Brunswick (BC) Investor presentation summary

Strategic positioning and market leadership

• Holds leading positions in marine propulsion, boat brands, and marine parts and accessories, with Mercury Marine engines powering about half of U.S. recreational boats and over 60,000 Freedom Boat Club memberships globally.

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

• Maintains the largest global boat club and top market share in key marine segments in the U.S., Canada, and Europe.

• Continues to receive industry accolades, including being named among the most trustworthy companies and workplaces for women in 2025.

• Focuses on U.S.-centric operations, with 80% of COGS and 85% of investments based in the U.S.

Financial performance and outlook

• Q1 2025 net sales were $1.2B, down 11% year-over-year, with adjusted EPS of $0.56, down 59% from Q1 2024.

• Achieved strong sequential improvement in sales, operating margin, and EPS versus Q4 2024, and delivered the second-best Q1 free cash flow in over a decade.

• 2025 revenue guidance revised to $5.0B–$5.4B, with operating margin expected at 6.5%–8.0% and EPS at $2.50–$4.00.

• Q2 2025 revenue expected at $1.1B–$1.3B and EPS at $0.80–$1.10.

• Maintains a strong capital return profile, with 13 consecutive years of dividend increases and $1.6B in share repurchases since 2019.

Segment performance and operational highlights

• Propulsion segment saw sequential sales and earnings growth, with OEMs increasing production ahead of the retail season and notable outboard share gains.

• Engine Parts & Accessories delivered 140 bps YoY operating margin improvement, with strong consumables demand offsetting weaker service parts.

• Navico Group experienced aftermarket retail growth, though OEM demand remained soft due to prior production shutdowns.

• Boat segment Q1 wholesale was in line with expectations, with a favorable shift to premium products and ongoing cost optimization.

• Freedom Boat Club member trips increased 3% sequentially versus Q4 2024.