Brunswick Corporation reported second-quarter 2025 net sales of $1.447 billion, a slight increase from Q2 2024, exceeding guided expectations due to steady wholesale ordering and modest pricing benefits. Year-to-date net sales declined 5.00% to $2.668 billion. GAAP operating earnings for Q2 2025 were $103.3 million, down from $158.3 million in Q2 2024, primarily due to lower absorption from decreased production levels, material inflation, and foreign currency fluctuations.
The company achieved a record $288 million in free cash flow in Q2 2025, marking its best second quarter in history. This contributed to a record first-half free cash flow of $244 million, a $279 million improvement over the prior year, driven by reduced working capital usage and focused inventory management. Total liquidity stood at $1.31 billion as of June 28, 2025, including $316.5 million in cash.
Brunswick raised its full-year 2025 free cash flow guidance by $50 million to "greater than $400 million." The company projects anticipated sales of approximately $5.2 billion and adjusted EPS of approximately $3.25 for the full year. Management expects the U.S. boat retail market to be flat to 2024 in terms of retail units sold.
The guidance incorporates an estimated $20 million to $30 million in China tariff expense for Q2 2025, adding to the initial $30 million for the year, with total potential incremental net tariff costs of $100 million to $125 million for 2025. Brunswick plans $175 million in debt reduction for 2025, an increase of $50 million, and share repurchases exceeding $80 million. The company is also rationalizing its value fiberglass model lineup by 25% for the 2026 model year to optimize profitability.
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