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Dec 31, 2023
Brunswick Q4 2023 Earnings Report
Brunswick reported fourth quarter results, with strong cash generation and market share gains.
Key Takeaways
Brunswick Corporation reported a decrease in net sales and diluted EPS for the fourth quarter of 2023 compared to the record fourth quarter of 2022. Despite a challenging macroeconomic environment, the company highlighted strong cash generation, high-horsepower outboard market share gains, and steady operating performance.
Net sales decreased due to measured wholesale ordering patterns and higher discounts.
Operating earnings and margin declined due to lower net sales and spending on growth initiatives.
Propulsion segment sales decreased, but operating margins improved due to cost control and reduced material costs.
Engine Parts and Accessories segment sales slightly decreased, with operating earnings and margins also declining.
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 U.S. marine industry retail unit sales to be flat versus 2023, net sales between $6.0 billion and $6.2 billion, adjusted operating margin of between 12.0 and 13.0 percent, free cash flow in excess of $350 million, adjusted diluted EPS in the range of $7.00 - $8.00, and first quarter 2024 revenue of between $1.3 and $1.4 billion, and adjusted EPS between $1.30 and $1.40.
Positive Outlook
- Potential for steadily easing financial conditions.
- Launch of more than fifteen new products across businesses.
- Focus on delivering steady free cash flow and resilient EPS.
- Disciplined pipeline management and strong operational performance.
- Continued investments in new products and growth.
Challenges Ahead
- Cautious outlook, particularly in the first quarter.
- Uncertain consumer and business environment.
- Impact of more measured wholesale ordering patterns by dealers, OEMs and retailers
- Higher discounts in select segments
- Softer marine OEM orders and the continued weak RV manufacturing environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income