Brunswick (NYSE:BC) Announces Earnings Results, Beats Estimates By $0.23 EPS

Brunswick (NYSE:BC) released its quarterly earnings results on Thursday. The company reported $1.58 EPS for the quarter, topping analysts’ consensus estimates of $1.35 by $0.23, FiscalAI reports. The company had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.46 billion. Brunswick had a positive return on equity of 15.28% and a negative net margin of 1.53%. Brunswick’s revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.97 earnings per share.

Here are the key takeaways from Brunswick’s conference call:

• Brunswick reported a strong third quarter, with sales up 7% to $1.5 billion, adjusted EPS up 63% to $1.58, and adjusted operating margin expanding 230 basis points to 10.1%. Management raised full-year adjusted EPS guidance to approximately $4.65 while maintaining revenue guidance of $5.7 billion-$5.8 billion.
• All reporting segments grew sales and expanded margins. Propulsion benefited from strong high-horsepower outboard demand, Engine Parts and Accessories posted its highest third-quarter sales since 2020 with a 24.6% margin, Navico Group continued its transformation, and the Boat segment benefited from premium-brand resilience, cost reductions, and Freedom Boat Club growth.
• Management highlighted several potential 2027 tailwinds, including three new Mercury outboard launches, continued repower and distribution share gains, Navico product introductions and OEM wins, the reversal of Boat Group facility-consolidation costs, and further efficiency improvements. Executives reiterated confidence in their strategic-plan targets of 5%-8% sales growth and 20%-25% operating leverage.
• Consumer and industry conditions remain challenging, particularly for value-oriented buyers, due to inflation, geopolitical uncertainty, and high borrowing costs. Additional material inflation, cautious dealer stocking, uncertainty around tariff refunds, and economic and trade volatility are expected to weigh on fourth-quarter results, while the company expects only modest pricing and further rationalization of value boat models.
• Brunswick generated $140 million of third-quarter free cash flow, repurchased $75 million of shares year to date, and retired $100 million of debt. The company raised its full-year share-repurchase target to more than $80 million and remains on track to meet or exceed its $160 million debt-reduction target.

Brunswick Stock Up 8.1%

Shares of NYSE:BC traded up $5.54 during midday trading on Thursday, hitting $74.39. 1,091,654 shares of the company’s stock were exchanged, compared to its average volume of 811,960. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.45 and a quick ratio of 0.65. The stock has a 50 day moving average price of $69.16 and a 200-day moving average price of $77.57. The company has a market cap of $4.82 billion, a PE ratio of -56.79 and a beta of 1.38. Brunswick has a 12 month low of $59.06 and a 12 month high of $90.25.

Brunswick Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, November 24th will be issued a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Tuesday, November 24th. Brunswick’s dividend payout ratio (DPR) is currently -134.35%.

Analysts Set New Price Targets

BC has been the subject of several recent research reports. Truist Financial reduced their target price on shares of Brunswick from $94.00 to $81.00 and set a “buy” rating for the company in a report on Friday, October 23rd. Weiss Ratings reiterated a “sell (d+)” rating on shares of Brunswick in a research note on Monday, September 21st. William Blair set a $94.00 price target on shares of Brunswick in a research report on Thursday, August 13th. Morgan Stanley set a $74.00 price target on shares of Brunswick in a report on Monday. Finally, DA Davidson restated a “neutral” rating and issued a $76.00 price target on shares of Brunswick in a research report on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Brunswick currently has a consensus rating of “Moderate Buy” and a consensus price target of $84.60.

Brunswick Company Profile

Brunswick Corporation (NYSE:BC) is a marine recreation company that designs, manufactures and distributes products used in boating and related recreational activities. Its portfolio includes marine propulsion systems, boats, engines, electronics, boat control systems and other components, as well as parts and accessories.

The company’s marine businesses include Mercury Marine, which produces outboard, sterndrive and inboard engines, and a range of boat brands such as Boston Whaler, Sea Ray, Bayliner, Lund, Harris and Princecraft.