Brunswick raises 2026 profit forecast, Q3 profit tops estimates

Brunswick Corporation (BC) said on Oct. 29 that third-quarter adjusted diluted earnings were $1.58 per share, topping the $1.40 consensus estimate compiled by Finnhub. Net sales of $1,453.9 million, up 6.9% from a year earlier, missed the $1.5 billion estimate.

The company also raised its full-year 2026 adjusted diluted EPS forecast to approximately $4.65. The new figure replaces the $4.35 to $4.75 range it gave on July 30.

Brunswick makes boats, Mercury outboard engines and marine parts, and runs the Freedom Boat Club membership business. The company has about 14,000 employees in 26 countries, according to the release.

Here's how the company did:

• Adjusted diluted EPS: $1.58 vs. 97 cents a year earlier, and $1.40 expected according to Finnhub
• GAAP diluted EPS from continuing operations: $1.01, vs. a loss of $3.57 per share a year earlier
• Net sales: $1,453.9 million vs. $1,360.2 million a year earlier, below the $1.5 billion estimate
• Adjusted operating margin: 10.1% vs. 7.8% a year earlier
• Restructuring, exit and impairment charges: $21.1 million vs. $333.8 million a year earlier

David Foulkes, Brunswick Chairman and Chief Executive Officer, said in the release that “Brunswick delivered another strong quarter characterized by solid execution across the enterprise, with financial performance ahead of expectations.”

Sales grew across all reporting segments for the fifth consecutive quarter, the release said. Adjusted operating margin rose 230 basis points from a year earlier.

Segment results

Propulsion sales rose 6.6% to $570.5 million, and adjusted operating earnings rose 51.1% to $68.6 million.

Engine Parts and Accessories sales rose 4.7% to $380.9 million. Adjusted operating earnings were $93.6 million, up 13.6%.

Navico Group sales rose 5.8% to $197.7 million, and adjusted operating earnings rose 36.4% to $12.0 million.

Boat sales rose 9.5% to $394.4 million. Adjusted operating earnings were $14.2 million, up 100.0%.

2026 guidance

Brunswick now expects 2026 adjusted diluted EPS of approximately $4.65, up from the $4.35 to $4.75 range it gave on July 30.

Net sales guidance of $5.7 billion to $5.8 billion and an adjusted operating margin of approximately 8.0% match the July 30 figures.

The company also expects free cash flow of $400 million or more, debt retirement of $160 million or more, and share repurchases of $80 million or more.

The release also said Aine Denari will succeed Foulkes as Chief Executive Officer effective Jan. 1, 2027, as previously announced.

Cash and capital returns

Cash and marketable securities totaled $279.4 million at the end of the third quarter, up $3.7 million from 2025 year-end levels.

Net cash provided by operating activities of continuing operations was $438.8 million in the first nine months of 2026. Capital expenditures were $148.9 million.

Share repurchases totaled $60.0 million in the first nine months. Foulkes said the company is “buying back $75 million of shares year-to-date.”

The company said it remains on track to meet or exceed its debt retirement target. It spent $32.5 million on acquisitions of certain Freedom Boat Club franchise operations in the period.

The company booked $21.1 million in restructuring, exit and impairment charges and a $7.4 million loss on the sale of a business or assets in the quarter.

Net income has risen in each of the last three quarters, from a loss of $235.5 million in the third quarter of 2025 to $109.8 million in the second quarter of fiscal 2026, according to its SEC filings.