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

Business highlights and strategy

• Holds leading market share in marine propulsion, boats, and distribution, with Mercury engines 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 strong brands; recurring revenue streams like Freedom Boat Club drive stable earnings, with about 60% of 2025 earnings from recurring sources.

• Focus on premium market segments, innovation, and integrated modular solutions such as AutoCaptain and Fathom, with 90% of investments focused in the U.S.

• Maintains an investment-grade balance sheet, prioritizing debt reduction, dividends, and share repurchases, with 14 consecutive years of dividend increases and $1.7B in share repurchases since 2019.

Financial performance and outlook

• Revenue grew 2% in 2025 and is expected to reach $5.6B–$5.8B in 2026, with 8–10% growth, 7.5%–8.0% operating margin, and $3.80–$4.40 diluted EPS.

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

• Only 2% of projected revenue growth is from market expansion; the rest comes from share gains, pricing, and matching wholesale to retail.

• Inventory levels are lean and fresh, with 80–90% of field products less than a year old.

• Capital allocation remains balanced, with continued debt reduction, dividend increases, and $50–80 million in share buybacks planned.

Market trends and innovation

• U.S. powerboat market expected to be flat to slightly up in 2026; premium segment and market share gains are key growth drivers.

• Over 100 new products launched in 2025, including advanced technologies like Simrad NSO 4 and Mercury Boost, earning 100+ awards for the fourth consecutive year.

• Mercury outboards dominate major boat shows, with 84% share at Miami and over 50% at Düsseldorf, and record outboard share overall.

• Android-based NEON operating system now powers all Simrad multifunction displays, a unique industry position.

• Accelerates innovation with fully integrated technology solutions like FATHOM e-power and Simrad AutoCaptain, leveraging AI and digital assets for operational efficiency.