Brunswick Corporation has raised its full-year earnings guidance after third-quarter sales rose 6.9 per cent to $1.45bn. Sales increased across all four reporting segments, marking the fifth consecutive quarter of year-on-year growth in each business.
Adjusted operating earnings rose 37.9 per cent to $146.7m, while the adjusted operating margin increased from 7.8 per cent to 10.1 per cent. Adjusted diluted earnings per share from continuing operations reached $1.58, up from $0.97 a year earlier.
Brunswick recorded operating earnings of $104m, compared with a loss of $242.2m a year earlier.
“Brunswick delivered another strong quarter characterised by solid execution across the enterprise, with financial performance ahead of expectations and year-over-year sales growth across all reporting segments for the fifth consecutive quarter,” says David Foulkes, Brunswick chairman and CEO. “Adjusted operating margin increased by 230 basis points across all segments versus the prior year.
“Most of the key drivers of current and future growth remain largely within our control, even as broader macro and trade dynamics create some uncertainty.”
Propulsion sales increased 6.6 per cent to $570.5m. Adjusted operating earnings rose 51.1 per cent to $68.6m, while the adjusted margin increased from 8.5 per cent to 12 per cent. Brunswick credits demand from original equipment manufacturers (OEMs) and higher-horsepower outboard applications for the sales growth.
Engine parts and accessories sales reached $380.9m, up 4.7 per cent. Adjusted operating earnings increased 13.6 per cent to $93.6m and the adjusted margin rose to 24.6 per cent, from 22.7 per cent.
Sales grew across all Navico Group business lines to $197.7m, up 5.8 per cent. Adjusted operating earnings rose 36.4 per cent to $12m, and the adjusted margin increased from 4.7 per cent to 6.1 per cent. The segment still recorded a GAAP operating loss of $1.5m.
Boat segment sales grew 9.5 per cent to $394.4m. Adjusted operating earnings doubled to $14.2m, with the adjusted margin rising from 2 per cent to 3.6 per cent. Brunswick attributes the improvement to higher sales and a more favourable product mix, along with lower manufacturing and sourcing costs.
CEO statement
Foulkes says: “Despite an external environment with headwinds from persistent inflation, higher borrowing costs, and geopolitical uncertainty continuing to pressure value categories, our premium- and core-focused brand portfolio continued to demonstrate resilience and perform ahead of the overall market. 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.
“Our propulsion business delivered another robust quarter driven by consistent OEM demand and growth in high-horsepower applications. Mercury continues to maintain its market-leading position in the US, while gaining share internationally through expanding dealer, OEM, and retail relationships.
“Navico Group delivered another quarter of sales growth and adjusted margin expansion, supported by OEM wins, steady aftermarket performance, exciting new product introductions, and continued successful execution of operational improvement initiatives. Sales increased across all business lines while cost-reduction and portfolio-optimisation actions helped offset inflationary pressures.
“Our boat segment grew both sales and earnings, led by strength in premium and core products, together with pricing realisation, and continued operational efficiencies. Our premium fibreglass and core US brands continued to outperform broader industry trends, while Freedom Boat Club maintained strong momentum. We estimate Freedom now accounts for close to seventy per cent of the North American boat club market as it continues to thrive while its competitors falter.
“Finally, we continued to execute our disciplined capital allocation strategy, including further debt reduction and share repurchases, buying back $75m of shares year-to-date, while remaining on track to meet or exceed our debt retirement target and maintain a strong balance sheet.
“As we close out 2026, we continue to demonstrate the decoupling of our business and financial performance from overall US new boat market unit sales trends, and we are very encouraged by Brunswick’s ability to deliver sales growth and margin expansion despite ongoing macroeconomic and geopolitical uncertainty.”
Full-year outlook and CEO succession
Brunswick now expects adjusted diluted earnings per share of approximately $4.65 for 2026, with full-year sales of $5.7bn to $5.8bn.
Aine Denari will succeed Foulkes as chief executive effective 1 January 2027.
Brunswick is based in Mettawa, Illinois, and employs approximately 14,000 people across 26 countries. It owns more than 60 brands spanning boatbuilding, propulsion and other marine businesses, including electronics and shared-access boating. Its brands include Mercury Marine and boatbuilders Boston Whaler and Sea Ray.
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