NYSE:BC
BRUNSWICK CORP
A diversified manufacturer and distributor of recreational marine products including boats, jet skis, and fishing gear serving the North American leisure boating industry.
Key Metrics
Investment Thesis
Bull Case
Long-term investors may find value in Brunswick's durable brand portfolio and resilient cash flow generation from operations ($562.1M) despite recent accounting losses, supported by a strong balance sheet with $256.8M in cash and equivalents. The company's ability to navigate industry cycles through cost management and its dominant market position could allow for a strategic recovery as consumer sentiment improves.
Bear Case
The stock carries substantial risk due to the reported net loss of $137.3M and a significant retained earnings deficit of $3.36B, indicating potential underlying profitability issues or one-time charges. With revenue declining over the last two years and operating profit turning negative at -$40.7M, the company is facing headwinds that could persist if economic conditions remain unfavorable for discretionary spending.
About BRUNSWICK CORP
Brunswick Corporation is a global leader in recreational marine products, manufacturing and distributing boats, jet skis, fishing tackle, and related accessories primarily for the North American market. The company serves leisure boaters, anglers, and water sports enthusiasts through an extensive distribution network and its own branded portfolio of well-known boat models.
Analysis
Management Discussion
Despite generating $5.36B in revenue for 2025, the company reported a net loss of $137.3M, driven by a sharp decline in profitability compared to the previous three years where earnings ranged from $130M to $677M. This downturn coincided with a notable contraction in total revenue from a peak of $6.81B in 2022 down to $5.24B in 2024 before a slight recovery in 2025, suggesting ongoing pressure on margins or volume.
Industry Overview
The recreational marine industry is highly sensitive to economic cycles, seasonal weather patterns, and fuel costs, making it a volatile but traditionally resilient sector for wealthy consumers. Industry participants compete on brand recognition, product innovation, and distribution reach, while facing challenges from inflationary pressures and shifting consumer preferences toward smaller or more fuel-efficient vessels.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.81B | $6.40B | $5.24B | $5.36B |
| Cost of Revenue | $4.87B | $4.61B | $3.89B | $4.03B |
| Gross Profit | $1.95B | $1.79B | $1.35B | $1.33B |
| Operating Expenses | $999.4M | $1.05B | $1.02B | $1.35B |
| Operating Income | $947.8M | $734.9M | $311.6M | $-40.7M |
| R&D | $202.9M | $185.2M | $169.6M | $168.7M |
| G&A | $771.4M | $812.2M | $747.9M | $851.1M |
| Stock-Based Comp | $21.9M | $22.4M | $23.4M | $38.7M |
| D&A | $231.2M | $272.9M | $288.8M | $292.5M |
| Depreciation | $167.9M | $204.3M | $214.0M | $214.1M |
| Amortization | $63.3M | $68.6M | $74.8M | $78.4M |
| Other OpEx | $25.1M | $54.7M | $107.0M | $333.9M |
| Non-Operating Income | $-94.2M | $-106.0M | $-108.3M | $-95.0M |
| Interest Expense | $98.1M | $112.4M | $126.6M | $111.7M |
| Interest Income | $6.1M | $10.2M | $13.4M | $7.2M |
| Pre-Tax Income | $853.6M | $628.9M | $203.3M | $-135.7M |
| Income Tax | $172.3M | $196.3M | $54.0M | $200.0K |
| Continuing Ops | $681.3M | $432.6M | $149.3M | $-135.9M |
| Discontinued Ops | $-4.3M | $-12.2M | $-19.2M | $-1.4M |
| Net Income | $677.0M | $420.4M | $130.1M | $-137.3M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $677.0M | $420.4M | $130.1M | $-137.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.70B | $2.51B | $2.11B | $2.06B |
