Brunswick (BC) Stock Forecast & Price Target

Brunswick exhibits a positive outlook driven by a modest year-over-year revenue increase to $1.45 billion, alongside expectations for a significant expansion in the boat segment operating margin, rising from 6.9% to 9.2% by 2026. The propulsion segment reports a 7.1% increase in sales, fueled by robust OEM orders and lean channel inventories, with projections indicating continued growth in boat revenue by 12% and increased shipping unit rates. Meanwhile, while the products business faced a slight decline, the distribution sector noted a 4% uptick in sales, reflecting the company’s resilient operational performance amidst broader market trends.

Brunswick's stock faces a negative outlook primarily due to declining sales across multiple segments, with boat segment sales deteriorating by 6.6% year-over-year to $405.6 million due to cautious ordering patterns from dealers. Additionally, the company reported a significant decrease in its consolidated adjusted operating margin, which fell by 380 basis points to 8.7%, influenced by the reinstatement of variable compensation, lower production levels, and the adverse effects of tariffs on input costs. Overall, the combination of reduced sales, increased operating pressures, and a declining trend in licensing indicates a challenging environment for Brunswick in the marine recreation industry.