Brunswick Raises 2026 Adjusted EPS Target to About $4.65

The Tip Desk · October 31, 2026 · 3 min read

Third-quarter sales were $1,453.9 million as the marine-recreation company posted a fifth straight quarter of growth in every segment.

Brunswick Corporation (BC) reported third-quarter net sales of $1,453.9 million, up 7% from a year earlier, and said that was the fifth consecutive quarter of year-over-year sales growth across all reporting segments.

GAAP diluted earnings from continuing operations were $1.01 a share, versus a $3.57 loss a year earlier. As-adjusted diluted EPS was $1.58, up 63% from $0.97.

Adjusted operating earnings were $146.7 million, up 37.9% from $106.4 million. Adjusted operating margin expanded 230 basis points to 10.1% from 7.8%. GAAP operating earnings were $104.0 million, versus a $242.2 million loss a year earlier.

The company said sales growth reflected steady OEM demand, pricing actions taken in prior periods, market-share gains, and healthy boating participation supporting parts, accessories, and aftermarket demand. It said adjusted operating earnings and margins rose as stronger sales, operational efficiency, improved absorption on higher production, favorable mix, and disciplined cost management, together with the lapping of last year’s tariff impacts, more than offset material and labor inflation and planned spending on product and technology.

Propulsion, the largest segment, reported sales of $570.5 million, up 6.6%. Adjusted operating earnings were $68.6 million, up 51.1%, and adjusted operating margin expanded 350 basis points to 12.0% from 8.5%. The company attributed the sales increase to steady OEM demand in a low-pipeline environment and growth in high-horsepower outboard applications, and said leverage from higher sales, favorable mix, improved absorption, and reduced year-over-year tariff pressure offset planned product-development investment and ongoing material, freight, and labor inflation.

Engine Parts and Accessories sales were $380.9 million, up 4.7%. Adjusted operating earnings were $93.6 million, up 13.6%, and adjusted operating margin expanded 190 basis points to 24.6% from 22.7%. The company said the increase was led by sustained boating participation, distribution share gains, and broad-based regional growth, with leverage on higher sales and cost discipline partially offset by higher commodity and other material input costs.

Navico Group sales were $197.7 million, up 5.8%. Adjusted operating earnings were $12.0 million, up 36.4%, and adjusted operating margin expanded 140 basis points to 6.1% from 4.7%. The company said growth across all business lines was supported by OEM demand, steady aftermarket sales, product launches, and new customer wins, with operational improvement actions and leverage on higher sales more than offsetting material cost inflation.

Boat sales were $394.4 million, up 9.5%. Adjusted operating earnings were $14.2 million, up 100%, and adjusted operating margin expanded 160 basis points to 3.6% from 2.0%. The company said the sales increase was driven by strength in premium and core products and continued momentum in the Business Acceleration portfolio, with higher sales, favorable mix, and manufacturing and sourcing cost-reduction initiatives lifting earnings.

Chairman and Chief Executive Officer David Foulkes said boating participation remained healthy, supporting recurring-revenue parts and accessories, aftermarket, and subscription boating businesses, while lean pipelines and balanced OEM orders supported wholesale growth. He said Freedom Boat Club now accounts for close to seventy percent of the North American boat club market.

Cash and marketable securities totaled $279.4 million at quarter-end, up $3.7 million from 2025 year-end. The company said it had bought back $75 million of shares year-to-date.

Brunswick raised full-year 2026 guidance to as-adjusted diluted EPS of approximately $4.65, net sales of $5.7 billion to $5.8 billion, adjusted operating margin of approximately 8.0%, free cash flow of $400 million or more, debt retirement of $160 million or more, and share repurchases of $80 million or more.

Foulkes said the company continues to demonstrate the decoupling of its business and financial performance from overall U.S. new boat market unit sales trends. Aine Denari will succeed him as chief executive officer effective January 1, 2027.