Brunswick (BC) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 6.9% YoY to $1,453.9M; adjusted diluted EPS increased 62.9% to $1.58, with growth across all segments for a fifth consecutive quarter.

• Adjusted operating earnings rose 37.9% to $146.7M, and adjusted operating margin expanded 230 bps to 10.1%.

• Strength reflected OEM demand, market-share gains, pricing, boating participation, favorable mix and operational efficiencies.

Financial highlights

• Q3 adjusted operating earnings were $146.7M versus $106.4M; adjusted net earnings from continuing operations were $102.9M versus $63.8M.

• Q3 free cash flow was $140.4M versus $111.1M, with 136% conversion; YTD free cash flow was $301.1M versus $354.6M.

• YTD net sales increased 9% to $4,389.8M; adjusted operating earnings rose to $379.4M from $304.5M, and adjusted diluted EPS was $3.83 versus $2.69.

• YTD free cash flow included ~$100M of incremental impact from reinstated variable compensation.

Outlook and guidance

• FY 2026 guidance: net sales of $5.7B–$5.8B, adjusted operating margin of ~8%, and adjusted diluted EPS of ~$4.65; the EPS midpoint is up ~13% since January.

• FY 2026 targets include at least $400M free cash flow, $160M debt retirement and $80M share repurchases.

• Adjusted segment margin guidance calls for expansion of 100+ bps in Propulsion, 200+ bps in Navico Group and 100+ bps in Boat; Engine P&A guidance is ~20%.

• Q4 considerations include material inflation, prudent channel stocking and pipeline management, and uncertain IEEPA refund timing.

• 2027 targets remain sales growth of 5%–8% and operating leverage of 20%–25%; product launches, cost efficiencies and reversal of Boat Group facility-closing costs are expected tailwinds.