Brunswick Corporation Reports 18.2% Revenue Decline to $5.24 Billion for Fiscal Year 2024

Brunswick Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net sales totaling $5.24 billion, a decrease of 18.2% from $6.40 billion in 2023. The company's gross margin also fell to 25.8%, down from 27.9% the previous year, reflecting challenges in production levels and increased material costs. Operating earnings dropped by 57.6% to $311.6 million, while net earnings from continuing operations decreased by 65.5% to $149.3 million. Diluted earnings per share from continuing operations were reported at $2.21, down from $6.13 in 2023.

The decline in revenue was attributed to lower wholesale ordering patterns by dealers and original equipment manufacturers (OEMs), coupled with increased discounting in certain segments. The Propulsion segment, which is a key revenue driver, saw net sales decrease by 25% to $2.07 billion, primarily due to reduced OEM production rates and unfavorable foreign currency exchange rates. The Engine Parts and Accessories (P&A) segment experienced a smaller decline of 3.3%, while the Navico Group and Boat segments reported decreases of 12.5% and 21.9%, respectively.

Strategically, Brunswick made several acquisitions to enhance its market position, including the purchase of Fliteboard Pty Ltd for $88.3 million, which aims to bolster its electrification and shared-access strategies. Additionally, the company acquired additional Freedom Boat Club franchise operations for $31.2 million, further expanding its footprint in the boating sector. Brunswick's Business Acceleration initiatives, which include the Freedom Boat Club, accounted for 13% of the Boat segment's net sales in 2024, with approximately 60,000 memberships across over 400 locations.

Operationally, Brunswick faced challenges with supply chain disruptions and increased costs for raw materials, which impacted its ability to meet demand. The company employed over 15,000 employees as of December 31, 2024, with a focus on maintaining a stable workforce despite the economic headwinds. Looking ahead, Brunswick anticipates a cautious recovery, with plans for continued investment in product innovation and technology, alongside a balanced capital strategy that includes debt management and shareholder returns through dividends and share repurchases. The company expects to execute a capital strategy in 2025 that includes planned debt reductions and ongoing share repurchases, contingent on cash generation performance.