Brunswick (BC) Stock Forecast & Price Target

Brunswick reported revenues of $1.45 billion, reflecting a modest year-over-year increase of 0.2%, supported by a notable 7.1% year-over-year growth in its propulsion segment, which achieved sales of $598.2 million due to increased orders from Original Equipment Manufacturers (OEMs). While the products segment experienced a decline of 4% year-over-year, the distribution business showed resilience with a 4% year-over-year increase in sales, contributing to overall performance stability. These trends underscore Brunswick's strong positioning in the marine recreation industry, driven by a diverse brand portfolio and a focus on innovation and quality, fostering a positive outlook for the company's financial future.

Brunswick's financial outlook appears negatively affected by declining sales across multiple segments, with the Boat Segment demonstrating a significant decrease of 6.6% year-over-year, resulting in an adjusted operating margin drop of 290 basis points to 3.3%. Additionally, the Propulsion Segment experienced a notable operating margin reduction of 420 basis points to 11.3%, impacted by tariffs, production challenges, and the reinstatement of variable compensation. Furthermore, the Navico Segment faced revenue declines of 3.7% year-over-year amidst weakened demand from both OEMs and aftermarket channels, compounding the overall financial strain and uncertainty surrounding the company's future performance.