Brunswick (BC) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 12.8%–13% year-over-year to $1.38–$1.4 billion, with adjusted EPS up 25% to $0.70 and all segments posting year-over-year growth for the third consecutive quarter, driven by market share gains, OEM demand, and new product launches.

• Premium product sales and recurring revenue businesses outperformed, supported by healthy boater participation and disciplined inventory management.

• Operating leverage and healthy inventory levels supported earnings growth despite incremental tariffs.

• Freedom Boat Club expanded with the acquisition of the largest remaining franchise in Boston/Cape Cod, adding 21 locations and ~3,000 memberships, driving synergy and recurring revenue.

• U.S. outboard retail share increased by 200 basis points year-over-year, with record share at major boat shows.

Financial highlights

• Net sales reached $1,378.1M–$1.4B, up 12.8%–13% year-over-year, with growth across all segments.

• Adjusted operating earnings rose 14.6%–15% to $82.6M, and adjusted EPS reached $0.70, up 25% year-over-year.

• Adjusted operating margin improved to 6.0% (up from 5.9%); GAAP operating margin was 3.6%.

• Free cash flow was negative, consistent with seasonal patterns, with Q1 2026 at ($44M) to $(116.8)M.

• 14th consecutive annual dividend increase and $16.2–$20M in share repurchases year-to-date.

Outlook and guidance

• Full-year 2026 guidance: net sales of $5.65–$5.8B, adjusted operating margin of 7.5%–8.0%, adjusted EPS of $4.00–$4.50, and free cash flow of $350M or more.

• Q2 2026 guidance: revenue of $1.45–$1.55B and adjusted EPS of $1.10–$1.20.

• Guidance reflects confidence in continued share gains, broad-based revenue growth, and strong operating leverage in a flat-to-slightly-improving market.

• Tariff refunds not yet included in outlook; potential $50M in IEEPA tariff refunds expected over this year and next.

• 2026 capital expenditures expected at ~$200M; debt retirement of $160M planned.