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Jun 29, 2024
Brunswick Q2 2024 Earnings Report
Reported a resolute performance amidst a challenging marine market, with GAAP diluted EPS of $1.55 and as adjusted diluted EPS of $1.80.
Key Takeaways
Brunswick Corporation reported second-quarter results that were slightly below expectations due to high interest rates impacting consumer spending and wholesale ordering patterns. Despite these challenges, the company saw growth in its engine parts and accessories business, stability in Navico Group's aftermarket sales, and solid performance in its boat business. The company is lowering its full-year guidance to net sales of $5.2 to $5.4 billion and as adjusted diluted EPS in the range of $5.00 to $5.50.
Second quarter net sales were $1,443.9 million, a 15.2% decrease compared to Q2 2023.
GAAP diluted EPS was $1.55, and as adjusted diluted EPS was $1.80.
Despite lower sales and operating earnings versus the second quarter of 2023, year-to-date Brunswick continues to gain share in outboard engines, with more than 48 percent overall share of the U.S. outboard market.
Recurring revenue businesses and channels, including engine P&A, Propulsion’s repower business, Freedom Boat Club, and Navico Group's aftermarket sales, contributed more than 50 percent of Q2 adjusted operating earnings.
Brunswick
Brunswick
Brunswick Revenue by Segment
Revenue by Segment
Propulsion Revenue
CapyFin.comEngine Parts & Acc. Revenue
CapyFin.comNavico Group Revenue
CapyFin.comBoat Revenue
CapyFin.com Forward Guidance
Brunswick updated its full year guidance to match market realities.
Positive Outlook
- Brunswick will continue to launch many exciting new products to support future share gains.
- Focusing on delivering year-end inventory levels in line with historical norms
- Executing our strategic plan
- Investing in our long-term growth initiatives
- Driving resilient EPS and free cash flow
Challenges Ahead
- Net sales between $5.2 to $5.4 billion
- Adjusted diluted EPS in the range of $5.00 to $5.50
- Free Cash Flow in excess of $350 million
- Annual share repurchases of approximately $200 to $220 million
- Third quarter 2024 net sales between $1.2 billion and $1.3 billion, and adjusted diluted EPS in the range of $1.15 to $1.25.
Revenue & Expenses
Visualization of income flow from segment revenue to net income