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Core Viewpoint - Brunswick Corporation reported fourth-quarter earnings that slightly exceeded expectations, with revenue significantly surpassing forecasts, yet shares fell more than 5% intraday [1][2]. Financial Performance - The company posted adjusted earnings per share of $0.58, narrowly beating the consensus estimate of $0.57 [1]. - Revenue totaled $1.33 billion, roughly 10% above analyst expectations of $1.21 billion [1]. Stock Market Reaction - Despite the top-line outperformance, the stock reaction indicated that investors had already priced in the stronger results [2]. Long-term Financial Outlook - Brunswick projected earnings per share between $3.80 and $4.40, with the midpoint of $4.10 modestly below the analyst consensus of $4.19 [2]. - Revenue was expected to range from $5.6 billion to $5.8 billion, with the midpoint exceeding consensus expectations of $5.54 billion [2]. Management's Perspective - Management's outlook reflected confidence in revenue growth while maintaining a more cautious stance on earnings over the longer term [3].

Financial Data and Key Metrics Changes - Brunswick finished 2025 with net sales of $5.4 billion, up 2% year-over-year, marking the first full-year net sales growth in three years [4][15] - Adjusted earnings per share (EPS) for the year was $3.27, impacted by tariff headwinds, with free cash flow generation reaching $442 million, up 56% year-over-year [4][17] - The company reported a 41% increase in Q4 earnings compared to the prior year, driven by higher sales and operational improvements [15] Business Line Data and Key Metrics Changes - The propulsion segment saw a 23% increase in sales, with double-digit growth across all product categories, driven by strong OEM orders [17][19] - The aftermarket parts and accessories (P&A) business grew sales by 15% in Q4, marking the third consecutive quarter of growth [19] - The boat segment reported an 11% sales increase, with growth across premium, core, and value categories [22] Market Data and Key Metrics Changes - The U.S. retail boat market finished 2025 down approximately 9% in units, while Brunswick's global retail unit sales were down only 5% [3][10] - Dealer inventories remained low, with a high percentage of recent model year products, supporting a favorable retail environment [4][10] - Brunswick's market share in the U.S. outboard segment remained stable at approximately 47%, with gains in higher horsepower engines [11] Company Strategy and Development Direction - Brunswick plans to continue driving operational efficiencies and is encouraged by the strong reception of new products, with a focus on ultra-high horsepower engines [23][89] - The company aims for revenue growth in 2026, projecting net sales between $5.6 billion and $5.8 billion, with adjusted operating margins between 7.5% and 8% [24] - Brunswick's strategy includes significant investments in new product development and technology, alongside returning capital to shareholders [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved market conditions for 2026, supported by falling interest rates and strong retail demand [5][8] - The company anticipates a flat to slightly up U.S. retail boat market, with expectations for wholesale sales to closely match retail [23][24] - Management noted that tariff mitigation actions successfully offset over half of the gross dollar exposure, with expectations of further incremental tariff costs in 2026 [9][28] Other Important Information - Brunswick's liquidity at year-end was $1.3 billion, including access to an undrawn revolving credit facility [13] - The company plans to retire approximately $160 million of debt in 2026, contributing to a net debt leverage target of 2.5x or lower [29] - Brunswick received multiple awards for its products and innovations at recent trade shows, highlighting its commitment to quality and technology [31][35] Q&A Session Summary Question: What was the retail performance in the fourth quarter? - Management indicated that retail performance was flat, with continued strength in premium and core brands, which represent a significant portion of their portfolio [41] Question: What gives confidence for flat to up retail in 2026? - Management cited expected interest rate cuts and improving retail financing conditions as key factors supporting their outlook for 2026 [43][44] Question: How should we think about inventory levels for 2026? - Management expects pipeline units to be flat to slightly reduced, aiming to match wholesale and retail [46][48] Question: How is the company addressing competitive inventory levels? - Management noted solid ordering and a healthy pipeline, indicating no evidence of dealers holding back on orders [49] Question: What are the dynamics affecting retail sales and replacement rates? - Management highlighted a significant gap between new boat sales and replacement rates, suggesting a natural pull for retail sales [53] Question: How is the propulsion business performing with OEM customers? - Management reported strong performance and share gains in the propulsion segment, with new multi-year agreements with OEMs [61][62]

