Brunswick (BC) Q4 2024 earnings summary

Executive summary

• 2024 net sales declined 18% year-over-year to $5.2B, but finished slightly ahead of expectations due to strong cash generation, market share gains in outboard engines, and successful new product launches.

• Adjusted EPS for 2024 was $4.57, down 48% from 2023, reflecting lower sales and margin pressure.

• Freedom Boat Club achieved over 600,000 annual member trips for the second consecutive year and expanded internationally.

• U.S. new boat retail sales ended 2024 down high single digits vs. 2023, but performance in premium segments was better than industry.

• Managed field inventory and production to achieve balanced year-end levels, with 36.8 weeks on hand in the U.S. dealer pipeline.

Financial highlights

• Q4 net sales were $1,155M, down 15% year-over-year; adjusted operating margin at 4%–10.4%; adjusted EPS of $0.24.

• Full year sales down 18%; adjusted operating margin at 9.5%; adjusted diluted EPS of $4.57, down 48%.

• Q4 free cash flow of $278M, a record for any Q4; full year free cash flow conversion at 92%.

• Operating expenses down more than 7% vs. 2023, despite acquisitions.

• Revenue declined across all regions, with U.S. sales down 20% and international sales down 13% for the year.

Outlook and guidance

• 2025 guidance: net sales of $5.2–$5.6 billion, adjusted diluted EPS of $3.50–$5, free cash flow >$350 million.

• Q1 2025 expected to resemble Q4 2024, with improvement in wholesale ordering as year progresses; revenue guidance $1.0–$1.2B, EPS $0.15–$0.25.

• Guidance assumes flat U.S. boat retail market; wholesale boats up mid-high single digits, engines up low-mid single digits.

• Tariff headwind of $30–$40 million and FX headwind of $30–$40 million expected in 2025.

• Cost reduction efforts to benefit EPS by ~$1.25/share, partly offset by $1/share variable compensation reset.