Brunswick (BC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $1,221.8M, down 11% year-over-year, but results exceeded expectations amid a challenging macro environment, supported by resilient recurring revenue and cost controls.

• Adjusted EPS was $0.56, a 59% decline year-over-year, but showed sequential improvement from Q4 2024; GAAP diluted EPS was $0.30, down 70%.

• Free cash flow improved by $160M versus Q1 2024 to $(44.4)M, marking the second-best Q1 cash flow in over a decade.

• Retail sales for core and premium brands were steady, while entry-level products showed weakness, prompting plans to streamline offerings.

• Share repurchases exceeded plan, with $25.6M–$26M completed in Q1.

Financial highlights

• Net sales: $1,221.8M, down 11% year-over-year; adjusted operating earnings: $72.1M, down from $141.5M in Q1 2024.

• Adjusted operating margin: 5.9% (down 450 bps); GAAP margin: 4.6%.

• Adjusted diluted EPS: $0.56, down from $1.35 in Q1 2024.

• Free cash flow: $(44.4)M, a $160M improvement from $(204.5)M in Q1 2024.

• Cash and marketable securities at quarter-end: $287.5M–$305.5M; total liquidity $1,284.5M.

Outlook and guidance

• Full-year 2025 net sales expected at $5.0B–$5.4B; adjusted EPS guidance: $2.50–$4.00.

• Free cash flow projected to exceed $350M.

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

• Guidance reflects persistent tariff rates and models a 5% revenue reduction due to slower retail sales.

• Operating margin guidance for 2025 is 6.5%–8.0%.