Brunswick(US:BC)2026-01-29 11:16Financial Performance - Brunswick reported full-year net sales of $5,362.8 million, a 2.4% increase compared to FY 2024[3] - For Q4 2025, consolidated net sales reached $1,333.8 million, up 15.5% from $1,154.9 million in Q4 2024[4] - Full-year GAAP diluted EPS was $(2.06), while as adjusted diluted EPS was $3.27, reflecting a 28.4% decrease[3] - The company anticipates 2026 net sales between $5.6 billion and $5.8 billion, with adjusted diluted EPS guidance of $3.80 to $4.40[29] - Total net sales for the company rose by 15.5% to $1,333.8 million in Q4 2025 compared to $1,154.9 million in Q4 2024[40] - For the twelve months ended December 31, 2025, total net sales were $5,362.8 million, a 2.4% increase from $5,237.1 million in 2024[42] Segment Performance - The propulsion segment saw a 23% increase in sales in Q4 2025, driven by strong OEM orders[14] - The engine parts and accessories segment reported a 15% increase in sales, with distribution business sales up 22%[15] - The Propulsion segment saw a 23.1% increase in net sales to $556.6 million in Q4 2025, with an operating margin of 6.5%[39] - The Boat segment's net sales increased by 11.2% to $387.3 million in Q4 2025 from $348.3 million in Q4 2024[44] - Engine Parts & Accessories Segment net sales increased by 4.9% to $1,217.5 million in 2025 from $1,160.8 million in 2024[45] - The Engine Parts & Accessories segment reported a 15.3% increase in net sales to $260.7 million in Q4 2025 compared to $226.2 million in Q4 2024[43] - Boat Segment net sales decreased by 1.8% to $1,525.2 million in 2025 from $1,553.5 million in 2024, with GAAP operating earnings dropping by 49.1% to $32.2 million[45] Cash Flow and Liquidity - Brunswick's free cash flow for 2025 was $442 million, supporting investments in new products and technology[6] - Cash and cash equivalents at the end of the period were $256.8 million, down from $269.0 million in 2024, reflecting a net decrease of $11.1 million[48] - Free cash flow improved to $442.2 million in 2025, compared to $284.3 million in 2024, indicating stronger cash generation from operations[48] - Net cash provided by operating activities of continuing operations rose to $585.7 million in 2025 from $449.5 million in 2024, showing improved operational efficiency[48] Operating Earnings - Operating earnings for Q4 2025 were $41.9 million, a significant recovery from a loss of $55.7 million in Q4 2024[36] - The company achieved an adjusted operating margin of 5.0% for Q4 2025, compared to an adjusted operating margin of 4.1% in Q4 2024[38] - Adjusted operating earnings for the total company increased by 41.1% to $66.6 million in Q4 2025 from $47.2 million in Q4 2024[40] - Brunswick's total operating earnings for the twelve months ended December 31, 2025, were $371.1 million, compared to $495.4 million in 2024[38] Corporate Developments - Freedom Boat Club expanded to 442 global locations, with member trips increasing by 5% over 2024[11] - The company is focused on integrating acquisitions and enhancing its product offerings to drive future growth and innovation[35] Cost and Expenses - The cost of sales increased by 14% to $1,026.0 million in Q4 2025, compared to $901.7 million in Q4 2024[36] - Research and development expenses rose by 15% to $45.0 million in Q4 2025, while total R&D expenses for the twelve months ended December 31, 2025, were $168.7 million, a slight decrease of 1% from $169.6 million in 2024[36] Balance Sheet and Capitalization - Brunswick's cash and marketable securities totaled $275.7 million at the end of 2025, down $11.0 million from the previous year[18] - Total assets decreased to $5,312.2 million in 2025 from $5,677.7 million in 2024, primarily due to a reduction in goodwill and other intangibles[47] - The debt-to-capitalization rate increased to 56.4% in 2025 from 55.3% in 2024, indicating a higher leverage position[47] - Total current liabilities increased to $1,428.7 million in 2025 from $1,279.9 million in 2024, driven by higher accrued expenses and short-term debt[47] Earnings and Losses - The net earnings from continuing operations for Q4 2025 were $18.6 million, compared to a loss of $71.2 million in Q4 2024[36] - Brunswick's diluted earnings per share for Q4 2025 were $0.28, recovering from a loss of $1.07 per share in Q4 2024[37] - The Propulsion segment's adjusted operating earnings decreased by 23.4% to $195.5 million for the twelve months ended December 31, 2025, compared to $255.2 million in 2024[44] - Corporate/Other segment reported an adjusted operating loss of $37.5 million in Q4 2025, worsening by 36.9% from a loss of $27.4 million in Q4 2024[44] - Navico Group Segment reported a GAAP operating loss of $339.6 million in 2025, compared to a loss of $100.6 million in 2024, reflecting a significant increase in restructuring charges[45] - Corporate/Other segment GAAP operating loss widened to $146.6 million in 2025 from $113.6 million in 2024, marking a 29.0% increase[46]