Financial Data and Key Metrics Changes - Brunswick finished 2025 with net sales of $5.4 billion, up 2% year-over-year, marking the first full-year sales growth in three years [4][15] - Adjusted earnings per share (EPS) for the year was $3.27, impacted by tariff headwinds, with free cash flow generation reaching $442 million, a 56% increase year-over-year [4][17] - The company reported a 41% increase in Q4 earnings compared to the prior year, driven by higher sales and operational improvements [15] Business Line Data and Key Metrics Changes - The propulsion segment saw a 23% increase in sales, with double-digit growth across all product categories [17][21] - The aftermarket parts and accessories (P&A) business grew sales by 15% in Q4, marking the third consecutive quarter of growth [19] - The boat segment reported an 11% sales increase, with growth across premium, core, and value categories [22] Market Data and Key Metrics Changes - The U.S. retail boat market finished the year down approximately 9% in units, while Brunswick's global retail unit sales were down only 5% [3][10] - Dealer inventories remained low, with a high percentage of recent model year products, supporting a favorable retail environment [4][10] - Brunswick's market share in the U.S. outboard segment remained stable at approximately 47%, with gains in higher horsepower engines [11] Company Strategy and Development Direction - Brunswick plans to continue driving operational efficiencies and investing in new products, with a focus on maintaining a competitive edge in the market [23][31] - The company anticipates a flat to slightly up U.S. retail boat market in 2026, with expectations for improved wholesale sales to match retail [24][28] - Strategic actions include a focus on new product launches and maintaining strong relationships with OEMs, particularly in Europe [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved market conditions for 2026, supported by early season retail strength and falling interest rates [5][8] - The company noted that tariff mitigation actions successfully offset over half of the gross dollar exposure, with expectations for further incremental tariff costs in 2026 [9][28] - Management highlighted the importance of maintaining a strong balance sheet and financial flexibility to support growth initiatives [12][13] Other Important Information - Brunswick's liquidity at year-end was $1.3 billion, including access to an undrawn revolving credit facility [13] - The company plans to return capital to shareholders through dividends and share repurchases, with a slight dividend increase anticipated [30] - Brunswick received multiple awards for its products and innovations at recent trade shows, enhancing its brand reputation [35] Q&A Session Summary Question: Retail performance in Q4 and outlook for 2026 - Management indicated that retail performance was flat in Q4, with continued strength in premium and core brands, and expressed confidence in a flat to up retail market for 2026 due to anticipated interest rate cuts [39][41][43] Question: Inventory levels and wholesale vs retail dynamics - Management expects pipeline units to be flat to slightly reduced in 2026, aiming to match wholesale and retail [46][48] Question: Market share opportunities and competitive dynamics - Management believes Brunswick has a long-term structural advantage due to tariffs impacting competitors, with expectations for steady market share gains [88][90] Question: Tariff impacts and financial guidance - Management provided insights on the expected incremental tariff costs for 2026, estimating a $35-$45 million impact, primarily in Q1 [73][79]

Financial Data and Key Metrics Changes - Brunswick Corporation reported net sales of $5.4 billion for 2025, a 2% increase over the prior year, marking the first full-year net sales growth in three years [4] - Adjusted earnings per share (EPS) for 2025 was $3.27, impacted by tariff headwinds, with free cash flow generation reaching $442 million, a 56% increase year-over-year [4][18] - The company achieved a 41% increase in Q4 earnings compared to the prior year, driven by higher sales and operational improvements [16] Business Line Data and Key Metrics Changes - The propulsion segment saw a 23% increase in sales, with double-digit growth across all product categories, driven by strong OEM orders [18] - The aftermarket parts and accessories (P&A) business grew sales by 15% in Q4, marking the third consecutive quarter of growth [19] - The boat segment reported an 11% sales increase, with growth across premium, core, and value categories [22] Market Data and Key Metrics Changes - The U.S. retail boat market finished 2025 down approximately 9% in units, while Brunswick's global retail unit sales were down only 5% [3][11] - Mercury Marine maintained a leading U.S. retail outboard share of approximately 47%, gaining 70 basis points in the second half of the year [12] - Dealer inventories remained low, with Brunswick's pipelines down approximately 2,200 units from the previous year [12] Company Strategy and Development Direction - Brunswick plans to leverage improved market conditions in 2026, with expectations for a flat to slightly up U.S. retail boat market [23] - The company is focusing on operational efficiencies and new product introductions, including the Mercury 808 outboard engine concept [6][31] - Brunswick aims to continue returning capital to shareholders while investing in new products and technology [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved market conditions for 2026, supported by falling interest rates and strong retail demand [5][9] - The company anticipates further incremental tariff costs of approximately $35-$45 million in 2026, net of mitigation actions [10] - Management noted that the retail financing rates have decreased to around 7.5%, down from 9%-10% at the peak, which is expected to benefit consumer purchasing power [37][55] Other Important Information - Brunswick's liquidity at year-end was $1.3 billion, including access to an undrawn revolving credit facility [15] - The company plans to retire approximately $160 million of debt in 2026, contributing to a net debt leverage target of 2.5x or lower by year-end [29] - Brunswick received multiple awards for its products and innovations, including recognition at the Consumer Electronics Show [33] Q&A Session Summary Question: What was the retail performance in the fourth quarter? - Management indicated that retail performance was flat, with continued strength in premium and core brands, and some recovery in value products [36] Question: How should we think about inventory levels for 2026? - Management expects inventory levels to be flat to slightly reduced, aiming to match wholesale and retail [39] Question: What can you tell us about repeat buyer behavior and deferred trade-up cycles? - Management noted a significant gap between new boat sales and replacement rates, suggesting potential for increased retail demand as conditions normalize [42] Question: Can you discuss the growth in sales to OEM customers? - Management confirmed that Brunswick's boat brands are gaining share, with new multi-year agreements signed with major OEMs in Europe [46] Question: How much of a benefit could come from the potential elimination of IEEPA tariffs? - Management estimated a full-year impact of $20 million-$25 million from IEEPA tariffs, which would be beneficial if eliminated [54]