| Cash & Equivalents | $595.6M | $467.8M | $269.0M | $256.8M |
| Inventory | $1.47B | $1.48B | $1.30B | $1.19B |
| Prepaid Expenses | $67.8M | $60.0M | $95.5M | $72.5M |
| Other Current Assets | $560.4M | $505.1M | $446.7M | $541.7M |
| Long-Term Assets | $3.63B | $3.72B | $3.56B | $3.25B |
| PP&E (Net) | $1.27B | $1.32B | $1.25B | $1.21B |
| Intangibles | $997.4M | $978.0M | $918.3M | $854.8M |
| Goodwill | $967.6M | $1.03B | $966.1M | $681.2M |
| Operating Leases | $114.8M | $152.2M | $161.8M | $170.2M |
| Other LT Assets | $221.5M | $205.4M | $231.2M | $300.5M |
| Total Assets | $6.32B | $6.23B | $5.68B | $5.31B |
| Current Liabilities | $1.49B | $1.75B | $1.28B | $1.43B |
| Accounts Payable | $662.6M | $558.0M | $393.4M | $374.9M |
| Current Debt | $89.0M | $454.7M | $242.8M | $295.4M |
| Current Leases | $27.8M | $28.3M | $29.0M | $23.1M |
| Taxes Payable | $10.1M | $3.0M | — | — |
| Other Current Liab | $-37.9M | $-31.3M | $-29.0M | $-23.1M |
| Long-Term Liabilities | $2.79B | $2.39B | $2.51B | $2.26B |
| Long-Term Debt | $2.42B | $1.98B | $2.10B | $1.81B |
| LT Operating Leases | $97.8M | $133.9M | $145.1M | $151.7M |
| Other LT Liab | $267.6M | $281.4M | $147.6M | $9.4M |
| Total Liabilities | $4.28B | $4.14B | $3.79B | $3.69B |
| Shareholders' Equity | $2.04B | $2.09B | $1.89B | $1.63B |
| Retained Earnings | $3.29B | $3.60B | $3.61B | $3.36B |
| AOCI | $-29.5M | $-25.7M | $-53.4M | $-22.7M |
| Treasury Stock | $1.68B | $1.95B | $2.15B | $2.22B |
| Total L&E | $6.32B | $6.23B | $5.68B | $5.31B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $677.0M | $420.4M | $130.1M | $-137.3M |
| Non-Cash Adjustments | $-411.3M | $488.4M | $730.1M | $631.4M |
| Working Capital Changes | $320.4M | $-175.2M | $-428.8M | $68.0M |
| Cash from Operations | $586.1M | $733.6M | $431.4M | $562.1M |
| Capital Expenditures | $388.3M | $289.3M | $167.4M | $165.8M |
| Cash from Investing | $-443.2M | $-378.9M | $-168.9M | $-141.6M |
| Debt Issuances | $741.8M | $0 | $396.9M | $0 |
| Debt Repayments | $59.1M | $82.3M | $613.2M | $412.6M |
| Share Buybacks | $450.0M | $275.0M | $200.0M | $80.0M |
| Dividends Paid | $108.6M | $112.0M | $112.3M | $112.6M |
| Cash from Financing | $110.8M | $-487.0M | $-442.7M | $-441.2M |
| FX Effect | $-11.9M | $2.7M | $-12.8M | $9.7M |
| Net Change in Cash | $241.8M | $-129.6M | $-193.0M | $-11.0M |
| Beginning Cash | $366.7M | $608.5M | $478.9M | $285.9M |
| Ending Cash | $608.5M | $478.9M | $285.9M | $274.9M |
Frequently Asked Questions
How does BRUNSWICK CORP make money?
The company's revenue is driven by four primary segments: Boats (powerboats and pontoon boats), Personal Watercraft (jet skis and similar high-speed vessels), Fishing Tackle (rods, reels, lures, and electronics), and Marine Accessories (outdoor gear, safety equipment, and lifestyle apparel).
What are the main risks for BC?
The company faces significant cyclicality tied to disposable income levels and fuel prices which impact boat ownership costs, exposure to exchange rate fluctuations given its international operations and component sourcing, potential supply chain disruptions affecting raw material availability, and intense competition from private label manufacturers and emerging competitors.
What is BC's competitive advantage?
Brunswick benefits from a strong portfolio of well-established consumer brands with high brand loyalty in the recreational marine sector, a vertically integrated supply chain that provides cost efficiencies in manufacturing, and a robust global distribution network that ensures broad market penetration.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.