Brunswick(US:BC) Youtubeยท2025-10-23 20:40Core 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].