Brunswick (BC) Investor presentation summary

Strategic positioning and market leadership

• Holds leading market share in U.S. and Canada for outboard and sterndrive engines, and operates the world's largest boat club with over 60,000 members globally.

• Portfolio includes propulsion, engine parts & accessories, marine electronics, and 19 global boat brands, serving all major recreational segments.

• Focused on recurring, higher-margin businesses and leveraging synergies to enhance profitability and cash flow.

• Continues to expand product leadership, launching over 100 new products in 2025 and maintaining a strong innovation pipeline.

• Recognized as one of America's most trustworthy companies for the third consecutive year.

Financial performance and outlook

• Q2 2025 net sales were $1.4B, up 0.2% year-over-year, with record free cash flow of $288M and adjusted EPS of $1.16, down 36% from Q2 2024.

• YTD 2025 net sales declined 5% to $2.67B, with adjusted operating margin at 7.4% and adjusted EPS at $1.72.

• 2025 guidance projects ~$5.2B revenue, ~7% operating margin, ~$3.25 EPS, and $400M+ free cash flow.

• Segment guidance: Propulsion ~$2.0B, Engine P&A $1.1–$1.2B, Navico Group ~$0.8B, Boat ~$1.5B, with stable or improved operating margins.

• Maintains investment-grade profile, prioritizing debt reduction and balanced shareholder returns.

Operational highlights and risk management

• Achieved strong outboard propulsion sales, market share gains, and multiple new product launches across segments.

• Dealer and pipeline inventories remain healthy, with U.S. and global boat pipelines down year-over-year.

• Systematic cost control, digital investments, and AI deployment drive efficiency.

• Tariff headwinds for 2025 estimated at $55–$70M net of mitigation, with 70% of COGS sourced from the U.S.

• Effective tax rate for 2025 expected to be slightly lower at ~21%.