Brunswick Corporation Reports 12.8% Net Sales Increase to $1.378 Billion in Q1 2026

Brunswick Corporation reported a net sales increase of 12.8% for the first quarter of 2026, reaching $1.378 billion compared to $1.222 billion in the same period of 2025. The growth was attributed to improved wholesale and retail trends, market share gains in propulsion and various boat categories, and strong demand for original equipment manufacturer (OEM) products. The company also noted a favorable impact from foreign currency exchange rates and pricing actions initiated in the latter half of 2025. Despite the sales increase, operating earnings fell to $50.3 million from $56.3 million year-over-year, reflecting higher costs and restructuring charges.

The cost of sales rose to $1.035 billion, up from $918 million, while selling, general, and administrative expenses increased to $242.2 million from $208 million. Research and development expenses also saw a rise, totaling $46.3 million compared to $38.5 million in the prior year. The company recorded restructuring, exit, and impairment charges of $4.8 million, significantly higher than the $1.1 million recorded in the same quarter of 2025. These factors contributed to a decrease in operating margin from 4.6% to 3.6%.

Brunswick's international sales experienced a notable increase of 20% on a GAAP basis, with a 11% rise on a constant currency basis. The Propulsion segment led the sales growth, with net sales of $571.3 million, a 17.3% increase from the previous year. The Engine Parts and Accessories (P&A) segment also performed well, with a 13.5% increase in sales to $289.8 million. The Navico Group and Boat segments reported sales growth of 7.3% and 6.1%, respectively, driven by improved OEM demand and higher wholesale shipments.

In terms of strategic developments, Brunswick announced the acquisition of the Freedom Boat Club of Greater Boston & Cape Cod franchise operations, which includes 21 locations and a maintenance operations center. This acquisition is expected to enhance the company's regional capabilities and support growth in the Northeast. Looking ahead, Brunswick anticipates continued sales growth driven by strong market demand and strategic investments, although it remains cautious about potential impacts from macroeconomic factors and tariffs. The company projects approximately $160 million in debt reduction and $200 million in capital expenditures for the year, alongside share repurchases of at least $50 million.