Q1 2026 Brunswick Corp Earnings Call Transcript
Key Points
- Brunswick Corp (BC) reported a 13% year-over-year increase in net sales, driven by market share gains, strong OEM demand, and new product introductions.
- Adjusted earnings per share increased by 25% compared to the previous year, showcasing strong operating leverage.
- The company executed a disciplined capital allocation strategy, repurchasing $20 million of shares and delivering its 14th consecutive annual dividend increase.
- All segments delivered year-over-year sales growth, with operating margin expansion across the portfolio, except for Propulsion.
- Freedom Boat Club, a high-growth recurring revenue business, expanded with four new locations and increased member trips by 20%.
- The Propulsion segment's operating margin was impacted by incremental tariffs, despite significant sales increases.
- Free cash flow was negative in the first quarter, attributed to higher production levels and working capital investment.
- The tariff environment remains dynamic, with ongoing impacts from tariffs on steel and aluminum affecting financial performance.
- The value consumer segment remains a focus due to potential impacts from geopolitical volatility and macroeconomic conditions.
- The company faces challenges in the saltwater boat market, with value segment softness impacting overall performance.
Good morning, and welcome to Brunswick Corporation's first quarter 2026 earnings conference call. (Operator Instructions). Today's meeting will be recorded. If you have any objections, you may disconnect at this time.
I would now like to introduce Stephen Weiland, Senior Vice President and Deputy CFO, Brunswick Corporation.
Good morning, and thank you for joining us. With me on the call this morning are David Foulkes, Brunswick's Chairman and CEO; and Ryan Gwillim, Brunswick's CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on the factors to consider, please refer to our recent SEC filings and today's press release.
All of these documents are available on our website at brunswick.com. During our presentation, we will be referring to
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