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1. Company Snapshot

1.a. Company Description

Brunswick Corporation designs, manufactures, and markets recreation products worldwide.It operates through Propulsion; Parts & Accessories; and Boat segments.The Propulsion segment provides outboard, sterndrive, and inboard engines for independent boat builders and governments through marine dealers and distributors, specialty marine retailers, and marine service centers; and propulsion-related controls, rigging, and propellers to original equipment manufacturers and aftermarket retailers, distributors, and distribution businesses.


This segment offers its products under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, and Mercury Diesel brands.The Parts & Accessories segment provides engine parts and consumables, electrical products, boat parts and systems, engine oils and lubricants, marine electronics and control systems, instruments, trolling motors, fuel systems, and electrical systems, as well as specialty vehicle, mobile, and transportation aftermarket products for aftermarket retailers, distributors, and distribution businesses, as well for as for the original equipment manufacturers in marine and non-marine markets; and supplies parts and accessories.This segment offers its products under the under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands.


The Boat segment provides Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts and Heyday wake; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Cypress Cay, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; and Thunder Jet heavy-gauge aluminum boats, as well as the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors.Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.

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1.b. Last Insights on BC

Brunswick Corporation's recent performance was driven by strong Q3 2025 earnings, beating analyst expectations with revenue growth across all segments. The company's Propulsion segment led the growth, while its Boat segment stabilized, indicating organic demand recovery. Brunswick's competitive edge is supported by local manufacturing and lean dealer inventories. The company also announced a tender offer to purchase up to $100,000,000 of its 5.100% Senior Notes due 2052, aimed at optimizing its capital structure. Additionally, Brunswick was named to Forbes 2026 America's Best Companies list.

1.c. Company Highlights

2. Brunswick Corporation Delivers Strong Q3 Results

Brunswick Corporation reported a robust financial performance in the third quarter, with revenue reaching $1.4 billion, up 7% from the prior year. The company's adjusted earnings per share (EPS) was $0.97, beating estimates of $0.84. The strong EPS was driven by growth across all segments, including propulsion, boat, and aftermarket businesses. The company's free cash flow generation was also impressive, with $111 million in the quarter and $355 million year-to-date, a significant $348 million improvement over the first three quarters of last year.

Publication Date: Oct -26

📋 Highlights
  • Revenue & EPS Growth:: Q3 revenue rose 7% to $1.4B; adjusted EPS at $0.97, up YoY excluding tariffs and variable compensation.
  • Free Cash Flow Surge:: Generated $111M in Q3, $355M YTD, a $348M improvement over prior year’s first three quarters.
  • Propulsion Segment Strength:: Sales up 10% with Mercury’s U.S. outboard market share at 49.4%, driven by OEM orders and market share gains.
  • Debt Reduction & Guidance:: Raised 2025 debt reduction target to $200M; expects $375M in cumulative debt retirement since 2023.
  • 2026 Outlook:: Anticipates mid-to-high single-digit revenue growth and over 25% adjusted EPS growth, fueled by market share gains and product innovation like Ghost X and Simrad AutoCaptain.

Segment Performance

The Propulsion business delivered a 10% sales growth, driven by strong OEM orders and market share gains, with Mercury's U.S. outboard market share reaching 49.4%. The Engine Parts and Accessories segment also posted an 8% sales growth, while the Navico Group reported modest sales growth, led by strong performance in marine electronics product lines. The Boat business grew revenue and adjusted operating margin, driven by strength in premium brands and aluminum boat businesses.

Strategic Initiatives

The company announced a strategic rationalization of its fiberglass boat manufacturing footprint, exiting facilities in Reynosa, Mexico, and Flagler Beach, Florida, by mid-2026. This move is expected to drive efficiencies and reduce costs. Additionally, the company is making significant advancements in its product lines and technology, including the launch of the Trolling Motor Ghost X and the Simrad AutoCaptain autonomous boating system.

Guidance and Outlook

The company increased its debt reduction guidance for 2025 by $25 million to $200 million and expects to retire approximately $375 million of debt since the beginning of 2023. Brunswick's full-year guidance remains unchanged, with revenue of approximately $5.2 billion, adjusted operating margins of approximately 7%, and adjusted EPS of approximately $3.25. The company expects to generate over $425 million of free cash flow for the year. For 2026, the company expects mid- to high single-digit revenue growth, driven by a combination of market growth, pricing, share gains, and better discounting.

Valuation

With a P/E Ratio of -19.93, the company's valuation appears to be challenging. However, the Free Cash Flow Yield of 13.43% is attractive, indicating a strong ability to generate cash. The Net Debt / EBITDA ratio of 21.04 is high, but the company's debt reduction guidance is encouraging. Analysts estimate next year's revenue growth at 5.4%, which is slightly lower than the company's guidance. Overall, the company's strong financial performance and strategic initiatives position it well for future growth.