Q4 2025 Earnings Conference Call JANUARY 29, 2026 BRUNSWICK CORPORATION – EARNINGS RELEASE Forward-Looking Statements Certain statements in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick's business and by their nature address matters that are, to different degrees, uncertain. Words such as "may," "could," "should," "expect," "anticipat ...

Core Viewpoint - Brunswick reported quarterly earnings of $0.58 per share, matching the Zacks Consensus Estimate, and showing a significant increase from $0.24 per share a year ago, indicating strong performance in the leisure and recreation products industry [1] Financial Performance - The company achieved revenues of $1.33 billion for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 8.78% and up from $1.15 billion in the same quarter last year [2] - Over the last four quarters, Brunswick has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - Brunswick shares have increased approximately 13.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $1.31 billion, and for the current fiscal year, it is $4.25 on revenues of $5.53 billion [7] - The estimate revisions trend for Brunswick was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Products industry is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Magna Terra Minerals Inc. has acquired the Oxford Project in northern New Brunswick, which consists of 5 mineral claims totaling 3,400 hectares, enhancing its presence in an emerging gold district [1][3]. Acquisition Details - The acquisition was made through an option agreement, allowing the company to earn a 100% interest by making payments totaling $100,000 over four years, starting with an initial payment of $5,000 [12]. - The Optionor retains a 1.5% net smelter royalty on the sales of metals and minerals mined from the property, with the company having the option to purchase 0.5% of the NSR for $500,000 [12][13]. Project Highlights - The Oxford Project is located 7 kilometers from the Puma Exploration - Kinross Williams Brook gold project and is situated along a 14-kilometer section of the Rocky Brook-Millstream Fault [2][9]. - Previous exploration has revealed high-grade polymetallic mineralization, with grab samples showing up to 59.1 g/t Ag, 8.9% Zn, 5.16% Pb, and 2.71 g/t Au [2][9]. Geological Context - The project is centered on mid-Ordovician felsic volcanic rocks, known to host orogenic gold mineralization, and has seen exploration efforts since 2013 [6][11]. - Historical exploration has identified multiple targets, with significant mineralization discovered through trenching and sampling [7][8]. Future Plans - The technical team will compile historic data and plan a field program for spring/summer 2026 to further explore the project [4]. - The company aims to enhance shareholder value by acquiring early-stage precious and critical metal projects in under-explored regions [3]. Company Overview - Magna Terra Minerals Inc. focuses on precious and critical metals exploration, with projects in Atlantic Canada and Argentina, and aims to minimize shareholder dilution through strategic partnerships [18].

