Brunswick Q4 revenue beats on strong OEM orders

Overview

• Marine recreation firm's Q4 revenue rose 16%, beating analyst expectations

• Adjusted EPS for Q4 increased 141.7% yr/yr, reflecting operational improvements

• Company's propulsion segment reported 23% sales increase, boosting overall performance

Outlook

• Brunswick projects 2026 net sales between $5.6 bln and $5.8 bln

• Company expects 2026 adjusted diluted EPS of $3.80 to $4.40

• Brunswick anticipates free cash flow over $350 mln in 2026

Result Drivers

• PROPULSION SEGMENT - Reported a 23% sales increase driven by strong OEM orders and increased production levels

• ENGINE PARTS AND ACCESSORIES - Segment sales rose 15% due to strong boating participation and distribution share gains

• NAVICO GROUP - Increased revenue and margins due to new product investments and cost control measures

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy"

• Wall Street's median 12-month price target for Brunswick Corp is $81.00, about 3.8% below its January 28 closing price of $84.17

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

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