 71.2%, from $31.6 million in Q1 2024 to $9.1 million in Q1 2025[31] Cash Flow and Financial Position - Brunswick generated outstanding free cash flow, with a $160 million improvement compared to Q1 2024, marking the second-best first quarter cash flow in over a decade[3] - Net cash used for operating activities of continuing operations was $(13.4) million in Q1 2025, compared to $(148.1) million in Q1 2024[33] - Free cash flow for Q1 2025 was $(44.4) million, a decrease from $(204.5) million in Q1 2024[33] - Cash and cash equivalents at the end of Q1 2025 were $286.7 million, down from $548.4 million at the end of Q1 2024[33] - Total assets increased from $5,677.7 million in Q1 2024 to $5,857.0 million in Q1 2025, reflecting a growth of $179.3 million[32] - Current liabilities rose from $1,279.9 million in Q1 2024 to $1,468.2 million in Q1 2025, an increase of $188.3 million[32] - The debt-to-capitalization rate increased from 55.3% in Q1 2024 to 57.0% in Q1 2025[32] Guidance and Strategic Initiatives - The company updated its full-year guidance, projecting net sales between $5.0 billion and $5.4 billion and adjusted diluted EPS in the range of $2.50 to $4.00[16] - Brunswick plans to continue investing in new products and technologies while managing supply chain actions to mitigate tariff impacts[15] - The company completed $26 million in share repurchases during the first quarter, reinforcing its commitment to return value to shareholders[8] Recognition and Taxation - Brunswick Corporation was recognized as one of America's Best Large Employers for 2024 by Forbes Magazine for the sixth consecutive year[25] - The effective tax rate increased to 28.1% from 21.4% year-over-year[26] - Research and development expenses decreased by 16% to $38.5 million from $45.8 million in the prior year[26] Corporate/Other Segment - GAAP operating loss in the Corporate/Other segment increased by $1.4 million, or 4.3%, from $(32.4) million in Q1 2024 to $(33.8) million in Q1 2025[31]