Financial Data and Key Metrics Changes - The company reported revenue of $3.6 million for the first quarter, representing a 91.7% sequential increase compared to the fourth quarter of 2024, exceeding the previously guided growth of 50% [15] - Gross margins improved to 14.9%, up 961 basis points from the same period last year, primarily due to better manufacturing efficiency [16] - Operating expenses decreased by 21% year over year, reflecting reductions in selling, general and administrative expenses [17] - The adjusted net loss averaged $333,000 per month in the first quarter, a 17% improvement over the previously guided adjusted net loss expectations of $400,000 [17] - Cash and cash equivalents stood at $5.1 million as of March 31, down from year-end levels primarily due to funding negative EBITDA [17] Business Line Data and Key Metrics Changes - The company shipped 24 units in the first quarter, a sequential increase of 118% compared to the fourth quarter of 2024 [16] - The average sale price delivered fell to $151,000 in the first quarter from $171,000 in the fourth quarter due to an increased mix of smaller boats [16] - Field inventory decreased significantly from approximately 180 boats to under 60 boats, indicating improved inventory management and demand [8][10] Market Data and Key Metrics Changes - The recreational sector faced challenges in 2024, but the company has seen signs of recovery in consumer demand as the dealer network expands [15][21] - The company added six new dealer locations, enhancing its market presence [7] Company Strategy and Development Direction - The company is focused on operational efficiency, margin expansion, and developing high-impact digital platforms to complement its core business [21] - A new 22-foot twin D Bay Cat model was introduced, targeting the growing inshore market [11] - The company completed a facility expansion of 30,000 square feet to enhance operational efficiency [11] - A new interactive website is set to launch, transforming customer interaction and enhancing the buying experience [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and supply chain issues but expressed confidence in navigating these through proactive strategies [20] - The company anticipates continued sequential revenue growth in the second quarter of 2025 as the market recovers [21] - Management emphasized a commitment to operational discipline and American craftsmanship while delivering value to customers and shareholders [24] Other Important Information - The company reclassified $4.3 million of land and buildings as held for sale, which is expected to strengthen cash position within the next twelve months [19] - Inventory turnover improved from approximately 4.5 to 5 turns year over year, reflecting better alignment between production and dealer demand [19] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have been included in the records provided.

Financial Data and Key Metrics Changes - The company reported revenue of $3.6 million for Q1 2025, representing a 91.7% sequential increase compared to Q4 2024, exceeding the previously guided growth of 50% [14] - Gross margins improved to 14.9%, an increase of 961 basis points year-over-year, primarily due to better manufacturing efficiency [15] - Operating expenses decreased by 21% year-over-year, reflecting reductions in selling, general and administrative expenses, including salaries and professional fees [15] - The adjusted net loss averaged $333,000 per month in Q1 2025, a 17% improvement over the previously guided adjusted net loss expectations of $400,000 [16] Business Line Data and Key Metrics Changes - The company shipped 24 units in Q1 2025, a sequential increase of 118% compared to Q4 2024 [14] - The average sale price per unit decreased to $151,000 in Q1 2025 from $171,000 in Q4 2024 due to a higher mix of smaller boats [15] - Field inventory decreased significantly from approximately 180 boats to under 60 boats, indicating improved sales and inventory management [7][9] Market Data and Key Metrics Changes - The company noted that the recreational sector faced challenges in 2024, but this provided an opportunity to reset and refocus for future growth [5] - The dealer network expanded with the addition of six new dealer locations, enhancing market presence [6] Company Strategy and Development Direction - The company is focused on operational efficiency, margin expansion, and developing high-impact digital platforms to complement its core business [19] - A new 22-foot twin D Bay Cat model was introduced, targeting the growing inshore market, which is expected to generate strong interest [10] - The company completed a facility expansion of 30,000 square feet to enhance operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued sequential revenue growth in Q2 2025 as the market recovers and the dealer base expands [19] - The company is actively monitoring the impact of tariffs on its supply chain but believes its proactive strategy will help navigate potential challenges [18] Other Important Information - The company reclassified $4.3 million of land and buildings as held for sale, which is expected to strengthen its cash position within the next twelve months [17] - A new interactive website is set to launch, enhancing customer engagement and allowing for real-time customization of products [12] Q&A Session Summary Question: What is the outlook for revenue growth in the upcoming quarters? - Management anticipates continued sequential revenue growth in Q2 2025 as the market slowly recovers and the dealer base expands [19] Question: How is the company addressing the impact of tariffs? - The company is actively monitoring the evolving tariff landscape and believes its strong relationships with US suppliers will help mitigate risks [18]

