Brunswick Raises Annual Profit Outlook as Sales Growth Accelerates
The marine company raised its full-year adjusted diluted earnings per share guidance to a range of $4.35 to $4.75 [1][11].
Brunswick (BC), the marine manufacturer, reported second-quarter net sales of $1,557.8 million, an 8% increase from the prior year.
The result marked a significant acceleration in growth compared to the 0.2% increase recorded in the same period last year. Sales grew across all reporting segments for the fourth consecutive quarter.
Adjusted diluted earnings per share rose 34.5% year-over-year to $1.56. This followed a 35.6% decrease in the prior-year quarter. The adjusted operating margin expanded 90 basis points to 9.6%, reversing a 380 basis point compression seen in the second quarter of 2024.
Profitability gains were led by the Navico Group segment, where adjusted operating margin expanded 680 basis points year-over-year, driven by higher sales and IEEPA refunds. The Boat segment saw its adjusted operating margin expand 120 basis points due to higher sales and lower discounts, while the Engine Parts and Accessories segment margin expanded 200 basis points.
Performance in the Propulsion segment remained essentially flat year-over-year for the quarter, though the segment experienced a 110 basis point compression over the first six months of the year. In its membership business, Freedom Boat Club grew its global network to 450 locations, up from 442 at the end of 2024.
Brunswick raised its full-year 2025 adjusted diluted earnings per share guidance to a range of $4.35 to $4.75, up from the $4.00 to $4.50 range provided in the first quarter.
The company expects approximately $40 million in incremental tariffs for the full year 2025, which will be partially offset by net IEEPA refunds of $25 million to $30 million.