Performance driven by recurring revenues
The âeuro recurring revenue segments, notably engine parts and accessories, re-engineering, Freedom Boat Club sales and Navico âeuros after-sales, accounted for almost 60% of adjusted operating income. Free cash flow improved significantly, reaching its second best level in over ten years.
Propulsion and parts: stability and market share gains
Mercury engine sales were up on the previous quarter, with a 40 basis point gain in market share in the United States. The Engines & Parts segment posted a 15% operating margin, supported by improved efficiency and contained inflation. However, overall parts sales remained 3% down on 2024.
Boating under stress, Freedom Boat Club in support
The boat segment fell by 13% year-on-year, reflecting cautious ordering by distributors. Freedom Boat Club partially offset this decline, accounting for around 11% of sales. Boat show sales were stable, with no noticeable upturn, and the entry-level market remains under pressure.
Cautious outlook in an unstable environment
For the full year 2025, Brunswick forecasts sales of between $5 and $5.4 billion, and adjusted earnings per share of between $2.50 and $4.00. The company expects free cash flow to exceed $350 million. Second-quarter sales are forecast at between $1.1 and $1.3 billion.
Brunswick remains vigilant to the impact of US and international customs policies. The company intends to step up its investment in product innovation, diversify its sourcing through targeted onshoring and optimize its cost structure, while continuing to support its distribution networks.
