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Apr 01, 2023
Brunswick Q1 2023 Earnings Report
Brunswick reported a strong start to the year, exceeding expectations for sales, margin, and EPS, driven by operational strength, new products, and cost management.
Key Takeaways
Brunswick Corporation reported a 2.8% increase in net sales to $1,743.6 million and an adjusted EPS of $2.57 for the first quarter of 2023. The company's performance was driven by strong operational execution and new product introductions. Brunswick is reiterating its 2023 adjusted diluted EPS guidance of $9.50 - $11.00.
Continued operational strength and prudent cost management drove outstanding results.
Better than anticipated boat show results indicated a resilient consumer.
Free cash flow performance improved by $135 million versus Q1 2022.
Propulsion business delivered exceptional results due to increased high-horsepower outboard engine production.
Brunswick
Brunswick
Brunswick Revenue by Segment
Revenue by Segment
Propulsion Revenue
CapyFin.comEngine Parts & Acc. Revenue
CapyFin.comBoat Revenue
CapyFin.com Forward Guidance
Brunswick anticipates net sales of $6.8 billion to $7.2 billion and adjusted diluted EPS between $9.50 and $11.00 for 2023. Second quarter 2023 net sales are expected to be flat to up slightly versus Q2 2022, with adjusted diluted EPS between $2.60 and $2.70.
Positive Outlook
- Investments in new products and technologies attract strong customer interest.
- Share repurchases in excess of $200 million are planned.
- Avator electrification platform has begun to ship globally.
- Company will continue to take significant actions to lower our structural costs.
- Company will be prudent with spending without sacrificing the investments needed to drive our strategic plan
Challenges Ahead
- Turbulent macro-economic climate.
- Elevated year-over-year input costs.
- Spending on growth initiatives in each segment.
- Unfavorable changes in foreign currency exchange rates
- Lower sales into the retail channel
Revenue & Expenses
Visualization of income flow from segment revenue to net income