Brunswick (BC) Stock Forecast & Price Target

Brunswick has demonstrated resilience in its financial performance, reporting revenues of $1.45 billion, reflecting a modest 0.2% year-over-year increase, alongside earnings that met consensus expectations at $0.95. Notably, the propulsion segment exhibited robust growth, with sales climbing 7.1% year-over-year to $598.2 million, driven primarily by stronger orders from original equipment manufacturers (OEMs) in the U.S. Despite a slight decline in products sales, the increase in distribution business sales by 4% indicates a positive trend in the company's overall operational efficiency and market demand.

Brunswick's financial outlook appears negative due to a significant decline in adjusted operating margins across key segments, with the Boat Segment reporting a decrease of 290 basis points year-over-year to 3.3%, attributed to lower sales and the reinstatement of variable compensation. Additionally, the Propulsion Segment experienced an even more pronounced decline of 420 basis points to an adjusted operating margin of 11.3%, impacted by tariffs and decreased production levels. The Navico Segment also contributed to the negative sentiment, with a 3.7% year-over-year sales decrease to $202.3 million, driven by reduced demand from OEMs and aftermarket channels, illustrating a broader trend of revenue pressures faced by the company.