Brunswick Corporation reported third-quarter sales of US$1.454 billion, up 6.9% year on year.
All four of the Group’s segments recorded growth and adjusted operating earnings increased 37.9% to US$146.7 million.
Adjusted operating margin rose 2.3 percentage points to 10.1%, with reported operating earnings standing at US$104 million, with a 7.2% margin.
The Group attributed the improvement to steady boatbuilder demand, higher prices, market-share gains and boating participation supporting parts and aftermarket sales.
Higher production, product mix, cost controls and reduced year-on-year tariff pressure helped offset material and labour inflation.
Continued wholesale growth
“Boating participation remained healthy throughout the quarter, supporting demand across our recurring-revenue parts and accessories, aftermarket, and subscription boating businesses, while lean pipelines and balanced OEM orders supported continued wholesale growth,” said chairman and chief executive David Foulkes.
Propulsion sales increased 7%, supported by demand for high-horsepower outboards. Adjusted operating earnings rose 51%, with margin expanding 3.5 percentage points. Mercury’s five major outboard development programmes remain on schedule.
Engine Parts and Accessories sales rose 5%, while adjusted operating earnings increased 14%.
Brunswick cited sustained boating activity, distribution gains and regional growth, with favourable late-season weather supporting demand.
Navico Group sales grew 6% across its business lines, with adjusted operating earnings up 36%.
Boat segment sales increased 9% and adjusted operating earnings doubled, reflecting premium and core product demand, pricing and manufacturing efficiencies.
Freedom Boat Club continued to expand, with Brunswick estimaing it accounts for nearly 70% of the North American boat club market.
Full-year outlook
“Boat and engine pipelines remain lean and well-aligned with retail demand, positioning Brunswick and its channel partners well as we close out the year,” Foulkes said.
Operating cash flow from continuing operations totalled US$438.8 million for the first nine months.
Capital expenditure was US$148.9 million, while payments for acquisitions of Freedom Boat Club franchise operations reached US$32.5 million.
Brunswick’s updated full-year outlook forecasts sales of US$5.7 billion to US$5.8 billion and an adjusted operating margin of approximately 8%.
Inflation, borrowing costs and geopolitical uncertainty continued to pressure consumer sentiment, particularly in value categories, despite stronger performance in premium products and recurring-revenue businesses, added Foulkes.
