Brunswick (BC) Stock Forecast & Price Target

Brunswick Corporation demonstrated stability with a revenue of $1.45 billion for the quarter, reflecting a modest year-over-year increase of 0.2%. The propulsion segment performed particularly well, posting a 7.1% year-over-year increase in sales to $598.2 million, driven by robust orders from original equipment manufacturers (OEMs) in the U.S. Additionally, although the products business faced a slight decline, the distribution business showed resilience with a 4% increase in sales, contributing positively to the overall performance.

Brunswick's financial outlook appears negative due to several key factors, including a significant decrease in the Boat Segment's Adjusted Operating Margin, which fell by 290 basis points year-over-year to 3.3%, primarily driven by lower sales and the reinstatement of variable compensation. Additionally, the propulsion segment reported a decline in Adjusted Operating Margin of 420 basis points year-over-year to 11.3%, affected by tariffs, reduced production levels, and reinstated variable compensation, further highlighting challenges in maintaining profitability. Furthermore, the Navico segment also experienced sales declines of 3.7% year-over-year to $202.3 million, indicating weakened demand in both aftermarket channels and marine OEMs.