Brunswick reports sales growth across all segments in Q2

Brunswick has raised its full-year 2026 guidance after reporting strong second-quarter results, with sales up 7.7 per cent and adjusted operating earnings rising 19.1 per cent. The marine group says resilient demand, healthy boating participation and operational execution helped offset a challenging macroeconomic and geopolitical environment.

It says that exceptional sales growth has driven strong earnings during its 2026 second quarter results.

“Brunswick delivered a strong second quarter despite a turbulent macroeconomic and geopolitical environment, with financial performance ahead of expectations and year-over-year sales growth across all reporting segments for the fourth consecutive quarter,” says David Foulkes, Brunswick chairman and CEO.

• The company’s reporting consolidated net sales of $1,557.8m, an increase of 8 per cent versus the second quarter of 2025.
• Cash and marketable securities totalled $299.7m at the end of the second quarter, up $24.0m from 2025 year-end levels.
• Net cash provided by operating activities of continuing operations during the first six months of 2026 was $251.5m, primarily reflecting operating results and depreciation and amortisation.
• Investing and financing activities resulted in net cash used of $224.3m during the first half of 2026 primarily due to $98.6m of capital expenditures, $57.2m of dividend payments, $31.2m of share repurchases and $28.2m of cash paid for the acquisition of the greater Boston & Cape Cod Freedom Boat Club franchise operations.
• Q2 adjusted operating earnings increased 19.1 per cent to $150.1 million, with adjusted operating margin rising 90 basis points to 9.6 per cent.
• Q2 adjusted diluted EPS increased 34.5 per cent to $1.56, while GAAP diluted EPS rose 84.4 per cent to $1.66.
• First-half 2026 net sales increased 10 per cent to $2,935.9m, while adjusted operating earnings rose 17.5 per cent to $232.7m.
• Brunswick raised its 2026 full-year guidance, now expecting adjusted diluted EPS of $4.35 to $4.75, alongside net sales of $5.7bn to $5.8bn and free cash flow of $400m or more.

Sales rise across all reporting segments

Brunswick says that sales growth reflected steady OEM orders, continued strong P&A and aftermarket performance driven by healthy boating participation, pricing taken in previous periods, and improved mix.

Adjusted operating earnings and margins increased as the benefits of the higher sales, favourable mix, and strong operating execution, in addition to IEEPA refunds. This, says the company, more than offsets inflationary pressures, increased variable compensation, incremental tariffs, and accelerated product development investment.

Foulkes says that the balanced portfolio, continued healthy OEM demand, strong boating participation, improved mix, and disciplined operational execution drove robust sales and earnings growth, further supported by the recognition of certain IEEPA tariff refunds. Absent the net IEEPA benefit, including its associated influence on variable compensation, adjusted operating earnings increased substantially versus Q2 2025, and adjusted EPS remained significantly ahead of expectations, demonstrating the strength of our underlying operating performance.

“Certain parts of the US and global new boat market remained pressured in the quarter, primarily in the value segments, as macro uncertainty and the prolonged conflict in Iran weighed on consumer sentiment,” he continues.

“However, our premium- and core-biased portfolio remained resilient, and first-half US retail was roughly flat when adjusted for the purposeful value-model rationalisation actions initiated last year. Boat and engine pipelines remained lean and fresh, positioning Brunswick and its dealers well for future market improvement.”

Propulsion business delivers another strong quarter

The propulsion business delivered another strong quarter, with year-over-year sales growth driven by steady OEM demand, continued high market share, and strong international momentum, particularly in Latin America and Asia. Foulkes notes that Mercury Marine remains well positioned with five new engine programmes on track and additional opportunities in repower, government, and commercial markets.

“Engine parts and accessories delivered another strong quarter, supported by healthy boating participation and the resultant demand for products along with past pricing actions. The products and distribution businesses both contributed to improved profitability, underscoring the stability and attractive operating leverage of this recurring-revenue business.”

Navico Group continued its strong performance trajectory, with sales growth across its business lines supported by new products, OEM wins, sustained aftermarket demand, and ongoing operational improvement actions. “The business also advanced strategic opportunities in unmanned surface vessels and continued to demonstrate meaningful progress toward its margin-improvement objectives, remaining an important contributor to Brunswick’s technology leadership.

“Our boat segment grew both sales and earnings, benefiting from increased focus on premium and core brands, pricing actions, operational efficiencies, and continued growth in Freedom Boat Club.” Recently Freedom reached its 450th global network location.

“Finally, we remain on track to retire at least $160m of debt this year and have repurchased $35m of shares year-to-date, underscoring our commitment to both maintaining an investment grade balance sheet and returning capital to our shareholders.

“Our strong second quarter performance again highlighted the benefits of Brunswick’s balanced portfolio as we continue to manage through a dynamic external environment.”

Tariffs and geopolitics remain key risks

“As we move through the second half of 2026, we are very pleased with Brunswick’s ability to deliver strong performance in an uncertain environment,” says Foulkes.

He notes that prolonged geopolitical uncertainty and inflation are weighing on consumer sentiment, but says there are encouraging indicators. “These factors reinforce our confidence that Brunswick is structurally well positioned, with healthy channel dynamics, strong brand and product momentum, and high exposure to healthy boating participation trends.

“The tariff environment remains fluid, but our mitigation actions and disciplined operational execution are helping offset external cost pressures. We now expect full-year incremental tariffs to be approximately $40m, with the year-over-year impact heavily weighted to the first half.

“Our updated earnings outlook also reflects approximately $25m to 30m of net IEEPA refunds expected to be recognised in 2026, inclusive of the resulting impact on enterprise-wide compensation. Together with continued business improvement actions, strong operating leverage, and mix benefits, we expect materially higher adjusted operating margin this year, while maintaining our commitment to keeping pipelines healthy and preserving balance-sheet strength.”

Broadening marine portfolio

Over the past five years, Brunswick has significantly broadened its marine portfolio and pushed further into technology and shared-access boating. A major step was its $1.05bn acquisition of Navico in 2021, bringing Lowrance, Simrad, B&G and C-MAP into the group, followed by the creation of Navico Group. Meanwhile, Freedom Boat Club has expanded rapidly across North America and Europe, with acquisitions and new locations strengthening Brunswick’s recurring-revenue business.

The period has also brought significant market challenges. After strong demand during the pandemic-era boom, Brunswick faced a sharp slowdown in the new-boat market, with sales falling through 2024 as dealers became more cautious. The company responded with cost controls, organisational changes and a greater focus on its recurring-revenue businesses, while continuing to invest in new products and technology. By the end of 2025, Brunswick was reporting its first full-year net sales growth in three years, suggesting the business was beginning to emerge from the downturn.