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Jul 01, 2023

Brunswick Q2 2023 Earnings Report

Announced preliminary second quarter 2023 results, impacted by the IT security incident.

Key Takeaways

Brunswick Corporation announced preliminary financial results for the second quarter ended July 1, 2023. The results were below initial expectations due to the impacts of the recent IT security incident. Revenue was approximately $1.7B. GAAP EPS is expected to be in the range of $1.85 to $1.90, and Adjusted EPS in the range of $2.30 to $2.35.

Revenue of approximately $1.7B.

GAAP EPS in the range of $1.85 to $1.90 and Adjusted EPS in the range of $2.30 to $2.35.

Strong Free Cash Flow generation is expected.

Full-year Adjusted EPS expectations are now approximately $9.50.

Total Revenue
$1.7B
Previous year: $1.84B
-7.3%
EPS
$2.35
Previous year: $2.82
-16.7%
Gross Profit
$472M
Previous year: $504M
-6.3%
Cash and Equivalents
$478M
Previous year: $567M
-15.7%
Free Cash Flow
$188M
Previous year: $193M
-2.7%
Total Assets
$6.29B
Previous year: $6.17B
+2.0%

Brunswick

Brunswick

Forward Guidance

The impact of the IT security incident combined with anticipated continued pressure on consumers globally, lead Brunswick to be cautious regarding second-half financial performance. Full-year Adjusted EPS expectations to now be approximately $9.50.

Positive Outlook

  • Stronger than expected new boat retail in the recent months
  • Continued high Mercury retail market share

Challenges Ahead

  • Impact of the IT security incident
  • Anticipated continued pressure on consumers globally
  • Disciplined management of inventory levels across our businesses
  • Lost production of high horsepower outboard engines will be difficult to compensate
  • Limited ability to overdrive production for the balance of the year