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A much-improved fourth quarter
In the fourth quarter of 2025 alone, Brunswick posted consolidated net sales of $1.33 billion, up 15.5% year-on-year. Adjusted operating income for the quarter was $66.6 million, corresponding to an adjusted operating margin of 5%.
For the full year, GAAP operating income showed a loss of $40.7 million. After adjustment, operating income came to $371.1 million, representing an adjusted operating margin of 6.9%. Free cash flow amounted to $442 million for the year.
David Foulkes, Chairman and CEO of Brunswick Corporation, points out that 2025 ended ahead of internal forecasts, with an increase in sales and earnings across all activities in the fourth quarter, against a more favorable nautical market backdrop in the second half of the year.
A retail market still in decline but more stable
Brunswick reports that U.S. boat retail sales declined by around 9% in 2025, while worldwide sales fell by around 5%. Dealer inventory levels remained satisfactory, however, according to the Group.
According to Brunswick, retail demand stabilized in the second half of 2025, after a first part of the year marked by uncertainties, notably linked to customs duties. This stabilization is a key point in reading the annual results.
Propulsion, parts and electronics on the rise
The propulsion segment reported growth in revenues and profits in the fourth quarter. This applies to outboard, inboard and sterndrive engines, as well as control systems, rigging and propellers. The Mercury brand maintains its leading position in the outboard motor market in the USA, Canada and Europe. At the Consumer Electronics Show 2026, Mercury presented its 808 outboard engine concept.
The engine parts and accessories segment also reported higher sales and earnings for the quarter. Brunswick's marine distribution business in the United States increased its market share by 210 basis points over 2025.
Within the Navico Group, revenues and operating margins rose in the fourth quarter, driven by an evolving product portfolio and cost-containment measures. The year was marked in particular by the launch of the Simrad AutoCaptain autonomous navigation system.
Boating and services, improving margins
The Group's marine sector reported higher sales and margins in the fourth quarter compared with the previous year. Brunswick also expects trade discounts to be around 100 basis points lower than in 2024.
Freedom Boat Club continues to expand, with 442 bases worldwide at the end of the year. In 2025, network members took more than 640,000 trips out to sea, a record volume for the business.
Cautious but upward-looking outlook for 2026
For fiscal year 2026, Brunswick expects the retail market to remain stable or even grow slightly. The Group anticipates net sales of between $5.6 and $5.8 billion. Adjusted diluted earnings per share are expected to be between $3.80 and $4.40.
Adjusted operating margin should be between 7.5 and 8%, while free cash flow is expected to exceed $350 million. Brunswick believes it is well positioned to take advantage of a marine market that is normalizing, after the tensions of recent years.
