Brunswick Corporation (BC) | Investment Case

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

Breaking News: Brunswick Corporation recently reported no new earnings release. However, Channing Capital Management LLC decreased its stake in the company by 1.2% during the last quarter, now owning 1,182,326 shares valued at $74.77 million. Meanwhile, Brunswick Corporation received a Gold BOSS Award at CES 2026, ranking fourth overall for its experiential exhibit. Analysts at Wedbush and Deutsche Bank have given recommendations, with Wedbush maintaining a neutral rating and Deutsche Bank reiterating a hold rating.

1.c. Company Highlights

Last Price	83.33
Change Percentage	-6.50%
Open	86.76
Previous Close	89.12
Market Cap ( Millions)	5419
Volume	838372
Year High	90.25
Year Low	41
M A 50	82.25
M A 200	66.22

FCF Yield	7.31%
Dividend Yield	2.08%
ROE	-7.80%
Debt / Equity	149.40%
Net Debt / EBIDTA	802.16%
Price To Book	3.36
Price Earnings Ratio	-39.81
Price To FCF	13.68
Price To sales	1.01
EV / EBITDA	28.21

2. Brunswick Corporation's Strong 2025 Earnings: A Closer Look

Brunswick Corporation delivered a robust financial performance in 2025, with net sales reaching $5.4 billion, up 2% over the prior year. The company's adjusted earnings per share (EPS) came in at $3.27, impacted by tariff headwinds. The actual EPS for the fourth quarter was $0.58, in line with estimates. The company's propulsion segment had an outstanding fourth quarter, with increased revenues and earnings in each of its three business lines.

Publication Date: Feb -09

                                    📋 Highlights
                                    Net Sales Growth:
                                                Brunswick achieved $5.4 billion in net sales for 2025, a 2% increase over the prior year, marking the first full-year revenue growth in three years.
Free Cash Flow:
                                                The company generated $442 million in free cash flow for 2025, driven by operational discipline and low dealer pipelines, with plans to retire $400 million in debt by 2026.
Propulsion Segment Outperformance:
                                                Mercury outboard led in U.S., Canada, and Europe, with propulsion segment revenue and earnings rising across all business lines, including a 26% growth in outboard sales.
Tariff Impact:
                                                Tariffs are expected to cost $35–45 million in 2026 (impacting EPS by ~$0.60), down from $75 million in 2025, mitigated by AI tools and sourcing optimizations.
2026 Guidance:
                                                Brunswick forecasts revenue of $5.6–$5.8 billion, adjusted EPS of $3.80–$4.40, and operating margins of 7.58%, supported by lower interest rates and strong wholesale order growth.

                                

Segment Performance and Market Outlook

The company's leading boat brands outperformed the U.S. industry, with global retail unit sales down only 5% driven by weakness in value products. The U.S. industry retail units were down about 9% for the year, but Brunswick's retail boat sales stabilized in the second half of the year, resulting in overall flat second-half performance compared to the prior year. David Foulkes noted that the company's boat and engine pipelines are at extremely low levels, driven by deliberate actions over the last two years.

Free Cash Flow and Capital Strategy

Brunswick generated $442 million of free cash flow in 2025, providing financial flexibility to invest in the business, repurchase shares, increase the dividend, and retire debt. The company's investment-grade balance sheet was further strengthened by the retirement of approximately $240 million of debt this year. Brunswick had $1.3 billion in liquidity, including full access to its undrawn revolving credit facility.

Guidance and Valuation

The company expects revenue of between $5.6 billion and $5.8 billion in 2026, with adjusted operating margins between 7% and 8%. Analysts estimate next year's revenue growth at 5.3%. With a current P/E Ratio of -41.99 and an EV/EBITDA of 28.16, the market seems to be pricing in significant growth expectations. The company's strong free cash flow generation and improving retail sales support this outlook.

Tariff Impact and Mitigation

Ryan Gwillim mentioned that the company is successful in its aggressive tariff mitigation strategies, using AI tools, sourcing optimization, value engineering, trade provisions, and other methods to reduce tariff impacts. The estimated tariff impact for 2026 is between $35 million and $45 million, or approximately $0.60 of EPS.

3. NewsRoom

Brunswick Corporation Earns Top 5 Gold Honors at CES 2026 BOSS Awards

11:00

Source: globenewswire.com

Channing Capital Management LLC Has $74.77 Million Stake in Brunswick Corporation $BC

Feb -22

Source: defenseworld.net

Brunswick Exploration Identifies Seven New Spodumene Targets and Stakes Additional Claims at Anatacau Main

Feb -19

Source: globenewswire.com

Brunswick Showcases Strong Brands and Innovation at the 2026 Miami International Boat Show

Feb -19

Source: globenewswire.com

Brunswick Corporation (NYSE:BC) Receives Average Recommendation of “Hold” from Analysts

Feb -19

Source: defenseworld.net

Sheffield Financial, Mercury Marine launch financing partnership for outboard engines and boat packages

Feb -18

Source: prnewswire.com

Atria Investments Inc Increases Position in Brunswick Corporation $BC

Feb -16

Source: defenseworld.net

Nexcel Metals Publishes NI 43-101 Technical Report for the Burnt Hill Tungsten Project, New Brunswick, Canada

Feb -13

Source: newsfilecorp.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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

LCI

A-Score: 5.9/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 8.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

Thor Industries

A-Score: 5.0/10

Value: 6.6

Growth: 4.0

Quality: 5.5

Yield: 4.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

Harley-Davidson

A-Score: 4.8/10

Value: 8.1

Growth: 4.0

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Polaris

A-Score: 4.5/10

Value: 6.5

Growth: 2.6

Quality: 2.6

Yield: 7.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

Brunswick

A-Score: 4.2/10

Value: 5.8

Growth: 4.8

Quality: 1.9

Yield: 4.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.38%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.51%

Brunswick Corporation - US1170431092

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BC

1.c. Company Highlights

Medium Volatility

Average Growth

Average Yield

Earnings Miss

Revenues Miss

Stable Momentum

Higher Growth

Revenues Beats

Earnings Beats

Weak Momentum

Average Quality

Lower Quality

2. Brunswick Corporation's Strong 2025 Earnings: A Closer Look

Segment Performance and Market Outlook

Free Cash Flow and Capital Strategy

Guidance and Valuation

Tariff Impact and Mitigation

3. NewsRoom

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%

Boat

Expected Growth: 4.83%

Engine Parts and Accessories

Expected Growth: 4.83%

Navico

Expected Growth: 7.43%

Eliminations

Expected Growth: 4.83%

7. Detailed Products

Sea Ray Boats

Bayliner Boats

Boston Whaler Boats

Mercury Marine Engines

Life Fitness Equipment

Hammer Strength Equipment

Scifit Fitness Equipment

8. Brunswick Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.33$

Current Price

83.33$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA