Brunswick Corporation reported consolidated net sales of $1,221.8 million for the first quarter of 2025, a 10.5% decrease from Q1 2024, but exceeding Wall Street's revenue expectations. GAAP diluted EPS was $0.30, while adjusted diluted EPS reached $0.56, significantly surpassing analyst consensus estimates.
The company achieved outstanding free cash flow generation in the quarter, marking a $160 million improvement over Q1 2024 and representing the second-best first quarter cash flow in over a decade. This strong cash performance supported $26 million in share repurchases during the quarter. Recurring revenue businesses contributed nearly 60% of adjusted operating earnings.
Mercury's outboard engine lineup continued to gain market share, with a 40 basis point increase in U.S. retail share on a rolling twelve-month basis. The Engine Parts and Accessories segment reported a 15% operating margin, an increase of over 100 basis points year-over-year. Freedom Boat Club continued its global expansion and reported steady membership sales growth, with member trips up 3% sequentially in the first quarter.
Brunswick updated its full-year 2025 adjusted diluted EPS guidance to a range of $2.50 to $4.00. The company is evaluating opportunities to improve profitability and cash flow through manufacturing footprint rationalization and cost reductions, while acknowledging uncertainties related to trade policy and foreign exchange rates.
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