Q2 2026 Brunswick Corp Earnings Call Transcript
Key Points
- Brunswick Corp (BC) delivered a strong second quarter with 8% year-over-year sales growth and 34% adjusted EPS growth, exceeding expectations.
- All reporting segments achieved year-over-year sales growth for the fourth consecutive quarter, demonstrating broad-based momentum.
- The premium and core boat portfolio remained resilient, with retail sales flat year-over-year after adjusting for value model rationalization.
- Recurring revenue businesses, including engine parts and accessories and Freedom Boat Club, continued to thrive, with Freedom Boat Club member trips up a record 13% in the first half.
- Mercury Marine is gaining international market share, with double-digit unit order increases year-to-date and significant share gains in regions like Asia and Latin America.
- Consumer sentiment remains pressured due to prolonged geopolitical conflicts and inflation, negatively impacting the value segment of the boat market.
- Incremental tariffs, including the new Section 301 and Canadian tariffs, are expected to add approximately $5 million in net negative impact for 2026.
- The Propulsion segment's operating margin was flat year-over-year due to higher tariffs, material inflation, and increased product development expenses.
- US outboard engine retail units finished the first half slightly down year-over-year, indicating softness in the broader market.
- The company faces approximately $20 million to $25 million in elevated product development spending for new engine platforms, which is expected to persist into the near term.
Good morning, and welcome to Brunswick Corporation's second 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 of Brunswick Corporation.
Good morning, and thank you for joining us. With me on the call this morning are David Falz, 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.
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