Brunswick’s fourth quarter was met with a negative market reaction, despite the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management attributed the quarter’s performance to improved retail conditions in the second half of the year, robust execution in its propulsion and boat segments, and stabilizing boating participation. CEO David Foulkes noted, “Our performance was underpinned by solid boating participation driving stability in our recurring revenue businesses and outstanding operational execution across the enterprise.” However, tariff-induced uncertainty earlier in the year and ongoing macroeconomic volatility weighed on industry unit sales and dealer sentiment.
Is now the time to buy BC? Find out in our full research report (it’s free for active Edge members).
Brunswick (BC) Q4 CY2025 Highlights:
- Revenue: $1.33 billion vs analyst estimates of $1.21 billion (15.5% year-on-year growth, 10.3% beat)
- Adjusted EPS: $0.58 vs analyst estimates of $0.57 (2% beat)
- Adjusted EBITDA: $142.2 million vs analyst estimates of $121.4 million (10.7% margin, 17.1% beat)
- Revenue Guidance for Q1 CY2026 is $1.3 billion at the midpoint, below analyst estimates of $1.31 billion
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.10 at the midpoint, missing analyst estimates by 2.2%
- Operating Margin: 3.1%, up from -4.8% in the same quarter last year
- Market Capitalization: $5.74 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Brunswick’s Q4 Earnings Call
- James Hardiman (Citi): Asked about the sustainability of recent retail trends and the impact of interest rate cuts. CEO David Foulkes explained retail demand ended the year flat, with early 2026 retail up double digits, attributing this to lower financing rates and recovering value brands.
- Craig Kennison (Baird): Queried the potential for a pickup in replacement cycles and deferred trade-up demand. Foulkes cited below-normal industry replacement rates and suggested that deferred purchases could support incremental growth as buying conditions improve.
- Gerrick Johnson (Seaport Research): Sought details on propulsion segment momentum and new OEM agreements. Foulkes described recent multi-year exclusive deals in Europe and North America, highlighting the impact of new products and strategic hiring in engineering.
- Anna Glaessgen (B. Riley Securities): Inquired about pipeline replenishment and whether low inventories are the new normal. Foulkes responded that inventory levels are likely to remain lean but could rise as dealer confidence improves with lower carrying costs and stronger retail pull.
- Scott Stember (Roth Capital): Asked about the potential benefit from a Supreme Court ruling on tariffs and its impact on cost structure. CFO Ryan Gwillim indicated that a favorable decision could remove $20–$25 million in annual tariffs, but other trade barriers would remain.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will be closely watching (1) the pace at which retail demand converts to wholesale shipments amid low inventory levels, (2) the impact of further product launches and exclusive OEM agreements on share gains in propulsion and electronics, and (3) the company’s ability to offset ongoing tariff and cost pressures through AI-driven mitigation, operational efficiency, and pricing discipline. Execution on debt reduction and free cash flow targets will also remain important signposts.
Brunswick currently trades at $88.22, up from $84.17 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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