Brunswick Corporation has released its financial results for the fourth quarter and full year of 2024.
Brunswick reported a decrease in net sales and earnings for both Q4 and full-year 2024, attributing it to lower wholesale orders and reduced production levels. Despite these challenges, the company managed to gain market share in outboard engines and maintained stable performance in key premium segments.
For the full year, net sales were $5.24bn, marking an 18.2 per cent decrease compared to 2023. Operating earnings on a GAAP basis were $311.6m, down by 57.6 per cent, while as-adjusted operating earnings stood at $495.4m, a 43 per cent decline. GAAP diluted earnings per share (EPS) from continuing operations were $2.21, showing a 63.9 per cent decrease, whereas as-adjusted diluted EPS was $4.57, down by 48.1 per cent.
In Q4 2024, Brunswick’s net sales were reported at $1.15bn, a 15.2 per cent drop from the same period in 2023.
CEO David Foulkes stated, “We had a very solid finish to 2024 characterized by significant cash generation in the fourth quarter, further outboard engine market share gains, successful new product launches, and optimal operating performance in the circumstances, all of which enabled us to conclude full-year 2024 slightly ahead of our recent expectations.”
Foulkes mentioned that U.S. new boat retail sales were down by a high single-digit percentage in 2024 compared to 2023, with Brunswick performing slightly better in key premium segments. Inventory levels across the dealer network were at 36.8 weeks of supply. The company continued to manage production volumes and field inventory, with positive signs seen at early-season boat shows.
Lower production in the propulsion business contributed to a year-on-year decline in fourth-quarter net sales and operating earnings. Despite this, Brunswick gained 110 basis points in U.S. retail outboard engine market share. The engine parts and accessories segment saw a slight decrease in net sales and earnings in Q4 but recorded earnings and operating margin growth for the full year. Navico Group sales remained stable compared to the previous year, supported by new products and aftermarket segment performance.
The boat segment delivered results as expected, maintaining inventory levels ahead of 2025. Demand for premium products and market share gains contributed to a stable outlook. Freedom Boat Club, surpassing 600,000 member boating trips in 2024, expanded its operations by adding new locations across the U.S., Europe, Australia, and New Zealand.
By the end of 2024, cash and marketable securities totaled $286.7m, down by $193m from the previous year. Net cash provided by operating activities was $449.5m, mainly influenced by lower net earnings.
Looking forward to 2025, Brunswick anticipates net sales between $5.2bn and $5.6bn and adjusted diluted EPS in the range of $3.50 to $5.00. The company expects U.S. marine industry retail unit sales to remain stable compared to 2024.
Foulkes further added, “2025 has the potential to be a year of steadily easing financial conditions, and while we enter the year with a cautious outlook, particularly for the first quarter, we have already launched many new products across our businesses, and we remain extremely focused on delivering steady free cash flow, resilient EPS, and driving continued strong shareholder returns.”
The Brunswick Corporation umbrella comprises over 60 companies split between marine propulsion parts, accessories, distribution, technology, boats and service, digital and shared-access businesses.
These include Mercury Marine, Mercury Racing, MerCruiser, Lowrance, Simrad, B&G, Mastervolt, Boston Whaler, Lund, Sea Ray, Bayliner, Harris Pontoons, Princecraft, Quicksilver, Freedom Boat Club, Boateka, and a range of financing, insurance, and extended warranty businesses.
While Brunswick focuses primarily on the marine industry, it also leverages its technologies in mobile and industrial applications.
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