3. NewsRoom

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Makenita Resources More than Doubles Its Landholdings in the Sisson West Tungsten Project in New Brunswick, Canada

Dec -04

Source: newsfilecorp.com

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Mercury Marine Announces New 5-Year Exclusive Supply Agreement with Axopar Boats

Dec -02

Source: globenewswire.com

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Mercury Marine and Saxdor Yachts Announce Next Exclusive 5-Year Supply Agreement

Dec -02

Source: globenewswire.com

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Brunswick Exploration Reports More High-Grade Cesium and Lithium Values at Anatacau Main

Dec -01

Source: globenewswire.com

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Brunswick Corporation Announces Pricing of Cash Tender Offer for an Aggregate Principal Amount of up to $100,000,000 of Outstanding 5.100% Senior Notes due 2052

Nov -26

Source: globenewswire.com

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Brunswick Corporation Announces Early Results and Increase of Cash Tender Offer of Outstanding 5.100% Senior Notes due 2052

Nov -26

Source: globenewswire.com

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Makenita Resources Closes Acquisition of the "Sisson West Tungsten Project" in New Brunswick and the "NTX Rare Earth Project in Quebec"

Nov -21

Source: newsfilecorp.com

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Brunswick Corporation Named to Forbes 2026 America's Best Companies List

Nov -19

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.77%)

6. Segments

Propulsion

Expected Growth: 6.47%

Brunswick Corporation's 6.47% growth is driven by increasing demand for recreational boats and marine engines, fueled by rising consumer spending and a growing middle class. Additionally, the company's strategic acquisitions, innovative product offerings, and expanding global presence contribute to its growth momentum.

Boat

Expected Growth: 4.83%

Brunswick Corporation's 4.83% growth in the boat segment is driven by increasing demand for recreational activities, rising disposable income, and a growing trend towards experiential spending. Additionally, the company's focus on innovation, digitalization, and strategic acquisitions has enhanced its product offerings and expanded its market reach.

Engine Parts and Accessories

Expected Growth: 4.83%

Brunswick Corporation's Engine Parts and Accessories segment growth of 4.83% is driven by increasing demand for marine engines, growth in recreational boating, and rising popularity of water sports. Additionally, the company's focus on innovation, product diversification, and strategic acquisitions have contributed to the segment's expansion.

Navico

Expected Growth: 7.43%

Navico's 7.43% growth is driven by increasing demand for advanced marine electronics, expansion in emerging markets, and strategic investments in research and development. Additionally, the company's focus on digitalization, sustainability, and innovative products such as chart plotters and fish finders have contributed to its growth momentum.

Eliminations

Expected Growth: 4.83%

Brunswick Corporation's 4.83% growth is driven by increasing demand for recreational boats and engines, driven by rising consumer spending and a growing middle class. Additionally, the company's focus on innovation, digitalization, and strategic acquisitions has enhanced its product offerings and expanded its market reach, contributing to its growth momentum.

7. Detailed Products

Sea Ray Boats

Luxury recreational boats and yachts

Bayliner Boats

Recreational boats for fishing, cruising, and water sports

Boston Whaler Boats

Unsinkable, high-performance boats for fishing, cruising, and water sports

Mercury Marine Engines

Outboard motors and sterndrive engines for recreational and commercial boats

Life Fitness Equipment

Commercial and home fitness equipment, including treadmills, ellipticals, and strength training machines

Hammer Strength Equipment

Commercial strength training equipment for elite athletes and fitness enthusiasts

Scifit Fitness Equipment

Rehabilitation and physical therapy equipment for healthcare professionals and patients

8. Brunswick Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Brunswick Corporation's products, such as boats and fitness equipment, have some substitutes, but they are not easily replaceable. The company's strong brand recognition and quality products reduce the threat of substitutes.

Bargaining Power Of Customers

Brunswick Corporation's customers have some bargaining power, but it is limited due to the company's strong brand recognition and the lack of alternative products.

Bargaining Power Of Suppliers

Brunswick Corporation's suppliers have some bargaining power, but it is mitigated by the company's large size and diversified supply chain.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industries in which Brunswick Corporation operates, such as the capital-intensive boat manufacturing industry.

Intensity Of Rivalry

The intensity of rivalry in the industries in which Brunswick Corporation operates is high, with many established competitors and a high level of competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.40%
Debt Cost 3.95%
Equity Weight 44.60%
Equity Cost 11.94%
WACC 7.51%
Leverage 124.20%

11. Quality Control: Brunswick Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
LCI

A-Score: 5.6/10

Value: 6.9

Growth: 5.8

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Thor Industries

A-Score: 4.8/10

Value: 6.1

Growth: 4.0

Quality: 5.3

Yield: 4.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Brunswick

A-Score: 4.5/10

Value: 6.9

Growth: 4.8

Quality: 2.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Harley-Davidson

A-Score: 4.4/10

Value: 6.6

Growth: 4.0

Quality: 3.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Polaris

A-Score: 3.9/10

Value: 6.4

Growth: 2.6

Quality: 2.4

Yield: 7.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

70.11$

Current Price

70.11$

Potential

-0.00%

Expected Cash-Flows