Brunswick (BC) Investor presentation summary

Market position and business overview

• Holds leading market share in U.S. and Europe for outboard and sterndrive engines, with Mercury Marine powering about 50% of U.S. recreational boats.

• Operates globally in 26 countries, with sales in 170 countries; 68% of Q3 2025 revenue from the U.S.

• Portfolio includes propulsion, engine parts & accessories, marine electronics, and 18 global boat brands.

• Freedom Boat Club is the largest boat club globally, with around 60,000 memberships and 440 locations.

• Recognized for innovation, with over 800 patents since 2017 and more than 100 product launches planned for 2025.

Financial performance and guidance

• Q3 2025 net sales rose 7% year-over-year to $1.36B, with growth across all segments.

• Free cash flow for Q3 2025 was $111M, up $69M from Q3 2024; YTD free cash flow reached $355M.

• Adjusted Q3 2025 EPS was $0.97, down 17% from Q3 2024; adjusted operating margin at 7.7%.

• 2025 guidance: ~$5.2B revenue, ~7% operating margin, ~$3.25 diluted EPS, $425M+ free cash flow, $200M debt retirement, and $80M+ share repurchases.

• 2026 outlook projects mid- to high-single-digit revenue growth, 25%+ EPS growth, and 125%+ free cash flow conversion.

Strategic initiatives and innovation

• Focused on product leadership, rapid technology commercialization, and expanding into new geographies and channels.

• Launched Simrad AutoCaptain, a world-leading autonomous boating solution, and received multiple industry awards.

• Systematic cost control, digital go-to-market investments, and AI deployment for operational efficiency.

• Over 100 new products to be launched in 2025, with continued emphasis on U.S.-focused investment and cost of goods.

• Actively mitigating tariff impacts, with 70% of COGS sourced from the U.S. and updated 2025 tariff impact estimated at ~$75M.