Brunswick (BC) 47th Annual Raymond James Institutional Investor Conference summary

Business highlights and strategy

• Holds leading market share in marine propulsion, boats, and distribution, powering about 50% of U.S. recreational boats and operating the largest global boat club.

• Maintains a unique, vertically integrated portfolio across propulsion, systems, and marine services, with recurring earnings streams and deep enterprise synergies valued at ~$400M in internal benefits.

• Five operating divisions, with Business Acceleration (including Freedom Boat Club) as the fastest-growing segment.

• Recurring revenue streams, including parts, accessories, and boat club memberships, account for about 60% of earnings.

• Focus on premium market segments, continued market share gains, and differentiated business model with strong capital returns to shareholders.

Innovation and product development

• Launched over 100 new products in 2025, earning 100+ awards for the fourth consecutive year, with 90% of investments focused in the U.S.

• Over 1,000 patents in the last decade, supporting a strong intellectual property position.

• Introduced advanced solutions like Simrad Autopilot Captain, Fathom power management, and Simrad multifunction displays running on Android-based NEON OS.

• Mercury Boost enables over-the-air performance updates for outboards; keyless start system launched.

• Pursues growth through new marine categories, channel and market expansion, and leveraging AI and digital assets for operational efficiency.

Financial outlook and capital allocation

• 2026 guidance projects $5.6B–$5.8B revenue, 7.5%–8.0% operating margin, $3.80–$4.40 diluted EPS, and $350M+ free cash flow.

• Revenue expected to grow 8%-10% in 2026, with operating margins and EPS projected to rise 25% over 2025.

• Reports FY2025 segment revenues: Propulsion $2.2B, Engine Parts & Accessories $1.2B, Navico Group $0.8B, Boat $1.5B.

• Continued share repurchases, dividend increases, and debt reduction; M&A focused on small tuck-ins, especially in boat club operations.

• Targeting net leverage below 2.5x by year-end, aiming for 2x longer term.