Financial Performance - Brunswick reported full-year net sales of $5,362.8 million, a 2.4% increase compared to FY 2024[3] - For Q4 2025, consolidated net sales reached $1,333.8 million, up 15.5% from $1,154.9 million in Q4 2024[4] - Full-year GAAP diluted EPS was $(2.06), while as adjusted diluted EPS was $3.27, reflecting a 28.4% decrease[3] - The company anticipates 2026 net sales between $5.6 billion and $5.8 billion, with adjusted diluted EPS guidance of $3.80 to $4.40[29] - Total net sales for the company rose by 15.5% to $1,333.8 million in Q4 2025 compared to $1,154.9 million in Q4 2024[40] - For the twelve months ended December 31, 2025, total net sales were $5,362.8 million, a 2.4% increase from $5,237.1 million in 2024[42] Segment Performance - The propulsion segment saw a 23% increase in sales in Q4 2025, driven by strong OEM orders[14] - The engine parts and accessories segment reported a 15% increase in sales, with distribution business sales up 22%[15] - The Propulsion segment saw a 23.1% increase in net sales to $556.6 million in Q4 2025, with an operating margin of 6.5%[39] - The Boat segment's net sales increased by 11.2% to $387.3 million in Q4 2025 from $348.3 million in Q4 2024[44] - Engine Parts & Accessories Segment net sales increased by 4.9% to $1,217.5 million in 2025 from $1,160.8 million in 2024[45] - The Engine Parts & Accessories segment reported a 15.3% increase in net sales to $260.7 million in Q4 2025 compared to $226.2 million in Q4 2024[43] - Boat Segment net sales decreased by 1.8% to $1,525.2 million in 2025 from $1,553.5 million in 2024, with GAAP operating earnings dropping by 49.1% to $32.2 million[45] Cash Flow and Liquidity - Brunswick's free cash flow for 2025 was $442 million, supporting investments in new products and technology[6] - Cash and cash equivalents at the end of the period were $256.8 million, down from $269.0 million in 2024, reflecting a net decrease of $11.1 million[48] - Free cash flow improved to $442.2 million in 2025, compared to $284.3 million in 2024, indicating stronger cash generation from operations[48] - Net cash provided by operating activities of continuing operations rose to $585.7 million in 2025 from $449.5 million in 2024, showing improved operational efficiency[48] Operating Earnings - Operating earnings for Q4 2025 were $41.9 million, a significant recovery from a loss of $55.7 million in Q4 2024[36] - The company achieved an adjusted operating margin of 5.0% for Q4 2025, compared to an adjusted operating margin of 4.1% in Q4 2024[38] - Adjusted operating earnings for the total company increased by 41.1% to $66.6 million in Q4 2025 from $47.2 million in Q4 2024[40] - Brunswick's total operating earnings for the twelve months ended December 31, 2025, were $371.1 million, compared to $495.4 million in 2024[38] Corporate Developments - Freedom Boat Club expanded to 442 global locations, with member trips increasing by 5% over 2024[11] - The company is focused on integrating acquisitions and enhancing its product offerings to drive future growth and innovation[35] Cost and Expenses - The cost of sales increased by 14% to $1,026.0 million in Q4 2025, compared to $901.7 million in Q4 2024[36] - Research and development expenses rose by 15% to $45.0 million in Q4 2025, while total R&D expenses for the twelve months ended December 31, 2025, were $168.7 million, a slight decrease of 1% from $169.6 million in 2024[36] Balance Sheet and Capitalization - Brunswick's cash and marketable securities totaled $275.7 million at the end of 2025, down $11.0 million from the previous year[18] - Total assets decreased to $5,312.2 million in 2025 from $5,677.7 million in 2024, primarily due to a reduction in goodwill and other intangibles[47] - The debt-to-capitalization rate increased to 56.4% in 2025 from 55.3% in 2024, indicating a higher leverage position[47] - Total current liabilities increased to $1,428.7 million in 2025 from $1,279.9 million in 2024, driven by higher accrued expenses and short-term debt[47] Earnings and Losses - The net earnings from continuing operations for Q4 2025 were $18.6 million, compared to a loss of $71.2 million in Q4 2024[36] - Brunswick's diluted earnings per share for Q4 2025 were $0.28, recovering from a loss of $1.07 per share in Q4 2024[37] - The Propulsion segment's adjusted operating earnings decreased by 23.4% to $195.5 million for the twelve months ended December 31, 2025, compared to $255.2 million in 2024[44] - Corporate/Other segment reported an adjusted operating loss of $37.5 million in Q4 2025, worsening by 36.9% from a loss of $27.4 million in Q4 2024[44] - Navico Group Segment reported a GAAP operating loss of $339.6 million in 2025, compared to a loss of $100.6 million in 2024, reflecting a significant increase in restructuring charges[45] - Corporate/Other segment GAAP operating loss widened to $146.6 million in 2025 from $113.6 million in 2024, marking a 29.0% increase[46]

Core Viewpoint - Brunswick Corporation has released its fourth quarter and full-year 2025 financial results, indicating a focus on innovation and leadership in the marine recreation industry [1]. Financial Results - The complete financial results press release is available on the company's website and will also be filed with the SEC [1]. - A conference call to discuss these results is scheduled for January 29, 2026, at 10 a.m. CT / 11 a.m. ET [2]. Conference Call Details - The conference call will be hosted by key executives including the CEO and CFO, with a presentation available during the call [2]. - Participants can access the call via telephone or through a webcast on the company's website [3][4]. Company Overview - Brunswick Corporation is a global leader in marine recreation, offering technology-driven solutions and a diverse portfolio of over 60 brands [5]. - The company focuses on innovation and consumer insights, aiming to redefine the future of the marine industry [5]. - Brunswick operates in 26 countries with approximately 14,000 employees and has received over 100 awards in 2025 [5].