Brunswick Corporation reported consolidated net sales of $1.27 billion for the third quarter of 2024, a 20% decrease from Q3 2023, and missed analyst estimates by $20 million. GAAP operating earnings were $44.6 million, with diluted EPS of $0.30. Adjusted diluted EPS was $1.17, missing consensus estimates by $0.03, representing a 52% decrease from the prior year.
The company's recurring revenue businesses, including Engine P&A, Propulsion's repower business, Freedom Boat Club, and Navico Group's aftermarket sales, contributed nearly 70% of adjusted operating earnings in Q3 2024. Engine Parts & Accessories achieved record operating margins of 26%, despite slightly lower sales. The completed transition of engine parts and accessories distribution to the new Brownsburg, Indiana facility is providing efficiency and delivery time benefits.
Brunswick gained 420 basis points of U.S. outboard engine share in the quarter, with U.S. outboard engine retail outperforming the industry at a decline of 1.8% year-to-date. The company completed $190 million in share repurchases year-to-date. It also increased its revolving credit facility to $1.0 billion, extending maturity to October 2029, and increased its commercial paper program to $1.0 billion for capital flexibility.
Full-year new boat retail unit sales are estimated to be down approximately 10% versus 2023. Navico Group launched new products, including Elite FS 10-inch and 12-inch fishfinders and the Lowrance Eagle Eye 9, with over 20 new products introduced year-to-date. The company also completed the acquisition of South Florida franchise operations for Freedom Boat Club and expects to enter the Asian market in the near future.
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