Brunswick(BC) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights Brunswick Corporation reported strong Q3 2025 financial results, confirming full-year guidance and highlighting strategic operational achievements Third Quarter 2025 Financial Highlights 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] - Increased Free Cash Flow Guidance to Greater Than $425 million[3] Management Commentary 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] - 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] - 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] - 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] - 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][10] - Completed $70 million of share repurchases year-to-date and increased debt reduction target to $200 million for the year[11] Detailed Financial Results 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 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] - 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][13] Segment Performance 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 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] Engine Parts & Accessories Segment 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] Navico Group Segment 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] - Introduced the Simrad AutoCaptain autonomous boating system, developed in collaboration with Mercury Marine and Brunswick Boat Group[9] Boat Segment 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] - Announced strategic rationalization of fiberglass boat manufacturing footprint, consolidating production to reduce fixed costs and improve efficiency[10] Cash Flow and Balance Sheet Review 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] 2025 Outlook 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] - 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] - Strategic actions, including manufacturing capacity optimization, are expected to drive significant improvements in medium-term profitability[19] 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 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 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] - Adjustments typically exclude purchase accounting amortization related to acquisitions, restructuring, exit and impairment costs, special tax items, and acquisition-related costs[22][23] Consolidated Non-GAAP Reconciliation 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 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 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 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] - Hosted by David M. Foulkes (Chairman and CEO), Ryan M. Gwillim (EVP and CFO), and Stephen Weiland (SVP and Deputy CFO)[24] - Webcast available at www.brunswick.com/investors; telephone participation via 877-900-9524 (North America) or 412-902-0029 (outside North America)[24][26] Forward-Looking Statements 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] - 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] - 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][28] About Brunswick Corporation 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] - 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][31] - Headquartered in Mettawa, IL, with approximately 15,000 employees operating in 25 countries[31] Financial Statements This section presents Brunswick Corporation's comparative condensed consolidated statements of operations, balance sheets, and cash flows Comparative Condensed Consolidated Statements of Operations 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 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 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 |