Brunswick Corporation Reports 11% Decline in Q1 2025 Net Sales

Brunswick Corporation reported a decline in financial performance for the first quarter of 2025, with net sales totaling $1.22 billion, a decrease of 11% from $1.37 billion in the same period of 2024. The company's operating earnings also fell significantly, dropping to $56.3 million from $110.6 million year-over-year. This decline in profitability was reflected in earnings per share, which decreased to $0.30 from $1.00. The company attributed these results to lower wholesale ordering by dealers and original equipment manufacturers (OEMs), despite some offset from modest price increases and new product introductions.

In terms of operational metrics, Brunswick's Propulsion segment saw a 15.8% decrease in sales, primarily due to reduced shipments to OEM boat builders. The Engine Parts and Accessories segment, while experiencing a slight sales decline of 2.7%, reported a 17.8% increase in operating earnings, benefiting from a strong aftermarket business. The Navico Group segment's sales remained flat, while the Boat segment experienced a 12.6% drop in sales, consistent with lower planned wholesale shipments. International sales also reflected a downturn, decreasing by 10% on a GAAP basis.

Brunswick's balance sheet showed total assets of $5.86 billion as of March 29, 2025, up from $5.68 billion at the end of 2024. The company reported cash and cash equivalents of $286.7 million, a decrease from $548.4 million a year earlier. The company’s total debt increased to $2.48 billion, compared to $2.34 billion at the end of 2024, primarily due to short-term borrowings under its commercial paper program. The debt-to-capitalization ratio stood at 57%, slightly higher than the previous quarter.

Strategically, Brunswick completed the acquisition of additional Freedom Boat Club franchise operations in Southeast Florida for $31.2 million in September 2024, enhancing its market presence. The company continues to focus on cost control measures and product innovation to navigate the challenging market conditions. Looking ahead, Brunswick anticipates ongoing challenges from macroeconomic factors, including tariffs and consumer spending trends, but remains committed to its capital strategy, targeting approximately $150 million in capital expenditures for the year and continuing share repurchase programs.