Financial Data and Key Metrics Changes - Brunswick's first-quarter results exceeded expectations despite a challenging macro environment, with a notable $160 million improvement in free cash flow compared to Q1 2024, marking the second-best first-quarter cash flow on record [9][10] - Net sales decreased by 11% year-over-year, with adjusted operating margins at 6%, resulting in an adjusted EPS of $0.56 [27][28] - The updated adjusted EPS guidance for 2025 is now between $2.50 and $4.00 per share, reflecting significant uncertainty due to trade policy and macroeconomic conditions [22][36] Business Line Data and Key Metrics Changes - The propulsion business experienced a 16% decrease in sales primarily due to pipeline management and lower wholesale shipments, while aftermarket engine parts and accessories saw a 3% decrease in sales but a 7% increase in adjusted operating earnings [29][30] - The boat business reported a 13% decrease in sales, attributed to cautious wholesale ordering patterns, although it showed mid-single-digit growth compared to Q4 2024 [31] - Freedom Boat Club continued to expand globally, with steady membership sales growth and a 3% increase in member boat usage [14][31] Market Data and Key Metrics Changes - The US main powerboat industry retail was down modestly in Q1, with Brunswick's performance primarily affected by declines in the value segment [18] - Outboard engine industry retail units declined by 6%, with Mercury's performance slightly lower due to registration calendarization [21] - US weeks on hand decreased to 35.6%, indicating a reduction in inventory levels compared to Q1 2024 [22] Company Strategy and Development Direction - Brunswick is considering streamlining its entry-level product offerings due to observed weakness in that segment, focusing on higher-margin products and growth opportunities [7][81] - The company is actively working on mitigating tariff impacts through supply chain adjustments, pricing strategies, and classification of components to minimize exposure [16][108] - Brunswick aims to maintain a strong focus on cash generation, with a target of $350 million in free cash flow for the year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall start to the year, despite uncertainties in the macroeconomic environment and consumer sentiment [10][14] - The company anticipates that the second quarter will be crucial for retail and wholesale, with potential volume pressures due to ongoing tariff uncertainties [64][70] - Management remains confident in the resilience of premium brands and expects to navigate through the current challenges effectively [92][96] Other Important Information - Brunswick launched several new products at the 2025 Miami Boat Show, including the all-new NSS four multifunction display and the Series 5 Flight jet [38][40] - The company received multiple awards for its products and workplace culture, including recognition as one of America's most trustworthy companies [41][42] Q&A Session Summary Question: Can you help us understand the guidance update for 2025? - Management indicated that the high end of the guidance range assumes a moderation in the tariff environment and better-than-expected mitigation efforts, while the low end reflects continued tariff pressures and volume declines [48][50] Question: What is the anticipated gross number for tariff mitigation? - Management stated that while it's difficult to provide an exact number, the gross impact is likely less than double the net impact due to various factors affecting timing and payment [60] Question: What are the plans to streamline entry-level boats? - Management confirmed that they are reducing the number of models in the entry-level category, focusing on optimizing manufacturing and prioritizing investments in higher-margin areas [81][84] Question: How is the capital market volatility affecting consumer behavior? - Management noted that while there is some short-term hesitancy, premium brands have shown resilience, and dealers are still placing orders due to lean inventory levels [92][96] Question: What are the mitigation actions against tariffs? - Management highlighted pricing strategies, supply chain migration, and component classification as key mitigation actions, with a significant reduction in dependency on China-based suppliers [108][111]

Financial Data and Key Metrics Changes - Brunswick's first-quarter results exceeded expectations despite a challenging macro environment, with a notable $160 million improvement in free cash flow compared to Q1 2024, marking the second-best first-quarter cash flow on record [9][10] - Net sales decreased by 11% year-over-year, with adjusted operating margins at 6%, resulting in an adjusted EPS of $0.56 [27][28] - The updated adjusted EPS guidance for 2025 is now between $2.50 and $4.00 per share, reflecting significant uncertainty due to trade policy and macroeconomic conditions [22][36] Business Line Data and Key Metrics Changes - The propulsion business experienced a 16% decrease in sales primarily due to pipeline management and lower wholesale shipments, while the aftermarket engine parts and accessories business saw a 3% decrease in sales but a 7% increase in adjusted operating earnings [29][30] - The boat business reported a 13% decrease in sales, attributed to cautious wholesale ordering patterns, although Freedom Boat Club continued to expand globally with steady membership growth [31][14] - Navico Group's sales were flat year-over-year, with strong aftermarket sales offsetting reduced OEM orders [12][30] Market Data and Key Metrics Changes - The US main powerboat industry retail was down modestly in Q1, with Brunswick's performance primarily affected by declines in the value segment [18] - Outboard engine industry retail units declined by 6%, with Mercury's performance slightly lower due to registration calendarization [21] - US weeks on hand decreased to 35.6%, indicating a reduction in inventory levels compared to Q1 2024 [21] Company Strategy and Development Direction - Brunswick is considering streamlining its entry-level product offerings due to observed weakness in that segment, focusing on higher-margin products and growth opportunities [7][81] - The company is actively working on mitigating tariff impacts through supply chain adjustments, pricing strategies, and classification of components to minimize exposure [16][110] - Brunswick aims to maintain a strong focus on cash generation, with a target of $350 million in free cash flow for the year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the retail environment, noting stable dealer sentiment despite consumer volatility [17] - The uncertain tariff environment and macroeconomic conditions are expected to impact consumer spending, with potential volume pressures anticipated in the near term [14][24] - Management remains confident in the resilience of premium brands and their ability to navigate current challenges, with expectations for a flat US retail boat market in 2025 [37][92] Other Important Information - Brunswick launched several new products at the Miami Boat Show, including the SIMRAD NSS four multifunction display and the Flight Series 5 [38][39] - The company received multiple awards for its products and workplace culture, including recognition for being one of America's most trustworthy companies [41][42] Q&A Session Summary Question: Can you help us understand the guidance update for 2025? - Management indicated that the high end of the guidance range assumes a moderation in the tariff environment and better-than-expected mitigation efforts, while the low end reflects continued tariff pressures and volume declines [48][50] Question: What is the anticipated gross number for tariff mitigation? - Management stated that while it's difficult to provide an exact number, the gross impact is likely less than double the net impact due to various factors affecting timing and payment [60] Question: What are the plans to streamline entry-level boats? - Management confirmed that they are reducing the number of models in the entry-level category, focusing on higher-margin products and optimizing manufacturing [81][84] Question: How is the capital market volatility affecting consumer behavior? - Management noted that while there is some concern regarding capital market volatility, premium brands have shown resilience, and retail financing rates remain stable [92][125] Question: What are the mitigation actions against tariffs? - Management highlighted pricing strategies, supply chain migration, and component classification as key mitigation actions, with a significant reduction in dependency on China expected [108][111]